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Home My WebLink AboutReso 2010-179 - Electric Utility rates ~~ <~ - - RESOLUTION NO. 2010 - 179 A RESOLUTION OF THE CITY COUNCIL OFTHE CITY OF REDDING ESTABLISHING THE ELECTRIC UTILITY RATES FOR SERVICE TO CUSTOMERS WITHIN THE CORPORATE LIMITS OF THE CITY OF REDDING EFFECTIVE JANUARY 3, 2011, AND DECEMBER 1, 2011, AND MODIFYING THE SECTION ENTITLED "RENEWABLE RESOURCE NET-METERING SERVICE" AND ADDING A NEW SECTION ENTITLED "STADIUM LIGHTING SERVICE" WHEREAS: A. Section 14.22.170 of the Redding Municipal Code provides that the City Council shall establish Electric Utility rates by Resolution; and B. For the reasons set out in the Report to City Council, it has been recommended that the City Council adopt new, increased Electric Utility rates incorporated herein by reference; and C. The City Council has carefully considered this recommendation, reviewed the existing Electric Utility rate structures, studied the tariffs required to cover the adjustments for 2011 and 2012, 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, the City Council hereby approves a 7.84 percent rate increase effective for usage beginning on the first day of the first electric billing cycle of January 2011, and a subsequent 7.84 percent rate increase effective for usage beginning on the first day of the first electric billing cycle of December 2011, and directs staff to appropriately amend the Electric Utility rate tariffs. 2. Approves and directs staffto appropriately amend the Electric Utility Schedule of Rates by modifying the attached section in the Electric Utility Schedule of Rates entitled RENEWABLE RESOURCE NET-METERING SERVICE, and inserting the attached new section in the Electric Utility Schedule of Rates entitled STADIUM LIGHTING SERVICE, as well as renaming "service charge" to "network access charge" for' all rate classes. 3. That the purposes for the imposition of the increases and other changes are as follows: (1) to meet operating expenses 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; (5) to meet required state and federal mandates; and (6) to obtain funds necessary to maintain such intra-City transfers as authorized by law. ~ C3 \ ::r -0 4. That the City Clerk and the Finance Officer of the City of Redding be hereby directed to maintain available certified copies of this Resolution in their respective offices for inspection and review by any interested person or persons. J._~-~ ," e e I HEREBY CERTIFY that the foregoing Resolution was introduced and read at the regular meeting of the City Council of Redding on the 7th day of December, 2010, and was duly adopted at said meeting by the following vote: . AYES: NOES: ABSENT: ABSTAIN: Attest:~, . '4 ?~ ..~ .~ -.~... COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: I')' I, J, ~ ~,; I . 1 .' '10 }~../ ;:... 1))';>- I- ,. . <i\ Bosetti, Dickerson, Sullivan, and McArthur Jones None None Approved to Form: -/2Y".n" ~ RICHARD A. DUVERNA , City Attorney -.1._..... -;;. REN~ABLE RESOURCE NET -METEme SERVICE APPLICABILITY. The renewable resource net metering tariff is applicable to residential customers and commercial customers where a part or all of the electrical requirements of the customer can be supplied from a solar thermal, solar photovoltaic and/or wind generator (generator) of not more than 1,000 kilowatts that is owned and operated by the customer. The generator must be connected for parallel operation with the service of REU, it must be located on the customer's premises, and it must be intended to offset part or all of the customer's electrical requirements. Customers on this tariff will be net metered. Net energy metering is measuring the difference between the electricity supplied through the electric grid and the electricity generated by an eligible customer-generator and fed back to the grid over a 12-month period. Customers whose solar and/or wind power production source's rated capacity or capability exceeds 10 kW, up to 1,000 kW or 1 megawatt, could require development ofa co-metering tariff with REU, per statutory requirements, at the sole discretion ofREU. CHARGES A monthly statement on the applicable residential or commercial service, energy and demand charges will be established for all customers operating under the Net Metering Tariff, plus or minus any adjustments incorporated in this rate schedule or supplement hereto. The eligible customer-generator shall be billed each month for the applicable monthly service charges. Residential and small commercial customers operating under this service will receive an estimate of net energy charges and/or demand charges due to REU. At the end of the twelve (12) billing cycles following the date of the generator's final interconnection with the Utility's system and at the end of each successive twelve (12) billing cycles thereafter, the customer shall receive a bill for any applicable charges for electricity used duringthe previous 12 month period that are unpaid. The customer-generator shall be compensated for any net surplus energy transmitted during the preview 12 month period per Special Conditions #3 below. Large Commercial customers will be provided monthly bills for all applicable services, per State Law. SPECIAL CONDITIONS 1. Generation Interconnection Agreement: An interconnection agreement with the customer is required for service under this schedule. The customer must comply with conditions and terms set forth by REU for the safe and efficient interconnection of equipment with the REU electrical system. 2. Net Energy: 'Net energy is Es minus EF where Es is energy supplied by REU and EFis energy generated by the customer and fed back into REV's system at such times as customer generation exceeds customer requirements. If the net energy value resulting from the above computation is positive, an energy charge shall be applied at the rates specified above. If the calculation of net energy yields a negative result, all such net surplus energy shall be Effective January 2011 -".J '-' RENEWABLE RESOUR~ET -METERING SERVICE .tinned) considered net surplus energy transmitted and shall be treated as stated in Special Condition No.3 below. The components of net energy, Es and EF, shall be determined by the use of metering equipment best suited for the each facility or location, as determined by RED. All necessary labor, equipment, materials, and related facilities costs in addition to, or in substitution for, standard City facilities that are required in order to take and sell power through one meter socket, will be at the customer's expense. 3. Net Surplus Energy Transmitted: Net energy transmitted occurs when the cumulative value ofEF exceeds the cumulative value of Es during the entire billing period and is the amount by which the energy generated by the customer and fed back into RED's system exceeds the energy supplied by RED over an entire billing period. In the event the energy generated exceeds the energy consumed during the 12-month period, payment will be made for the net surplus energy delivered to RED's grid. This compensation will be based on RED's current avoided cost for energy. This is initially set at 5.5 cents per kWh and will be updated administratively on an annual basis. 4. Payment: Statements of any and all monthly service costs will be provided monthly and bills for service will be rendered annually to customers receiving service under the Residential or Small Commercialtariffs outlined herein, per State Law. However, such customers operating under this rate schedule will be allowed to. provide periodic (e.g. monthly or bi-monthly) payments for services rendered, if applicable, to avoid an unbudgeted utility expense. Large Commercial customers will be provided monthly bills for all services received under this service, per State Law. 5. Renewable Energy Credits:, RED shall retain all renewable energy credits and greenhouse gas credits associated with each watt of solar PV installed under RED's existing rebate program as allowed under State Law. Effective January 2011 fjl t... e STADIUM LIGHTING SERvAI APPLICABILITY This service is applicable, at REU's option, to all customers with a separately metered outdoor lighting load. This could include but not be limited to, stadium lighting, playing field lighting, parking lot lighting, etc. This service would be applicable to those customers who otherwise would be on the Large Commercial Service. It is assumed that these lights would be primarily used during off peak hours. REU reserves the right to deny access to this service if it is deemed that the usage is affecting the peak load of the system. CHARGES The customer will be billed for all energy service purchased from REUunder the Large Commercial Service rate schedule except that the demand charge would be waived. This energy structure for commercial lighting services is made to provide overall service cost reductions and economic incentives for commercial customers operating a lighting load primarily during the off peak time of day. CHARACTER OF SERVICE The service is characterized by single-phase or three-phase, 60 hertz, and at one standard nominal voltage as mutually agreed by REU and the customer and subject to availability at the point of delivery. Effective January 2011