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HomeMy WebLinkAboutReso 97-82 - Adopting Council Policy No. 1407: Electric Utility Lifeline Rate �i s. . .,., � • � RESOLUTION NO. 97- s 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ADOPTING COUNCIL POLICY NO. 1407: ELECTRIC UTILITY LIFELINE RATE. WHEREAS, the City Council is charged with the responsibility of establishing municipal policies to guide the various functions of the City and, where necessary, to establish procedures by which functions are performed; and WI3EREAS, the City Council wishes to formalize a policy, which it approved in concept at its meeting of April 15, 1997, establishing an Electric Utility Lifeline Rate; IT IS THEREFORE RESOLVED that the City Council adopts the attached Council Policy 1407 entitled Electric Utility Lifeline Rate, to be incorporated in the Council Policy Manual. I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular meeting of the City Council on the 6th day of May, 1997, by the following vote: AYES: COUNCIL MEMBERS: R. Anderson, Kehoe, McGeorge, Murray' and P. Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None T�,�+� Q- PATRICIA A. ANDERSON, Mayor � Attest: Form Approved: � � � � . i��; ��� � , � �� ��z���������� � � Cannie Stra mayer, Ci erk W. Leonard Wingate,� ' Attorney � .__. .......... .. ... . _ . . �� A � • • CITY OF REDDING, CALIFORNIA Council Policy SUBJECT RESOLUTION POLICY NUMBER EFFECTIVE DATE NUMBER Electric Utility 14 0 7 4/26/97 Lifeline Rate 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 Council enacted an interim rate surcharge to ensure the Electric Utility's long term competitiveness. The Council recognizes that the effect of the surcharge on certain customers could be severe. Therefore, the Council instituted a Lifeline Rate Program for the City of Redding Electric Utility. Pur�ose 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. Policv l. 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 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 very low income level limits most recently published by the California State Department of Housing and Community Development and as determined by the number of household members. Very low income is set at SO% of inedian income level for the area. r • • • ,, . 4. For qualified applicants, who apply before July 5, 1997, the Lifeline Rate will be retroactive to April 26, 1997. 5. Funds for this program will be considered to be applicable to the "Public Goods Charge" as mandated by California AB1890, 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 character of service, taxes, and payment. 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 $146.04 annually ($12.17 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 allow, they will be filled from the beginning of the list, according to the applicants date of qualification for the Lifeline Rate. 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 the any of the following conditions: 1. Service is discontinued for non-payment of account. 2. Any evidence of service tampering or meter tampering. 3. Failure to re-certify qualification annually or at any other time requested to do so by the City of Redding. 4. 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 separate agreement with the City which provides that any crediY would be fi�ily passed through to the qualifying households. Included in this category would be mobile home parks, senior housing residence, and non-profit housing of qualified households. 9. Determination of eligibility: To be eligible far the Lifeline Rate, the applicant must meet all of the following cri feria: A. The total annual gross income for all persons in the applicant's household may not exceed the following limits based on household size. Number of Persons in Household Maximum Annual Household Income 1 $12,650 2 14,450 3 16,250 4 18,050 5 19,500 6 20,950 7 22,400 8 23,850 each additional person 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. 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.