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HomeMy WebLinkAboutReso 97-64 - Establishing a 23% Interim Electric Rate Surcharge � � RESOLUTION NO. 97-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDII�G ESTABLISHING A 23% INTERIM ELECTRIC RATE SURCHARGE. WHEREAS, restructuring of the electric industry in California has been imposed by the State Legislature by the passage in 1996 of Assembly Bill 1890; and WHEREAS,the City of Redding's Electric Utility is subject to the sweeping provisions of AB 1890 relating to deregulation and rate reduction through �ompetition; and WHEREAS, the Electric Utility Audit Review Committee, comprised of citizens of the City of Redding, after completing a study of the City's Electric Utility and its financial position in relation to the impact of AB 1890, has recommended to the City Council that it adopt an "interim rate surcharge" of 23% until the fiscal year 2004/O5; and WHEREAS, a duly noticed public hearing has been held on April 1, 1997, to consider the adoption of an interim rate surcharge of 23% and alternatives thereto; NOW,THEREFORE,BE IT 12ESOLVED by the City Council of the City of Redding that effective 6mmediately, an interim elec;tric rate surcharge of 23% of existing electric rates is adopted, to be added to existing electric rates and coliected for deposit to the City's Electric Rate Reduction Account pursuant to City Council Policy Number 1405. Proceeds from this account shall be used solely for the purpose of industry restructuring, including, without limitation, debt restructuring or repayment, unless otherwise directed by the City Co�mcil; but in no case shall proceeds from this fund be used for non-Electric Utility purposes. This surcharge shall automatically terminate when available funds in the Rate Reduction Account total $200,000,000, unless the City Council takes action to extend the rate surcharge. I HEF.EBY CE�tTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the lst day of April, 1997, and was duly adopted at said mee4i7g by the following vote: AYES: COUNCIL MEMB�RS: P. Anderson, Murray and McGeorge NOES: �'OUNCIL MEIVIB�RS: R. Anderson and Kehoe �BSF,NT: COIJNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None u�G DAVID . cGE GE, yor � City of Redding � ATTEST: FORM AP 'DVED: � - ��Lr�.��,� -��� � '� . /� , �;ONNIE STROHMAYER rty lerk W. LEONARD WIN� E, City Attorney � � Rescinded by Resolution 02-98