HomeMy WebLinkAboutReso 2014-046 - City Council Policy 1407 RESOLUTION NO. 2014-046
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF REDDING AMENDING CITY COUNCIL
POLICY 1407 - ELECTRIC UTILTY LIFELINE RATE
WHEREAS, in April 1997 the City Council adopted Policy 1407 to provide financial relief
by reducing the cost of electric service to the City's low-income population; and
WHEREAS, the City Council wishes to amend Council Policy 1407, Electric Utility
Lifeline Rate, as recommended by the Electric Utility Commission to allow customers to continue
to receive the Lifeline discount even though their electric service may have been discontinued for
nonpayment;
NOW, THEREFRORE, IT IS RESOLVED by the City Council that the City Council
Policy 1407, Electric Utility Lifeline Rate, be amended as set forth in the update attached hereto and
made a part hereof by this reference.
I HEREBY CERTIFY that the foregoing resolution was adopted at a regular meeting of
the City Council of the City of Redding on the 6`h day of May, 2014, by the following vote:
AYES: COUNCIL MEMBERS: Cadd,Jones,McArthur, Sullivan, & Bosetti
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
RI K BOSETTI, Mayor
ATTEST: APPROVED AS TO FORM:
PAMELA_IVIIZr,, Chy'fderk RICHARD A. DUVERNAY, C' Attorney
1
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CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
Electric Utility Lifeline Rates
97-082 1407 1 05-06-97 1
BACKGROUND
The City Council provides financial oversight and fiscal management for the City of Redding Electric
Utility (REU) and has authority to establish appropriate rates, fees, and charges to guarantee the
financial integrity of the Utility. Due to electric industry restructuring mandated by the State of
California under Assembly Bill 1890, passed in September 1996, the City Council enacted an interim rate
surcharge to ensure the Electric Utility's long-term competitiveness. The City Council recognized that
the effect of the surcharge on certain customers could be severe. Therefore, in April 1997 the City
Council passed Resolution 97-082 instituting a Lifeline Rate discount program for REU. This program has
been modified and expanded throughout the years since that time and continues to provide much
needed assistance to our most vulnerable customers.
PURPOSE
The purpose of the Lifeline Rate discount program is to provide financial relief by reducing the cost of
electric service to the City's low-income population.
POLICY
1. The program will be administered to provide a discount on electric utility charges to qualified
City of Redding Utility customers.
2. The Lifeline Rate will be a twenty-five (25) percent discount on the sum of the Electric Utility
Network Access Charge and the first 800 kWh usage for qualified customers as computed using
the standard Residential Rate. The Lifeline Plus+Rate will be a twenty-five(25) percent discount
on the sum of the Electric Utility Network Access Charge and the first 300 kWh usage for
qualified customers as computed using the standard Residential Rate. The Lifeline Rates shall
not be applicable to or available for three-phase service, resale for profit, temporary
construction service, standby or auxiliary service, service to any single motor exceeding a
nameplate rating of 7% horsepower, or any equipment that will cause excessive voltage
fluctuations.
3. The Lifeline Rate will be available to senior citizens (age 62 or older) and to disabled customers
whose maximum household income does not exceed the low-income level limits most recently
published by the City of Redding and as determined by the number of household members. The
income level limit is set at seventy-five (75) percent of median income level for the area.
The Lifeline Plus+ Rate will be available to all customers whose maximum household income
does not exceed the extremely low-income level limits most recently published by the City of
Redding and as determined by the number of household members. The income level limit is set
at thirty(30) percent of median income level for the area.
G:\General\City Council Policies\1400 Series\1407 Lifeline Rate Attachment.doc.docx
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
Electric Utility Lifeline Rates
97-082 1407 1 05-06-97 2
4. Funds for this program will be considered to be applicable to the "Public Goods Charge" as
mandated by California AB 1890, the Electric Industry restructuring bill, and will be taken from
the 2.85 percent of retail revenues that REU sets aside for its Public Benefits programs.
5. The Lifeline and Lifeline Plus+ Rates shall be subject to all provisions of the current Electric
Residential Rate of REU regarding character of service, taxes, and payment, except that Lifeline
and Lifeline Plus+Rate customers will be exempt from the Solar Surcharge.
Procedure
The City Council directs staff to administer the Lifeline Rate discount program as follows:
1. The Lifeline Rates will be in effect until otherwise directed by City Council.
2. The Lifeline Rates will be available only to individually metered single-phase electric residential
service provided to any single-family dwelling,apartment,or mobile home.
3. The Lifeline Rates will be available to City of Redding residents only and can only be applied to
one location per qualified household.
4. REU reserves the right to establish a waiting list if more customers qualify than funds for the
program will allow. Whenever budgeted funds are exhausted,qualified customers will be added
to a waiting list. As available spaces allow, they will be filled from the beginning of the list,
according to the applicant's date of qualification for the Lifeline or Lifeline Plus+ Rate, if the
applicant meets the program qualifications at the time the space becomes available.
5. Benefits under this program will be denied by the City of Redding for a period of twelve months,
subject to appeal to the Electric Utility Director,for any of the following conditions:
a. Any evidence of service tampering or meter tampering.
b. Failure to re-certify qualification at any time requested to do so by the City of Redding.
C. False information provided during qualification or re-certification.
6. Application forms shall be developed by the Electric Utility Director, or his designee, which shall
set forth the minimum criteria to obtain the applicable Lifeline rate discount.
7. Any project that is master-metered shall have the option to enter into a separate agreement
with the City that provides that any credit would be fully passed through to the qualifying
households. Included in this category would be mobile home parks, senior housing residences,
and nonprofit housing of qualified households.
8. All Lifeline discounts will become effective at the beginning of the billing period after
qualification is met.
G:\General\City Council Policies\1400 Series\1407 Lifeline Rate Attachment.doc.docx
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CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
Electric Utility Lifeline Rates
97-082 1407 1 05-06-97 3
9. Determination of eligibility:
To be eligible for the Lifeline Rate discount,the applicant must meet the following criteria:
a. Total gross annual income for all persons in the applicant's household may not exceed
seventy-five (75) percent of the median income levels for Shasta County, as most
recently published by the City of Redding. Application forms will show current
maximums by household size.
b. The applicant must be a senior citizen (age 62 or older), or be a disabled or blind person
as evidenced by receiving Supplemental Security Income (SSI) or State Supplemental
Payment (SSP), or any other private or public source of long-term disability benefit.
Applicants who care for a disabled person in the home also qualify.
To be eligible for the Lifeline Plus+Rate discount,the applicant must meet the following criteria:
a. Total gross annual income for all persons in the applicant's household may not exceed
thirty (30) percent of the median income levels for Shasta County, as most recently
published by the City of Redding. Application forms will show current maximums by
household size.
Amended on 11-18-97 by Resolution No. 97-204
Amended on 01-19-99 by Resolution No.99-009
Amended on 05-06-14 by Resolution No. 14-046
G:\General\City Council Policies\1400 Series\1407 Lifeline Rate Attachment.doc.docx