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HomeMy WebLinkAboutReso 96-216 - Suspending the Electric Utility Winter Rate Schedule Indefinetely, Eff with the Jan 1997 Billing Cycle . ' ; -' ., � • .�„� RESOLUTION NO. 96- Z/(o A RESOLUTION OF THE CITY COUNCII, OF THE CITY OF REDDING SUSPENDING THE ELECTRIC UTILITY WINTER RATE SCHEDULE INDEFINITELY, EFFECTIVE WITH THE JANUARY 1997 BILLING CYCLE, WITH THE PROCEEDS OF THE RESULTANT RATE INCREASE FOR THE JANUARY THROUGH APRII, 1997 BILLING CYCLES—AND DURING THE WINTER BILLING CYCLES OF NOVEMBER THROUGH APRIL IN THE YEARS 1997/98 AND FOLLOWING—TO BE DEPOSITED INTO THE DEBT REDUCTION FUND PURSUANT TO COUNCIL POLICY 1405. WHEREAS, Section 16.12.320 of the Redding Municipal Code provides that the City Council shall establish electric utility rates by resolution; and WHEREAS, the City of Redding Municipal Utilities Schedule of Rates contains a winter rate schedule; and WHEREAS, the City Council has carefully reviewed the existing Electric Utility rate structure, the proposed increased costs of wholesale power to the City, and the power resource development and capital improvement programs of the Electric Department; and WHEREAS, a public hearing regarding the Electric Utility rate structure and the suspension of the winter rate schedule indefinitely was held on this date, prior to the adoption of this resolution; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING FINDS, DETERMINES, AND RESOLVES AS FOLLOWS: 1. The City Council finds and determines that: A. Effective with the January 1997 billing cycle, the Electric Utility winter rate schedule be � suspended indefinitely, resulting in a rate increase of ten (10) percent for the January � through April 1997 billing cycles, and during the winter billing cycles of November � through April in the years 1997/98 and following. � ' V B. The resultant rate increase of ten (10) percent during the billing cycles in which the \ winter rate schedule is suspended is necessary to reduce debt that needs to be paid off �. earlier than anticipated in order for the Electric Utility to have competitive electric rates after the year 2001. .� � : � � , C. The provisions of the California Environmental Quality Act do not apply to the resultant increase in the Electric Utility rates during the billing cycles in which the winter rate schedule is suspended, as the increase is for the purpose of, inter alia, meeting operating expenses. D. The resultant rate increase of ten (10) percent during the billing cycles in which the winter rate schedule is suspended is not expected to exceed the governmental costs in providing the services for the January through April 1997 billing cycles, and during the winter billing cycles of November through April in the years 1997/98 and following. 3. The proceeds from this resultant rate increase will be deposited into the Debt Reduction Fund pursuant to Council Policy 1405. 4. Staff is directed to appropriately amend the City of Redding, California, Municipal Utilities Schedule of Rates. 5. The City Clerk and the Finance Officer of the City of Redding are directed to maintain available certified copies of this resolution in their respective offices for inspection and review by interested persons. I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular meeting of the City Council on the 3rd day of December, 1996, by the following vote: AYES: COUNCILMEMBERS: P. Anderson, R. Anderson, Kehoe, Murray and McGeorge NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None _ � , � ; DAVID . EORGjE ayo ti�test: Form Approved: �. / /�2� c � ����� � �CUni�i: �trolarnay�r, C' Clerk W. Leonard Wing te, ity Attorney 2 ...: ....,... _. _. ... ....,