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HomeMy WebLinkAboutReso 2007-053 - Electric Utility Rates - e ! RESOLUTION NO. 2007 - 53 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ESTABLISHING THE ELECTRIC UTILITY RATES FOR SERVICE TO CUSTOMERS WITHIN THE CORPORATE LIMITS OF THE CITY OF REDDING, EFFECTIVE APRIL 4, 2007, AND JANUARY 2008. WHEREAS: A. Section 14.22.170 ofthe Redding Municipal Code provides that the City Council shall establish electric utility rates by Resolution; and B. For the reasons set out in the attached Report to Council, it has been recommended that the City Council adopt new, increased electric utility rates incorporated herein by reference; implement a special SB 1 Surcharge to fund the State-mandated Solar Program Initiative; approve changes to the Lifeline Rate; and approve a new co-generation standby capacity charge; and C. The City Council has carefully considered this recommendation; reviewed the existing electric utility rate structures; studied the tariffs required to cover cost-of-doing-business adjustments for 2007 and 2008; reviewed the need for a Solar Program Surcharge; reviewed the need for a co-generation standby capacity charge; reviewed the need for changes in the Lifeline Rate; and deems it to be in the best interests of the City of Redding to establish the new, revised and adjusted electric rates as proposed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding as follows: 1. Pursuant to Section 14.22.170 of the Redding Municipal Code, Council hereby approves a 5.85% rate increase effective April 4, 2007, and a subsequent 5.85% rate increase effective on the first day of the first electric billing cycle of January 2008, and directs staff to appropriately amend the Electric Utility rate tariffs. 2. Approves implementation of an adjustable electric rate surcharge of$.00125 per kWh effective October 1, 2007, to fund SBl (the state-mandated Solar Program Initiative). This charge will be identified by a separate line item on customers' bills. Lifeline Rate customers will be exempt from this charge. 3. Approves an increase in Lifeline Rate kWhs qualifying for the 25% discount from 600 to 700 per billing period and eliminates the disqualification from the Lifeline Rate for low-income elderly and disabled customers who are receiving housing assistance. 4. Approves a standby capacity charge of $4.00 per kW demand, to be applied to any qualifying installed co-generation facilities of 20 kW or greater. 5. Approves development of a new time-sensitive pricing structure specifically for customers implementing Thermal Energy Storage (TES) technology. 6. That the purposes for the imposition of the increases and other changes are as follows; (1) to meet operating expenses, including wage rates and benefits, and to fund state-mandated programs; (2) to meet financial reserve needs and requirements; (3) to obtain funds for capital projects necessary to maintain service reliability; (4) to meet the costs of purchased power; and (5) to obtain funds necessary to maintain such intra-City transfers as are authorized by law. ~ --..J r1J e e 7. That the City Clerk is hereby directed to make copies of this Resolution available upon request. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at the regular meeting of the City Council of Redding on the 3rd day of April, 2007, and was duly adopted at said meeting by the following vote: AYES: NOES: ABSENT: ABSTAIN: Attest: ' '/ \... COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: }lll J,.) ~,) I "/' , .., ,.. J ~..\~; ',: v ,..... ')~'I"-- c . .r; -' :- "/ -, A~~~ ,,-:.r<\.:- '/ ('..~ ',J .' (~ ,:,- .' ''-' . ,nO ~\" , .....-~. -","" Bosetti, Jones, Murray, Stegall, and Dickerson None None None ~J{~ DICK DICKERSON, Mayor Approved to Form: RIC~~ Attorney