HomeMy WebLinkAboutReso 2003-026 - Establish Utility ratesRESOLUTION NO. 2003- f--..O
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 MARCH 28, 2003, FOLLOWED BY COST-OF-
DOING-BUSINESS ADJUSTMENTS ON JANUARY 1, 2004 AND 2005.
WHEREAS, Section 14.22.170 of the Redding Municipal Code provides that the City
Council shall establish electric utility rates by resolution; and
WHEREAS, for the reasons set out in the accompanying Report to Council, it has been
recommended that the City Council adopt new, increased electric utility rates as set forth in Exhibit
"A" attached hereto and incorporated herein by reference; and
WHEREAS, the City Councilhas carefully considered this recommendation; and reviewed
the existing electric utility rate structure; conducted a public heating on said matters; and studied the
tariff required to cover the State-mandated Public Benefit Program, the proposed increases to the
customer service charge, a cost-of-doing-business adjustment, an increase in the Lifeline discount,
a separation of the commercial services, a modification of the Time-of-Use service, and the
elimination of the Peak Load Reduction and Industrial Interruptible services; and
WHEREAS, the City Council deems it to be in the best interests of the City of Redding to
establish the new, increased electric rates as proposed;
NOW, THEREFORE, liT IS HEREBY RESOLVED that the City Council of the City of
Redding, pursuant to Section 14.22.170 of the Redding Municipal Code, hereby approves a 6.9
percent rate increase effective Ivlarch 28, 2003, and subsequent 4 percent rate increases effective
January 1, 2004, and January 1, 2005.
BE IT FURTHER RESOLVED that:
The City Council directs staff to appropriately amend the Electric Utility rate tariffs to reflect
changes in the Lifeline service, the separation of the Commercial services, the modifications
of the Time-of-Use service, and the elimination of the Peak Load Reduction and Industrial
Interruptible services.
The purposes for the imposition of these increases are as follows: (1) to cover the costs of
the State-mandated Public Benefits Program; (2) an adjustment to the customer Service
charge to cover the costs of reading electric meters, issuing bills, collecting revenues, and
processing charges; (3) meeting operating expenses, including wage rates and benefits; (4)
meeting financial reserve needs and requirements; (5) obtaining funds for capital projects
necessary tO maintain service reliability; (6) meeting the costs of purchased power; and (7)
obtaining funds necessary to maintain such intra-City transfers as are authorized by law.
Co
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 any interested person or persons.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at
the regular meeting of the City Council of the City of Redding on the 18th day of February, 2003, by
the following vote:
AYES: COUNCIL MEMBERS: Kight,
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
Mathena, Pohlmeyer, Stegall and Cibula
MAYOR
A TTESTf , ",.
COmWE ?E V Ci . Clert,
FORM APPROVED:
BRAD FULLER, City Attorney
2
EXHIBIT A
REDDING ELECTRIC UTILITY
PROPOSED RATE REVISION SUMMARY
Customer Sector
Residential
Service Charge
Energy Rate
Residential Lifeline
% Discount
Small Commercial
Service Charge
Energy Rate
Large Commercial
Service Charge
Energy Rate - 1st 15,000
- all other
Demand Charge
Time of Use Customers
Hours
Rates
Interruptible Incentive &
Peak Load Reduction Rates
CURRENT
$ 3.11 /month
7.739 cents/kWh
20% on 1st
600 kWh
$ 3.05 /month
8.668 cents/kWh
$ 4.58 /month
8.668 'cents/kWh
4.025 cents/kWh
$14.32 /kW
4 hours/day
Complicated
Under used and
costly to operate
PROPOSED
$ 5.25 /month
8.15 cents/kWh
25% on 1st
600 kWh
$ 5.20 /month
9.13 cents/kWh
$12.00 /month
9.13 cents/kWh
4.24 cents/kWh
$15.08 /kW
6 hours/day
Simplified
Case-by-Case
contracts wi customers
CHANGE
$ 2.14 /month
0.411 cents/kWh
· 5% on 1st
600 kWh
$ 2.15 /month
0.459 cents/kWh
$ 7.42 /month
0.459 cents/kWh
0.213 cents/kWh
$ O.76 /kW
2 hours/day
Better
EXHIBIT B
REDDING ELECTRIC UTILITY
RESIDENTIAL RATE COMPARISON
Proposed
PG&E REU Charges REU Savings
Residential (gas & electric baseline)
850 kwh/mo $1,705 /year $894 /year $811 /year
$142.09 /month $74.53 /month $67.56 /month
16.72 c/kWh 8.77 c/kWh 7.95 c/kWh
48% < PG&E
1,500 kwh/mo $3,583 /year $1,530 /year $2,053 /year
$298.58 /month $127.50 /month $171.08 /month
19.91 c/kWh 8.50 c/kWh 11.41 c/kWh
57% < PG&E
Notes: Typical residential customer of REU uses approximately 850 kWh/mo.
Charges shown above include monthly service charges.