HomeMy WebLinkAboutReso 99-009 - Amending Council Policy No. 1407, Electric Utility Lifeline Rate, Eff 01-19-99 �� +� f.
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RESOLUTION NO. 99- '�/
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AMENDING COUNCIL POLICY NO. 1407, ELECTRIC UTILITY LIFELINE RATE,
EFFECTIVE JANUARY 19, 1999
WHEREAS, on May 6, 1997, the City Council adopted Policy No. 1407 establishing a
Lifeline Rate for the Electric Utility;
WHEREAS,on November 18, 1997,the City Council approved Amendment No. 1 to Policy
No. 1407 to allow more customers to qualify; and
WHEREAS,the City Council wishes to amend PolicyNo. 1407 to change the re-certification
process.
THEREFORE, BE IT RESOLVED by the City Council that effective January 19, 1999,
Council Policy No. 1407 entitled Electric Utility Lifeline Rate be amended as set forth in the update
attached hereto and made a part hereof; and that the City of Redding Municipal Utilities Schedule of
Rates be amended to reflect the changes in Policy No. 1407.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at
a regular meeting of the City Council on the 19`�`day of January 1999 by the following vote:
AYES: COUNCILMEMBERS: Cibula , Kight , McGeorge , Pohlmeyer and
NOES: COUNCII, MEMBERS: N o n e A n d e r s o n
ABSENT: COUNCIL MEMBERS: N o n e
ABSTAIN: COUNCIL MEMBERS N o n e
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OBERT C. ANDERSON, Mayor
Attest: Form Approved.•
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Connie Stro rr�ayer, Cit l k ' W. Leonard Wingate Ci Attorney �
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� CITY O� REDDIiVC�, CALIFORi\!lA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Electric Utilit Lifeline ate - - -
Background
The City Council provides financial oversight and fiscal management for the City of Redding Electric
Utility and has authority to establish appropriate rates, fees, and charges to guarantee the financial
integrity of the Utility. Due to electric industry restructuring mandated by the State of California under
Assembly Bill 1890, the City Council enacted an interim rate surcharge to ensure the Electric Utility's
long-term competitiveness. The City Council recognizes that the effect of the surcharge on certain
customers could be severe. Therefore, the City Council instituted a Lifeline Rate Program for the City
of Redding Electric Utility.
Purpose
The purpose of the Lifeline Rate Program is to help mitigate the impact of the interim rate surcharge on
the City's low-income senior citizen and disabled population.
Policy
1. A program will be instituted to provide a discount on electric utility charges to qualified City of
Redding Utility customers.
2. The Lifeline Rate will be a 20% discount on the sum of the Electric Utility Service Charge, the
Interim Rate Surcharge, and the first 600 kWh usage for qualified customers as computed using
the standard Residential Rate. The Lifeline Rate sha11 not be applicable to or available for three-
phase service, resale for profit, temporary construction service, standby or auxiliary service,
service to any single motor exceeding a nameplate rating of 7-'/z horsepower, or any equipment
that will cause excessive voltage fluctuations.
3. The Lifeline Rate will be available to senior citizens(age 62 or older) and to disabled customers
whose maximum household income does not exceed the very low income level limits most
recently published by the City of Redding and as determined by the number of household
members. The income level limit is set at 75% of inedian income level for the area.
4. For qualified applicants, who apply before July 5, 1997, the Lifeline Rate will be retroactive to
Apri126, 1997.
5. Funds for this program will be considered to be applicable to the "Public Goods Charge" as
mandated by California AB 1890, the Electric Industry restructuring bill.
6. The Lifeline Rate sha11 be subject to all provisions of the Residential Rate of the City of Redding
Electric Utility regarding character of service, taxes, and payment.
F-0091-7/93
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CI TY OF REDDIIVG, CALI�ORI�!lA �
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Electric Utilit Lifeline Rate 97-082 140 - -
Procedure
The City Council directs staff to enact the Lifeline Rate Policy as follows:
1. The Lifeline Rate will be in effect until the Interim Rate Surcharge is no longer necessary or until
otherwise directed by City Council.
2. The Lifeline Rate will be available only to individually metered single-phase residential service
provided to any single-family dwelling, apartment, or mobile home.
3. The Lifeline Rate will be available to City of Redding residents only and can only be applied to
one location per qualified household.
4. The ma�cimum savings for any household is $147 annually ($12.25 per month).
5. A waiting list will be established if more customers qualify than funds for the program will allow.
Each budget year a maximum number of households that funds are available for will be
established. When that number is reached, qualified customers will be added to a waiting list.
As available spaces a11ow, they will be filled from the beginning of the list, according to the
applicant's date of qualification for the Lifeline Rate, if the applicant meets the program
qualifications at the time the space becomes available.
6. Benefits under this program can be denied by the City of Redding for a period of up to twelve
months, subject to review by the Electric Utility Director, for any of the following conditions:
a. Service is discontinued for nonpayment of account.
b. Any evidence of service tampering or meter tampering.
c. Failure to re-certify qualification��r at any at�tr time requested to do so by the
City of Redding.
d. False information provided during qualification or re-certification.
7. Application forms shall be developed by the Electric Utility Director, which shall set forth the
minimum criteria to obtain a lifeline credit.
8. Any project that is master-metered shall have the option to enter into a separate agreement with
the City which provides that any credit would be fully passed through to the qualifying
households. Included in this category would be mobile home parks,senior housing residence,and
nonprofit housing of qualified households.
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C/TY OF REDDI �, CALIFOR�I/A
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
9. Determination of eligibility:
To be eligible for the Lifeline Rate, the applicant must meet a11 of the following criteria:
a. The total annual adjusted gross income for all persons in the applicant's household may
not exceed the following limits based on household size:
Number of Persons 1Vlazimum Annual
in Household Household Income
1 $19,371
2 21,171
3 22,971
4 24,771
5 26,221
6 27,671
7 29,121
g 30,571
each additional erson add 1,450
b. The applicant must be a senior citizen(age 62 or older) or, be a disabled or blind person
as evidenced by receiving Supplemental Security Income (SSI) or State Supplemental
Payment (SSP), or any other private or public source of long-term disability benefit.
c. Not be receiving a Federal, State, or City rent subsidy.
10. A policy and procedure manual shall be developed to implement the provisions of the Lifeline
Rate program.
11. A$700 maximum deduction from gross annual income will be allowed for applicants with medical
needs for electric powered equipment at the rate of$350 per household member with medical
needs. The City of Redding reserves the right to require proof of inedical need.
Amended on 11/18/97 bv Resolution No. 97-204
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