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HomeMy WebLinkAboutReso 93-375 - Amending the Electric Utility Schedule of Rates - as contained in Exhibit A to Reso 92-473; amended by Reso 93-350 by adding a new section entitled "Federal Environmental Surcharge" i RESOLUTION NO. 93- 375 'I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING THE ELECTRIC UTILITY SCHEDULE OF RATES—AS CONTAINED IN EXHIBIT A TO RESOLUTION 92-473; AMENDED BY RESOLUTION 93-350—BY ADDING A NEW SECTION ENTITLED "FEDERAL ENVIRONMENTAL SURCHARGE." 'i WHEREAS, Section 16. 12. 320 of the Redding Municipal Code provides that the City Council shall establish electric utility rates by Resolution; and WHEREAS, on November 19, 1992, by Resolution 92-473 , the i City Council adopted the current Schedule of Rates for the Electric Utility; and 1 WHEREAS, on September 21, 1993 , pursuant to Resolution i 93-350, the City Council amended portions of said Schedule of Rates; and WHEREAS, for the reasons set forth in the attached Report to City Council, it has been recommended that effective November 1 , i 1993 , a new section entitled FEDERAL ENVIRONMENTAL SURCHARGE (FES) be added to said Schedule of Fees; and :I WHEREAS, the City Council has carefully considered this recommendation, and deems it to be in the best interests of the City of Redding to adopt the FEDERAL ENVIRONMENTAL SURCHARGE resulting from HR429 of the 1993 Statutes; NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of Redding, pursuant to the provisions of Section 16. 12 . 320 of the Redding Municipal Code, hereby: 1. Adopts and approves the addition of a new section in the Electric Utility Schedule of Rates entitled FEDERAL ENVIRONMENTAL SURCHARGE, effective November 1, 1993 . cC 2. Directs staff to appropriately amend the Electric Utility Schedule of Rates contained in Exhibit A to i I 1 Resolution 92-473 , amended by Resolution 93-350, by inserting the attached Table of Contents and the section entitled FEDERAL ENVIRONMENTAL SURCHARGE. 3 . Directs the City Clerk and the Director of Finance of the City of Redding to maintain available certified copies of this Resolution in their respective offices for inspection and review by any interested person or persons. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 19th day of October, 1993 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Anderson, Dahl, Kehoe, Moss and Arness NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None CARL ARNESS, Mayor City of Redding ' A EST: CONNIE STROHMAY , City Clerk j FORM APPROVED: I I A6 Iry RA�DALL A. HAYS, City Attorney 2 CITY OF REDDING MUNICIPAL UTILITIES Schedule of Rates I I Table of Contents i ELECTRIC SERVICE Page Residential Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Mobile Home Parks Service . . . . . . . . . . . . . . . . . . . . . . . . . 3 _ Commercial Service . . . . . . . . . . . . . . . 4 Industrial Time-metered Service . . . . . . . . . . . . . . . . . . . 7 Peak Load Reduction Service . . . . . . . . . . . . . . . . . . . . . . . 12 Industrial-interruptible Service . . . . . . . . . . . . . . . . . . 15 Fixed Usage Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Streetlight Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Commercial Heating And General Power Service . . . . . . 24 Power Cost Adjustment 26 Economic Development Service . . . . . . . . . . . . . . . . . . . . . 29 Federal Environmental Surcharge . . . . . . . . . . . . . . . . . . 32 EXHIBI _ CITY OF REDDING MUNICIPAL UTILITIES - SCHEDULE OF RATES FEDERAL ENVIRONMENTAL SURCHARGE (FES) APPLICABILITY To the entire City of Redding service area for all kilowatt-hours billed under all rate schedules. PURPOSE To appropriately adjust for increases and decreases in the Electric Utility's wholesale power costs due to the Federal Environmental Surcharge (FES) imposed by HR429 of the 1993 statutes, which is associated with purchases by the City of Redding from the Department of Energy, Western Area Power Administration (Western) . THE FEDERAL ENVIRONMENTAL SURCHARGE The monthly FES dollar amount to be added to or subtracted from each bill shall be obtained by multiplying the number of kilowatt- hours for which the bill is rendered by the applicable monthly FES Rate. The FES Rate will become effective the first day of the month for which Western imposes the FES and will change from time to time thereafter when changes in the FES are imposed by Western or semi-annually, at such times as the City's summer or winter electric rates go into effect. CALCULATION OF THE FEDERAL ENVIRONMENTAL SURCHARGE RATE A. The FES Rate will be determined by multiplying the retail kilowatt-hour purchases of Western energy for the following six month period as defined in Section A. 1. by the FES rate charged by Western, then by subtracting from the resultant product the FES Balancing Account as defined in Paragraph B, the difference will then be divided by the total projected retail kilowatt- hour sales as defined in Section A. 1. 1. Projected kilowatt-hour sales and purchases for FES calculation purposes shall be. those amounts projected most recently by the Electric Department. 2 . If the calculation of the FES Rate results in a surcharge of less than 0. 01 cents per kilowatt-hour, then the FES Rate will be 0. 00 cents per kilowatt-hour. B. An FES Balancing Account shall be maintained as an operating account for the purposes of accommodating the cash flow fluctuations inherent in the FES process. 1. Each month when a power bill is rendered from Western which includes any adjustment for Western's FES, the account's balance will be calculated as follows: -32- Effective Date: November 1, 1993 a. Subtract Western's monthly FES charge, in dollars, from the balance which existed at the end of the prior month. b. Add the amount, in dollars, recovered from the application of the FES Rate which was effective during the prior month. Such amount shall be the product of kilowatt-hours of energy billed during the month and the applicable FES Rate. C. Add the amount, in dollars, of all interest earned on the average balance of the funds in the FES Balancing Account. i. Funds from the monthly collection of the FES will be invested by the City along with the City's other cash accounts and, therefore, will accrue interest at the average monthly rate paid on the City's variable investment account. A:\100.93 -33- Effective Date: November 1, 1993