HomeMy WebLinkAboutAgenda Packet - December 19, 1994 - CC 1110
E I
ifiGAIREIR.0 OF AZUSA
Light &Water Department Telephone 181 81 334-0215
FAX (818)334-3163
TO: HONORABLE MAYOR AND
MEMBERS OF THE CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES •
VIA: HENRY T. GARCIA, CITY ADMINISTRATOR
DATE: DECEMBER 12, 1994
SUBJECT: RATE ADJUSTMENT- ELECTRIC SYSTEM
Background
Every fiscal year the Utility Department performs a thorough examination of its operating and capital
assets costs vis-a-vis the revenue it derives from the rates it charges to provide electricity to
consumers throughout Azusa. Through strong entrepreneurial efforts, it has been exactly twelve
years since Council raised electric rates. However, Azusa is at a juncture where a modest rate
increase implemented now would make Azusa more competitive in the business world and would
save a much larger amount in the future for Azusa consumers. This report recommends that Council
institute a ten per-cent residential rate increase and direct staff to re-evaluate its effectiveness with
a detailed report to be narrated and reviewed at the budget workshops in June.
Findings
The City's ability to maintain its low electric rates over the past twelve years is the result of strong
entrepreneurial efforts on the part of the City Council and the City staff. Twelve years ago, the City
was purchasing nearly all of its electricity for resale from the Southern California Edison Company.
But,wisely,the City took the opportunity to venture into the power procurement market jointly with
other electricity resale cities in southern California such as Anaheim, Riverside, Banning and Colton.
Today, Azusa purchases less than 5%of its resale electricity from Edison. Thus, while Edison's rates
/ d/' 2/7
777 North Alameda Avenue • P.O. Box 9500 • Azusa, California 91702-9500
Honorable Mayor and Members of the City Council
December 12, 1994
Page 2
both to its resale purveyors and its retail customers have increased dramatically over the past twelve
years, Azusa has "held the line". In fact, on two occasions, when the cost-of-living was high and
other utilities were raising their electric rates, Azusa quietly reduced or rebated charges to its
customers.
During this period, the City acquired minor shares of the Palo Verde Nuclear Generating Station in
Arizona and of the Hoover Hydroelectric Power Plant in Nevada, acquired a sizeable interest in the
San Juan Generating Station in New Mexico and entered into several joint power purchase contracts
with other utilities in the western United States. And, to bring the newly-acquired electricity to
Azusa, the City's utility joined with others in the southwestern United States to purchase rights-of-
way and to construct transmission lines.
A long lead time is a major characteristic inherent in power generation and transmission/supply
projects, and those with which the City of Azusa is involved are no exception. Often, it can be as
long as five to ten years from project conception, through planning, construction and testing the
power plant and transmission lines, to the actual delivery of electricity to the end-user. As a result,
at their inception, power supply projects are scaled slightly larger than projected need, in order to
ensure sufficient room for load growth beyond the foreseeable future, and to take maximum feasible
advantage of economies of scale. Although this practice can result in a small amount of surplus
capacity when a project is new, it is a temporary situation, and the margin of surplus power soon
erodes as the community grows.
The energy projects that involve the City of Azusa have the potential to put this City in the forefront
of communities that have responsibly planned for their future energy needs and that will enjoy an
adequate supply of electric power at ultra-competitive rates that remain stable over the long haul,
both for business customers and for residents. And, even though these projects are very capital-
intensive and require the City to bear a significant financial responsibility to pay its share, the Council
and the Azusa community can take pride in the fact that this City has made tremendous progress in
its efforts to build enlarge and maintain its own electricity generating. transmitting and distributing
system. and at a modest and affordable cost.
Staff has prepared revenue and cost projections for the Azusa electric utility for the current fiscal year
and for three future fiscal years. Based on the projections, without a revenue adjustment, the Azusa
utility will experience a varying deficit in all four years. The reason is simple: the lead-time for
constructing the power generating and transmitting projects in which the City is participating require
the City's share of the cash outlay for construction and debt service before the projects begin to
generate revenue. Specifically, with the 1993 commitment to purchase San Juan capacity and with
two new transmission lines to be energized within the next two years, Azusa utility customers will
need to pay a little more now in order to fund an infrastructure investment that will ensure sustained
stable electric rates over the long future term. Staff recommends a 10% adjustment effective January
3.
Honorable Mayor and Members of the City Council
December 12, 1994
Page 3
One important but easily overlooked point is that, while Azusa's electric rates are extremely low on
the residential side, the City needs to maintain its electric rates to businesses in order to be
competitive with Edison and thereby attract solid business and commercial investment here. For this
reason, staff is recommending that the proposed increase be applied only to the residential rate scale.
Thus, although Azusa's residential rates would increase, they would still be very competitive and
Azusa's business electricity rates would remain very competitive. In effect, this is another way for
residents to invest in their community: by helping to encourage businesses to move here, residents
will share in the dividends of more local jobs and a broader tax base.
There are few alternatives: First, to forego the rate increase only serves to compound the severity
of the utility's financial challenges by postponing their recognition to the proverbial "better time" that
never arrives. Second, even with a rate increase of less than 10%and fill-ins of increased utility taxes,
assessments or fees,the revenue requirements will be unchanged,yet the complex funding mechanism
could possibly affront today's sophisticated public. Third, to reduce other budgeted program areas
in order to invest in the electric infrastructure is not a viable alternative because it defeats the purpose
of the annual budget process which is mandated by State law and is a strong cornerstone of this City's
financial house. And, fourth,the Light fund and its contributions and reserves play a vital role in the
City's cash flow plan and are the mainstay of the General Fund during the eight historically-low cash
receipts months of every year.
Obviously, however, although staff foreshadowed this strategic plan during the budget sessions last
June and although there have been lengthy discussions during two recent public workshops that
included consideration of the various alternatives, some segments of the Azusa community will
probably voice their concerns over the impact of the rate increase. For this reason, staff is
recommending a thorough update and presentation to Council and the public next June during the
budget workshops. And, during the next six months, staff will redouble its efforts to ensure that
every Azusa resident who qualifies has received his or her reduction or discount on the Assessment
Fees and/or the water and electric life line rates.
When necessary, Council revises the Rules and Regulations Governing the Operations of the Azusa
Electric and Water Utilities when adjusting either Electric or Water rates. A summary of the
revisions that would implement the 1995 electric rate increase and update the Rules to conform to
utility-wide operating practices is attached for Council's information. In addition, a draft Resolution
implementing the above is presented. Finally, a complete set of the existing Rules and a summary of
the annual revenue versus expense analysis is available in the Utility Department offices for Council's
perusal.
� I
Honorable Mayor and Members of the City Council
Decembe4 12, 1994
Page 4
Recommendation
Staff recommends that Council pass the attached Resolution Amending the Rules and Regulations
Governing the Operations of the Azusa Electric and Water Utilities to effect the described rate
adjustment for the Azusa Electric Utility.
attachments
b:agenda
SCHEDULE D
RESIDENTIAL SERVICE
APPLICABILITY:
This schedule is applicable to domestic service including lighting, heating, cooking, and power or
combination thereof in a single-family accommodation.
TERRITORY:
Within the electric service territory of the City of Azusa.
RATE:
Minimum Charge: per meter per month $2.50 $2.75
Energy Charge:
First 250 kwh, per kwh ¢ 8.36¢
All excess kwh, per kwh 9.7-5¢ 10.725¢
SPECIAL CONDITIONS:
1. The above rates are subject to fuel cost adjustment
2. A State Surcharge Tax may be added to the above rates
Effective 7/1/86 By Resolution 48030 dated 5/19/86 Effective By Resolution # dated
Supeisediug Resolution#7356 dated 10/17/83 Superseding Resolution #8030 dated 5/19/86
•
SCHEDULE WH/SH
RESIDENTIAL SERVICE FOR WATER AND/OR SPACE HEATING
APPLICABILITY:
This schedule is applicable to domestic use of electricity as sole source of energy, other than solar, for water and/or
space heating. It is supplemental to Schedule D.
TERRITORY:
Within the electric service territory of the City of Azusa.
RATE:
Minimum Charge per meter, per month $20 $2.75
Energy Charge:
First 250 kwh, per kwh 7.G01 8.36¢
Allowance for water heating, per month
250 kwh, per kwh 7.G01 8.36¢
Allowance for space heating, per month*
550 kwh, per kwh 7.60¢ 8.36¢
All excess kwh, per kwh -9775¢ 10.725¢
*From November to April
SPECIAL CONDITIONS:
1. The above rates are subject to fuel cost adjustment
2. A State Surcharge Tax may be added to the above rate
3. Residence requesting discount rate shall be verified by City employee
of its heating equipment on premises.
Effective 7/1/86 By Resolution 48030 dated 5/19/86 Effective By Resolution # dated
Supcibediiig Reaulutiuu 47356 dated 10/17/83 Superseding Resolution #8030 dated 5/19/86
SCHEDULE RL
•
RESIDENTIAL SERVICE WITH LIFE-SUPPORT DEVICES
This schedule is applicable to residential use of electricity for life-support devices in addition to lighting, heating,
cooking and power or combination thereof in a single-family accommodation.
TERRITORY:
Within the electric service territory of the City of Azusa
RATE:
Minimum Charge - per meter, per month $2.50 $2.75
Energy Charge:
First 250 kwh, per kwh 7.60¢ 8.36¢
Additional allowance for Life Support Device, per month 7.G0¢ 8.36¢
All excess kwh, per kwh 97750 10.725¢
SPECIAL CONDITIONS:
1. Each eligible residential customer may be allowed an additional lifeline quantity of electricity, upon
application to the Utility where such customer provides certification that a full-time resident of the household
regularly requires the use of an essential life-support device which is defined below:
Aerosol Tents Motorized Wheelchairs
Compressors Pressure Pads
Hemodialysis Machines Pressure Pumps
Electrostatic Nebulizers Respirators (all types)
Electric Nerve Stimulato's Suction Machines
IPPB Machines Ultrasonic Nebulizers
Iron Lungs
Procedure for Certification:
The Utility may require that:
A. The customer have a medical doctor or osteopath licensed to practice medicine in the State of California
provide the Utility with a letter, acceptable to the Utility, describing the type of regularly required life-support
device and the utilisation requirement in detail; or
B. County, State or Federal agencies, using an established notification letter to electric utilities, provide the
Utility with information relative to patients who regularly require the use of a life-support device in the house.
Upon the above certification,the Utility shall estimate the monthly consumption of the particular life-support device,
given the usual hours of operations per month, and within 30 days add the incremental estimated monthly usage to
the customer's lifeline quantity. The Utility may require a new or renewed application and/or certification, when
needed in the opinion of the Utility.
2. Verification. Not more than one lifeline quantity will be allowed for each single-family dwelling or
accommodation on the premises. However, where there are multiple life-support devices at such single-family
dwelling or accommodation, all such devices shall be totaled for one lifeline quantity. The number of single-family
accommodations on the premises and the existence of the specified end use equipment required to obtain certain
lifeline quantities of electricity, as set forth on the applicable rate schedules, are subject to verification by the Utility.
3. Termination of Use. Customers shall give the Utility notice of termination of use of equipment or devices.
In the event the Utility ascertains that the customer is not eligible for such additional lifeline quantity, such customer
may be rebilled as if no such additional lifeline quantity had been allowed.
4. The above rates are subject to fuel cost adjustment.
5. A State Surcharge Tax may be added to the above rates.
Ef��tive 7/1/86 By Resolution#8030 dated 5/19/86 Effective By Resolution # dated
Supc!sediiig Resulutivu#7356 dated 10/17/83 Superseding Resolution #8030 dated 5/19/86
ELECTRIC RULES & REGULATIONS
Page 3
Rule No. 1 (continued)
Customer's Mailing Address: The address specified in a customer's application or contract, or any
other address subsequently given to the Utility by the customer, to which any notice or other
communication is to be mailed.
Date of Presentation: The date upon which a bill or notice is mailed or delivered by the Utility to
the customer.
Department: The Light and Water Department of the City of Azusa.
Deposit: Certain installations done by the Electric and/or Water Divisions require the customer to
make a deposit. Said deposit is an estimated cost of materials used,plus the total cost of labor to
install,plus the cost of all other equipment, tools and overhead expenses. Customer must agree to
pay the difference if the final costs exceed the deposit and likewise the City shall refund to the
customer the difference if the final costs are less than the deposit. This deposit would be applicable,
but not limited to, water meters, hydrant meters, cabling charges, and work the customer requests
to be done outside of normal working hours.
Domestic Service: Service for residential use at a dwelling premises. Any service for other than
residential use at a dwelling premise may be served through the domestic service meter only where
such non-domestic connected load does not exceed 300 watts for lighting and 2hp for power.
Director: The Director of Utilities of the Light and Water Department of the City of Azusa.
General Service: Service to any lighting, heating or power installations except those eligible for
service on domestic, street lighting, resale or standby schedules.
Heating Service: Service to any apparatus primarily designed to convert electrical energy into heat.
Lighting Service: Service to any apparatus transforming electric energy into light for all visual
purposes except those specified under "Power Service".
Line Extension: All facilities, excluding transformer, service connection and meter, required to
extend electric service from the Utility's existing facilities to the point of delivery to the customer.
Mailed: Any notice or other communication will be considered "mailed" when properly address and
deposited in any United States Post Office box, postage prepaid.
ISSUED BY:
Joseph F. Hsu Effective 7/1/86 by Resolution No. 8038 Dated 6/2/86
Director of Utilities Superseding Resolution No. 3874 Dated 3/20/59
Page 6
Rule No. 1 (continued)
Minimum Charge: The least amount for which service will be rendered in accordance with
the rate schedule.
Prepayment: Payment in advance to secure payment of final bills for utility service
including,but not limited to, electric service, late payment charge and/or reconnection charge,
etc.
Service Charge: That portion of the charge for service which is a fixed amount based on
connected load in accordance with the rate schedule.
Rate Schedule: May be one or more tariff sheets setting forth the charges and conditions for a
particular class or type of service. A rate schedule, as referred to herein, shall include all the wording
on the applicable tariff sheet or sheets such as, but not limited to, the following: Schedule Number,
Class of Service, Character or Applicability, Rates, Conditions and reference to Rules.
Rules: Tariff sheets, including title page and preliminary statement, which set forth the application
of all rates, charges and service when such applicability is not fully set forth in and as a part of the rate
schedules themselves. In general, a separate subject is covered by an individual rule.
Service Connection: The group of conductors, whether overhead or underground, necessary to
connect the service entrance conductors of the customer to the Utility supply line, regardless of the
location of the Utility's meters or transformers. An overhead service connection, sometimes referred
to as a "service drop" is the group of conductors between the customer's building or other permanent
support and the Utility's adjacent pole.
Single Enterprise: A separate business or other individual activity carried on by a customer. The
term does not apply to associations or combinations of customers.
Single Family Accommodation: A house, apartment, flat or any other residential unit which
contains cooking facilities (not necessarily electric) and is used as a residence by a single family.
Street Lighting Service: Service to any lighting apparatus used primarily for the illumination of
streets, alleys, highways or other public ways.
ISSUED BY:
Joseph F.Hsu F.ffective 7/1/86 Resolution No 8038 Dated 6/2/86
Director of Utilities Superseding Resolution No 3874 Dated 3/20/59
Page 7
Rule No. 1 (continued)
Tariff Sheet: An individual sheet of the tariff schedules.
Temporary Service: Service for enterprises or activities which are temporary in character or where
it is known in advance that the service will be of limited duration. Service which, in the opinion of
the Utility, is for operations of a speculative character or the permanency of which has not been
established is also considered temporary service. The length of time the service shall be considered
temporary shall be determined by the Light and Water Department.
Transformer Deposit: An amount requested by the Electric Division to facilitate the order and
delivery of a transformer for the customer's specific project. This deposit is refundable only if the
project is completed within 2 years of the date of deposit and after 12 months of continuous electric
service. Failure to comply with the above criteria will resul tin forfeiture of the deposit to the City.
Utility: Electric and/or Water Utility- City of Azusa.
Water Heating Service: Service to any apparatus primarily designed to heat water by means of
electric energy.
ISSUED BY:
Joseph F.Hsu Effective 7/1/86 Resolution No 8038 Dated 6/2/86
Director of Utilities Superseding Resolution No 3874 Dated 3/20/59
Page 22
ELECTRIC UTILITY
RULE NO. 5
ESTABLISHMENT AND RE-ESTABLISHMENT OF CREDIT
A. ESTABLISHMENT OF CREDIT - DOMESTIC SERVICE. Each applicant, before
receiving domestic service, will be required to satisfactorily establish credit which will be deemed
established when applicant makes a prepayment to secure payment of bills for electric service as
prescribed in Electric Utility Rule No. 6.
B. ESTABLISHMENT OF CREDIT- OTHER THAN DOMESTIC SERVICE. Each
applicant, before receiving such service, will be required to satisfactorily establish credit which will
be deemed established:
1. When applicant makes a prepayment or provides a surety bond in lieu of prepayment
to secure a payment of final bills for electric service as prescribed in electric Utility
Rule No. 6.
2. By having been a LUstuIllel of the Utility fui d Sllllllal type of set the last
two yeats, and tuning the last twelve LUI1seLutive months of that pilot setviLc, by
having had no past-due bill, pi ovided that the pet iudiL bill fun suLln pi evious set vile
was equal to at least SV/0 of that estimated fol new set v1Le, and plovided ful diet that
the Li edit of appliLallt is minty-ailed iii the opinion of the utility.
C. RE-ESTABLISHMENT OF CREDIT- ALL CLASSES OF SERVICE.
1. An applicant who previously has been a customer of the Utility and whose electric
service has been discontinued by the Utility during the last twelve months of that prior
service because of non-payment of bills, may be required to re-establish credit by
prepaying the amount prescribed in Electric Utility Rule No. 6 for that purpose, and
by paying electric bills regularly due; except, an applicant for domestic service will not
be denied service for failure to pay such bills for other classes of service.
2. A customer who fails to pay bills before they become past due as prescribed in
Electric Utility Rule No. 9, and who further fails to pay such bill within fifteen(15)
workin: da s after .resentation of a discontinuance-of-service notice for non-.a ent
ISSUED BY:
Joseph F.Hsu Effective 7/1/86 Resolution No 8038 Dated 6/2/86
Director of Utilities Superseding Resolution No 3874 Dated 3/20/59
Page 24
ELECTRIC UTILITY
RULE NO. 6
PREPAYMENTS
A. AMOUNT OF PREPAYMENT. The amount of prepayment required to establish credit
is twice the estimated average monthly bill, but in no case may the amount of prepayment be less than
$75.00 for domestic service and no less than $250.00 for all other services.
B. APPLICATION OF PREPAYMENT.
1. Upon discontinuance of service, the Utility will apply the prepayment to customer's
final bill. Any credit or debit balance will be transferred to the customer's same
class of service open account. If none exists, any excess balance over $1.00 will be
refunded to the customer.
2. Mtn the l.ustoiiiei has paid bills fin SCi Vile fUi twelve 1.U11JCl.Utive 11101101S without
having had one7past-due bill,, as defined in Elea'it.,Utility Rule NU. 9, vi one i etui ned
Ll1el lZ the Utility may iefu11d U1 apply the piCpayllieut tV l UstU111C1 Lull Gilt bill. Nu
fui tlie' pi epdyIllKilt will be i Cquil ell if 11the aui.uullt i eiIldi11s in good standing. If tilt
Lustoiiiei lids had 111Ulethali one past-due bill in one Ietuilied .Aiei.k, the Utility will
tlleieatei leview the d1.A.,Uuut evety twelve months and will 1waive the piepayiiiellt a11C1
the l.UstUlllel has not had any past-due bill in ietuilied uhe[.K fining the twelve months
p11U1 to any levieW.
2. Prepayment will not be used as payment for past-due bills to avoid discontinuance
of service or reconnection charge or other miscellaneous charges.
C. INTEREST ON PREPAYMENT. There shall be no interest paid on prepayments held by
the Utility.
ISSUED BY:
Joseph F.Hsu Effective 7/1/86 Resolution No 8038 Dated 6/2/86
Director of Utilities Superseding Resolution No 3874Dated 3/20/59
Page 28
Rule No. 8 (continued) 11
D. The following statement will be pllilted on each utility bill.
D. The following information will be printed on each utility bill:
CITY OF AZUSA
LIGHT AND WA 1 ER DEPARTMENT
777 N ALAMEDA AVENUE, P.O. BOX 9500
AZUSA, CALIFORNIA 91702-9500
818/334-0215
The City of Azusa Light and Water Department is the only authorized payment station. If paid
elsewhere, the City is not responsible if receipt of payment is delayed in reaching our office.
Should sei Vice be dLscolltinued fol delinquency, i ecoiuiectloit dial ges will be i cqun Cil to le-establish
serViLC7
Bill Disputes. Should you question this bill, please !qui est do explanation ft ollldt1 CustcC
riiiet SC/Vi
RepieselltatiVC at 334-0215 between the houis of 7.00a.lii. and 4.00 p.in., Monday tinoug'li Friday.
If yoUi piobleIn calniot be resolved, you may tCtIUCst d healing with the City's Iepreseiitatlave by
appointment, 334-0215, EAt. 207.
PREPAYMENT MAY ALSO BE REQUIRED
E. RETURNED CHECK CHARGE. TIIC Utility may 1 equic payment of a $10 i etui iced
titeck cliaige fol ally check ICtutiied flout the bank unpaid, and payments of bills fon the
following 6 (six) months must belliatie in cast.
F. LATE PAYMENT CHARGE. If all dccoUILt becomes delinquent and is subject tt1
dist;olltnivaiice of set Vit C fol nun-payment, a change of $4.00 will be imposed at the time the account
is scheduled foi discontinuance. This chmdige will apply wlmetl ci of not the set Vice is discontinued.
ISSUED BY:
Joseph F.Hsu Effective 7/1/86 Resolution No 8038 Dated 6/2/86
Director of Utilities Superseding Resolution No 3874 Dated 3/20/59
Page 29
Rule No. 8 (continued)
PAYMENT
This bill is due and payable on the date rendered and becomes delinquent twenty (20) days
thereafter. If not paid within this time, service may be discontinued A reconnection charge and
the entire delinquent bill shall be paid in full before service will be re-established.
AFTER OFFICE HOURS RECONNECTION OF SERVICE
After office hours reconnection for non-payment will be provided for an additional cost, until 8:00
p.m., only for customers receiving both light and water service from the City of Azusa. For such
service, call the Azusa Police Department at 334-2943 no later than 7:30 p.m.
RETURNED CHECK
1. Service charges will be assessed
2. Payment will be accepted only in the form of cash or money order for 6 consecutive months.
INFORMATION
Should you question this bill or need information on amortization or financial assistance, please call
334-0215, Ext. 210 between the hours of 7:00 a.m. and 5:30 p.m., Monday through Thursday. For
emergency service after office hours, within the city of Azusa city limits, call the Azusa Police
Department at 334-2943; outside city limits, call 334-7881.
RULES AND REGULATIONS
peThe City of Azusa Light and Water Department Rules and Regulations, under which service is
rendered, are on file at the Light and Water Department. If you wish a copy of any information
rtaining to your account,please write to the City of Azusa Light and Water Department, P.O. Box
9500, Azusa, California 91702-9500.
MEASURES OF CONSUMPTION
KWH or kilowatt-hour is the basic measurement of your electricity use. One 100-watt bulb burning
for 10 hours will consume one kilowatt-hour.
CCF or one hundred cubic feet is the basic measurement of your water use. One hundred cubic feet
equals approximately 748 gallons.
OFFICE HOURS 7:00 a.m. TO 5:30 p.m. MONDAY THROUGH THURSDAY
ISSUED BY:
Joseph F.Hsu Effective 7/1/86 Resolution No 8038 Dated 6/2/86
Director of Utilities Superseding Resolution No 3874 Dated 3/20/59
Page 32
Rule No. 9 (continued)
I. RECONNECTION CHARGE. The Utility may require payment of a reconnection charge
of$20.00 before restoring service that has been discontinued for nonpayment of bills or for failure
otherwise to comply with tariff schedules. No service will be reconnected in an overtime basis. If
the customer requests that such service be reconnected outside of regular business hours, but before
12 o'clock midnight, a reconnection charge of$75.00 must be paid prior to the reconnection ofi
service. The reconnection charge will be $125.00 if reconnection is made between 12 o'clock
midnight and 7:00 a.m.
In case the customer's service is discontinued for nonpayment of bill for service, or where
notice of discontinuance for nonpayment of a bill has been given, the Utility may require the customer
to re-establish his credit by making a cash deposit as provided herein.
7. RESTORATION OF SERVICES. In the event the customer has turned on the service after
it has been turned off for any of the above reasons, and the Utility has again turned off the service,
there shall be a charge of ten dolldI s ($10.00) twenty dollars ($20.00) in addition to other amounts
due from the customer before service is restored. If the meter is removed, the service charge will bel
twenty-five dollars (25.00). If service is terminated at the riser or pole, the service charge will be
fifty dollars($50.00), and if the service is terminated at the underground areas, the service charge will
be fifty dollars ($50.00), in addition to reconnection charge. If it becomes necessary to remove the
service drop, there will be an additional amount of one hundred dollars ($100.00) prior to restoring
service.
K. TRANSFERRING OF SERVICE.. Utility may refuse service to a new customer if nod
authorization has been received by the Utility from the previous applicant or the owner of the same'
premises for the termination of the service, unless the Utility is presented by the new customer the
proof of ownership to the property where service is being applied for.
ISSUED BY:
Joseph F.Hsu Effective 7/1/86 Resolution No 8038 Dated 6/2/R6
Director of Utilities Superseding Resolution No 874 Dated 3/20/59
WATER RULES & REGULATIONS
RULE NO. 4
ESTABLISHMENT AND RE-ESTABLISHMENT OF CREDIT
A. Establishment of Credit. Each applicant, before receiving service, shall be required to
satisfactorily establish credit which shall be deemed established:
1. If applicant is the owner of the premises to be served by the Utility; or
2. If applicant makes a cash prepayment to secure payment of bills for water service as
prescribed in Rule No. 5. or when applicant makes a prepayment or provides a
surety bond in lieu of prepayment to secure a payment of final bills for water service
as prescribed in Rule No. S.
B. Re-establishment of Credit
1. An applicant who previously has been a customer of the Utility and whose water
service has been discontinued by the Utility during the last twelve months of that prior
service because of nonpayment of bills, may be required to re-establish credit by
depositing the amount prescribed in Rule No. 5 for that purpose, and by paying water
bills regularly due.
2. A customer who fails to pay bills before they become past due as prescribed in Rule
No. 7, and who further fails to pay such bills within 15 days after presentation of a
discontinuance of service notice for nonpayment of bills, may be required to pay said
bills and re-establish his credit by depositing the amount prescribed in Rule No. 5.
This rule shall apply regardless of whether or not service has been discontinued for
such nonpayment.
ISSUED BY: Joseph F. Hsu, Director of Utilities
Effective 7/1/88 by Resolution No 8438 dated 6/20/88.
Superseding Resolution No. 4543 dated 9/1/63
RULE NO. 5
PREPAYMENT S
A. Amount of prepayment. The amount of prepayment required to establish or re-establish
credit is twice the estimated average monthly bill, but in no case may the amount of
prepayment be less than $10.00.
B. Application of prepayment. Upon discontinuance of service, the Utility shall apply the
prepayment to the customer's final bill. Any credit or debit balance will be transferred to
the customer's same class of service open account. If none exists, Any excess balance over
$1.00 shall be refunded to the customer.
C. Interest on prepayment. There shall be no interest paid on prepayments held by the Utility.
D. Prepayment will not be used as payment for past due bills to avoid discontinuance of service
or reconnection charge or other miscellaneous charges.
ISSUED BY: Joseph F. Hsu, Director of Utilities
Effective 7/1/88 by Resolution No.8438 dated 6/20/88
Superseding Resolution No. 4543 dated 9/1/63
RULE NO. 7
RENDERING AND PAYMENT OF BILLS
A. 1. Billing Period. Bills for water service shall be rendered monthly.
2. Meter Service. Bills for metered service shall be based upon meter registrations.
Meters shall be read as required for the preparation of regular bills, opening bills and
closing bills.
It may not be possible to always read meters on the same day of the month. Should
a monthly billing period contain less than 25 days or more than 35 days, a pro-rate
computation in the bill shall be made.
All charges on opening and closing bills shall be made in accordance with the
paragraphs (a) and (b) of the rate schedule.
B. Payment of Bills. All bills are due and payable on presentation and payment should be made
at the Light and Water Department office. Bills for connection or reconnection of service and
payments for prepayments or to reinstate prepayments as required under the rules of the
Utility shall be paid before service shall be connected or reconnected.
C. Returned Check Charge. The Utility may require payment of a$10.00 S15.00 check charge
for any check returned from the bank unpaid, and payments of bills for the following six(6)
months must be made in cash.
D. Late Payment Charge. If an account becomes delinquent and is subject to discontinuance of
service for nonpayment, a charge of 5-47e0 S5.00 shall be imposed at the time the account is
scheduled for discontinuance. This charge shall apply whether or not the service is
discontinued. Only one late payment charge shall be applied to delinquent accounts having
both electric and water services.
ISSUED BY Joseph F. Hsu, Director of Utilities
Effective 9/17/92 by Resolution No. 92-C115 dated 8/17/92
Superseding Resolution No. 8438 dated 6/20/88
Rule No. 8 (continued)
C. Fraud. The Utility may refuse or discontinue service if the acts of the customer or the
conditions upon his premises are such as to indicate an intent to defraud the Utility.
D. Failure to Establish or Re-establish Credit. If, for an applicant's convenience, the Utility
should provide service before credit is established or should continue service to a customer
when credit has not been established in accordance with Rule No. 4, and he fails to establish
or re-establish his credit as provided by a written notice of not less than 15 (fifteen) days, the
Utility may discontinue service.
E. Customer's Request for Service Discontinuance. When a customer desires to terminate his
responsibility for service, he shall give the Utility not less than two days' notice of his intention
and state the date on which he wishes the termination to become effective. A customer shall
be held responsible for all service furnished at the premises until two days after receipt of such
notice by the utility or until the date of termination specified in the notice, whichever date is
later.
F. Restoration/Reconnection Charge. The Utility may require a payment of a reconnection
charge of $20.00 before restoring service that has been discontinued for nonpayment of bills
or for failure otherwise to comply with tariff schedules. No service shall be reconnected on
an overtime basis.
If the customer requests that such service be reconnected outside of regular business hours,
but before 12 o'clock midnight, a reconnection charge of$50.00 must be paid prior to the
reconnection of service. The reconnection charge shall be $100.00 if reconnection is made
between 12 o'clock midnight and 7:00 a.m.
If the water crew disconnects the water or removes the meter, the service charge will be
$50.00
If a customer restores his own service after it has been discontinued by the Utility, a charge
of $15.00 shall be charged to cover the expense to return trip to the customer's location,
locking the service and the subsequent removal of said lock.
G. Transferring of Service. Utility may refuse service to a new customer if no authorization has
been received by the Utility from the previous applicant or the owner of the same premises
for the termination of the service, unless the Utility is presented by the new customer the
proof of ownership to the property where service is being applied for.
ISSUED BY Joseph F. Hsu, Director of Utilities
Effective 9/17/92 by Resolution No. 92-C115 dated 8/17/92
Superseding Resolution No. 8438 dated 6/20/88
RULE NO. 15
WATER METER REMOVAL AND REPAIRS
All meters are the property of the Utility and the Utility shall make such repairs as are needed, in
its judgment.
A. After water service has been made and meter installed on the property, any damage to said
meter resulting from any carelessness or negligence on the part of the consumer shall be paid
for by the consumer to the Utility upon presentation of a bill therefor.
B. No person shall interfere with or cut off or remove a water meter from any service where it
has been installed without first receiving written permission from the Utility. Such permission
shall be granted only for purposes of tests, replacements, repairs to meter or service pipes,
readjustments of service or similar emergency.
C. The Utility shall, at its own expense, make all repairs necessary to water mains, meters and
pipe lines connecting with water mains. The Utility shall make no repairs or do any work
whatsoever on the water pipeline beyond the meter connection. Any repair made necessary
by any act, negligence or carelessness of the consumer or the other person or persons shall
be charged to and collected from the consumer or the person or persons guilty thereof.
ISSUED BY: Joseph F. Hsu, Director of Utilities
Effective 7/1/88 by Resolution No. 8438 dated 6/20/88
Superseding Resolution No. 4543 dated 9/16/63