HomeMy WebLinkAboutResolution No. 12-C57RESOLUTION NO. 12-057
A RESOLUTION OF THE CITY COUNCIL AND
UTILITY BOARD OF THE CITY OF AZUSA,
CALIFORNIA, AMENDING ELECTRIC UTILITY RATE
SCHEDULE "EDR-2-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, on June 25, 2012 the Utility Board approved Rate Schedule EDR-2 titled
"Economic Development Rate"; and
WHEREAS, in conjunction with its approval of EDR-2, the Utility Board requested that
Staff consider implementing a provision to recapture a portion of the discounts received by a
qualified customer who terminates electric service prior to the 60 month discount term; and
WHEREAS, Staff is proposing a modification to EDR-2 to address the Utility Board's
request and to make several other modifications to the rate schedule.
NOW, THEREFORE, THE CITY COUNCIL AND UTILITY BOARD DO HEREBY
RESOLVE AS FOLLOWS:
That the "Schedule EDR-2—Economic Development Rate", attached hereto as
Exhibit A, is hereby amended and included in Azusa Light & Water Rules and
Regulations.
2. That the amended EDR-2 Schedule, attached hereto as Exhibit A, shall become
effective on July 24, 2012.
3. The City Clerk shall certify the adoption of this Resolution.
M
Joseph Rocha, Mayor
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: HANKS
ATTEST:
Mendoza,
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution 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 23th day of
July, 2012.
Vera Mendoza, City Clerk
EXHIBIT A
SCHEDULE EDR-2
ECONOMIC DEVELOPMENT RATE
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 or (ii) industrial business
attraction and/or expansion; as provided below or (iii) developing properties which either
are or had been owned by the City of Azusa or its redevelopment agency for development
purposes.
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 ninety (90) days or
longer, are eligible to receive a discount equal to 15% of the electric bill associated with
the qualifying facility electric load. In addition, certain customers may qualify for an
additional discount as described below, provided that no customer may receive more than
one additional discount.
Additional Discount New Non-residential Customers developing "City of Azusa Owned
Property'
Non-residential customers who are otherwise qualified to receive an EDR-2 discount and
who develop City of Azusa Owned Property are eligible to receive an additional 25%
discount to their electric bill for the first 12 months and an additional 10% 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.
Additional Discount for New Industrial Load
Industrial customers otherwise qualified for an EDR-2 discount are eligible to receive an
additional 25% discount to their electric bill for the first 12 months and an additional
10% 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
Effective July 24, 2012
035
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. An Industrial
Customer is one who operates facilities that are primarily used for the manufacturing of
goods.
Discount for Expanded Industrial Load
Industrial Customers with expanded (i.e. additional) electrical load which (i) is sized at
100 KW or greater and (ii) is projected to have a monthly load factor of 50 percent or
higher are eligible for an EDR-2 discount. The amount of such discount shall be equal to
15% of the electric bill associated with the expanded electric load. The discount is only
payable for months that the customer's load meets these two criteria. 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.
Special Conditions:
Schedule EDR-2 shall become effective on July 1, 2012 and applies to customers
who receive a permit or development agreement from the City of Azusa on and
after July 1, 2012 to build/modify qualified non-residential facilities.
2. Customers desiring to take advantage of Schedule EDR-2 must file an application
with Azusa Light & Water for approval not later than 60 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-2 rate
and the level of associated discounts for their planned location.
3. Upon approval and initiation of electric service, EDR-2 discounts shall apply for a
period of sixty (60) months subject to paragraph 7 below.
4. The EDR-2 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-2 discounts shall apply to the Power Cost Adjustment or any successor
surcharge/factor related to power supply costs.
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
Effective July 24, 2012
030
information on a timely basis for the purposes of verifying eligibility and
administering the terms of this rate schedule.
7. Schedule EDR-2 shall remain effective for new qualified customers through June
30, 2015 (i.e. 3 years). No discounts will be applied for billing periods after June
30, 2020.
8. 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.
9. 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.
10. The Azusa Utility Board may modify or eliminate EDR-2 at any time provided
that such modifications or elimination shall not affect entities that have been
previously approved for service under EDR-2.
/%
Effective July 24, 2012
037