HomeMy WebLinkAboutResolution No. 99-C1260 0
RESOLUTION NO. 99—C126
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AZUSA, CALIFORNIA CONDITIONALLY ESTABLISHING
A COMPETITION TRANSITION CHARGE TO BECOME
EFFECTIVE UPON ESTABLISHMENT BY ADOPTION BY
THE CITY COUNCIL OF A COMPETITION TRANSITION
CHARGE TARIFF, AND UPON THE CITY COUNCIL
AUTHORIZING DIRECT TRANSACTIONS BETWEEN
ELECTRICITY SUPPLIERS AND END USE CUSTOMERS
WHEREAS, the City of Azusa, through the Department of Public Utilities, operates a
municipal utility for the supply and distribution of electrical energy in the City of Azusa;
WHEREAS, in 1996, the Legislature of the State of California approved Assembly Bill
1890 ("AB 1890") which provides for restructuring of the electric industry in California;
WHEREAS, AB 1890 requires investor owned utilities ("IOUs") to allow other energy
service providers ("ESPs") to sell electricity in their service territories ("Direct Access"), but
does not require publicly owned electric utilities to open up their service territories to
competition;
WHEREAS, AB 1890 delineates a process by which publicly owned utilities electing to
allow Direct Access may assess their Direct Access customers ("Direct Access Customers") a
non -bypassable generation related severance fee or transition charge ("Competition Transition
Charge" or "CTC");
WHEREAS, the City of Azusa has the authority under its organic law to allow Direct
Access and assess a competition transition charge outside the provisions of AB 1890;
WHEREAS, assessment of a CTC pursuant to AB 1890 affords the City of Azusa
additional legal protections;
WHEREAS, AB 1890 states that "[n]ot less than six months prior to the date of
implementation of direct transactions, the regulatory body shall establish the non -bypassable
generation related severance fee or transition charge...";
WHEREAS, AB 1890 states that "[t]he regulatory body of a local publicly owned
electric utility, prior to adopting any generation related severance fee or transition charge, shall
make available for public review the basis for the severance fee or transition charge and shall
hold at least one public hearing";
WHEREAS, the City Council of the City of Azusa has made available for public review
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the basis for its proposed CTC to be charged if the City Council should later decide to authorize
Direct Access, and if the Board of Public Utilities establishes and the City Council adopts a CTC
tariff;
WHEREAS, the City Council of the City of Azusa has held a public hearing reviewing
the basis for the proposed CTC and regarding Direct Access; and
WHEREAS, the City Council of the City of Azusa has determined that the CTC
presented reflects a reasonable and accurate estimate of generation related competition transition
charges.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa,
California, as follows:
SECTION 1: The above recitals and definitions contained herein are hereby
incorporated in this Resolution by reference.
SECTION 2: The City of Azusa is not required to allow Direct Access between ESP's
and end use customers.
SECTION 3: The decision whether or not to permit Direct Access is hereby deferred
until a later date.
SECTION 4: Although the City of Azusa has the authority under its organic law to
allow Direct Access and assess a CTC outside the provisions of AB 1890, the City of Azusa
desires to preserve its ability to assess a CTC under the terms of AB 1890 if Direct Access is
ever permitted in the City of Azusa.
SECTION 5: The City Council hereby conditionally establishes a CTC pursuant to AB
1890, which CTC shall not be effective until such time as the City Council authorizes Direct
Access, and the City Council adopts a CTC tariff.
SECTION 6: The CTC shall apply to Direct Access Customers electing and authorized
to purchase electricity from authorized electricity service providers.
SECTION 7: The CTC shall be determined by subtracting a Direct Access Energy
Credit (as calculated below) from the generation charges included in the City of Azusa rate
schedules applicable to Direct Access Customers.
SECTION 8: The Direct Access Energy Credit will be calculated monthly based upon
the California Power Exchange ("PX") hourly Day Ahead Market Clearing Price plus PX
administrative charges and Independent System Operator grid management charges multiplied by
the hourly demand at Azusa's main delivery point.
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SECTION 9: The City Council may conduct a public hearing, at such time as they shall
determine, on the issue of Direct Access and establishment of a CTC tariff.
SECTION 10: The City's Utilities Department is directed to report to the City Council its
recommendations on Direct Access no later than March 15, 2000.
PASSED, APPROVED AND ADOPTED this 4thday of October , 1999.
Cristina C. Madrid
Mayor
ATTEST:
Adolph Solis
City Clerk
I, Adolph Solis, City Clerk of the City of Azusa, California, hereby certify that the foregoing
Resolution No.12 6 was duly and regularly introduced and adopted at a meeting of the City
Council of said City at its meeting held on the 4thday of October , by the following vote,
to wit:
AYES: COUNCILMEMBERS: Hardison, Stanford, Rocha, Beebe, Madrid
NOES: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
Adolph Solis
City Clerk
APPROVED AS TO FORM:
City Attorney
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