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HomeMy WebLinkAboutResolution No. 10-C40RESOLUTION NO. 10-C40 A RESOLUTION OF THE CITY COUNCIL AND UTILITY 'BOARD OF THE CITY OF AZUSA, CALIFORNIA, APPROVING ELECTRIC UTILITY RATE SCHEDULE "EDR - ECONOMIC DEVELOPMENT RATE" PROVIDING ECONOMIC DEVELOPMENT INCENTIVES FOR QUALIFIED COMMERCIAL AND INDUSTRIAL ELECTRIC CUSTOMERS. WHEREAS, pursuant to Section 78-37 of the Azusa Municipal Code, the 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 15,000 customers; and WHEREAS, the City of Azusa has a comprehensive program_ to promote economic development and redevelopment 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 commercial and 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, THE CITY COUNCIL AND UTILITY BOARD DO HEREBY RESOLVE AS FOLLOWS: That a two year pilot program to provide electric rate discounts to qualifying commercial/industrial customers is herby approved for the purpose of providing economic development incentives to help stimulate jobs growth and the Azusa economy. 2. That the "Schedule EDR—Economic Development Rate", attached hereto as Exhibit A, is hereby adopted and included in Azusa Light & Water Rules and Regulations. 3. That the EDR Schedule, attached hereto as Exhibit A, shall become effective on July 1, 2010. 4. The City Clerk shall certify the adoption of this Resolution. PASSED, ADOPTED and APPROVED this 28"' day of June 2010. oseph ocha, Mayor ATTEST: era Mendoza, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution no. 10-C40 was duly adopted by the City Council/Utility Board of the City of Azusa at a regular meeting of the Azusa Utility Board on the 28th day of June, 2010, by the following vote of the Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS NOES: COUNCILMEMBERS: ROCHA ABSENT: COUNCILMEMBERS: NONE era Mendoza, City EXHIBIT A SCHEDULE EDR ECONOMIC DEVELOPMENT RATE Applicability: Applicable to qualified commercial/industrial customers receiving electric service from Azusa Light & Water for the purpose of (i) incepting businesses occupying new buildings/facilities or vacated commercial space or (ii) industrial business attraction and/or expansion; as provided below. Territory: Within the electric service area of the City of Azusa. Rate: Commercial/industrial customers occupying space in (i) new buildings/facilities or (ii) existing commercial buildings/facilities that have been vacant for ninety (90) days or longer, are eligible to receive a discount equal to 10% of the electric bill associated with the qualifying commercial facility electric load. Premium for New Commercial Customers associated with Citv Redevelopment Projects Commercial customers who are otherwise qualified to receive an EDR discount and who are associated with active City of Azusa Redevelopment Projects are eligible to receive an additional 5% discount to their electric bill. Premium for New or Exnanded Industrial Load Industrial customers otherwise qualified for an EDR discount are eligible to receive an additional 5% discount to their electric bill if the new or expanded industrial load is (i) sized at 100 KW or greater and (ii) has a monthly load factor of 50 percent or higher. An Industrial Customer is one who operates facilities that are primarily used for the manufacturing of goods. Special Conditions: Schedule EDR shall become effective on July 1, 2010 and applies to customers who receive a permit from the City of Azusa on and after July 1, 2010 to build/modify qualified commercial/industrial facilities. Draft 06-10-10 Schedule EDR (continued) 2. Customers desiring to take advantage of Schedule EDR must file an application with Azusa Light & Water for approval prior to initiation of electric service to the qualified new or expanded load. 3. Upon approval and initiation of electric service, EDR discounts shall apply for a period of thirty six (36) months subject to paragraph 7 below. 4. The EDR 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 discounts shall apply to the Fuel Cost Adjustment Factor 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 customer's 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. 6. 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. 7. Schedule EDR shall remain effective for new qualified customers through June 30, 2012 (i.e. 2 years). No discounts will be applied for billing periods after December, 2015. Draft 06-15-10