HomeMy WebLinkAboutResolution No. UB- 10-C39RESOLUTION NO. 10-C39
..A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF
-THE CITY OF AZUSA, CALIFORNIA, REPLACING ELECTRIC RATE
-SCHEDULE "FCA -SJ FUEL COST ADJUSTMENT SAN JUAN
RESOURCE" WITH "PCA - POWER . COST ADJUSTMENT"
SCHEDULE.
WHEREAS, the Rules and Regulations of Azusa Light & Water include Electric Rate
Schedule "FCA -SJ — Fuel Cost Adjustment — San Juan Resource"; and
WHEREAS, the FCA -SJ Rate Schedule was adopted in 2004 to cover fluctuations in
purchased power costs associated with the reliability of the San Juan Power Plant; and
WHEREAS, the net cost of purchased power increased by 40% from FY 2005-06 to FY
2007-08, and continues to vary widely from year to year; and
WHEREAS, the FCA -SJ Rate Schedule has not provided adequate revenue to cover the
Electric Utility's power supply costs in recent years; and
WHEREAS, purchased power costs exceeded retail revenues by $9.9 million from
January 1, 2008 through March 30, 2010, due to increased cost for purchased power above that
collected in approved base rates; and
WHEREAS, in January 2010, the Azusa Utility Board approved selection of a consultant
to review and analyze rate adjustment options to cover fluctuating purchased power costs; and
WHEREAS, the consultant retained by Azusa Light & Water has recommended adoption
of a more comprehensive power cost adjustment mechanism which factors in the cost of power
purchased from all resources, wholesale revenues, transmission costs, and scheduling and
dispatching costs; and
WHEREAS, the proposed PCA methodology has been set forth in the attachment to this
Resolution as Exhibit A — "PCA Schedule — Power Cost Adjustment"; and
WHEREAS, the "PCA Schedule — Power Cost Adjustment" will be more effective at
recovering actual purchased power costs that exceed current base rates and help prevent further
monetary losses due to power cost fluctuations;
NOW, THEREFORE BE IT RESOLVED, by the City Council and Utility Board of the
City of Azusa, as follows:
1. That the "PCA Schedule --Power Cost Adjustment", attached hereto as Exhibit A, is
hereby adopted and shall replace the "FCA -SJ - Fuel Cost Adjustment — San Juan"
Schedule in Azusa Light & Water Rules and Regulations.
2. That the PCA Schedule, attached hereto as Exhibit A, shall be effective for all utility
bills rendered on or after July 1, 2010.
3. That the initial PCA shall beset to $0.0096 per kWh effective July 1, 2010, inclusive
of franchise and in lieu fees.
4. The City Clerk shall certify the adoption of this Resolution.
PASSED, ADOPTED and APPROVED this 280' day of June 2010.
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J seph R. Rocha, Mayor
ATTEST:
Vera Mendoza City Cler
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution no. 10-C39 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, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Vera Mendoza, City