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HomeMy WebLinkAboutResolution No. UB-13-2015RESOLUTION NO. UB -13-2015 A RESOLUTION OF THE UTILITY BOARD / CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING ELECTRIC UTILITY RATE SCHEDULE "EDR-3 ECONOMIC DEVELOPMENT RATE - 3" PROVIDING ECONOMIC DEVELOPMENT INCENTIVES FOR QUALIFIED NONRESIDENTIAL ELECTRIC CUSTOMERS WHEREAS, pursuant to Section 78-37 of the Azusa Municipal Code, the Utility Board / City Council is required to adopt rules and regulations governing the operation and services provided by the Azusa Light & Water Department; and WHEREAS, the City of Azusa owns and operates an electric utility that provides electricity to over 16,500 metered accounts; and WHEREAS, the City of Azusa has a comprehensive program to promote economic development in the community; and WHEREAS, discounted electric rates for new commercial and industrial entities will help attract such businesses to the City of Azusa; and WHEREAS, discounted electric rates for qualifying industrial businesses that are existing customers of Azusa Light & Water will help them expand their operations in the City of Azusa; and WHEREAS, the expansion of commercial and industrial business activity inside the City of Azusa is vital to the local economy and provides jobs to residents of Azusa; NOW, THEREFORE, BE IT RESOLVED that the City Council/Utility Board of the City of Azusa does hereby finds, determines and declares as follows: SECTION 1. That the "EDR-3 Schedule Economic Development Rate -3", attached hereto as Exhibit A, is hereby modified and included in Azusa Light & Water Rules and Regulations. SECTION 2. That Schedule EDR-3, attached hereto as Exhibit A, shall become effective on August 1, 2015. SECTION 3. The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 27`h day of July, 2015. I seph Romero Rocha ayor ATTEST: ti.,ar�- • • �� STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution UB -13-2015 was adopted at a regular meeting of the Azusa Utility Board on the 27th day of July, 2015, by the following vote of the Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE APPROVED AS TO FORM: A Best Best c Krieger, L City Attor ey EXHIBIT "A" SCHEDULE EDR-3 ECONOMIC DEVELOPMENT RATE -3 Applicability: Applicable to qualified non-residential customers receiving electric service from Azusa Light & Water for the purpose of (i) incenting businesses occupying new buildings/facilities or certain vacated commercial space, (ii) industrial business attraction and/or expansion; (iii) developing properties which either are or had been owned by the City of Azusa or its redevelopment agency for development purposes or (iv) encouraging the location of new commercial customers in special retail categories or locations in the service area; as provided below. Territory: Within the electric service area of the City of Azusa. Rate: New non-residential customers occupying space in (i) new buildings/facilities or (ii) existing commercial buildings/facilities that have been vacant for one hundred and eighty (180) days or longer, are eligible to receive a discount equal to 15% of the electric bill associated with the qualifying facility electric load for the first 36 months and a discount equal to L for the next twenty four months. In addition, certain customers may qualify for additional discounts as described below, provided that no customer may receive both additional discount 1 and additional discount 2. 1. Additional Discount New Non-residential Customers developing `City of Azusa Owned Property" Non-residential customers who are otherwise qualified to receive an EDR-3 discount and who develop City of Azusa Owned Property are eligible to receive an additional 15% discount to their electric bill for the first 12 months and an additional 5% discount to their electric bill for the next 24 months. "City of Azusa Owned Property" shall mean property owned by the City of Azusa or the Azusa Redevelopment Agency on January 1, 2012. 2. Additional Discount for New or Expanded Industrial Load Industrial customers otherwise qualified for an EDR-2 discount are eligible to receive an additional 15% discount to their electric bill for the first 12 months and an additional 5% discount to their electric bill for the next 24 months if the new or expanded industrial load is (i) sized at 100 KW or greater and (ii) is projected to have a monthly load factor of 50 percent or higher. The discount is only payable for months that the customer's load meets these two criteria. For expanded industrial load, the discount is only applicable to the electricity usage associated with the expanded load. If the expanded load cannot be separately metered, the utility will estimate the portion of a customer's electric bill associated with the expanded load An Industrial Customer is one who operates facilities that are primarily used for the manufacturing of goods. 3. Additional Discount for New Non-residential Customers in Special Retail Categories New non-residential customers who are otherwise eligible to receive an EDR-3 discount and whose primary business is: (i) Building Materials and Garden Equipment, (ii) Food & Beverage stores, (iii) Clothing & Accessories, or (iv) Food Services & Drinking Places, are eligible to receive an additional 5% discount to their electric bill during the term of their EDR-3 discount. 4. Additional Discount for New Non-residential Customers Locating in Azusa Downtown New non-residential customers who are otherwise eligible to receive an EDR-3 discount and who are located in "Azusa Downtown" (which is defined as the area between E. 5`h Street to the south, E, 9`h Street to the north, N. Pasadena to the east and N. San Gabriel Avenue to the west), are eligible to receive an additional 5% discount to their electric bill during the term of their EDR-3 discount. Special Conditions: 1. Schedule EDR-3 shall become effective on August 1, 2015 and applies to customers who receive a permit or development agreement from the City of Azusa on and after this date to build/modify qualified non-residential facilities/businesses. 2. Customers desiring to take advantage of Schedule EDR-3 must file an application with Azusa Light & Water for approval not later than 90 days following initiation of electric service to the qualified new or expanded load. Applicants are encouraged to submit an application as early as possible in their siting/development process in order to ensure the applicability of the EDR-3 rate and the level of associated discounts for their planned location. 3. Upon approval and initiation of electric service, EDR-3 discounts shall apply for a period of sixty (60) months subject to paragraph 7 below. 4. The EDR-3 discounts shall not apply to the CEC fee, State Energy Tax, Public Benefits charge or any other assessment or charge levied on electric bills after the effective date of this rate schedule unless specifically provided otherwise. The EDR-3 discounts shall apply to the Power Cost Adjustment or any successor surcharge/factor related to power supply costs. 5. Expanded industrial load must be separately metered or sub -metered to enable verification of the minimum additional load requirement. Such metering shall be at the customers cost. The industrial discount premium shall not apply for any billing period that the qualified industrial load does not meet the minimum size or load factor. Food & Beverage stores shall be a minimum of 7,500 square feet in size. Food Services & Drinking Places must offer sit down service, have a full liquor license and be 1500 square feet or larger. The Utility Board may make exceptions to either of these qualifications if dictated by special circumstances. Light & Water shall be responsible for (i) establishing/enforcing rules and procedures for administering this rate schedule and (ii) determining whether customers meet the qualifications set forth herein. Customers shall provide information on a timely basis for the purposes of verifying eligibility and administering the terms of this rate schedule. 8. Schedule EDR-3 shall remain effective for new qualified customers through June 30, 2019. No EDR-3 discounts will be applied for billing periods after June 30, 2024. 9. Customers terminating their electric service prior to completion of the 60 month discount period, and who do not immediately transfer service to a successor at that location with a similar scale operation for the remaining discount term, shall be required to refund a pro rata portion of their discount in excess of 15% based on the length of time still remaining in the discount period. For example, a customer terminating service after 40 months shall be responsible for repaying 20/60 (i.e. 1/3) of the dollar amount of the discounts previously received in excess of the 15% level. 10. The Director of Utilities shall be responsible for implementing this rate schedule to include determination of whether or not an applicant qualifies hereunder for a discounted service. 11. The Azusa Utility Board may modify or eliminate EDR-3 at any time provided that such modifications or elimination shall not affect entities that have been previously approved for service under EDR-3.