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HomeMy WebLinkAboutResolution No. 7198- i • 0 RESOLUTION NO. 7198 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE SCHEDULE OF RATES AND CHARGES FOR THE POWER. -AND LIGHT. DEPARTMENT OF THE CITY -OF AZUSA THE'CITY,COUNCIL OF THE CITY OF AZUSA DOES RESOLVE AS FOLLOWS: 1. The City Council finds pursuant to Sec.. 15079.1 of the State Ceqa Guidelines (14 Cal.Admin. Code Sec. 15079.1) that Ceqa is not applicable to the approval of the rates and charges set forth herein.because such rates and—charges are for the purposes of: \„ .. (1) -Meeting. -operating expenses, including employee wage rates and fringe benefits and departmental operations; (2) Purchasing.or leasing of supplies, equipment or materials; (3) Meeting financial reserve needs and require - ments; (4) Obtaining funds for capital projects necessary to maintain a service within existing service areas. 2. Pursuant to Sec..13.08.020 of the Azusa Municipal Code, the schedule of rates and charges of the Power and Light Department of the City of Azusa are hereby amended to read as set forth in Exhibit "A"', attached to this Resolution, and incorporated herein as though set forth in full. 3. The amended rates and charges schedule of the Power and Light Department of the City of -Azusa set forth in Sec. 2 of this Resolution shall be effective as of October 1, 1982. 4. The City Clerk shall.certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED this 1st day of November , 1982. MAYOR I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Azusa, at a regular meeting thereof, held on. the lst day of November, 1982by the following vote of the Council: , AYES: COUNCILMEN: DECKER, HART, LATTA, MOSES NOES: ABSENT: COUNCILMEN: NONE COUNCILMEN: NONE General SECTION III PRESENT AND PROPOSED ELECTRIC RATE SCHEDULES This Section includes a review of present rates, and proposed rates, which have been designed to recover the estimated revenue requirements set forth in Section II. The City presently has six rates for electric service, " as follows: Rate R - Residential Service Rate G-1 - General Service (Non -Demand) Rate G-2 - General Service (Demand) Rate GL - Large General Service Rate SL - Lighting (Street and Highway) Rate OL - Outdoor Area Lighting The existing rates of the City are the result of studies presented in a report by R. W. Beck and Associates dated November 1979 with subsequent "across-the-board" percent increases on February 1, 1982 and July 1, 1982. In accordance with discussions with representatives of the City, the present form of rates has basically been retained for the modified rates herein proposed, except for the General Service Rates which have.been combined and simplified. The rates proposed herein reflect the City's purchased power costs under the wholesale rates of SCE that became effective June 2, 1982. It is contemplated that under the rates herein proposed, the SCE fuel cost adjust- ment applied to the City's purchased power would be passed through to the EXHIBIT A III -2 City's retail customers. Use of this approach, along with the proposed rates recommended below, will allow the City to continue to pass through the total amount of fuel costs as charges by SCE. Residential Service follows: The existing and proposed rates for Residential Service are as Residential Rate R Existing Rate Monthly Rate: Customer Charge . . . . . . $2,72 First 250 kWh . . . . . . . 5.71 per kWh Additional kWh . . . . . . 6.53¢ per kWh Proposed Rate $3.50 7.51 per kWh 8.51 per kWh The City also has in effect a residential service rate for single - metered multi -family housing units. This rate schedule is designated "Resi- dential Service - Rate RM" and is identical to Rate R except that the kilo- watt-hours in each block are multiplied by the number of single-family_accom- modations being served from a particular meter. No adjustment is being pro- posed for this rate schedule other than that the proposed Rate R above be used in establishing the charges under Rate RM. If the proposed residential rate had been in effect for the entire fiscal year ending June 30, 1983, it is estimated that revenues from residen- tial customers would increase from . . . . . . . . . . . . . . . . $3,404,124 to a total of approximately . . . . . . . . . . . . . . . . . . . $4,440,844 an increase of approximately . . . . . . . . . . . . . . . . . . . $1,036,720 or approximately . . . . . . . . . . . . . . . . . . . 0 . . . . . 30.55. E III -3 General Service The City presently has three rates applicable for General Service (Small, Medium and Large). The existing rates are as follows: Existing Rate G-1 General Service (Non -Demand) Monthly Rate: Customer Charge - Single -Phase Service . . . . . . . . . $3.07 Customer Charge - Three -Phase Service . . . . . . . . . . $4.76 Energy Charge - kWh . . . . . . . . . . . . 10.1971 per First 100 kWh . . . . . . . . . . . . . . 10.197 per kWh Next 400 kWh . . . . . . . . . . . . . . 9.313¢ per kWh Next 1000 kWh . . . . . . . . ... . . . . 8.429V per kWh Next 1500 kWh . . . . . . . . . . . . . . 7.341e per kWh Additional kWh . . . . . . . . . . . . . 6.9334 per kWh Existing Rate G-2 General Service (Demand) Monthly Rate: Customer Charge . . . . . . . . . . . . . . $4.76 Minimum Charge - 20 kW @ . . . . . . . . . $3.75 per kW Demand Charge - First 20 kW of Billing Demand . . . . None Additional kW of Billing Demand . . . $3.75 per kW Energy Charge First 100 kWh . . . . . . . . . . . . 10.1971 per kWh Next 400 kWh . . . . . . . . . . . . 9.313¢ per kWh Next 1000 kWh . . . . . . . . . . . . 8.429e per kWh Next 1500 kWh . . . . . . . . . . . . 7.341¢ per kWh Next 2000 kWh . . . . . . . 6.9334 per kWh Next 150 kWh per kW of Billing Demand Over 20 kW 5.166e per kWh Next 150 kwh per kW of Billing Demand Over 20 kW . . . . . . . . . . . 4.758[ per kWh Additional kWh . . . . . . . . . . . .. 4.350¢ per kWh Existing Rate GL Large General Service Monthly Rate: Demand Charge - be more easily understood and applied. The following rates First 200 kW or less of General Service: Billing Demand . . . . $842.95 Next 1800 kW of Billing Demand . . . . $ 4.02 kW Additional KW of Billing Demand . . . $ 3.88 per kW per Energy Charge - First 150 kWh per kW of Billing Demand - First 30,000 kWh . . . . . . 5.574¢ per kWh Balance of kWh Next 150 kWh kW 5.166e per kWh per of Billing Demand Additional kWh 4.622e per kWh . . . . . . . . . . . . 4.2144 per kWh Power Factor Adjustment - The charges will be increased for each kVAr in excess of 60% of the Billing Demand in the amount of . . . . . $ 0.35/kVAr High Voltage Discount - A customer which takes service at a voltage level of 12 kV will receive a discount of 4% of the total bill. It is recommended that the three existing rates for General Service be combined into two new rates. It is also recommended that demand and energy blocks in the existing General Service rates be gradually flattened. In the proposed General Service rates, we have combined or eliminated some of the existing rate blocks. It is anticipated that the City will continue to flat- ten these rate blocks in the future. The flattening or elimination of declin- ing block rates will help to promote conservation and is in accordance with the rate standards Included in the Public Utilities Regulatory Policies Act, a part of the National Energy Act of 1978. The two proposed General Service rates will also be more easily understood and applied. The following rates are proposed for General Service: 0 0 III -5 Proposed General Service Rate G-1 Monthly Rate: Customer Charge . . . . . . . . . . . . . . $5.00 Energy Charge: First 500 kWh . . . . . . . . . . . . 12.501 per kWh Additional kWh . . . . . . . . . . . . 10.25¢ per kWh Proposed General Service Rate G-2 Monthly Rate: Demand Charge - First 20 KW . . . . . . . . . . . . . No Charge Additional kW . . . . . . . . . . . . $5.50 per kW Energy Charge - First 500 kWh . . . . . . . . . . . . 12.501 per kWh Next 4500 kWh . . . . . . . . . . . . 10.251 per kWh Additional kWh . . . . . . . . . . . . 6.251 per kWh The power factor adjustment and the high voltage discount in the existing Rate GL are not being changed and are to be included in the proposed Rate G-2. Customers currently taking service under Rate GL. would take service under the proposed Rate G-2. If the proposed General Service Rate G-1 had been -in effect for the entire fiscal year ending June 30, 1483, it is estimated that revenues from the existing Rate G-1 customers would increase from . . . . . . . $ 965,064 to a total of approximately . . . . . . . . . . . . . . . . . . . $1,259,030 an increase of approximately . . . . . . . . . . . . . . . . . . . $ 293,966 or approximately . . . . . . . . . . . . . . . . . . . . . . . . 30.5%. 0 0 III -6 If the proposed General Service Rate G-2 had been in effect for the entire fiscal year ending June 30, 1983, it is estimated that revenues from the existing Rate G-2 customers would increase from . . . . . . . $2,837,800 to a total of approximately . . . . . . . . . . . . . . . . . . . $3,817,608 an increase of approximately . . . . . . . . . . . . . . . . . . . $ 979,808 or approximately . . . . . . . . . . . . . . . . . . . . . . . . . 34.5%. If the proposed Large General Service Rate G-2 had been in effect for the entire fiscal year ending June 30, 1983, it is estimated that revenues from the existing Rate GL customers would increase from . . . . . '$3,131,224 to a total of approximately . . . . . . . . . . . . . . . . . . . $4,007,214 an increase of approximately . . . . . . . . . . . . . . . . . . . $ 875,990 or approximately . . . . . . . . . . . . . . . . . . . . . . . . . 28.0X. Street Lighting Service The Light and Power Department currently has a fixed charge per month for each lamp size and/or type for street and highway lighting. The applicable fixed charge is also determined by whether the facilities are owned by the utility or by the customer. The existing and proposed rates for Street Lighting Service are as follows: 0 • III -7 Monthly Rate for Street Lighting Service Existing Proposed Monthly Rate Rate kWh Usage Facilities Owned by Utility: Lumens . . . . . . . . . . 5.98 5.80 Incandescent - 11,000 Lumens . . . . . . . . . . 8.29 4,000 Lumens . . . . . . . . . . $ 8.37 $11.00 116 Mercury Vapor - 12.75 160 35,000 7,000 Lumens . . . . . . . . . . 9.11 11.30 70 11,000 Lumens . . . . . . . . . . 11.22 14.60 101 20,000 Lumens . . . . . . . . . . 14.89 20.00 160 35,000 Lumens . . . . . . . . . . 23.46 30.00 243 High Pressure Sodium - 90 25,500 Lumens . . . . . . . . 9,500 Lumens . . . . . . . . . . 9.86 10.25 48 22,000 Lumens . . . . . . . . . . 13.26 14.25 90 25,500 Lumens . . . . . . . . . . 14.96 15.25 105 Facilities Not Owned by Utility: Incandescent - 4,000 Lumens . . . . . . . . . . 6.53 7.00 116 Mercury Vapor 7,000 Lumens . . . . . . . . . . 5.98 5.80 70 11,000 Lumens . . . . . . . . . . 8.29 8.00 101 20,000 Lumens . . . . . . . . . . 10.95 12.75 160 35,000 Lumens . . . . . . . . . . 18.63 21.50 243 High Pressure Sodium - 9,500 Lumens . . . . . . . . . . 4.42 4.00 48 22,000 Lumens . . . . . . . . . . 7.48 7.00 90 25,500 Lumens . . . . . . . . . . 9.18 8.50 105 If the proposed Street Lighting Service Rates had been in effect for the entire fiscal year ending June 30, 1983, it is estimated that revenues from the Street Lighting Service customers would increase from . . . $275,094 to a total of approximately . . . . . . . . . . . . . . . . . . . . $348,610 an increase of approximately . . . . . . . . . . . . . . . . . . . . $ 73,516 or approximately . . . . . . . . . . . . . . . . . . . . . . . . . . 26.12. 0 III -8 Outdoor Area Lighting Service The rates presently in effect and proposed for Outdoor Area Lighting Service are as follows: Monthly Rate for Outdoor Area Lighting Service Existing Proposed Monthly Rate Rate kWh Usage Existing Pole Mercury Vapor — 7,000 Lumens . . . . . 20,000 Lumens . . . . . . . . . . High Pressure Sodium — 25,500 Lumens . . . . . . . . . . New Pole Mercury Vapor — 7,000 Lumens . . . . . 20,000 Lumens . . . . . . . . . . High Pressure Sodium — 25,500 Lumens . . . . . . . . . . $10.06 $11.50 70 18.29 21.00 160 — 14.50 105 13.53 14.35 21.77 23.60 — 17.50 70 160 105 If the proposed Outdoor Area Lighting Service Rate had been in effect for the entire fiscal year ending June 30, 1980, it is estimated that revenues from the Outdoor Area Lighting customers would increase from $ 8,545 to a total of approximately . . . . . . . . $ 9,781 an increase of approximatley . . . . . . . . . . - - $ 1,236 or approximately . . . . . . . . . . . 0 • III -9 Summary — Estimated Effect of Proposed Rates All of the proposed rate schedules set forth above are subject to a fuel cost adjustment and to the State of California Energy Resources Surcharge (currently 0.2 mills per kilowatt—hour). The following tabulation sets forth a comparison of the estimated revenues for FY1983 from application of the proposed rates to the revenues obtained from the rates presently in effect. (1) Both existing and proposed' rate revenues include California Energy Resources Surcharge of $0.0002 per kWh. (2) Proposed rate revenues for General Service customers currently under existing Rate GL are calculated using the proposed Rate G-2. Energy Cost Adjustment In the past, the City has generally followed a policy of passing on to its electric customers the fuel cost adjustment charged to the City by SCE. The procedure generally used to pass on these costs was the addition Summary of Revenues (1) . Existing vs Proposed Rates Customer Class Existing Rate Revenue Proposed Rate Revenue Increase AmountPercent Residential . . . . $ 3,404,124 $ 4,440,844 $1,036,720 30.5% General—Rate Gl . . 965,064 1,259,030 293,966 30.5% General—Rate G2 . . 2,837,800 3,817,608 979,808 34.5% Large General— Rate GL . . . . . 3,131,224 4,007,214 (2) 875,990 28.0% Street Lighting 275,094 348,610 .73,516 26.71 Outdoor Area Lighting . . . . . 8,545 9,781 1,236 14.52 Total . . . . . $10,621,851 $13,883,087 $3,261,236 30.7% (1) Both existing and proposed' rate revenues include California Energy Resources Surcharge of $0.0002 per kWh. (2) Proposed rate revenues for General Service customers currently under existing Rate GL are calculated using the proposed Rate G-2. Energy Cost Adjustment In the past, the City has generally followed a policy of passing on to its electric customers the fuel cost adjustment charged to the City by SCE. The procedure generally used to pass on these costs was the addition of the SCE fuel cost adjustment (in cents/kWh), adjusted upward by 6S to allow for the City's electric distribution losses, to the base electric rates esta- blished by the City. Inasmuch as the SCE fuel cost adjustment charges are applied by SCE to kWh sold to the City, and the City applies the charges to kWh sold in a different time period, the City's costs and charges to its cus- tomers are not "synchronized'. This situation results in an over collection or under collection of fuel adjustment costs by the City each month. In order to assure collection of all fuel adjustment charges, as contemplated in the design of the rates proposed herein, it is highly recom- mended that the City establish a "fuel cost adjustment balancing account", whereby the amount of the over collection or under collection of fuel adjust- ment costs in a given month or other longer time period would be factored into a subsequent fuel cost adjustment charge to City customers. When the City begins receiving power from the Palo Verde Nuclear Generating Station through the Southern California Public Power Authority in approximately mid -1984, it will be necessary to modify the present fuel cost adjustment procedure which is based solely upon a pass-through of SCE fuel cost adjustments. It would be appropriate to establish a modified fuel cost adjustment procedure at this time which would be applicable under the current power supply arrangement (purchasing all requirements from SCE) and the new arrangement which will begin in 1984.