HomeMy WebLinkAboutReso 97-204 - Amending Council Policy No. 1407, Electric Utility Lifeline Rate, Eff 12/01/97 �° ' . •
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RESOLUTION NO. 97-�.�J 5�
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AMENDING COUNCIL POLICY NO. 1407, ELECTRIC
UTILITY LIFELINE RATE, EFFECTIVE DECEMBER 1, 1997.
W�IEItEAS, on May 6, 1997, the City Council adopted Policy No. 1407 establishing a Lifeline
Rate for the Electric Utility; and
WHEREAS, the City Council wishes to amend the policy to allow more customers to qualify;
THEREFORE, BE I� RESOLVED by the City Council that effective December 1, 1997,
Council Policy 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 1407.
I HEREBY CERTIFI' that the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council on the 18th day of November, 1997, by the following vote:
A�'ES: COUNCIL MEMBERS: Anderson, Kehoe, McGeorge and Murray
NOES: COUNCI� 1VIEMBERS: None
ABSEN�': COUNCIL MEMBERS: None
ABSTAIN: COUNCIL 1VIEMBERS: None
N M Y M or
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Attest: Form Approved: �
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Connie Strohmayer, City le W. Leonard Wingate Ci Attorney
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. � Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Electric Utility Lifeline Rates 97-082 1407 05-06-97 1
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 Chazge, the
Interim Rate Surcharge, and the first 600 kWh usage for qualified customers as computed using
the standard Residential Rate. The Lifeline Rate shall 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
which 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 vcrq-}ow income level limits most
recently published by the
Citv of Redding and as determined by the number of household members. �crp�orov The income
level limit is set at 56% 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 Chazge" as
mandated by California AB 1890, the Electric Industry restructuring bill.
6. The Lifeline Rate shall be subject to all provisions of the Residential Rate of the City of Redding
Electric Utility regarding chazacter of service, taxes, and paytnent.
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��� � Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Electric Utility Lifeline Rates 97-082 1407 05-06-97 2
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 maximum savings for any household is�{r.$�$�annually (�i-� 12.2 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 for which funds are available will
be established. When that number is reached,qualified customers will be added to a waiting list.
As available spaces allow, 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 grog�
Qualifications at the time the nace 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 Utility Director, for any of the following conditions:
a. Service is discontinued for nonpayment of acco�ant.
b. Any evidence of service tampering or meter tampering.
c. Failure to re-certify qualification annually or at any other 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 Director of the Electric Utility,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 sepazate 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.
9. Determination of eligibility:
To be eligible for the Lifeline Rate, the applicant must meet all of the following criteria:
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���. � � C/TY OF RED�'NG, CAL/FORNIA �
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'::. � Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Electric Utility Lifeline Rates 97-082 1407 05-06-97 3
a. �he total annual a ' t gross income for all persons in the applicant's household may
not exceed the following limits based on household size:
Number of Persons Maximum Annual
►n Household Household Income
1 �sg $19.371
2 �56 Z..l��Z1
3 -i 6;Z56 2 71
4 �-8�959 24.771
5 �-'};596 2 22
6 �;459 27.671
� z��,�#66 29.121
g z-�;8-56 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),�c anv other private or Dublic source of long term disabilitv 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 gros� ann„al inrnmP Will b allowed for a�plicants with
medtcal needs for electnc gowered equibment at the rate of 350 per household member with
medical needs. The Citv of Redding reserves the right to require proof of inedical need
Amended on bv Resolution No
council\300.97:mw
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