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Resolution No. 2019-UB-01
RESOLUTION NO. 2019 -UB -01 A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, CALIFORNIA, TO AMEND THE AZUSA LIGHT & WATER RULES AND REGULATIONS WHEREAS, pursuant to Section 78-37 of the Azusa Municipal Code, the Utility Board may from time to time establish and amend the Rules and Regulations concerning utility services provided by Azusa Light and Water Department (ALW); and WHEREAS, on April 23, 2018, the Utility Board/City Council adopted Resolution UB- O 1-2018 which, among other things, reallocated customer fixed and energy costs to allow for the recovery of more fixed costs. The provisions of the Rules and Regulations which were changed at the time of adoption of Resolution UB -01-2018 addressed the "Minimum Charge" electric rate line items. However, the provisions of the Rules and Regulations which actually reflect the intended reallocation should include a fixed monthly "Customer Charge" designed to provide a reliable source of fixed cost recovery necessary for infrastructure cost recovery; and WHEREAS, the Utility Board/City Council desires to adopt this Resolution 2019 -UB - 01 in order to formally change the provisions of the Rules and Regulations which are necessary in order to reflect the intent to transition from volumetric to fixed base rates to more accurately reflect the cost of service; and WHEREAS, a Public Hearing was not required to make adjustments in electric rates; NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Amendment of Azusa Light & Water Rules and Regulations. The Utility Board/City Council hereby amends the Azusa Light & Water Rules and Regulations document in its entirety as set forth in Exhibit "A" which is attached to this resolution and made a part hereof. The specific changes regarding the use of a "Customer Charge" instead of a "Minimum Charge" are indicated in strikeout and underlining on the copy of the Rules and Regulations which is attached to this Resolution. Said strikeout and underlining will not be included in the official version of the Rules and Regulations. SECTION 2. Effective Date. The amended Azusa Light & Water Rules and Regulations document shall become effective February 1, 2019 and operative for all utility bills rendered on and after February 1, 2019. 1 PASSED, APPROVED and ADOPTED this 281h day of January, 2019. seph Romero Rocha Boardmember/Mayor ATTEST: C- - -, 5-; �- - ;Jrk/�4tv�,Ae'nc�e Cornejo r. Secretary/City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution 2019 -UB -01 was duly adopted by the Utility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility Board Thereof held on the 28th day of January, 2019. AYES: BOARD/COUNCILMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA NOES: BOARD/COUNCILMEMBERS: NONE ABSENT: BOARD/COUNCILMEMBERS: MACIAS J e a e Cornejo, J. City Clerk APPROVED AS TO FORM: City ttorney Best est & Krieger 2 AZUSA LIGHT & WATER RULES AND REGULATIONS AZUSA LIGHT & WATER January 01, 2019 UB -74 TABLE OF CONTENTS ELECTRIC RULES & REGULATIONS....... PRELIMINARY STATEMENT................................................................................................. 2 Rate Applicability and Rules.............................................................................................. 2 Definition of Customer..................................................................... 2 Temporary or Speculative Service..................................................................................... 2 Contracts............................................................................................................................. 2 Directorof Utilities............................................................................................................. 2 Application of Power Cost Adjustment.............................................................................. 2 OfficialTime....................................................................................................................... 2 ELECTRIC RATE SCHEDULES.............................................................................................. 1 SCHEDULED................................................................................................................... 1 Residential Service SCHEDULEWH/SH.......................................................................................................... 2 Residential Service for Water and/or Space Heating SCHEDULERL.................................................................................................................. 3 Residential Service with Life -Support Devices SCHEDULEG.................................................................................................................... 5 General Service SCHEDULEGL., ................................................................................................ Large General Service SCHEDULETOU.............................................................................................................. 9 Time -of -Use SCHEDULEMS............................................................................................................... 12 Municipal Service SCHEDULES.................................................................................................................. 13 Standby SCHEDULE SL-1............................................................................................................. 14 Street Lighting Service, Department -Owned Lighting Districts SCHEDULESL-2............................................................................................................. 15 Street Lighting Service, Customer -Owned Lighting Districts SCHEDULE SL-3............................................................................................................ 17 Street Lighting Service, Customer -Owned Lighting Maintained by Azusa Light & Water SCHEDULEOL............................................................................................................... 18 Outdoor Area Lighting Service SCHEDULE PCA...............................................................................................I............. 20 Power Cost Adjustment SCHEDULE EDR-3.......................................................................................................... 22 Economic Development Rate SCHEDULENGP............................................................................................................. 25 Net Generator Payment e SCHEDULEEV............................................................................. --....... __ 26-27 Electric Vehicle Off -Peak Charging Discount SCHEDULEDC.......................................................................•........... ........... .._ 6 Electric Vehicle DC Fast Charging Service SCHEDULE EV -LEVEL 2..........................................::::.::::::....:....:...............................29 Application for Service Electric Vehicle Level 2 Charging Service RULENO.4..................................................................................................................... 17 SCHEDULE PBC........................................................................................................ 30-31 Public Benefit Charge 18 SCHEDULECEM....................................................................................................... 32-33 Co -Energy Metering Pre -payments SCHEDULE AMI........................................................................................................ 34-35 Advanced Metering Infrastructure Program Opt -Out Charge ELECTRIC UTILITY.................................................................................................................. 1 RULENO. 1....................................................................................................................... 1 Definitions RULENO.2.................. ........................................................................ ___ ........ ........... .._ 6 Description of Service RULENO. 3..................................................................................................................... 15 Application for Service RULENO.4..................................................................................................................... 17 Contracts RULENO. 5..................................................................................................................... 18 Establishment and Re -Establishment of Credit RULENO. 6..................................................................................................................... 19 Pre -payments RULENO. 7......................................................................................................:............:... 21 Notices RULENO. 8............................................................................................. ................... 22 Rendering and Payment of Bills RULENO. 9..................................................................................................................... 27 Discontinuance and Restoration of Service RULENO. 10................................................................................................................... 31 Dispute Resolution Process RULENO. 11................................................................................................................... 32 Meter Test and Adjustment of Bills for Meter Error RULENO. 12................................................................................................................... 35 Rate and Optional Rates RULENO. 13 ................................. .............................................. .:........ :.:...... :.:.:..... ... 37 Temporary Service RULENO. 14.......................................................................................... ........ 38 Shortage of Supply and Interruption of Delivery RULENO. 15............................................................................................ 39 Line Extension RULENO. 16................................................................................................................... 42 Service Connections and Facilities on Customer's Premises RULENO. 17................................................................................................................... 47 Supply to Separate Premises and Resale RULENO. 18.....................................................::..............:..:.............:.,..................-..-...48 Public Benefits Program U"-72 WATER RULES & REGULATIONS........................................................................................ 1 PRELIMINARYSTATEMENT................................................................................................. 2 Rate Applicability and Rules ................................ ............ ........................................ - Definition of Customer.... .......................... 2 Contracts............................................................................................................................. 2 Directorof Utilities............................................................................................................. 2 OfficialTime....................................................................................................................... 2 WATER RATE SCHEDULES.................................................................................................... 1 MeterService Charge......................................................................................................... 1 CommodityCharge ............ ........ ___ ...... ......- ..., ................. 2 EmergencyCommodity Rate Charge.................................................................................. 3 Residential Service with Fire Sprinkler System................................................................. 4 FireService Charge............................................................................................................. 5 LifelineRate........................................................................................................................ 6 SpecialZone Rate.................................................................................... ............... 6 Replacement Water Cost Adjustment Factor............................................................._....... 7 Water System Development Fee......................................................................................... 8 Water System Annexation Fee............................................................................................ 8 Fire Service Installation Charge....................................................................................... .9 Fire Hydrant Installation Charge....................................................................................... 9 Domestic Meter Installation Charge................................................................................. 10 Advanced Metering Infrastructure Program Opt -Out Charge ..................................... 10-11 WATERUTILITY........................................................................................................................ 1 RULENO. 1....................................................................................................................... I Definitions RULENO. 2...................................................................................................4................... 4 Application for Water Service and Connection RULENO. 3....................................................................................................................... 6 One Meter for Multiple Connections RULENO. 4....................................................................................................................... 7 Establishment and Re -Establishment of Credit RULENO. 5....................................................................................................................... 8 Prepayments RULENO. 6..................................................................................................................... 10 Notices RULENO. 7..................................................................................................................... 11 Rendering and Payment of Bills RULENO. 8..................................................................................................................... 15 Discontinuance and Restoration of Service RULENO. 9..................................................................................................................... 19 Dispute Resolution Process RULENO. 10................................................................................................................... 21 Meter Tests and Adjustment of Bills for Meter Error RULENO. 11................................................................................................................... 23 Temporary Service RULENO. 12 ................................................................................................................ 25 Application for Water Mains and Water Main Extensions UB -73 RULENO. 13....................................................................................................................26 Fire Hydrants and Fire Flow Tests RULENO. 14...................................................................................................................27 Shut-off Valve Requirement RULENO. 15.....................................................................................................................28 Water Meter Removal and Repairs RULENO. 16....................................................................................................................29 Supply to Separate Premises and Resale RULENO. 17..................................................................... ........30 Testing of Service Pipe RULENO. 18....................................................................................................................31 Sewer Pipe/Distance from Water Pipe RULENO. 19....................................................................................................................32 Access to Premises, Trespassing on City Property RULENO. 20........................................................................................................ ........33 Cross -Connection Control RULENo. 21.....................................................................................................................37 Water Conservation RESOLUTIONS..........................................................................................----...................1 UB -74 ELECTRIC RULES & REGULATIONS UB -75 PRELIMINARY STATEMENT 1. Rate Applicability and Rules: The application, interpretation and administration of the provisions herein are subject to such rules and regulations as may be provided and prescribed by the Director of Utilities of the City of Azusa and as approved by the City Council of the City of Azusa. 2. Definition of Customer: The term "customer" is hereby defined as meaning a person, private or public corporation, co -partnership, unincorporated association, the United States, the State of California, any County or any governmental agency who makes written application and is entitled to service under the Utility's rules. 3. Temporary or Speculative Service: Service will not be rendered in temporary or speculative loads unless such customer shall first sign an "Agreement for Installation and Removal of Electric Distribution Facilities for Supplying Electrical Energy for Power and Lighting Service", and advance the "up and down" cost of installing and removing the necessary facilities to serve such loads. 4. Contracts: The City may require a contract as a condition of service for any type of load to be served. 5. The Director of Utilities may establish and enforce charges for furnishing electricity and water to any installation of a character not adequately provided for by these rules and rates, provided that such charges shall be consistent with the rates and charges prescribed herein. 6. Application of Power Cost Adjustment: The Power Cost Adjustment (PCA) is a charge per KWH which is used to adjust Azusa's electric rates for the actual cost of purchasing and generating electric power and energy to serve Azusa's customers. The PCA may be either positive or negative to reflect actual and projected changes in power costs. 7. Official Time: Azusa Light & Water recognizes as its official referenced time standard for all service metering and transactional activities the time as recorded by the United States Department of Commerce National Institute of Standards and Technology (NIST) and the U.S. Naval Observatory (USNO). UB -76 ELECTRIC RATE SCHEDULES SCHEDULED 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: Rate: Within the electric service territory of the City of Azusa. Nfiftimiii-Customer Charge: per meter, per month $5.80 Energy Charge: First 250 kWh, per kWh 10.910 All excess kWh, per kWh 14.87¢ Special Conditions: 1. The above rates are subject to fuel cost adjustment. 2. A State Surcharge Tax may be added to the above rates. 3. A State Public Benefit Program Charge may be added to the above rates. Resolution No. UB -01-2018 Effective: 07/01/2018 Electric Rate SchT13-77 id 13— // 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: Rate: Within the electric service territory of the City of Azusa. Mk4mu-Customer Charge: per meter per month $5.80 Energy Charge: First 250 kWh, per kWh 10.910 Allowance for water heating, per month* 250 kWh, per kWh 10.910 Allowance for space heating, per month* 550 kWh, per kWh 10.910 All excess kWh, per kWh 14.87¢ *From November 1 to April 30 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. Resolution No. UB -01-2018 Effective: 07/01/2018 Electric Rate Schet it 13-7Q 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: Rate: Within the electric service territory of the City of Azusa Minimar1-Custoiner Charge: per meter per month $5.80 Energy Charge: First 250 kWh, per kWh 10.910 Next 150 kWh, per kWh additional allowance for Life Support Devices, per month All excess kWh, per kWh 14.87¢ 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 full-time resident of the household regularly requires the use of an essential life-support device which is defined below, including heating and/or cooling as medically required for listed serious illnesses: Aerosol tents Apnea monitors Compressors Compromising Immune System illnesses Heart monitors Hemodialysis machines Electrostatic nebulizers Resolution No. UB -01-2018 Effective 07/01/2018 IPPB machines Iron lungs Kidney dialysis machines Life-threatening illnesses Motorized wheelchairs Multiple Sclerosis Paraplegia Pressure pads Pressure pumps Quadriplegia Respirators (all types) Scleroderma Suction machines Ultrasonic nebulizers Electric Rate ScheU13-79 Schedule RL (continued) 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 utilization requirement in detail; or h 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 receipt of the above certification, the Utility shall within 30 days add the incremental monthly lifeline usage allowance to the customer's first tier 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. The number of single-family accommodations on the premises and the existence of the specified end use equipment required to obtain the lifeline allowance of electricity, as set forth on the applicable rate schedules are subject to on-site 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 re -billed as if no such additional lifeline quantity had been allowed. 4. The above rates are subject to fuel cost adjustment. A State Surcharge Tax may be added to the above rates. Resolution No. UB -01-2018 Effective 07/01/2018 Electric Rate SchetTi lft-80 SCHEDULE G GENERAL SERVICE Applicability: Applicable to single and three-phase general service including lighting and power. Territory: Within the electric service territory of the City of Azusa. Rate Gl: Customer Charge: per meter per month $10.00 Energy Charge (to be added to customer charge) First 500 kWh, per kWh 16.50¢ All excess kWh, per kWh 14.30¢ Minimum Charge: The monthly minimum charge shall be the monthly customer charge. Rate G-2: Demand Charge: First 20 KW or less of billing demand No Charge Additional KW of billing demand, per KW $9.75 Energy Charge: First 500 kWh, per kWh 16.89¢ Next 4,500 kWh, per kWh 14.98¢ Additional kWh, per kWh 9.50¢ Minimum Charge: The monthly minimum charge shall be $167.81 if the energy charge is less than $167.81. Resolution No. UB -01-2018 Effective: 07/01/2018 Electric Rate Scheit 13—Q 1 Schedule G (continued) Special Conditions: Service will be supplied at one standard voltage through one meter. 2. Rate G-2 is applicable when a demand meter is installed in accordance with Condition 3. 3. A maximum demand meter will be installed when, in the opinion of the Utility, the customer's load and use characteristics indicate that the maximum demand may exceed 20 KW or when the customer requests a demand rate. 4. The billing demand of the month shall be the maximum kilowatt measured in the 15 - minute interval in that month, but not less than 50% of the highest demand established in the preceding 11 months. Billing demand shall be determined to the nearest 1/10 KW. When the use of energy is seasonal or intermittent, no adjustment will be made for a temporary discontinuance of service. Any customer, prior to resuming service within 12 months after such service was discontinued, will be required to pay all charges which would have been billed if service had not been discontinued. 6. The above rates are subject to fuel cost adjustments. 7. A State Surcharge Tax may be added to the above rates. Resolution No. UB -01-2018 Effective: 07/01/2018 Electric Rate Sch VH -82 SCHEDULE GL LARGE GENERAL, SERVICE Applicability: Applicable to single and three-phase general service including lighting and power. This schedule is mandatory for all customers whose monthly maximum demand has exceeded 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also exceeds 200 KW. Any customer whose monthly maximum demand has fallen below 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also is less than 200 KW may be required to take service on Schedule G-2. Territory: Rate: Within the electric. service territory of the City of Azzusa- (Identical to Rate G-2 with the exception of minimum charge and power factor adjustment.) Minimum Charge: The monthly minimum charge shall be the monthly demand charge or $167.81, whichever is greater. Special Conditions: Service will be supplied at one standard voltage through one meter. 2. Billing Demand: The billing demand in any month shall be the average kilowatt input indicated or recorded by instruments to be supplied, owned and maintained by the utility and at the Utility's expense upon the consumer's premises adjacent to the watt-hour meter, in the 15 -minute interval in which the consumption of electric energy is greater than in any other 15 -minute interval in the month, but not less than 50% of the highest billing demand in the preceding 11 months. Billing demand shall be determined to the nearest KW. Whenever the measured maximum demand has exceeded 400 KW for 3 consecutive months and thereafter until it has fallen below 300 KW for 12 consecutive months, a 30 -minute interval will be used. Where the demand is intermittent or subjected to violent fluctuations, the maximum demand may be based on a shorter interval. Resolution No. UB -01-2018 Effective: 07/01/2018 Electric Rate Sche UB -83 Schedule GL (continued) Power Factor Adjustment: When the billing demand has exceeded 200 KW for 3 consecutive months, a kilovar-hour meter will be installed as soon as practicable. The charges will be increased for each KVAR in excess of 60% of the billing demand in the amount of 50¢ per KVAR. The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatt-hours. Demands in kilowatts and kilovars shall be determined to the nearest 1/10 (0.1) unit. A ratchet device will be installed on the kilovar-hour meter to prevent its reverse operations on leading power factors. 4. Voltage Discount: The charges before power factor and fuel cost adjustments will be reduced by 4% for service delivered and metered at 12 KV. 5. Temporary Discontinuance of Service: When the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within 12 months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. 6. The above rates are subject to fuel cost adjustments. 7. A State Surcharge Tax may be added to the above rates. Resolution No. UB -01-2018 Effective: 07/01/2018 Electric Rate Sch TB -84 SCHEDULE TOU TIME -OF -USE General Service Demand Metered (Amended by Resolution No. U13-7-14) (Amended by Resolution No. UB -O 1-2018) Applicability: Applicable to single and three-phase general service, including lighting and power. This schedule is mandatory for all customers (i) whose monthly maximum demand has exceeded 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also exceeds 200 KW and (ii) eligible customer - generators with a capacity of more than 10 kilowatts, but not exceeding one megawatt. Any customer whose monthly maximum demand has fallen below 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also is less than 200 KW may be recniired to take service on Schedule r-2 excnnt that customer -generators as described above shall continue to take service on this schedule. Territory: Within the electric service territory of the City of Azusa. Rates: Per Meter per Month Summer Winter Customer Charge: $ 42.15 $ 42.15 Demand Charge All kW of Maximum Demand, per KW (Non -time Related Component) 4.50 4.50 Time Related Component (To be added to Non -time Related Component) All KW of on -peak maximum demand per KW 7.51 n/a Plus all KW of mid -peak maximum demand, per KW 1.31 1.03 Plus all KW of off-peak Maximum Demand, per KW 0.00 0.00 Energy Chargee, All on -peak kWh, per kWh $ 0.15455 n/a All mid -peak kWh, per kWh $ 0.10439 0.11944 All off-peak kWh, per kWh $ 0.07026 0.07026 Charges for energy are calculated for customer billing using the components shown below. Resolution No. UB -01-2018 Effective: 07/01/2018 SCE DLAP Adjustment 07/01/2018 Electric Rate SchVIR—QS Schedule TOU (continued) Special Conditions: Time period are defined as follows: On -peak: Noon to 6:00 p.m. summer weekdays except holidays. Mid -peak: 8:00 a.m. to noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays, and 8:00 a.m. to 9:00 p.m. winter weekdays except holidays. Off-peak: All other hours. Off-peak holidays are New Year's Day, (January 1) Washington's Birthday (third Monday in February), Memorial day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Veterans' Day (November 11), Thanksgiving Day (fourth Thursday in November) and Christmas Day (December 25). The summer season shall commence at 12:00 a.m. on the first Sunday in June and continue until 12:00 a.m. of the first Sunday in November of each year. The winter season shall commence at 12:00 a.m. on the first Sunday in November of each year and continue until 12:00 a.m. of the first Sunday in June of the following year. 2. Voltage: Service will be supplied at one standard voltage. 3. Maximum Demand: Maximum demands shall be established for the on -peak, mid -peak, and off-peak periods. The maximum demand for each period shall be the measured maximum average KW -input indicated or recorded by instruments to be supplied by the City, during any 15 -minute metered interval. 4. Billing Demand: The demand charge shall include the following billing components: The time related components shall be for the kW of maximum demand recorded during the monthly billing period for each of the on -peak, mid and off-peak time periods. 5. Power Factor Adjustment: When the billing demand has exceeded 200 KW for 3 consecutive months, a kVAR-hour meter will be installed as soon as practicable. The charges will be increased for each kVAR in excess of 48.4% of the billing demand in the amount of 50¢ per kVAR. The kVAR of reactive demand shall be calculated by multiplying the KW of measure maximum demand by the ratio of the kVAR-hours to the kW -hours. Demands in KW and kVAR shall be determined to the nearest 1/10 (0.1) unit. A ratchet device will be installed on the KVAR-hour meter to prevent its reverse operation on leading power factors. 6. Voltage Discount: The charges before power factor and fuel cost adjustments will be reduced by 4% for service delivered and metered at 12 kVAR. Resolution No. UB -01-2018 Effective: 07/01/2018 SCE DLAP Adjustment 07/01/2018 Electric Rate Schedule 13-8 6 Schedule TOU (continued) 7. Temporary Discontinuance of Service: When the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance -of -service. Any customer prior to resuming within 12 months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. 8. The above rates are subject to fuel cost adjustment. 9. A State surcharge tax may be added to the above rates. 10. For eligible customer -generators taking service under Schedule CEM, the generation component contained in the energy charges of this schedule are as follows: All on -peak kWh, per kWh All mid -peak kWh, per kWh All off-peak kWh, per kWh Summer Winter $ 0.04117 n/a $ 0.03893 0.02885 $ 0.02981 0.02523 The above generation component shall be administratively revised (and this Schedule TOU updated accordingly) by July 1 of each new fiscal year to equal the average SCE DLAP price for each sub -period of this rate schedule as provided by the CAISO for the prior calendar year. Resolution No. UB -01-2018 Effective: 07/01/2018 SCE DLAP Adjustment 07/01/2018 Electric Rate SchedpTe —87 SCHEDULE MS MUNICIPAL SERVICE Applicability: Applicable to single or three-phase service which supplies electricity to the City of Azusa Municipal Agency (including City of Azusa water pumping service). Territory: Rate: Within the electric service territory of the City of Azusa. Customer Charge, per meter per month $7.09 Energy Charge (to be added to customer charge) Each kWh per meter per month 11.57¢ Minimum Charge: The monthly minimum charge shall be the Monthly Customer Charge Special Conditions: The above rate shall be subject to fuel cost adjustment. 2. A State Surcharge Tax may be added to the above rate. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate SchedUB-88 B—Q8 SCHEDULES :11 r1►1 1] 1..1 Applicability: Applicable to single or three-phase service where the entire electrical requirements on the Customer's premises only operate in emergency or are not regularly supplied by the Utility. Territory: Rate: Within the electric service territory of the City of Azusa. Standby Charge: All KW of demand, per KW per month $2,79 Regular Schedule Charges (to be added to Standby Charge) All charges of the General Service Rate G-1 Minimum Charge: The monthly minimum charge shall be the Standby Charge plus the regular schedule customer charge. Special Conditions: 1. When the connected load cannot be determined in KW, the connected load will be estimated by the Utility based on tests and other information available. 2. This schedule shall apply only to service expected to operate for at least one year or longer. 3. The above rate shall be subject to fuel cost adjustment. 4. A State Surcharge Tax may be added to the above rate. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate Schedule B—QQ SCHEDULE SL -1 STREET LIGHTING SERVICE DEPARTMENT -OWNED LIGHTING DISTRICTS Applicability: Applicable to lighting districts for street and highway lighting service where the Utility owns and maintains the street lighting equipment. Territory: Within the electric service territory of the City of Azusa i� \►i i.'ly� 11rM3. 1I I Z j - ' ' 1 1 .I. Incandescent 4,000 Lumen (300W) 104 $5.32 Mercury Vapor 7,000 Lumen (175W) 60 11,000 Lumen (250W) 86 20,000 Lumen (400W) 138 High -Pressure Sodium 9,500 Lumen (100W) 35 9,500 Lumen (2-100 W) 70 14,000 Lumen (150W — 14') 52 14,000 Lumen (150W — 28') 52 22,000 Lumen (220W) 76 25,500 Lumen (250W) 86 Special Conditions: 1. The above rate is subject to fuel cost adjustment. 2. A State Surcharge Tax may be added to the above rate. 3. Hours of Service: approximately 4140 hours per year. 15.74 20.32 27.84 14.26 32.11 24.30 29.00 19.83 21.22 4. Other than Standard Equipment: Where the customer requests the installation of other than the standard equipment furnished by the Utility and such requested equipment is acceptable to the Utility, the Utility will install the requested equipment provided the customer agrees to advance the estimated difference in installed cost between such equipment and standard equipment. Advances made for this purpose will not be refunded. Facilities installed in connection with such agreements become and remain the sole property of the Utility. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate ScheduM.H-9 0 SCHEDULE SL -2 STREET LIGHT AND OUTDOOR AREA LIGHTING SERVICE CUSTOMER OWNED LIGHTING DISTRICTS Applicability: Applicable to un -metered, controlled for dusk -to -dawn operation of outdoor area lighting for purposes, such as bus shelters, street and highway lighting service parking lots, pedestrian walkways, monuments, and decorative areas where the customer owns and maintains the lighting equipment. Territory: Rates: Within the electric service area of the City of Azusa. 1. Customer charge per location per month is $3.84. 2. Energy charge $11.02 cents per kWh. Avgy kWh ner klont h Per LamR Eer Montb Incandescent 4,000 Lumen (300W) I04 $15.80 Mercury Vapor 7,000 Lumen (175W) 60 10.82 11,000 Lumen (250W) 86 13.80 20,000 Lumen (400W) 138 19.78 High -Pressure Sodium 9,500 Lumen (100W) 35 7.81 22,000 Lumen (220W) 76 12.60 25,500 Lumen (250W) 86 13.80 Special Conditions: 1. The above rate is subject to fuel cost adjustment. 2. A state surcharge tax may be added to the above rate. 3. Hours of service: Approximately 4140 hours per year, 345 hours per month. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate Schedule 13-9 1 Schedule SL -2 (continued) 4. For bus shelter and other services with more than one lamp per location. The applicable rate bases on the total wattage of the lamps installed. 5. The customer will comply, furnish, and install at their expense all necessary equipment required by local building codes. 6. All customer -owned un -metered facilities beyond the utility's point of delivery will be maintained, and operated by the customer. 7. For service at this schedule, the utility may, at its option, provide an additional point of delivery, separate from any other point of delivery provided under any other applicable rate schedule. 8. Voltages: Service under this schedule will be delivered at 120, 120/240 volts or at the option of the utility at 120/208 or 277/480 three -wire single-phase. a. Installation of additional utility facilities shall be under existing Electric Utility Rule No. 15. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate Schedi& T SCHEDULE SL -3 STREET LIGHTING SERVICE CUSTOMER -OWNED LIGHTING MAINTAINED BY AZUSA LIGHT & WATER Applicability: Applicable to un -metered electric service for street and highway lighting where the Customer owns lighting facilities on private property and contracts with Azusa Light & Water to maintain the street lighting equipment. Territory: With the electric service territory of the City of Azusa. R ntec High -Pressure Sodium 9,500 Lumen (100W) 25,500 Lumen (250W) Special Conditions: 35 86 1. The above rate is subject to fuel cost adjustment. A State Surcharge Tax may be added to the above rate. Hours of Service: approximately 4140 hours per year. 1 -Ir Lama Ver Nlonth $14.26 21.22 4. The customer will furnish and install at their expense all necessary equipment including the standard equipment required and accepted by Azusa Light & Water according to street lighting codes. 5. The customer will own the equipment, but contract with Azusa Light & Water to replace burned - out lamps and otherwise maintain the luminaire during regular daytime working hours, as soon as practicable following notification by the customer. The customer will be billed the cost of time and materials to their street light account. 6. Normal maintenance shall not include any replacement of posts or post parts when such damage is coincident with or is a result of partial or total demolition of post or when caused by riots, fire, explosions, earthquakes, disasters of major magnitude or acts of God, nor shall normal maintenance include that due to equipment developing defects in test or in service due to faults in design, manufacturing, or installation until such defects have been satisfactorily corrected. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate Schedt UB -93 SCHEDULE OL OUTDOOR AREA LIGHTING SERVICE Applicability: Applicable to outdoor area lighting service, other than street and highway lighting service, where the Utility owns and maintains the area lighting equipment. Territory: Rates: Within the electric service area of the City of Azusa. Mercury Vapor Existing Pole New Pole 7,000 Lumen (175W) $16.01 $19.91 20,000 Lumen (400W) 29.23 33.12 High Pressure Sodium 9,500 Lumen (100W) 14.26 18.15 25,500 Lumen (250W) 20.19 24.09 Special Conditions: 1. The Utility will, at its own expense, install, operate and maintain its standard overhead outdoor lighting equipment. Facilities will consist of a luminaire with a photo -electric switch control and a support, mounted on a Utility -owned pole at which 120V service is readily available. All facilities will be owned and maintained by the Utility. 2. The Utility will replace burned -out lamps and otherwise maintain the luminaire during regular daytime working hours as soon as practicable following notification by the customer. 3. This service will be furnished only if the installation is considered by the Utility to be of a permanent and established character. If the customer requests the removal of service during the first two years of service, there will be a $173.98 charge to remove the facilities, or $695.91 charge if removal of the pole is required. 4. The above rate is subject to a fuel cost adjustment. 5. A State Surcharge Tax may be added to the above rate. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate Sched t J ]3-9 Schedule OL (continued) 6. Energy: The Utility will supply the energy which is included in the monthly rate on the previous page. Hours of Service: Burning hours will be from dusk to dawn, aggregating approximately 4,080 hours per year. Credit will not be allowed for lamp outages. Resolution No. 09-C95 Effective: 12/01/2009 Electric Rate Sched ice. T B — Q C SCHEDULE PCA POWER COST ADJUSTMENT (Adopted by Resolution No. 10-C39) (Revised by Resolution No. UB -08-2017) (Revised by Resolution No. UB -01-2018) Applicability: This schedule is applicable to all electric customers served by Azusa Light & Water. Each customer shall pay the applicable rate plus a Power Cost Adjustment (PCA) for each kilowatt-hour (kWh) delivered to the customer. The adjustment shall be the product of the total kWh for which the bill is rendered times the PCA amount (cents per kWh). The purpose of the PCA is to adjust for increases/decreases to the utility's wholesale power - related costs. Territory: Within the electric service territory of the City of Azusa. Effective rate for January 1, 2019 thru June 30, 2019 is as follows: Power Cost Adjustment per kWh: $0.01375 Rate: The PCA billing factor for any given semi-annual period (i.e. six month period) shall be calculated as follows: PCA =(a) - (c) + (b) (e) Where: (a) Equals the utility's projected "power supply related costs" (PS Costs) for the fiscal year. (b) Equals projected retail energy sales (in kWh) for the fiscal year. (c) Equals the baseline energy cost for the utility. At January 1, 2019, this amount is $0.07078 per kWh. (d) A "true -up" equaling the difference between actual and budgeted PS Costs for the prior six month true -up period. (The true -up for the May — October period is implemented during the following January — June period. The true -up for the November — April period is implemented during the following July — December period.) ALW Memorandum 12/27/18 Effective: 01/01/2019 Electric Rate Schedk B-96 Schedule PCA (continued) (e) Equals the projected sales level (in kWh) for the applicable six month period of implementation of the "true up" determined in paragraph "d" above. The PCA for any semi-annual period shall be adjusted to reflect franchise fees and in lieu transfer costs. At January 1, 2019, this amount is ten (10) percent. "Power supply related costs" shall include all costs of power supply including, but not limited to, costs of power production, power purchases, transmission, losses, CAISO, capacity, REC's, environmental allowances, and dispatch & scheduling; reduced by third party power sales revenue. ALW Memorandum 12/21/2016 Effective: 01/01/2017 Electric Rate Sched VH—Q7 SCHEDULE EDR-3 ECONOMIC DEVELOPMENT RATE -3 (Adopted by Resolution No. UB -13-2015) 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, (ii) industrial business attraction and/or expansion; (iii) developing properties which either are or had been owned by the City of Azusa or its redevelopment agency for development purposes or (iv) encouraging the location of new commercial customers in special retail categories or locations in the service area; as provided below. 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 one hundred and eighty (180) days or longer, are eligible to receive a discount equal to 15% of the electric bill associated with the qualifying facility electric load for the first 36 months and a discount equal to 10% for the next twenty four months. In addition, certain customers may qualify for additional discounts as described below, provided that no customer may receive both additional discount 1 and additional discount 2. 1. Additional Discount New Non-residential Customers developing "City of Azusa Owned Propertf Non-residential customers who are otherwise qualified to receive an EDR-3 discount and who develop City of Azusa Owned Property are eligible to receive an additional 15% discount to their electric bill for the first 12 months and an additional 5% 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. 2. Additional Discount for New or ExRgnded Industrial Load Industrial customers otherwise qualified for an EDR-3 discount are eligible to receive an additional 15% discount to their electric bill for the first 12 months and an additional 5% 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 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. If the expanded load cannot be separately metered, the utility will Resolution No. UB -13-2015 Effective: 07/01/2015 Electric Rate SchedV B —9 Q estimate the portion of a customer's electric bill associated with the expanded load An Industrial Customer is one who operates facilities that are primarily used for the manufacturing of goods. 3. Additional Discount for New Non-residential Customers _in Special Retail Categories ,.,, ,• , 1VCW 11011-IUS GLWLV111C1J W11U alt; UUMIW1JC G11r,1U10 LU 1GLiC1V0 U11 P.lJit-J U1JGUU11L d11U whose primary business is: (i) Building Materials and Garden Equipment, (ii) Food & Beverage stores, (iii) Clothing & Accessories, or (iv) Food Services & Drinking Places, are eligible to receive an additional 5% discount to their electric bill during the term of their EDR-3 discount. 4. Additional Discount for New Non-residential Customers Locating in Azusa Downtown New non-residential customers who are otherwise eligible to receive an EDR-3 discount and who are located in "Azusa Downtown" (which is defined as the area between E. 5th Street to the south, E. 91h Street to the north, N. Pasadena to the east and N. San Gabriel Avenue to the west), are eligible to receive an additional 5% discount to their electric bill during the term of their EDR-3 discount. Special Conditions: Schedule EDR-3 shall become effective on August 1, 2015 and applies to customers who receive a permit or development agreement from the City of Azusa on and after this date to build/modify qualified non-residential facilities/businesses. 2. Customers desiring to take advantage of Schedule EDR-3 must file an application with Azusa Light & Water for approval not later than 90 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-3 rate and the level of associated discounts for their planned location. 3. Upon approval and initiation of electric service, EDR-3 discounts shall apply for a period of sixty (60) months subject to paragraph 7 below. 4. The EDR-3 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-3 discounts shall apply to the Power Cost Adjustment 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. Food & Beverage stores shall be a minimum of 7,500 square feet in size. Food Services & Drinking Places must offer sit down service, have a full liquor license and be 1500 Resolution No. UB -13-2015 Effective: 07/01/2015 Electric Rate SchedUB-99 square feet or larger. The Utility Board may make exceptions to either of these qualifications if dictated by special circumstances. 7. 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. 8. Schedule EDR-3 shall remain effective for new qualified customers through June 30, 2019. No EDR-3 discounts will be applied for billing periods after June 30, 2024. 9. 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. 10. 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. 11. The Azusa Utility Board may modify or eliminate EDR-3 at any time provided that such modifications or elimination shall not affect entities that have been previously approved for service under EDR-3. Resolution No. UB -13-2015 Effective: 07/01/2015 Electric Rate SchU-13— 00 SCHEDULE NGP NET GENERATOR PAYMENT (Adopted by Resolution No. 10-C88) Appli. ability The purpose of this Schedule is to establish a per kilowatt hour rate that will be paid by Azusa Light & Water to electric customers that generate an annual net surplus of electricity. This rate is intended to provide an incentive to customers for installation of solar generation systems and to comply with Assembly Bill 510 which was signed into law on February 26, 2010. This rate shall not apply to those customers who are taking service under Schedule CEM — Co -Energy Metering. Territory: Within the electric service territory of the City of Azusa. Net Generator Payment Amount Effective July 1, 2017 thru June 30, 2018: Net Generator Payment per kWh: $0.0551 Special Conditions: 1. Each eligible customer is to have an approved interconnection agreement with Azusa Light & Water and be in compliance with said agreement. 2. Each eligible customer must generate more electricity than customer consumes from Azusa Light & Water during each twelve month period beginning with the month of initial production. 3. Any net surplus of electricity generated by customer in one month shall be carried forward to the next month. 4. All monthly carried forward net surpluses of electricity will be reduced by any net consumption in the following month(s). 5. Payments by Azusa Light & Water for net surplus of electricity will be made annually within 30 days following the month of initial production. 6. The Net Generator Payment Amount shall be administratively updated on July 1 of each year with the signature of the Director of Utilities and shall be based on the approved budget for purchased power costs divided by forecasted consumption. 7. The Net Generator Payment shall be effective from July 1 through June 30, unless otherwise indicated, and the effective period shall be used to calculate the Net Generator Payment Amount. 8. Customers should be aware that purchased power costs can vary significantly and Azusa Light & Water reserves the right to change the Net Generator Payment Amount at any time. 9. Azusa Light & Water is not responsible for any customer financial losses associated with decisions by the customer to invest in solar power generation based on the Net Generator Payment Amount. ALW Memo 06/26/17 Effective: 07/01/2017 Electric Rate Scluffil 0 1 SCHEDULE EV ELECTRIC VEHICLE OFF-PEAK CHARGING DISCOUNT (Adopted by Resolution No. 12-C82) (Updated by Resolution No. UB -13-2016) Applicability: Applicable to residential customers owning or leasing electric vehicles and receiving electric service from Azusa Light & Water under Schedule D, Schedule WH/SH, and Schedule RL. The purpose of this rate tariff is to incent the charging of electric vehicles during off-peak or low load hours by these customers. Territory: Within the electric service area of the City of Azusa. Rate: For qualifying residential customers, the price for electricity consumed during the hours of 10 p.m. and 6 a.m. in excess of 50 kWh, shall be discounted by 5 cents per kWh from the "All excess kWh" contained in their respective rate schedule. The amount of discounted electricity shall not exceed 500 kWh per billing period. Special Conditions: 1. Schedule EV shall become effective on January 1, 2017 and shall remain in place until canceled or suspended. 2. Customers desiring to take advantage of Schedule EV must file an application with Azusa Light & Water for approval prior to receiving service under this Schedule EV. Evidence of vehicle ownership/lease shall be provided with the application. 3. As required, Azusa Light & Water shall have the right to install an electric time -of -use (TOU) meter, at its cost, which is capable of determining electric usage during the discount hours designated above. If it is necessary to replace the meter plug-in device ("meter can") to accept the special meter, the customer shall be required to install a new meter can and associated equipment at its cost. 4. Customers shall promptly notify Azusa Light & Water if it no longer possesses the electric vehicle so service under this Schedule EV can be terminated. 5. The Director of Utilities shall be responsible for implementing this rate schedule to include determination of whether or not an applicant qualifies, or no longer qualifies, for discounted service hereunder. The Director may also establish a list of qualifying plug-in electric vehicles or determine that a certain vehicle does not qualify for service under this rate schedule. Resolution No. UB -13-2016 Effective: 01/01/2017 Electric Rate Sc IU "'A 0 6. Residential customers with installed solar production facilities shall not be eligible for service under this rate schedule. 7. The Azusa Utility Board may modify or eliminate Schedule EV at any time. SCHEDULE DC ELECTRIC VEHICLE DC FAST CHARGING SERVICE (Adopted by Resolution No. UB -14-2015) Applicability: This Schedule is applicable to Azusa Light & Water operated direct current (DC) electric vehicle fast charging equipment with three phase service at 480 Volts. Territory: Within the electric service territory of the City of Azusa. Rate: DC Fast Charging Service 0.35 per kWh (See notes 3 and 4 below.) Special Conditions: 1) This Schedule DC rate is all-inclusive and hence is not subject to any additional charges. 2) DC Fast Charging Service rate will be set at $0.00 until January 1, 2016. 3) The Director of Utilities is authorized to administratively revise the EV Fast Charging Service rate/price from time to time provided that it shall not be lower than $0.25/kWh or higher than $0.50/kWh. The Director of Utilities may also vary the rate/price by time period. 4) This Schedule DC may be revised, discontinued or modified at any time by the Utility Board. Resolution No. UB -14-2015 Effective: 11/01/2015 Electric Rate Sc' ff$104 SCHEDULE EV - LEVEL 2 ELECTRIC VEHICLE LEVEL 2 CHARGING SERVICE (Adopted by Resolution No. UB -14-2016) Applicability: This Schedule is applicable to Azusa Light & Water operated electric vehicle charging equipment served with single phase 120/240 service or three phase 120/208 service. Territory: Within the electric service territory of the City of Azusa. Rate: Level 2 Charging Service 0.25 per kWh (See note 2 below.) Special Conditions: 1) This Schedule EV Level 2 rate is all-inclusive and hence is not subject to any additional charges. 2) Level 2 Charging Service rate will be set at $0.00 until January 1, 2017. 3) The Director of Utilities is authorized to administratively revise the Level 2 Charging Service rate/price from time to time provided that it shall not be lower than $0.20/kWh or higher than $0.40/kWh. The Director of Utilities may also vary the rate/price by time period. Any such administrative changes shall be reported to the Utility Board at its next meeting. 4) This Schedule EV - Level 2 may be revised, discontinued or modified at any time by the Utility Board. Resolution No. UB -14-2016 Effective 01/01/2017 Electric Rate Sch�1t cDLt�10 SCHEDULE PBC PUBLIC BENEFIT CHARGE (Adopted by Resolution 13-C83) Applicability: This schedule is applicable to all electric customers served by Azusa Light & Water. Each customer shall pay the applicable rate plus a Public Benefit Charge (PBC) for each kilowatt- hour (kWh) delivered to the customer. The adjustment shall be the product of the total kWh for which the bill is rendered times the PBC amount (cents per kWh). The purpose of the PBC is to cover the related cost of PBC programs in the following four categories: Cost-effective demand-side management services to promote energy efficiency and energy conservation • New investment in renewable energy resources and technologies consistent with existing statutes and regulations which promote those resources and technologies Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets • Services provided for low-income electricity customers, including, butnot limited to, energy efficiency services, education, weatherization and rate discounts. Territory: Within the electric service territory of the City of Azusa. Public Benefit Charge Amount Effective July 1, 2017 thru June 30, 2018: Public Benefit Charge per kWh: $0.00385 Rate: The Public Benefit billing factor for any fiscal year beyond 2014 shall be calculated as follows: PBC = LaLx (b) Where: (a) Equals the utility's total electricity revenue budgeted for the upcoming fiscal year. (b) Equals the Legislative's funding goal (currently2.85%). ALW Memorandum 6/28/17 Effective: 07/01/2017 Electric Rate SchU111o106 Schedule PBC (continued) Special Conditions: I. The Public Benefit Charge Amount shall be administratively updated on July 1 of each year upon the signature of the Director of Utilities and shall be based on the total estimated revenues for the next fiscal year and the current Legislative funding goal in place at the time of the calculation. 2 The Public Benefit Charge shall be effective from July 1 through June 30, unless otherwise indicated. ALW Memorandum 6/28/17 Effective: 07/01/2017 Electric Rate SchU f j7 07 SCHEDULE CEM CO -ENERGY METERING (Adopted by Resolution No. UB -7-14) (Amended by Resolution No. UB -03-17) Applicability: Applicable to all eligible customer -generators, as defined in the California Public Utilities Code Section 2827 (b)(4), with capacity of more than 10 kilowatts, but not exceeding one megawatt. PUC Section 2827 provides that a local publicly -owned electric utility may elect to utilize a co -energy metering program for such customers. Azusa Light & Water has made such an election. Territory: Within the electric service territory of the City of Azusa. Special Conditions: 1. All eligible customer -generators with a capacity of more than 10 kilowatts, but not exceeding one megawatt, shall take service under Schedule TOU. The amount of installed customer generation shall be sized to be equal to or less than the customer's electrical demand. 2. Following a request for an interconnection by an eligible customer -generator hereunder, Light & Water shall review the impact of the proposed generation facility on its electrical network. The customer -generator shall cooperate to provide any requested information regarding the proposed facility. 3. Consumption of electricity by eligible customer -generators hereunder shall be priced in accordance with Schedule TOU and the terms contained in this Schedule CEM. 4. For any generation provided by the eligible customer -generator to Light & Water, the customer shall be credited an amount equal to the generation component specified in Schedule TOU. 5. This Schedule CEM and the availability of net metering for customer generators shall become effective on July 1, 2017 and shall remain in place until replaced, canceled or the date Light & Water meets its total net energy and/or co -energy metering limit of 5% of system peak demand. 6. A customer -generator hereunder may request to aggregate its load pursuant to the provisions of PUB Section 2827. Such request will only be approved if the Azusa Utility Board determines, within 180 days of the request, that the utility's other customers will not be adversely impacted by such load aggregation. Effective 07/01/2017 Resolution No. UB -03-2017 Electric" -09 Schedule CEM (continued) Customer -generators approved for interconnection shall be responsible for all expenses of purchasing and installing a time -of -use meter that is capable of measuring total flow of electricity in both directions. 8. A renewable electrical generation facility used by an eligible customer -generator shall meet all applicable safety and performance standards established by the National Electric Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories, including Underwriters laboratories Inc. and rules of the California Public Utilities Commission regarding safety and reliability. No such generation facility shall adversely impact the electric network of Light & Water or it will be required to be disconnected from Light & Water's network. 9. All 'other applicable and mandated provisions of the Public Utilities Code related to co - energy metering and the associated customer -generator interconnection shall apply as if incorporated herein. 10. It is the intention that the terms of this Schedule CEM shall comply with the State's rules & regulations related to Net Metering and Co -Energy Metering. If a court of competent jurisdiction finds that any portion of this Schedule is not legal, the remaining portions of this Schedule shall remain in full force and effect unless subsequently revised by the Azusa Utility Board. Effective 07/01/2017 Resolution No. UB -03-2017 Electric M—CT l Y SCHEDULE AMI ADVANCED METERING INFRASTRUCTURE PROGRAM OPT -OUT CHARGE Applicability: This schedule is applicable to residential customers who elect to opt -out of the Advanced Metering Infrastructure (AMI) radio communication meter functionality. These charges are related to the costs of providing and reading disabled two-way radio communication meters. Territory: Within the City of Azusa utility service area for electric service. AMI Opt -out Fees: 1. A one-time set up charge in the amount of $75.00 will be billed on the residential customer account for each disabled two-way radio communication meter located at the property. The fee applies to each individual disabled two-way radio communication electric meter on the premises. 2. In addition to the applicable monthly Customer Charge for electric service, as the same may be revised from time to time, a monthly fee in the amount of $10 will be billed to the residential account for each disabled two-way radio communication metered service located at the property. The fee will cover the expense of manual meter reading and additional operational activities related to the disabled two-way radio communication meters. 3. In addition to the applicable monthly Customer Charge, for customers who are enrolled in the City's low-income customer program, a discounted $5 monthly charge will be billed to the residential account for each disabled two-way radio communication metered service at the property. The documentation and requirements for eligibility in the Azusa Light & Water low-income customer program shall continue to apply. Special Conditions: 1. Opt -out requests may only be made by the owner of the property. 2_ Residential customers desiring to opt -out of the AMI radio communication meter functionality must complete an opt -out form within 30 days of being notified of the scheduled AMI meter installation. 3. Residential customers that have experienced meter tampering or manipulation, or have been disconnected for non-payment three times, will not be eligible to opt -out of the AMI meter installation. UB Approved 09/24/18 Electric M116 Schedule AMI (continued) 4. Residential customers with meters that have historically been difficult to disconnect or obtain a reading for billing purposes will not be eligible to opt -out of the AMI meter installation. Meter locations will be evaluated by Azusa Light & Water staff for eligibility. 5. Commercial, Industrial and Solar customers shall not be eligible to opt -out of the AMI installation. 6. Multi -unit dwellings with homeowner and condominium associations may not collectively opt -out of AMI meter installations on behalf of individual residents who are members of the association. Individual residents who are owners of their residences and have individual connections for electric service may submit a request a for disabled two-way radio communication meter service pursuant to the requirements set forth herein. UB Approved 09/24/18 Electric li_cl�ly� T ELECTRIC UTILITY RULE NO. 1 DEFINITIONS For the purpose of these tariff schedules, the terms and expressions listed below shall have the meanings set forth opposite them: Additional Responsible Party: Any person inhabiting a domestic service location and benefiting from utility service shall be equally responsible for the payment of bills rendered for utility services at that location. Applicant: A person requesting the Utility to supply electric service. Application: A documented request for service to Azusa Light & Water or other customer account related transactions, as distinguished from an inquiry as to the availability of such services. Applications may be accepted in written, facsimile, electronic or verbal form as determined by procedures set forth by the Director of Utilities; such procedures may be changed at the discretion of the Director of Utilities to better meet changing business or customer requirements. Billing Demand: The load or demand used for computing charges under rate schedules based on the size of the customer's load or demand. It may be the connected load, the measured maximum demand, or a modification of either as provided for by applicable rate schedule. Billing Period: The time interval between two consecutive meter readings which are taken for billing purposes. City: The City of Azusa. City Council: The City Council of the City of Azusa. City's Operating Convenience: The term refers to the utilization, under certain circumstances, of facilities or practices not ordinarily employed which contribute to the overall efficiency of the Utility's operations. It does not refer to customer convenience or to the use of facilities or adoption of practices required to comply with applicable laws, ordinances, rules or regulations, or similar requirements of public authorities. Connected Load: The sum of the rated capacities of all of the customer's equipment that can be connected to the Utility's lines at any one time, as more completely described in the rate schedules. Effective: 07/29/2004 Electric M-112 Rule No. 1 (continued) Customer: The person in whose name service is rendered as evidenced by the signature on the application, contract or agreement for that service or, in the absence of a signed instrument, by the receipt and payment of bills regularly issued in his name regardless of the identity of the actual user of the service. A customer may also be a party with whom the City of Azusa is doing business with or without a billing relationship or who is receiving benefit of utility service under another party's name. 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. 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 Azusa Light & Water 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. Effective: 07/29/2004 Electric UM -113 Rule No. 1 (continued) Mailed: Any notice or other communication will be considered "mailed" when properly addressed and deposited in any United States Post Office box, postage prepaid. Maximum Demand: The average kilowatts during the specified time interval when the customer's use is greatest in the billing period as indicated or recorded by the Utility's meter. Meter: The instrument used for measuring the electricity delivered to the customer. Multifamily Accommodations: An apartment building, duplex, court group or any other group of residential units located upon a single premises providing the residential units therein meet the requirements for a single-family accommodation. Hotel, guest or resort ranches, tourist camps, motels, auto courts and trailer courts consisting primarily of guest rooms and/or transient accommodations are not classed as multifamily accommodations. Nominal Voltage: The nominal voltage of a circuit is the approximate voltage between conductors in a circuit or system of a given class, assigned for the purpose of convenient designation. For any specific nominal voltage, the operating voltage actually existing at various points and at various times on the system is subject to normal distribution variation. Permanent Service: Service which, in the opinion of the Utility, is of a permanent and established character and is not classified as "temporary" service. This may be continuous, intermittent or seasonal in nature. Person: Any individual, partnership, corporation, public agency or other organization operating as a single entity. Point of Delivery: The point where conductors of the Utility are connected to the conductors of a customer, regardless of the location of the Utility's meters or transformers. Power Service: Service to apparatus or equipment used for purposes other than lighting shall be considered as power service. Lamps or lights used for purposes which, in the opinion of the Utility, are not general illumination purposes, are classed as power service, such as the following: motion picture projection, motion picture and television production, production of chemical reactions, sterilizing, drying, radiant heating, therapeutics, photographic processing, stimulating the growth of yield of agriculture products, traffic signals, railway crossing and tract signals, pilot or indicating lights on power control equipment and lighting used as an aid in the operation of a motor -driven production machine for the purpose of checking tool settings or dial readings, measuring or inspecting the product while on the machine, when the lamps are installed as an integral part of the machine and energized from its power supply. Effective: 07/29/2004 Electric UIPL 114 Rule No. 1 (continued) Premises: All of the real property and apparatus employed in a single enterprise on an integral parcel of land undivided (except in the case of industrial, resort enterprises and public or quasi - public institutions) by a dedicated street, highway or other public thoroughfare or a railway. Automobile parking lots constituting a part of, and adjacent to, a single enterprise may be separated by an alley from the remainder of the premises serviced, provided the customer's wiring across the alley is underground, and copies of all permits for the alley crossing, as required by public authorities, are filed with the Utility. Pull Box: An enclosure for joining conductors which also provides by its size, arrangement and location, the necessary facilities for pulling the conductors into place. This term, as used here, includes structures also known as "manhole", "hand hole", and "switchboard pull section". Quasi -public Institutions: Public utilities, educational institutions and hospitals, whether publicly or privately owned, where the property, campus or hospital grounds extend over relatively large areas through which public streets may run. Rate Charges: Charges in the rate schedules may include the following: Customer Charge: That portion of the charge for service which is a fixed amount without regard to connected load, demand or energy consumption in accordance with the rate schedule. Demand Charge: That portion of the charge for service which varies with the billing demand in accordance with the rate schedule. Energy Charge: That portion of the charge for service which varies with the quantity of energy consumption in accordance with the rate schedule. 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. Effective: 07/29/2004 Electric VOL 115 Rule No. 1 (continued) 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. 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 Azusa Light and Water. 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 result in forfeiture of the deposit to the City. Utility: Electric and/or Water Utility — Azusa Light & Water. Water Heating Service: Service to any apparatus primarily designed to heat water by means of electric energy. Effective: 07/29/2004 Electric Uff-116 ELECTRIC UTILITY RULE NO.2 DESCRIPTION OF SERVICE A. GENERAL: 1. The character of service available at any particular location should be ascertained by inquiry at the Azusa Light & Water Office. 2. The rate schedules included herein are applicable for service where the customer purchases his entire electrical requirements from the Utility except where such schedules specifically provide otherwise. 3. The rate schedules included herein are only applicable for service provided from overhead distribution facilities (or where underground distribution facilities are provided for the Utility's operating convenience or in accordance with the provisions of Electric Utility Rule No. 15), except where schedules specifically provide otherwise. 4. Alternating current service of approximately 60 -cycle frequency will be supplied. 5. Voltages referred to in the tariff schedules are nominal voltages. 6. Standard nominal voltages of the Utility are as follows: a. Distribution voltages- 120/240, 240, 480 volts; or depending on Iocation, 12,000 volts. b. Where specified in rate schedules, combined lighting and power service may be supplied at 120/208 or 277/480 volts, four -wire wye. Effective: 07/29/2004 Electric M-117 Rule No. 2 (continued) B. PHASE AND VOLTAGE SPECIFICATIONS: 1. Single-phase and voltage specifications: a. Power Voltage Minimum Load volts Required 120 None Maximum Load Allowed 1-15 amp and 1-20 amp branch circuit 120/240 Over 1-15 amp and 400 amp main switch 1-20 amp branch circuit 600 amp main switch for underground b. Motors (1) Installation of one motor: Voltage Minimum Load Maximum Load LV -011-S) Required Allowed 120 None 1 hp (2) For a larger group of motors, the voltage shall be in accordance with the specifications for the largest motor in the group. C. Where the Utility maintains four -wire wye-connected three-phase lines: 120/208 or 277/480 volts. Separate single-phase 120/208 volts service should not exceed 15% of the total load served from the same transformers. Single-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above, provided the written approval of the Utility has been first obtained as to the number and size of motors, switches, circuits, and related. facilities. 120/240 volt installations will be supplied by one of the following methods as determined by the Utility: Effective: 07/29/2004 Electric UK -118 Rule No. 2 (continued) (1) From two or three separate 120/240 volt service connections. Energy so supplied will be measured through one meter. The connected load on any service connection shall not be greater than twice that on any other service connections. (2) From one 120/240 volt connection where the proposed main service switch does not exceed 400 amperes capacity. 2. Three-phase service a. General b. Single Family Domestic Service. In areas where the Utility does not maintain three-phase secondary mains, only single-phase service will be supplied unless the applicant's load includes at least one motor rated in excess of 10hp. C. Service to all loads of 1,000 KVA maximum demand or over, must be approved by the Utility as to adequacy of facilities for service. d. Loads on three-phase service must be balanced between phases in accordance with good engineering practices. Effective: 07/29/2004 Electric M-119 Minimum Connected Maximum Demand Maximum Voltage Load Required Load Allowed Main Switch volts Overhead Overhead Overhead 120/240 15 kVa 150 kVa 400A 120/208 15 kVa 200 kVa 600A 277/480 30 kVa 300 kVa 400A Minimum Connected Maximum Demand Maximum Voltage Load Required Load Allowed Main Switch CV—Olt-S-) Underground Underground Under round 120/208 45 kVa 750 kVa 2000 A 277/480 45 kVa 2500 kVa 3000 A 12,000 Varies with location Not specified Not specified b. Single Family Domestic Service. In areas where the Utility does not maintain three-phase secondary mains, only single-phase service will be supplied unless the applicant's load includes at least one motor rated in excess of 10hp. C. Service to all loads of 1,000 KVA maximum demand or over, must be approved by the Utility as to adequacy of facilities for service. d. Loads on three-phase service must be balanced between phases in accordance with good engineering practices. Effective: 07/29/2004 Electric M-119 Rule No. 2 (continued) e. Three-phase service may be supplied to installations having a proposed main service in excess of the switch capacities specified above provided approval of the Utility has first been obtained as to the number and size of switches, circuit and related facilities. Such service will be supplied from two separate service connections at one location from one transformer location. Energy so supplied will be measured through one meter. The loads will be balanced as closely as practicable between the services. 3. Combined Single-phase Service and Three -Phase Service a. Service may be supplied at 120/208 or 277/480 volts four -wire, wye- connected where the Utility does not maintain four -wire secondary polyphase mains, provided (1) written application is made for such service by the customer; (2) the customer's load is of such a size to require an individual transformer installation of not less than that as set forth in B -2a above. Transformer capacity is based on load diversity as determined by the Utility; and (3) the customer provides space acceptable to the Utility on his premises to accommodate the installation of the Utility's facilities. b. Service may be supplied at 120/240 volts four -wire delta connected where the Utility does not maintain four -wire secondary polyphase mains, provided: (1) the customer's load is of such a size as to require an individual transformer installation of not less than 15KVA of transformer capacity, as determined by the Utility and complies with paragraph 3-b above if applicable; (2) the unbalance between phases is less than 100 KW; (3) the customer provides space acceptable to the Utility on his premises to accommodate the installation of the Utility's facilities; and (4) maximum main switch capacity is 600 amps with 400 amp maximum fusing. The maximum demand allowances for combined single-phase and three- phase are as set forth in B -2a. d. All three-phase circuits not exceeding 250 volts shall have either a phase or neutral grounded and a four -wire polyphase service run to the customer's service entrance main switch. Effective: 07/29/2004 Electric ef 1 2 0 Rule No. 2 (continued) C. MOTOR PROTECTION AND EQUIPMENT: Customer's motor equipment must conform with the following requirements: 1. Motors that cannot be safely subjected to full rated voltage on starting or that drive machinery of such a nature that the machinery, itself, or the product it handles will not permit the motor to resume normal speed upon the restoration of normal supply voltage shall be equipped with devices that will disconnect them from the line upon failure of supply voltage and that will prevent the automatic reconnection of the motors upon restoration of normal supply voltage. 2. All motors of lhp or larger shall be equipped with thermal relays, fuses or other automatic over -current interrupting devices to disconnect completely such motors from the line as a protection against damage due to overheating. 3. Three-phase motors driving well pumps, elevators, hoists, tramways, cranes, conveyors or other equipment which would create hazard to life in the event of uncontrolled reversal of motor rotation, shall be provided with reserve -phase and open -phase protection to disconnect completely the motors from the line in the event of phase reversal or loss of one phase. 4. Wind machines thermostatically controlled with automatic reclosing switches must be equipped with suitable time -delay devices, as hereinafter specified, at the customer's expense, to permit the required adjustment of the time of reclosure after interruption of service. A suitable time -delay device, within the meaning of this rule, is a relay or other type of equipment that can be preset to delay with various time intervals the reclosing of the automatic switches (and the consequent starting up of the electric motors on the wind machines) and to stagger the reconnection of the load on the Utility's system and such device must be constructed so as effectively to permit a variable over-all time interval of not less than five minutes with adjustable time increments of not greater than ten seconds. The particular setting to be utilized for each separate installation is to be determined by the Utility from time to time in accordance with its operating requirements, and the customer is to obtain from the Utility the setting for each installation as thus determined. Effective: 07/29/2004 Electric Uff 21 21 Rule No. 2 (continued) D. ALLOWABLE MOTOR STARTING CURRENTS: 1_ The starting current drawn from the Utility's lines shall be considered the nameplate locked rotor current or that guaranteed by the manufacturer. At its option, the Utility may determine the starting current by test, using a stop ammeter with not more than 15% overswing or an oscillograph, disregarding the value shown for the first 10 cycles subsequent to energizing the motor. If the starting current for a single motor exceeds the value stated in the following tables, reduced voltage starting or other suitable means must be employed, at the customer's expense, to limit the current to the value specified, except where specific exemptions are provided in Sections D-2, 3 and 4. Effective: 07/29/2004 Electric U B 112 2 Rule No. 2 (continued) Table 1 Alternating Current - Single Phase Motors Allowable Locked Rotor Currents Rated Size 120 Volts 208 Volts 240 Volts lhp and less 50 amperes 36 amperes 31 amperes 1-1/2 hp 48 amperes 42 amperes 2hp 60 amperes 52 amperes 3hp 80 amperes 70 amperes 5hp 130 amperes 115 amperes 7-1/2 hp 190 amperes 165 amperes 1Ohp 250 amperes *220 amperes *Not allowed in single-family residential areas without Utility's approval, unless served from a separate transformer. Table 2 Alternating Current - Three -Phase Motors Allowable Locked Rotor Currents Rated Size 208 Volts 240 Volts 480 Volts 3hp 66 amperes 58 amperes 26 amperes 5hp 106 amperes 92 amperes 46 amperes 7-1/2hp 147 amperes 127 amperes 63 amperes IOhp 187 amperes 162 amperes 81 amperes 15hp 268 amperes 232 amperes 115 amperes 20hp 335 amperes 290 amperes 145 amperes Effective: 07/29/2004 Electric U821 23 Rule No. 2 (continued) Table 3 Alternating Current - Three -Phase Motors Allowable Locked Rotor Currents Rated Size 208 Volts 240 Volts 480 Volts 25hp 421 amperes 365 amperes 183 amperes 30hp 502 amperes 435 amperes 218 amperes 40hp 669 amperes 580 amperes 290 amperes 50hp 837 amperes 725 amperes 360 amperes 60hp 435 amperes 75hp 535 amperes 1 00h 725 amperes 1. Reduced -voltage starters may be omitted on any motor of a group installation provided that its starting current does not exceed the allowable starting current of the larger motor of the group. 2. Where service conditions permit, subject to Utility approval, reduced -voltage starters may be omitted in the original installation, until such time as the Utility may order the installation of a reduced -voltage starter to be made, and similarly, the Utility may at any time require starting current values lower than set forth herein where conditions at any point on its system require such reduction to avoid interference with service. E. INTERFERENCE WITH SERVICE: Customers who operate equipment which causes detrimental voltage fluctuations (such as, but not limited to, hoists, welders, radio transmitters, x-ray apparatus, elevator motors, compressors and furnaces) must reasonably limit such fluctuations upon request by the Utility. The customer will be required to pay for whatever corrective measures are necessary. 2. In the case of arc furnace installations not in excess of 100 KVA single-phase, or 300 KVA three-phase, the Utility may furnish energy at 240 or 480 volts, providing the customer permanently installs suitable equipment to limit secondary, short-circuit current values to 300% of full load value. In the case of arc furnace installations in excess of 100 KVA single-phase or 300 KVA three- phase, the Utility may require the customer to provide, at his own expense, special furnace -type transformers and reactors sufficient to limit secondary short- circuit current values to 300% of full load value. Effective: 07/29/2004 Electric UB X124 Rule No. 2 (continued) 3. Any customer who superimposes a current of any frequency upon any part of his electrical system, other than the current supplied by the Utility shall, at his expense, prevent the transmission of such current beyond his electrical system. F. POWER FACTOR: The Utility may require the customer to provide, at his own expense, equipment to increase the operating power factor of his equipment to not less than 90% lagging. G. WAVE FORM: The Utility may require that the wave form of current drawn by equipment of any kind be in conformity with good engineering practice. H. REVENUE INSUFFICIENT TO WARRANT EXPENSE: Whenever the estimated annual revenue (in the opinion of the Utility) from a proposed new service, or a proposed increase in load on an existing service, or from a proposed renewal following discontinuance thereof, does not justify the additional investment necessary for local distribution facilities, then the Utility may require aid -to -construction as contributions in whole or in part relative thereto, or may require guarantees which will warrant making expenditure for the service. Effective: 07/29/2004 Electric ty"-12 5 ELECTRIC UTILITY RULE NO.3 APPLICATION FOR SERVICE A. APPLICATION FOR SERVICE: Each applicant for electric service shall be required to sign an application on a form provided by the Utility and, upon request, will be required to furnish the following information: 1. Name of applicant. 2. Date and place of application. 3. Location of premises to be served. 4. Date applicant will be ready for service. 5. Whether the premises have been heretofore supplied. 6. Purposes for which service is to be used. 7. Customer's mailing address. 8. Whether applicant is owner or tenant of, or agent for, the premises and establishes proof thereof. 9. Rate schedule desired if optional rate is available. 10. Information to establish credit of applicant. 11. Such other information as the Utility may reasonably require. The application is a request for service and does not in itself bind the Utility to serve, except under neither reasonable conditions nor does it bind the customer to take service for a longer period than the minimum requirements of the rate. B. INDIVIDUAL LIABILITY FOR JOINT SERVICE: Two or more persons who join in one application or contract for service shall jointly and severally be liable there under and shall be billed by means of a single periodic bill mailed to the person designated on the application to receive the bill. C. CHANGE IN CUSTOMER'S EQUIPMENT OR OPERATIONS: Customers shall give the Utility written notice of the extent and nature of any material change in the size, character or extent of the utilizing equipment or operations for which the Utility is supplying electric service before making any such change. D. SERVICE ESTABLISHMENT CHARGE: The Utility will charge a service establishment charge for any service or services established at an individual service address. Resolution No. 2015-09 Effective: 07/27/2015 Electric U0426 Rule No. 3 (continued) 2. The service establishment charge provided herein is in addition to the charges in accordance with the applicable schedule and may be made each time an account is established. As used herein, establishment means each time an account is opened, including a turn -on of utility service or a change of name which requires a meter reading and shall be included on the first utility billing statement. Same day service may be provided for an additional charge of $35.00 between 7 a.m. and 4 p.m. and $85.00 between 4 p.m. and 5:30 p.m. Friday connection may be provided for an additional charge of $105.00 between 7 a.m. and 8 p.m. and $205.00 on Saturday, Sunday, or holiday between 7 a.m. and 8 p.m. 4. The service establishment charge is not applicable by customers of the Utility to service rendered through sub meters to tenants. Resolution No. UB -12-2016 Effective: 10/1/2016 Electric U04 27 ELECTRIC UTILITY RULE NO.4 CONTRACTS A. WHEN SERVICE CONTRACTS ARE REQUIRED: A contract or agreement to obtain and pay for service will not be required as a condition precedent to service except: Where required by provisions contained in the tariff schedules, in which case the term of the contract will be that specified; or Where it is necessary to install a line extension, in which case a contract for a period of three years may be required; except that, when temporary service is to be supplied under the provisions of Electric Utility Rule No. 13, the contract will cover the period of contemplated operations, but not longer than three years. B. WHEN CONTRACTS ARE REQUIRED: A contract or agreement to pay for the use, installation or removal of facilities will be required where: 1. The provisions of the tariff schedules so specify, in which case the terms of the contract will be governed thereby. 2. Any applicant or customer desires new or increased distribution facilities for temporary service, in which case the Utility may require such person to pay the Utility in advance or otherwise, the estimated cost installed, plus the estimated cost of removal, less the estimated salvage of the facilities necessary for furnishing service in accordance with provisions of Electric Utility Rule No. 13. A person, whether or not a customer, desires to have the Utility modify, rearrange, relocate or remove any of its facilities the Utility, if it agrees to make such changes, may require the person at whose request the changes are made, to agree to pay in advance or otherwise, the cost to the Utility of making the changes. Effective: 07/29/2004 Electric UB1?128 ELECTRIC UTILITY RULE NO.5 ESTABLISHMENT AND RE-ESTABLISHMENT OF CREDIT A. ESTABLISHMENT OF CREDIT — ALL CLASSES OF SERVICE: Each applicant, before receiving 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. RE-ESTABLISHMENT OF CREDIT - ALL CLASSES OF SERVICE: 1. An applicant who previously has been a customer of the Utility and who's electric service has been discontinued by the Utility during the last 12 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 15 working days after presentation of a discontinuance -of -service notice for non- payment of bills, may he required to pay said bills and re-establish his credit by depositing the amount prescribed in Electric Utility Rule No. 6. This rule will apply regardless of whether or not service has been discontinued for such non- payment. 3. A customer using other than domestic service may be required to re-establish his credit in accordance with Electric Utility Rule No. 5-13 in case the conditions of service or basis on which credit was originally established have, in the opinion of the Utility, materially changed. Resolution No. 10-C79 Effective: 11/0 1/20 10 Electric PH -429 ELECTRIC UTILITY RULE NO. 6 PRE -PAYMENTS A. STATEMENT OF PURPOSE: The pre -payment is a guarantee of final payment. B. ESTABLISHMENT OF CREDIT: Customers applying for electric service are required to establish credit with Azusa Light & Water prior to receiving service. Residential credit may be established by either passing a credit check or paying a,pre- payment. Commercial/industrial customers are required to pay apre-payment. C. CREDIT CHECK: Residential customers applying for service with Azusa Light & Water shall have the option of requesting a Credit Check. Residential customers requesting a credit check will be required to pay a fee equal to the Utility's costs associated with providing the service. Credit Checks will be performed via a nationally recognized credit rating service. D. WAIVING OF PRE -PAYMENT FOR CAUSE: Customers who choose to have a Credit Check performed may have the pre -payment requirement waived if their credit score meets or exceeds the Department's minimum score. The Director of Utilities shall have authority to set the minimum score. Customers who have had prior service with Azusa Light & Water which was subsequently written off as bad debt will not qualify under this option. E. 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 $135.00 for domestic service and no less than $275.00 for all other services. F_ BILLING OF PREPAYMENT: Customers required to pay a pre -payment may be offered the option of having their pre -payment billed. This service is offered to customers who provide sufficient credit references as required by the Department's application procedure. Customers who have had prior service with Azusa Light & Water which was subsequently written off as bad debt will not qualify under this option. All billed pre -payments are due no later than 10:00 a.m. on the 14th day after service is established; if the 14th day falls on a weekend or holiday, pre -payment shall be due on the next business day. G. DISCONNECTION FOR FAILURE TO PAY PRE -PAYMENT: A customer will have their services discontinued for failure to pay the pre -payment by the due date. Customers who have had service discontinued will be required to pay a reconnection fee as applied in Electric Utility Rule No. 9 in addition to their pre -payment. Resolution No. 10-C79 Effective: 11/01/2010 Electric P"C" 3 0 Rule No. 6 (Continued) H. FORMS OF PRE -PAYMENT: Acceptable forms of pre -payment for all accounts include: cash, credit card, debit card, check, or money order. I. APPLICATION OF PREPAYMENT: 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 Prepayment will not be used as payment for past -due bills to avoid discontinuance of service or reconnection charge or other miscellaneous charges. INTEREST ON PREPAYMENT: There shall be no interest paid on prepayments held by Azusa Light & Water. K. REFUNDING OF PRE -PAYMENTS: Residential customers with a clear payment history (no late notices, returned checks or disconnections for unpaid bills) are eligible after 24 months to have their pre -payment refunded. Pre -payments refunded under this policy will be applied directly to the customers account and refund checks will not be issued under this policy. Prepayments held on commercial/industrial accounts will be held until the account closes. L. DELINQUENCY REQUIREMENT OF PRE -PAYMENT: Customer accounts that do not have a pre -payment and are subject to Late Payment Charge and discontinuance of service for nonpayment will be required to pay a pre -payment. If services have been discontinued, the pre -payment must be paid prior to services being restored. Resolution No. 10-C79 Effective: 11/01/2010 Electric tff0131 ELECTRIC UTILITY RULE NO.7 NOTICES A. NOTICES TO CUSTOMERS: When notices from the Utility to a customer are required, they will normally be given in writing, either mailed to the customer's mailing address or delivered to him, except that in emergencies the Utility may give notices in the manner most suitable under the existing conditions (radio, TV, telephone, etc.). B. NOTICES FROM CUSTOMERS: Notices from a customer to the Utility may be given by written communication mailed to the Utility office or may be given orally by him or his authorized agent at the Utility's office, except when written notice is specifically required in tariff schedules. C. The Utility shall have the right in an emergency to turn the electric off or on without notice. The Electric Operations Manager or his designee shall make reasonable effort to notify the consumers in advance of routine maintenance, repairs or other conditions that require the electric to be turned off or on. Effective: 07/29/2004 Electric flu � 11132 ELECTRIC UTILITY RULE NO.8 RENDERING AND PAYMENT OF BILLS A. RENDERING OF BILLS: Billing Period: Bills for electric service will be rendered monthly. 2. Metered Service: Bills for metered service will be based on meter registrations. Meters will be read as required for the preparation of regular bills, opening bills and closing bills. If, because of unusual conditions or for reasons beyond its control, the Utility is unable to read the customer's meter on the scheduled reading date, the Utility may bill the customer for estimated consumption during the billing period, and make any necessary corrections when a reading is obtained. Estimated consumption for this purpose will be calculated considering the customer's prior usage, the Utility's experience with other customers if the same class in that area, and the general characteristics of the customer's operations. Adjustments for any under -estimate or over-estimate of a customer's consumption will be reflected on the first regularly scheduled bill rendered and based on an actual reading following the period of inaccessibility. Access to ,the meter, sufficient to permit its being read, shall be provided by the customer as a prerequisite to the Utility making any adjustment of the electric consumption billed on an estimated basis. Unmetered Service: A flat rate may be applied upon request (in writing) where the applicant for service has a fixed connected load to be operated over a fixed number of hours during a billing period, and where the following conditions are met: a Provision has been made to prevent any additional consumption on the service. b. The point of interconnection of the service is approved by the Utility. C. Such service may be supplied under any appropriate rate schedule at the Utility's operating convenience and all conditions of the rate schedule shall apply, including fuel cost adjustment. Resolution No. 09-052 Effective: 06/23/2009 Electric UW133 Rule No. 8 (continued) 4. Pro Rata Computation: Except as provided below, all bills for electric service rendered for periods of less than 25 days or more than 35 days on a monthly billing period will be computed in accordance with the applicable schedule, but the size of the energy blocks, and the amount of the customer, service, demand or minimum charge, specified therein, will be prorated on the basis of the ratio of the number of days in the period to the number of days in an average monthly period which for this purpose shall be taken as 30 days, or as otherwise provided in tariff schedules. When the total period of service is less than 35 days, no proration will be made and no bill for such a service period shall be less than the specified monthly, customer, service, demand or minimum charge, except when a temporary service is furnished and the customer has paid the estimated cost of installing and removing the service facilities, proration will be made. B. READING OF SEPARATE METERS NOT COMBINED: For the purpose of billing, each meter upon the customer's premises will be considered separately and the readings of two or more meters will not be combined except as follows: 1. Where combinations of meter readings are specifically provided for in the rate schedule. 2. Where the Utility's operating convenience requires the use of more than one meter. C. PAYMENT OF BILLS: All bills are due and payable on presentation and each payment should be made at the Azusa Light & Water office. Bills for connection or reconnection of service and payments for deposits or to reinstate deposits as required under the rules of the Utility shall be paid before service will be connected or reconnected. 1. Due Date: Bills are considered past due and subject to a LATE PAYMENT PENALTY if payment is not received in the Azusa Light & Water office by the close of business on the 20th calendar day after the date of presentation. If the 20th calendar day falls on a weekend or holiday, the DUE DATE will be the next business day. On or after the 21st calendar day, customers shall receive a PAYMENT REMINDER notice notifying them of their past due status. 2. Delinquent Date: Bills are considered delinquent and subject to additional penalties if payment is not received in the Azusa Light & Water office by 4:00 p.m. on the 15th calendar day after the DUE DATE. If the 15th calendar day falls on a weekend or holiday, the DELINQUENT DATE will be the next business day. On or after the 15th day, customers shall receive a DISCONNECT NOTICE notifying them of their delinquent status and pending disruption of service. Resolution No. 09-052 Effective: 06/23/2009 Electric tU3134 Rule No. 8 (continued) 3. Disconnect Date: Accounts are considered subject to disnlption of service and additional penalties if payment is not received in the Azusa Light & Water office by 3:00 p.m. on the day prior to the DISCONNECT DATE shown on the DISCONNECT NOTICE. If the DISCONNECT DATE falls on a weekend or holiday, the DISCONNECT DATE will be the next business day. 4. Military Families Qualifying for Shutoff Protection: The California Military Families Financial Relief Act enacted September 22, 2005, mandates that a qualified customer may apply for shutoff protection of a period of 180 days, which may be extended. Qualified customers are members of the militia (including National Guard) called or ordered into active state service by the Governor or into active federal service by the President of the United States for a period of at least 30 consecutive days; Reservists of the United States Military Reserve who have been called to full-time active duty; or any spouse, registered domestic partner, or legal dependent of a service member as described above. a A qualified customer must notify Azusa Light & Water that they are in need offi_nancial assistance because of a reduction in household income as the result of a member of the household being called to active duty status in the military. (1) Notification shall be submitted in writing and accompanied by a copy .. .F+I,- +;. +;__ A__1.,...,,_..+ --A-- „F. ...l.o. 1 LllV UL L1vuLlvll v1 "tV1vy111%,11L V1Llli1 VX u sei vice 111ellll/V1 that specifies the duration of the active duty status. (2) The written notification shall also include self -certification that the household be occupied by the service member's legal dependent or dependents during the duration of the shutoff protection period. b. A customer receiving assistance under this section shall notify us if the active duty status is extended. C. If they move out of the residence receiving shutoff protection, the qualifying customer must provide written notice that includes the date of service termination and a forwarding address; they may then reapply at the new address if applicable (the shutoff period at the new address is for the remainder of the original 180 days). Resolution No. 06-C13, Effective: 03/01/2006 Electric V9435 Rule No. 8 (continued) d The law states that the customer is still liable for payment of the utility bills. It also states that Azusa Light & Water is required to establish a repayment plan requiring minimum monthly payments that allows the customer to pay any past due amounts over a reasonable time period not to exceed one year after the service member's release from active military duty. A minimum payment amount will be due for each bill during the time of active duty. Late fees will not be charged during the period of active duty. e. If the customer fails to follow the terms and conditions, Azusa Light & Water may follow the normal rules and procedures. D. RETURNED CHECK CHARGE: The Utility may require payment of a $48.00 returned check charge for any check returned from the bank unpaid, and payments of bills for the following 6 months must be made in cash, money order or credit card. E. LATE PAYMENT CHARGE: An account with a total past due balance shall be subject to imposition of a LATE PAYMENT PENALTY equal to the greater of $7.50 or 5% of the total outstanding account balance on the DELINQUENT DATE. F, CREDIT CARD CHARGE: The credit card payment option is limited to $500.00. Credit card or debit card payments for Azusa Light & Water will be accepted through a third -party vendor, by calling a toll-free number, accessing them from Azusa Light & Water's web site or at the third -party vendor's web site twenty-four hours a day, or with assistance at the Azusa Light & Water office. There will be a convenience charge per increments of $500.00 for this service. If the customer's credit or debit card payment is rejected or payment returned to Azusa Light & Water, there will be a $48.00 return fee added to the customer's account in addition to the original payment. A notice will be mailed to the customer, notifying them to pay the total amount due in cash, cashier's check, or money order by the due date on the notice. If the charges are not paid by the due date, the utility service will be discontinued. In addition, credit or debit card payments will not be accepted on the customer's account for a period of 6 months. A second returned credit or debit card payment will result in the account being permanently prohibited from accepting further debit or credit card transactions. Resolution No. 09-052 Effective: 06/23/2009 Electric U 15136 Rule No. 8 (continued) G. AUTOMATIC PAYMENT: This program provides for the automated monthly payment of customer accounts via the national Automated Clearing House (ACH) system. 1. Eligibility: Customers applying for Automatic Payment must have an account with a bank, savings and loan, or credit union that is part of the ACH system. Utility accounts must be current and paid in full at the time of application, in order to qualify for Automatic Payment service. Azusa Light & Water will provide an application at the customer's request. 2. Payment Terms: Accounts on the Automatic Payment Plan will have their checking accounts debited the entire "Please Pay" amount on or after the "Due Date" printed on their statement. Customers will continue to receive a billing statement each month. 3_ Termination: Accounts active on the Automatic Pay Plan will remain so until either canceled by the customer or Azusa Light & Water for cause. Customers may cancel the service at any time by notifying the utility in writing or other means provided by the Department. Customers will be automatically terminated from Automatic Payment Plan on the second occurrence of a returned payment unless documented in writing as a bank error. A customer will be permanently prohibited from Automatic Pay Plan by Azusa Light & Water if the account becomes delinquent and is subject to L ate Payment Charge and discontinuance of service for nonpayment. In addition to the aforementioned causes, the Utility reserves the right to cancel Automatic Payment Plan in its entirety at its discretion. 4. Billing Disputes: Due to the nature of the Automatic Payment Plan customers must notify Azusa Light & Water of all billing disputes at least one week prior to the "Due Date" appearing on their statement. Unresolved disputes will require that the account be temporarily suspended from Automatic Payment Plan until such time as the account returns to the status of "paid in full". 5. Returned Items: Customers whose Automatic Payments are refused by the bank will be subject to normal delinquent account processes and fees. Automatic Payments that are refused will be automatically resubmitted to the bank one additional time within four business days. Allowances for documented bank errors will be at the discretion of Azusa Light & Water. H. Closed accounts unpaid after 20 days from rendering of bill are subject to miscellaneous collection fees. Resolution No. 09-052 Effective: 06/23/2009 Electric Pff-4 3 7 ELECTRIC UTILITY RULE NO.9 DISCONTINUANCE AND RESTORATION OF SERVICE A. PAST DUE BILLS: When bills are rendered monthly, they will be considered past due if not paid within 20 days after date of presentation. B. NONPAYMENT OF BILLS: When a bill for electric service has become past due and a discontinuance of service notice for nonpayment has been issued, service may be discontinued if bill is not paid within the time required by such notice. 2. A customer's service may be discontinued for nonpayment of a bill for service previously rendered to him at any location served by the Utility, provided such bill is not paid within 15 days after presentation of a notice that present service will be discontinued for nonpayment of such bill. However, domestic service will not be discontinued because of nonpayment of bills for other classes of service. 3. If a customer is receiving more than one service, any or all services may be discontinued when any service, regardless of location, is discontinued for nonpayment. However, domestic service will not be discontinued because of nonpayment of bills for other classes of service. 4. Under no circumstances may service be discontinued for nonpayment of a bill to correct previously billed incorrect charges for a period in excess of the preceding 3 months unless such incorrect charges have resulted from the customer not abiding by the tariff schedules. C. UNSAFE EQUIPMENT: The Utility may refuse or discontinue service to a customer if any part of his wiring or other electrical equipment or the use thereof shall be determined by the Utility to be unsafe or in violation of applicable laws, ordinances, rules or regulations of public authorities, or if any condition existing upon the customer's premises shall be thus determined to endanger the Utility's service facilities, until it shall be put in a safe condition or the violation remedied. The Utility does not assume any responsibility of inspecting or repairing the customer's wiring or other equipment or any part thereof and assumes no liability therefore. D. SERVICE DETRIMENTAL TO OTHER CUSTOMERS: The Utility will not provide service to utilizing equipment, the operation of which will be detrimental to the service of the Utility or its other customers, and will discontinue electric service to any customer who shall continue to operate such equipment after having been given notice by the Utility to cease so doing. Resolution No. 09-052 Effective: 06/23/2009 Electric Ulf -7138 Rule No. 9 (continued) E. 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 to it the intent to defraud the Utility. F. FAILURE TO ESTABLISH OR RE-ESTABLISH CREDIT: If, for an applicant's convenience, the Utility should provide service before the credit is established or should continue service to a customer when credit has not been re-established in accordance with the Electric Utility Rule No. 5, and he fails to establish or re-establish his credit as provided by a written notice of not less than 15 days, the Utility may discontinue service. G. NONCOMPLIANCE: Except as otherwise specifically provided in this Electric Utility Rule No. 9, the Utility may discontinue service to a customer for noncompliance with tariff schedules if, after written notice of at least 15 days, he has not complied with the notice. The Utility may dispense with the giving of such notice in the event of a dangerous condition, thus rendering the immediate discontinuance of service to the premises imperative. H. CUSTOMER'S REQUEST FOR SERVICE DISCONTINUANCE: When a customer desires to terminate his responsibility for service, he shall give the Utility not less than 2 days notice of his intention and state the date on which he wishes the termination to become effective. A customer may be held responsible for all service furnished at the premises until 2 days after receipt of such notice by the Utility or until the date of termination specified in the notice, whichever date is later. I. RECONNECTION CHARGE: When restoring service that has been discontinued for nonpayment of bills or for failure to otherwise comply with tariff schedules, Azusa Light & Water will apply the following charges and procedures. Customer shall be billed $35.00 if service restoration is requested before 4:00 p.m., Monday through Thursday, and $85.00 if service restoration is requested after 4:00 p.m., Monday through Thursday. Customers requesting reconnection of services on Friday between 7:00 a.m. and 8:00 p.m. will be charged $105.00, and $205.00 on Saturday, Sunday, and holiday between 7:00 a.m. and 8:00 p.m. in addition to the delinquent amount on their account. Customers who are reconnected during after-hours are further required to make payment in full of reconnection charge and any delinquent charges at Azusa Light & Water by 10:00 a.m. the following Monday. Failure to comply will result in services being disconnected again and no reconnection will be provided without receipt of payment. Additionally, no after-hours reconnection will be provided for 6 consecutive months. Resolution No. UB -12-2016 Effective: 10/1/2016 Electric -)g g13 9 Rule No. 9 (continued) In cases where 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. J. 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 $35.00 in addition to other amounts due from the customer before service is restored. If the meter is removed, the service charge will be $50.00. If service is terminated at the riser or pole, the service charge will be $50.00, and if the service is terminated at the underground areas, the service charge will be $50.00, in addition to reconnection charge. If it becomes necessary to remove the service drop, there will be an additional amount of $740.00 prior to restoring service. If service(s) have been restored illegally or damaged due to tampering, the customer must pay all damage charges prior to reconnection and a theft investigation charge of $500.00. The customer and/or beneficiary of service are responsible for all damage charges whether or not service is reconnected. If a customer restores his own service after it has been discontinued by the Utility, a charge of $35.00 shall be charged to cover the expense of the return trip to the customer's location, locking the service and the subsequent removal of said lock. K. 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. L. THIRD PARTY NOTIFICATION: The Utility shall make available to its residential customers a third -party notification service, whereby the Utility will send a duplicate final notice to notify a person designated by the customer to receive notification when the customer's account is past due and subject to termination. The notification shall include information what is required to prevent termination of service. The residential customer shall make a request for third -party notification on a form provided by the Utility and shall include the written consent of the designated third party. The third -party notification does not obligate the third party to pay the over -due charges, nor shall it prevent or delay termination of service. M. AMORTIZATION: Any customer meeting the requirements of subparagraph 3 of paragraph B shall, upon request, be permitted to amortize, over a period not exceed 12 months, the unpaid balance of the bill asserted to be beyond the means of the customer to pay within the normal period of payment. This provision shall be limited to one unpaid balance within a twelve -billing period. Resolution No. 2015-09 Effective: 07/27/2015 Electric V 09140 Rule No. 9 (continued) N. MASTER -METERED SERVICE: Master -metered service is when one meter serves several users or is provided through an individual meter and is billed to the landlord. When the landlord is delinquent, Light & Water will make a good faith effort to post notices in English, Spanish, Chinese, Tagalog, Vietnamese and Korean in an available location such as a door hanger or in a common area to inform tenants of this situation and when delinquent amount needs to be paid to avoid service disconnection. To keep service on, tenants can do one of the following: 1. Come to Light & Water office and pay the total amount owed by a specified date, or 2. One or more of the occupants of individual units may assume responsibility for subsequent charges to the account and get the service put in his/her name. In order to prevent service termination and to establish service, occupants choosing to take financial responsibility for the utility bill for the master meter will be required to provide proper ID and either pass a credit check or pay a prepayment. A new accountholder will not have to pay the delinquent amount and will start out with a zero balance. A signed agreement with specific cost responsibilities among occupants and their unit number is also required. The new account service fee will be charged to the landlord. Light & Water will provide contact information for assistance in this process and also contact information for legal services. If one or more residential occupants are willing to assume responsibility for the charges to the satisfaction of Light & Water, Light & Water will make service available. All residents must agree to this or Light & Water will not make service available. Resolution No. 9-052 Effective: 06/23/2009 Electric'UH°141. ELECTRIC UTILITY RULE NO. 10 DISPUTE RESOLUTION PROCESS When a customer and the Utility fail to agree on an electric bill amount, date payment is due, payment plan, meter tampering charge, energy diversion/theft charge, or any other service or charge related to electric service, the customer may request a review by the Utility by the due date for Current Charges on the original bill. The customer shall follow the Steps below in making an appeal regarding disputed Utility bills or charges: STEP 1 Customer shall make verbal request to speak and consult with Customer Operations Supervisor or Field Services Supervisor (First Level Review). If agreement is not reached on dispute, customer may verbally request a Second Level review. STEP 2 Customer shall make verbal request to speak with the Assistant Director Customer Care & Solutions (Second Level Review). The review shall include consideration of whether the customer should be permitted to amortize the unpaid balance on account over a reasonable period of time, not to exceed a 6 month period. No termination of service shall be effected for any customer complying with the amortization agreement if the customer also keeps the account current as charges accrue in each subsequent billing period. The Assistant Director Customer Care & Solutions will document the outcome of the Second Level review in a letter to the customer within 5 business days of meeting with customer. The customer may either accept the outcome of the Second Level review or escalate the dispute to the Third Level. STEP 3 The customer shall have ten (10) calendar days from the date of the Second Level review letter to either pay the disputed bill or continue the dispute by requesting a hearing with the Director of Utilities (Third Level). Should the customer desire to continue the dispute to the Third Level, the customer shall submit a written request for a hearing with the Director of Utilities within ten (10) calendar days of the date of the Second Level review letter and shall deposit a check with the Assistant Director Customer Care & Solutions in the amount claimed by the Utility to be due within ten (10) calendar days from the date of the Second Level review letter. The Director of Utilities shall hear and review the dispute and issue a letter within five (5) business days of meeting with the customer, and such decision shall be final and end the dispute appeals process. Service will not be discontinued for nonpayment of the disputed bill when a deposit has been made with the Assistant Director Customer Care & Solutions pending the outcome of the Third Level review. Resolution No. 10-C79 Effective: 11/01/2010 Electric V9442 Rule No. 10 (continued) If, before completion of the Director of Utilities' review, additional bills become due which the customer wishes to dispute, customer shall also deposit with the Assistant Director Customer Care & Solutions the additional amounts claimed by the Utility to be due for such additional bills before they become past due. Failure to do so will warrant discontinuance of utility service to customer in accordance with Electric Utility Rule No. 9. Resolution No. 09-052 Effective: 06/23/2009 Electric VO -443 ELECTRIC UTILITY RULE NO. 11 METER TEST AND ADJUSTMENT OF BILLS FOR METER ERROR A. TESTS: 1. Prior to Installation: Every meter will be tested at or prior to the time of installation, and no meter will be placed in service if found to register more than 1% fast or 1% slow. 2. On Customer Request: A customer may, on notice of not less than one week, require the Utility to test the meter for his service. No charge will be made for such a test but, should a customer demand a test within 6 months after installation or more often than once in 6 months, he will be required to deposit $160.00 RL (Residential), $370.00 G (General), $440.00 TOU (Time of Use) to pay, in part, the cost of the test. This deposit will be returned if the meter is found to register more than 2% fast or 2% slow. A customer shall have the right to require the Utility to conduct the test in his presence or in the presence of an expert or other representative appointed by him. The results of the test will be furnished to the customer within a reasonable time after completion of the test. B. ADJUSTMENT OF BILLS FOR METER ERRORS: 1. Fast Meters: When, upon test, any meter is found to be registering more than 2% fast, the Utility will refund to the customer the amount of the overcharge based on corrected meter readings subject to the provisions of paragraph 4 hereof. 2. Slow Meters: When, upon test, any meter for domestic service is found to be registering more than 2% slow, or any meter for other class of service is found to be registering more than 2% slow, the Utility may bill the customer for the amount of the undercharge based on corrected meter readings subject to the provisions of paragraph 4 hereof. 3. Non -registering meters: When, upon test, any meter is found to be non - registering, the Utility may bill the customer for the estimate of electricity consumed but not registered subject to the provisions of paragraph 4 hereof. Bills for this purpose will be estimated from the customer's prior use, the customer's subsequent use correctly metered the Utility's experience with other customers of the same class, and the general characteristics of the customer's operation. Resolution No. 2015-09 Effective: 07/27/2015 Electric UB."1 4 Rule No. 11 (continued) 4. General: When it is found that the error in a meter is due to causes, the date of which can be reliably established, the overcharge or the undercharge may be computed back to that date, provided, however, that in no case will a bill for an undercharge or overcharge exceed a 4 month period for single-family domestic service schedules or a 36 month period for all other service schedules. C. ADJUSTMENT OF BILLS FOR UTILITY ERROR: 1. General: When it is found that an error in billing has occurred due to a Utility error, the date of which can be reliably established, the overcharge or the undercharge may be computed back to that date provided, however, that in no case will a bill for an undercharge or overcharge exceed a 4 month period for single-family domestic service schedules or a 36 month period for all other service schedules. There will be no interest paid to an overcharge bill or collected from an undercharged bill. The Utility is authorized to refund a credit balance. Resolution No. 2015-C39 Effective: 07/27/2015 Electric VW145 ELECTRIC UTILITY RULE NO. 12 RATES AND OPTIONAL RATES A. EFFECTIVE RATES: The rates to be charged by and paid to the Utility will be the rates legally adopted by City Resolution of the City of Azusa. A copy of complete tariff schedules will be maintained for public inspection at the Azusa Light & Water office. B. OPTIONAL RATES: Where there are two or more rate schedules, rates or optional provisions applicable to the class of service requested by the applicant, the Utility or its authorized employees will call applicant's attention, at the time application is made, to the several schedules, and the applicant must designate which rate schedule, rate or optional provision he desires. When the customer notifies the Utility of any material change in the size, character, or extent of his utilizing equipment, or operations, in accordance with Section C of Electric Utility Rule No. 3, the Utility will, within a reasonable time, advice the customer of the resulting rate options. In the absence of the notification provided for in Section C of Electric Utility Rule No. 3, the Utility assumes no responsibility for advising the customer of lower optional rates under other existing schedules, rates or optional provisions available as a result of the customer's changes in equipment and operations. C. NEW OR REVISED RATES: Should new or revised rates be established after the time application is made, the Utility will, within a reasonable time, use such means as may be practicable to bring them to the attention of those of its customers who may be affected thereby. D. CHANGE OF RATE SCHEDULE: 1. A change to another applicable rate schedule, rate or optional provision will be made only where the customer elects to make such change or where, in the opinion of the Utility, another rate schedule is more applicable. 2. Should a customer so elect, the change will be make provided: a. A change has not been made effective during the past 12 month period. b. The change is made to, or from, a new or revised rate schedule; or C. There has been a change in the customer's operating conditions for that service which, in the opinion of the Utility, justifies the change; and d. The customer has made the request by written notice to the Utility. Effective: 10/26/2010 Electric BL446 Rule No. 12 (continued) 3. The change will become effective for the billing period during which the customer has requested the change. E. INTERCONNECTION: Unless otherwise stated in the rate schedule, the rate schedules of the Utility are applicable only for service supplied entirely by the Utility without interconnection with any other source of supply, except that interconnection may be made by double -throw switch where necessary to meet the minimum requirements for emergencies. Effective: 10/26/2010 Electric VBPj147 ELECTRIC UTILITY RULE NO. 13 TEMPORARY SERVICE A. DEFINITIONS: Temporary electric service as herein considered refers to electricity for fairs, circuses, bazaars, temporary restaurants and other establishments not of a permanent nature and electricity for construction purposes. Temporary electric service also refers to a service connection which is subject to removal or relocation in the future. This rule shall apply to temporary installations of less than a duration of 12 months. Thereafter it shall be discontinued and removed or converted to a permanent installation. B. USES AND APPLICATIONS: 1. The applicant shall establish credit as required by Electric Utility Rule No. 5, except that the amount of deposit prescribed in Electric Utility Rule No. 6 will not exceed the estimated bill for the duration of the service. 2. Where service of 100 amps or less is to be supplied overhead and can be supplied from existing facilities except for installation of a single span of overhead service conductors not to exceed 100 feet in length, a charge of $740.00 shall be made for 120/240 volts, 3 -wire, single-phase service. 3. Where service is to be supplied underground and can be supplied from existing facilities or from facilities being installed for permanent service, a charge of $740.00 shall be made for 120/240 or 120/208 volts, 3 -wire, single-phase service, not to exceed 50 feet, provided the applicant furnishes and installs conduit. 4. Where it is necessary to install a temporary overhead or pad -mounted transformer, and/or additional secondary conductor, the applicant shall pay in advance, in addition to provision of paragraph 2 or 3 hereof, the estimated cost installed plus the estimated cost of removal, less the estimated salvage of the facilities necessary for furnishing service, single phase transformer installation $3,098.00, three phase transformer installation $6,200.00. 5. Temporary service for construction purposes shall be discontinued to the applicant and removed if it is used for other than the intended purpose. With the Utility's approval, a temporary service may be used for non -construction purposes when all applicable safety and construction codes are adhered to. If a non -Utility approved power source is connected on the construction site, the Utility's temporary service shall be discontinued. Service may be suspended without notice to the applicant as required by Electric Utility Rule No. 14-B. Resolution No. 2015-09 Effective: 07/27/2015 Electric U02148 ELECTRIC UTILITY RULE NO. 14 SHORTAGE OF SUPPLY AND INTERRUPTION OF DELIVERY A. SHORTAGE AND INTERRUPTION: 1. The Utility will exercise reasonable diligence to furnish a continuous and sufficient supply of electricity to its customers and to avoid any shortage or interruption of delivery thereof. It cannot, however, guarantee a continuous or sufficient supply or freedom from interruption. 2 The Utility shall not be liable for interruption or shortage of supply, nor for any loss or damage occasioned thereby, if such interruption or shortage results from any cause not within its control. 3. Whenever, in the operation of the Utility's electric properties and/or systems, interruption in the delivery of electric energy to customers results from or is occasioned by causes other than the exercise by the Utility of its right to suspend temporarily the delivery of electric energy for the purpose of ,Waking repairs or improvements to its system, notice of any such interruption will not be given to the customers of the Utility, but the Utility shall exercise reasonable diligence to reinstitute delivery of electric energy. B. TEMPORARY SUSPENSION FOR REPAIRS: 1. The Utility shall have the right to temporarily suspend electric service whenever it finds it necessary to repair or improve its system. Such repairs or improvements will be executed as rapidly as possible in order to cause the least inconvenience to the customers. Prior notice will be given to customers if the circumstances permit. 2 When it is necessary to temporarily suspend electric service for repairs or improvements to the system in accordance with Paragraph B.1 above, and the customer requests that such suspension of service occurs outside of regular working hours, the customer shall pay, in advance, the total estimated labor - related costs incurred by the Utility. i. APPORTIONMENT OF SUPPLY DURING TIME OF SHORTAGE: Should a shortage of supply ever occur the Utility will apportion its available supply of electricity among its customers in the manner which appears most equitable under prevailing conditions. Effective: 10/26/2010 Electric iii ff 4 A Q ELECTRIC UTILITY RULE NO. 15 LINE EXTENSION A. GENERAL: 1. Extensions of distribution lines of standard voltages (12 KV or less) necessary to furnish permanent service to applicants will be made by the Utility in accordance with the following rules. 2. The Utility will construct, own, operate and maintain lines only along public streets, roads and highways which the Utility has a legal right to occupy, and on public lands and private property across which rights of way satisfactory to Utility may be obtained without cost to or condemnation by the Utility. 3. The Utility will make extensions of its lines and facilities to the customer where the estimated revenue to be received from the service will provide adequate and continuous return on the Utility's investment. The Utility reserves the right to determine, finally, the advisability and legality of making any extension. Extensions made by the Utility shall be and remain permanently the property of the Utility and the customer shall execute a contract for the service to be supplied when such is required by the Utility. B. EXTENSION — OVERHEAD: 1. Subject to the suitable character of service and provision of the law, the Utility may extend its overhead distribution system to an applicant or group of applicants provided the applicant or applicants will sign an extension agreement. 2. No overhead service will be permitted for new or rebuilt residential and commercial developments, unless it is so determined by the Director of Utilities that the installation of underground service to that particular premises is physically impractical. 3. Line extension will be either single-phase or three-phase as determined by the Utility based on engineering and practical needs. 4. Where it is necessary to convert an existing line from single-phase to three-phase in order to furnish three-phase service to an applicant, the extra cost thereof shall be paid by the applicant. Effective: 10/26/2010 Electric I[ulff-27 50 Rule No. 15 (continued) 5. The applicant or applicants shall pay to the Utility, before the start of construction, its total estimated installed cost (exclusive of transformers, meters and services) to complete the extension or conversion. Net difference result thereto shall be refunded or billed to the applicant or applicants, whatever the case may be. C. EXTENSION — UNDERGROUND: 1. General: Underground line extension will be made where it is mutually agreed upon by the Utility and the applicant, and where the Utility maintains or desires to maintain underground distribution facilities for its operating convenience or in compliance with the applicable laws, ordinance, or similar requirements of public authorities and the City Council. 2. Underground Extension to Residential Subdivisions: a. The developer of the subdivision will perform all necessary trenching and backfilling, including furnishing of any imported backfill material required, and will furnish and install all conduits, pull boxes, transformer vaults and street lights in accordance with the Utility's specifications. Upon acceptance by the Utility, the developer will transfer the ownership of these facilities to the Utility. b. The developer will be required to contribute a non-refundable amount equal to the cost of material & installation (labor, equipment and overhead) of primary, secondary and street light conductors for completing underground for such extension. 3. Underground Extension to Individual Residential Development: Residential development including single and multi- dwelling units within the Utility's existing overhead distribution area will be required of underground extension subject to the provisions of Rule 15.C.2. 4. Underground Extension for Other than Residential Services: The applicant will provide substructures under the same provision as Rule 15.C.2. In addition, the applicant will furnish and install secondary voltage (under 600 volts) conductors from transformer or existing secondary cable junction to metering point, all in accordance with specifications of the Utility or an authority having jurisdiction over it. Effective: 10/26/2010 Electric U0°151 Rule No. 15 (continued) D. RELOCATION OF EXISTING DISTRIBUTION FACILITIES: 1. Where mutually agreed upon by the Utility and the applicant (individual, corporation or public agency), existing distribution facilities may be relocated, provided the applicant requesting the change pays, in advance, a non-refundable amount equal to the estimated cost of relocation of the existing distribution facilities. 2. Costs of relocation of electric facilities necessary to clear for off-site improvements required in conjunction with new land subdivisions, conditional use permits, zoning cases or building permits shall be paid by the applicant. E. REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION FACILITIES: Where mutually agreed upon by the Utility and applicant, overhead distribution facilities pay be replaced with underground facilities, provided the applicant requesting the change pays, in advance, a non-refundable sum equal to the estimated installed cost of the underground facilities, less the estimated net salvage value of the replaced overhead facilities. Effective: 10/26/2010 Electric I ii UP` 15 2 1152 ELECTRIC UTILITY RULE NO. 16 SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES A. METER INSTALLATIONS AND MISCELLANEOUS SERVICE EQUIPMENT ON CUSTOMER PREMISES: 1. Meter Installations: a Location: All meters installed by the Utility shall be installed at some convenient place approved by the Utility upon the customer's premises and so placed as top_ be at all times accessible for insp_ ection, reading_ and testing. The customer shall, at his own expense, provide a new and approved location for the meter or meters in order to comply with the foregoing whenever the existing meter or meters become inaccessible for inspecting, reading or testing. b. Multiple -Occupancy Buildings: In all buildings in which meters are required to be installed for various floors or groups of rooms in order to measure separately the electrical energy supplied to each of several customers, all meters shall be located at one central point or as otherwise Specui�,u lM by +i, TT+;i;+.. V., a, __+_, ,. �;+,.., ;ql, lT 1, -1-1- —1-4 i,.. v"u", v�ui�y. i.u�.0 ui�. wi FvOiLivu 011U11U �1�c Xy LIXUI .0 .,y the building owner to indicate the particular location supplied by it. a Master Meters: A master meter will be furnished and installed by the Utility upon application by the owner or lessee of any residential building where the floors (or portions thereof) or rooms or groups of rooms are rented separately and where electric energy is to be metered and resold by said owner or lessee to the individual tenants as provided in Electric Utility Rule No. 17. In such cases, the said owner or lessee shall furnish, install, maintain and test the sub meters. d Sealing of Meters: All meters owned by the Utility will be sealed by the Utility and no such seal shall be tampered with or broken except by a representative of the Utility authorized to do so. Effective: 10/26/2010 Electric UR2153 Rule No. 16 (continued) 2. Miscellaneous Service Equipment: a Equipment Furnished by Customer: All service switches, fuses, meter sockets, meter and instrument transformer housings, switchboard meter rest buses and similar devices, irrespective of voltage required in connection with service and meter installation on customer's premises, shall be furnished, installed and maintained by the customer in accordance with the Utility's requirements. Detailed information will be furnished by the Utility on request. b. Equipment Furnished by Utility: The Utility will furnish and install the necessary instrument transformers, test facilities (except switchboard meter test buses) and meters. This equipment will not be accessible to the customer. Liability for Damage to Equipment: The customer shall be liable to the Utility for damage occurring to the electrical meter or other service equipment owned by the Utility arising from any negligent or intentional act, or failure to act, of the customer or persons under the control of the customer. B. SERVICE CONNECTIONS: 1. Overhead Services: a Service Drops: Upon a bona fide application for service and where the Utility's distribution pole line is located on the customer's premises or on a street, highway, lane, alley, road or private easement immediately contiguous thereto, the Utility will, at its own expense, furnish and install a single span of service wires from its pole to the customer's first permanent support, provided such support is of a type and is so located, that such service wires may be installed to a point approved by the Utility in accordance with good engineering practice, and in compliance with all applicable laws, ordinances, rules and regulations, including those governing clearances and points of attachments. h Impaired Clearance: Whenever any of the clearances required by the applicable laws, ordinances, rules or regulations of public authorities from the service drops to the ground or any object become impaired by reason of any changes made by the owner or tenant of the premises, the customer shall, at his own expense, provide a new and approved support, in a location approved by the Utility for the termination of the Utility's existing service drop wires and shall also provide all service entrance conductors and equipment necessitated by the change of location. Effective: 10/26/2010 Electric U9454 Rule No. 16 (continued) a Service Entrance Conductors: For each overhead service connection, the customer shall furnish at his own expense a set of service entrance conductors which shall extend from the point of service delivery at the point of termination to the Utility's service drop on the customer's support to the customer's meter switch. Such service entrance conductors shall be of a type and be in an enclosure which meets with the approval of the Utility and any inspection authorities which have jurisdiction. 2. Underground Services: a Underground service mandatory: Installation of electrical service facilities for all new residential, commercial and industrial properties shall be underground and installed in accordance with applicable rules and regulations, laws and codes. b. Waiver: The Director of Utilities may waive the requirements of this section if topographical, soil or other conditions made underground installation unreasonable or impractical; existing or overhead distribution facilities are adequate and from which adjacent customers are being serviced. But, such customers may be required to provide the Utility - approved facilities for future underground service. n V• Installation: The customer JhU11 pr.vide ,h11i1sJ --e, *onF-v F U Ll LL11J1V1111V1 vault or a pull box adjacent to the service entrance, or at a location specified by the Utility. The customer shall also furnish, install and maintain at his expense, the conduit from the vault or pull box to a connection point designed by the Utility at the property line or a riser pole. The Utility will furnish, install and maintain the service conductors or cable, at its expense, from its connection point to the vault or pull box. The customer shall furnish and install at his own expense, or pay the Utility to furnish and install, the service entrance conductors which shall extend from the vault or pull box to the customer's meter switch. Such service entrance conductors shall be of a type and be in an enclosure which meets with the approval of the Utility and any inspection authorities which have jurisdiction. 3. Number of Services to be Installed: The Utility will not install more than one service, either overhead or underground, for the same voltage and phase classification for any one building or group of buildings on a single premises, except as separate services may be installed for separate buildings or groups or buildings where necessary for the operating convenience of the Utility, where provided for in tariff schedules, or where required by law or local ordinance. Effective: 10/26/2010 Electric Pff l 55 Rule No. 16 (continued) 4. Special Services: Premises for which arrangements are made for any special type of service (such as, but not limited to: three-phase service to a residence, emergency, x-ray, welder or transmitter service) will be served only by underground connection where general service to the premises is by underground connections. All additions to underground facilities accommodating such service will be made at the customer's expense. Ownership of such addition will main with the Utility. 5_ Connection of Customer's Service to Utility's Lines: Only duly authorized employees of the Utility are allowed to connect the customer's service to or disconnect the same from the Utility's lines. C. TRANSFORMER INSTALLATION ON CUSTOMER'S PREMISES: In cases where the Utility desires to install transformers on customer's premises, the customer shall provide adequate space for the transformer installation and furnish a satisfactory right-of-way for the service conductors. 1. Where the customer has provided a concrete pad or foundation within an approved enclosure located outdoors, he shall also furnish and install, at his expense, all secondary equipment and material necessary to receive service at the secondaries of the transformers or the secondary bus. The Utility will, at its expense, complete the installation. 2. The Utility reserves the right to specify the type of transformer installation to be used. Each normal installation shall include, where necessary, facilities for one standard transformer. D. OWNERSHIP AND MAINTENANCE OF FACILITIES: 1. All transformers, meters, service wires, appliances, fixtures and other facilities installed by the Utility, at its expense, upon the customer's premises for the purpose of delivering electric energy to the customer shall continue to be the property of the Utility, and may be repaired or replaced by the Utility at any time, and removed at the termination of service, and may also be used to supply other customers whether or not on the same premises provided the proper rights of way have been obtained. 2. No rent or other charges whatsoever shall be made against the Utility for placing or maintaining such facilities upon the customer's premises. The customer shall exercise reasonable care to prevent the facilities of the Utility upon said premises from being damaged or destroyed, and shall refrain from relocating or otherwise interfering with same and, in case any defect therein shall be discovered, shall promptly notify the Utility thereof. Effective: 10/26/2010 Electric f gil 56 Rule No. 16 (continued) E. CUSTOMER RESPONSIBILITY FOR HIS EQUIPMENT: 1. The customer shall, at his own sole risk and expense, furnish, install, inspect and keep in good and safe condition all electrical wires, lines, machinery and apparatus of any kind of character which may be required for (1) receiving electric energy from the lines of the Utility regardless of the location of the transformers, meters or other equipment of the Utility and (2) applying and utilizing such energy, including all necessary protective appliances and suitable housing therefore. 2. The Utility shall not be responsible for any loss or damage occasioned or caused by the negligence, want of proper care, or wrongful act of the customer or of any of his agents, employees or licensees on the part of customer in installing, maintaining, using, operating or interfering with any such wires, lines, machinery or apparatus. F, RIGHT OF ACCESS: The Utility shall, at all times, have the right of ingress to and egress from a customer's premises at all reasonable hours for any purposes reasonably connected with the furnishing of electric energy and the exercise of any and all right secured to it by law or these Rules. Failure of the customer to cooperate may result in discontinuance of his electric service. Effective: 10/26/2010 Electric U94 57 ELECTRIC UTILITY RULE NO. 17 SUPPLY TO SEPARATE PREMISES AND RESALE A. SEPARATE METERING: Separate premises will not be supplied through the same meter, except as may be specifically provided for in the rate schedule. B. OTHER USES OR PREMISES: A customer shall not use electricity received from the Utility upon other premises nor for other purposes than those specified in his application or in the rate schedule applied. C. RESALE OF ELECTRICITY: A customer shall not re -sell electricity received from the Utility to any person, except: 1. Where energy is purchased at rates specifically applicable to resale service; or 2. Where the charge to tenants is absorbed in the rental for the premises or space occupied; or 3. Where the customer is the owner, lessee, or operator of a multifamily accommodation and electricity is sub metered and resold to tenants at the same rates that the Utility would charge for the service if supplied directly. Effective: 10/26/2010 Electric Uffwl 58 ELECTRIC UTILITY RULE NO. 18 PUBLIC BENEFITS PROGRAM (Amended by Resolution No. UB -04-17) A. ESTABLISHMENT OF PUBLIC BENEFITS PROGRAM: Electric Utility Rule 18, Public Benefits Program, is hereby established in accordance with Assembly Bill 1890 (passed August 1996), which requires publicly owned utilities to establish a charge for Public Benefits programs. This Rule may be extended, suspended or ended in accordance with related legislation adopted by the State of California. B. LOW 1NC;OnE ASSISTANCE: This program provides for once a year financial assistance to eligible customers. 1. Eligibility: The Low Income Assistance Program is only available to customers receiving electric service from Azusa Light & Water. Customers must meet income requirements as set forth by the California Alternate Rates for Energy (CARE). Customers are required to fully complete and submit to the department an Application for the purpose of establishing eligibility. Applications will be verified and approved by the Director or other designated staff in order to establish Eligibility for program benefits. For verification purposes, Customers are required to provide supporting documents as required by Departmental procedure. 2 Credit of Electric Charges: Customers meeting the aforementioned eligibility requirements shall receive an annual $80.00 credit to their electric account. Approved applications will have this credit applied to their account on or after the next billing cycle. C. ENERGY STAR APPLIANCE PURCHASE AND WEATHERIZATION INCENTIVE PROGRAM: This program provides for a once a year financial incentive for the purchase of new high efficiency appliances and energy efficient weatherization measures to eligible customers. Eligibility: The Appliance Purchase and Weatherization Incentive is only available to customers receiving electric service from Azusa Light & Water. Eligible customers must have purchased a new high efficiency appliance or weatherization materials and submitted a rebate application to the Utility no later than twelve (12) months following applicable purchase(s). Applications will be verified and approved by the Director or other designated staff in order to establish eligibility for Program benefits. For verification purposes, Customers are required to provide supporting documents as required by the Utility. Effective 05/01/2017 Resolution No. UB -04-2017 Electi# I kEI-- T54 Q Rule No. 18 (continued) 2 Standards and Benefits: Qualified high efficiency appliances and weatherization measures are those which meet the standards established by the Environmental Protection Agency's Energy Star rating. The Director of Utilities shall have the authority to issue addendums to Subsection 3 of this Rule which establish and modify different classes of incentives, known as Standards and Benefits, which are consistent with the Energy Star program guidelines and this Rule. 3. Incentive Benefits: Customers meeting the aforementioned eligibility requirements shall receive credit to their account equal to an amount set forth in the Utility's Standards and Benefits. Approved applications will have this credit applied to their account on or after the next billing cycle. D. COMMERCIAL AND INDUSTRIAL ENERGY PARTNERSHIP: This program provides for financial incentives for the replacement or installation of electrical devices and equipment with high efficiency equipment to eligible customers. 1. Eligibility: The Commercial and Industrial Energy Partnership is only available to customers that are receiving electric service from Azusa Light & Water and are billed according to the G-1, G-2 or TOU rate schedules. Customers are required to fully complete and submit to the Department an Application for the purpose of establishing eligibility. Applications will be verified and approved by the Director or other designated staff in order to establish Eligibility for Program benefits. For verification purposes, Customers are required to provide supporting documents as required by Utility procedure. 2 Standards and Benefits: Energy efficiency equipment that supports the effort to reduce energy consumption and monthly energy costs may be incorporated and an incentive will be provided by Azusa Light & Water. The Director of Utilities shall have the authority to issue addendums to Subsection 5 of this Rule which establish and modify different classes of incentives, known as Standards and Benefits, which are consistent with this Rule. 3. Incentive Benefits: Customers meeting the aforementioned Eligibility requirements shall receive an incentive as dictated by the Standards and Benefits after the review and acceptance of the completed project by designated Azusa Light & Water staff. Effective 05/01/2017 Resolution No. UB -04-2017 Elect; UB -460 WATER RULES & REGULATIONS UB 1161 PRELIMINARY STATEMENT 1. Rate Applicability and Rules: The application, interpretation, and administration of the provisions herein are subject to such rules and regulations as may be provided and prescribed by the Director of Utilities of the City of Azusa, and as approved by the City Council of the City of Azusa. 2. Definition of Customer: The term "customer" is hereby defined as meaning a person, private or public corporation, co -partnership, unincorporated association, the United States, the State of California, any County or any Governmental Agency who makes written application and is entitled to service under the Utility's rules. A customer may also be a party with whom the City of Azusa is doing business with or without a billing relationship or who is receiving benefit of utility service under another party's name. Contracts: The City may require a contract as a condition of service. 4. The Director of Utilities may establish and enforce charges for furnishing water to any installation of a character not adequately provided for by these rules and rates, provided that such charges shall be consistent with the rates and charges prescribed herein. 5. Official Time: Azusa Light & Water recognizes as its official referenced time standard for all service metering and transactional activities the time as recorded by the United States Department of Commerce National Institute of Standards and Technology (NIST) and the U.S. Naval Observatory (USNO). UB 2162 WATER RATE SCHEDULE The following schedule of rates is fixed and established as the rates to be collected by Azusa Light & Water for supplying water to its customers within the certificated service territories of the City of Azusa: A. METER SERVICE CHARGE: The basic monthly meter service charge for water supplied to domestic, commercial, industrial, and municipal customers of Azusa Light & Water shall be as follows: I Meter ,lulu 1, 2016 July 1, 2017 July 1. 2018 July 1. 2019 July I, 2420 Size 5/8"-3/4" 14.58 14.87 15.17 15.47 15.78 1" 23.75 24.23 24.71 25.20 25.71 11/2" 46.68 47.62 48.57 49.54 50.53 2" 74.20 75.69 77.20 78.74 80.32 3" 147.59 150.54 153.55 156.62 159.75 4" 230.14 234.75 239.44 244.23 249.12 6" 459.47 468.66 478.03 487.59 497.35 8" 734.66 749.36 764.34 779.63 795.22 10" 1,927.16 1,965.71 2,005.02 2,045.12 2,086.02 12" 2,431.68 2,480.32 2,529.92 2,580.52 2,632.13 Minimum Charge: If a customer has no consumption, the minimum charge shall be the monthly meter service charge. Resolution No. UB-03-2016 Effective?/01/2016-7/01/2020 Water X Be, 63 B. BASELINE COMMODITY CHARGE: The baseline commodity charge shall be in effect during times when no drought is declared pursuant to Rule No. 21. The "baseline" assumes that sales or consumption by all customers is approximately 20% below sales during calendar year 2013. Sales or consumption is measured in increments of cubic feet. One cubic foot is 7.48 gallons of water. Each unit of water is billed as 100 cubic feet or 748 gallons. One hundred cubic feet is commonly referred to as CCF. Commodity rates are set based on the cost to provide service for the respective meter size, and the tiered rates below shall be used to allocate costs in proportion to consumption for the respective meter sizes. Meter Size Tier CCF ,lulu 1, 2016 July 1, 2017 July 1, 2018 July 1, 2019 July 1, 2020 1 0-4 1.050 1.071 1.093 1.114 1.137 5/8" - 3/4" 2 5-15 1.714 1.748 1.783 1.819 1.855 3 > 15 2.162 2.206 2.250 2.295 2.341 1 0-7 1.050 1.071 1.093 1.114 1.137 lot 2 8-25 1.714 1.748 1.783 1.819 1.855 3 > 25 2.162 2.206 2.250 2.295 2.341 1 0-15 1.050 1.071 1.093 1.114 1.137 11/2" 2 16-50 1.714 1.748 1.783 1.819 1.855 3 >50 2.162 2.206 2.250 2.295 2.341 1 0-23 1.050 1.071 1.093 1.114 1.137 2" 2 24-80 1.714 1.748 1.783 1.819 1.855 3 > 80 2.162 2.206 2.250 2.295 2.341 1 0-47 1.050 1.071 1.093 1.114 1.137 3" 2 48-159 1.714 1.748 1.783 1.819 1.855 3 > 159 2.162 2.206 2.250 2.295 2.341 1 0-73 1.050 1.071 1.093 1.114 1.137 4" 2 74-249 1.714 1.748 1.783 1.819 1.855 3 > 249 2.162 2.206 2.250 2.295 2.341 l 0-145 1.050 1.071 1.093 1.114 1.137 2 146-498 1.714 1.748 1.783 1.819 1.855 61P 3 > 498 2.162 2.206 2.250 2.295 2.341 1 0-233 1.050 1.071 1.093 1.114 1.137 2 234-797 1.714 1.748 1.783 1.819 1.855 8„ 3 > 797 2.162 2.206 2.250 2.295 2.341 1 0-610 1.050 1.071 1.093 1.114 1.137 2 611-2,092 1.714 1.748 1.783 1.819 1.855 10" 3 > 2,092 2.162 2.206 2.250 2.295 2.341 1 0-770 1.050 1.071 1.093 1.114 1.137 2 771-2,640 1.714 1.748 1.783 1.819 1.855 12" 3 > 2,640 2.162 2.206 2.250 2.295 2.341 - - Uniform 1.705 1.739 1.774 1.810 1.846 Golf Course Resolution No. UB -03-2016 Effective?/01/2016-7/01/2020 Water Reif R-464 C. COMMODITY DROUGHT RATE SCHEDULE From time to time the water utility may be required to encourage its customers to conserve water. Conservation activities can significantly reduce the water utility's revenue, and in order to meet the water utility's revenue requirements the following commodity drought rate schedule shall be used. If the water utility declares a water shortage in compliance with Rule 21, the following Commodity Drought Rate Schedule shall be effective and shall continue in effect until the water shortage declaration has ended or is no longer in effect: Commodity Charges Tiers July 1. 2016 July 1, 2017 July I, 2018 Ju[v 1, 2019 July t, 2020 1 1.092 1.114 1.136 1.159 1.182 Dl Vugnl Chase I L 1. 1/7 1.01-) 1.001 1.000 000 1 .7GV Level of Conservation 3 2.302 2.348 2.395 2.443 2.492 -5% from Baseline Golf Course 1.773 1.809 1.845 1.882 1.920 1 1.139 1.162 1.185 1.209 1.233 Drought Phase II 2 1.854 1.891 1.929 1.968 2.007 Level of Conservation 3 2.465 2.514 2.564 2.616 2.668 -10% from Baseline Golf Course 1.850 1.887 1.925 1.963 2.002 1 1.192 1.216 1.241 1.265 1.291 Drought Phase [II 2 1.942 1.981 2.020 2.061 2.102 Level of Conservation 3 2.655 2.708 2.762 2.818 2.874 -15% from Baseline Golf Course 1.936 1.975 2.015 2.055 2.096 1 1.253 1.278 1.304 1.330 1.356 Drought Phase 1 V 2 2.045 2.086 2.128 2.170 2.214 Level of Conservation 3 2.881 2.939 2.997 3.057 3.118 -20% from Baseline Golf Course 2.035 2.076 2.117 2.160 2.203 Resolution No. UB -03-2016 Effective?/01/2016-7/01/2020 Water Inst Ih_#0I05 D. RESIDENTIAL SERVICE WITH FIRE SPRINKLER SYSTEM: The following three rate components shall be applied to residential properties that are required to have fire sprinkler systems, where such properties: (1) have lot sizes less than one-quarter of an acre (10,890 square feet); and (2) have an actual meter service that is larger than 1". 1. Meter Charge (same as 1" meter charge) See Section A of this Schedule 2 Commodity Charge: See Section B of this Water Rate Schedule 3. Commodity Drought Charge: See Section C of this Water Rate Schedule (when in effect) 4. Fire Service Charge: See section E of this Water Date Schedule Minimum Charge: If customer has no water consumption, the minimum charge shall be the meter charge plus Fire Service Charge. Resolution No. UB -03-2016 Effective?/01/2016-7/01/2020 Water Fe "- 1 0- [ E. FIRE SERVICE CHARGE: Customers with dedicated separate fire service meters shall be subject to the following monthly chargcs: Meter Size July 1. 2016 July 1. 2017 .I::ly 1. 2018 July 1. 2019 July 1. 2020 3/4" 2.69 2.74 2.80 2.86 2.91 1 " 3.94 4.02 4.10 4.18 4.27 2" 10.81 11.03 11.25 11.47 11.70 3" 22.68 23.13 23.59 24.06 24.55 411 44.54 45.43 46.33 47.26 48.2! 6" 100.74 102.76 104.81 106.91 109.05 8" 175.69 179.20 182.79 186.44 190.17 10" 275.61 281.13 286.75 292.48 298.33 Commodity charges as set forth in Section B shall apply to all consumption of waterused for fire suppression. Fire service connections are provided for fire protection only. If, during any month, a fire service is used for any purpose other than for firefighting, a penalty charge (see below) shall be paid in addition to the commodity charge for the actual amount of water used. If a fire service customer uses a fire service for other than emergency firefighting repeatedly, the customer, upon notice of the water utility manager, may be disconnected from service for violation of the intended use of a fire service connection. ,lulu 1. 2016 July 1. 2017 July 1. 2018, July 1. 2019 July 1. 2020 $101 $104 $106 $108 $110 Resolution No. UB -03-2016 Effective 7/01/2016-7/01/2020 WaterIlq ��jiI F. LIFELINE RATE: Upon written application to Azusa Light & Water, a water customer who meets the following standards is eligible for a $2.20 discount from the basic monthly meter service charge. 1. The customer must be either: a. 62 years of age or older; or b. Disabled within the definition of 20 C.F.R. 404.1505 and presently is receiving disability Social Security benefits. 2 The customer must be a resident of a single-family dwelling unit with a water meter no larger than 3/4". 3. The customer shall have been a water customer at the service address for at least the previous 12 months prior to the application for the lifeline rate. 4. The customer's household income is at or below 60% of the Los Angeles County median income level. 5. Low-income customers who qualify for the lifeline rate shall re -apply every 12 months. G. SPECIAL ZONE RATE: The City of Azusa Light & Water has defined a special distribution zone rate to recover costs identified with the service associated with that specifically designated service area. For water supplied to this defined area, the commodity charges shall be double the above applicable commodity rates. The area was specifically designated through an agreement between the City of Irwindale and the City of Azusa, wherein, the City of Irwindale requested the City of Azusa extend its water utility service into the City of Irwindale in order to provide water service to those special customers in the City of Irwindale. This rate applies to water customers with accounts specially coded for that purpose. Resolution No. UB -03-2016 Effective?/01/2016-7/01/2020 Water1 lest VN H. REPLACEMENT WATER COST ADJUSTMENT FACTOR (RWCAF): The Replacement Water Cost Adjustment Factor has been established to recover the costs of imported water required to fulfill the water systems requirements under the judgment of the adjudication of the Main San Gabriel Basin Watermaster. Each year in May the Main San Gabriel Basin Watermaster recommends to the Superior Courts of California the adoption of a basin safe yield. Said safe yield fluctuates annually from a historic low of 140,000 acre feet of allowable extraction to a historic high of 230,000 acre feet of extraction. This variable results in fluctuations of purchased imported water requirements for the City of Azusa. When the safe yield is high, the RWCAF is reduced, and when the safe yield is low the RWCAF is set higher. The Azusa Light & Water shall determine the RWCAF pursuant to the following methodology prior to t" haninninn of oarh voar forthe C;fir of 0—aale xx�afar evefa» The Director of Utilities shallQ. notify the City Council of the new RWCAF. It shall be applied to all water bills beginning the first billing cycle of the new fiscal year. Determine Azusa's Integrated Production Rights (R) for the following fiscal year based on the Safe Yield declared by the Main San Gabriel Basin Watermaster in the spring of each year. 2 Project Azusa's total water production (P) based on estimated sales (S) in units (CCF) of water, for the following year. 3. Derive the amount of Replacement Water (W) required by subtracting (R) from (P). 4. Derive costs ($) associated with (W) from the Main San Gabriel Basin Watermaster which include replacement water costs from the responsible agencies, administrative charges and in lieu fees. 5. Derive RWCAF by dividing ($) by (S). 6. If the RWCAF is less than $0.01/CCF, then apply $0.01/CCF commencing in July until the month ($) is attained, than discontinue the charge. Nothing in this section is meant to preclude the Director of Utilities from practicing sound ground water management activities. Each year the RWCAF is set independent from cyclic storage and conjunctive use of ground water which is managed separately, and for the benefit of the public utility. Resolution No. UB -03-2016 Effective?/01/2016-7/01/2020 Water T fthesgFlril I. J. WATER SYSTEM DEVELOPMENT FEE: The City of Azusa adopted an Ordinance in 1988 creating a Water System Development Fee. The City Council determined that future development within the water system service area would result in increased demands that would exceed the capacity of the existing water system. The Water System Development Fee was created to fund the cost of the future water system improvements and is imposed upon future development within the water system service area. If there is any change in floor footage, the Water System Development Fee shall apply. Fees must be paid to Azusa Light & Water prior to the final Water Plan approval. Residential Commercial Industrial School Park WATER SYSTEM ANNEXATION FEE: $1,984/ DU $0.91/SF $0.39/SF $7,689 Flat Fee $3,519 Flat Fee The City of Azusa adopted an Ordinance in 1996 creating a Water System Annexation Fee to allow properties outside the existing service area to be served by the existing water system. Fees must be paid to Azusa Light & Water prior to the final Water Plan approval. Residential Commercial Industrial School Park Resolution No. 2017-C2 Adopted 1/3/2017 Effective 60 days after adoption $ Per Dwe[lin! Unit (DU)/SF/AC $864/DU $0.39/SF $0.16/SF $3,350 Flat Fee $1,533 Flat Fee Water RtMc1100 K. L. FIRE SERVICE INSTALLATION CHARGE: Estimated fire service connection charges, including Double Detector Check for installation of fire protection laterals, includes labor, overhead, equipment and materials. The City will be responsible for installation of Double Detector Check assembly. In the event the estimated charge is more than the actual cost of installation, the applicant will receive a refund. If the deposit is less than the actual installation cost, the applicant will be billed for additional charges. Meter Size Total Deposit 4" $ 7,500 r'" e o inn 8" $ 10,500 10" $ 11,500 12" $ 12,500 FIRE HYDRANT INSTALLATION CHARGE: Estimated fire hydrant installation charge for installing fire hydrants will include labor, overhead, materials and equipment. There is a Fire Hydrant Traffic Incident Hit Hydrant impact fee that is required to be paid with the additional cost to repair and the water loss. The Fire Hydrant relocation Fee is an impact fee and is required to be paid prior to Water Tll-__ ._7 Tl_ _ T', ___ TT --- T_____ _ _ T _ _ _ 1 r r i 1 rian approval. Tillie rue nyurain frfspection ree is required for fire hydrant inspections. The relocation, hit hydrant impact fee and inspection fee are additional fees and non- refundable. In the event the estimated charge is more than the actual cost of installation, the applicant will receive a refund. If the deposit is less than the actual installation cost, the applicant will be billed for additional charges. 6" 8" 10" 12" Traffic Incident Hit Hydrant Impact Fee: Fire Hydrant Relocation Impact Fee: Fire Hydrant Inspection Fee: Resolution No. UB -03-2016 Effective 7/01/2016-7/01/2020 $ 9,500 $ 10,500 $ 11,500 $ 12,500 $1,500 $1,500 $1,500 Water Rate Schedule -9 UB -171 M. DOMESTIC METER INSTALLATION CHARGE: Charges for installation of meters include labor, equipment and materials and overhead. An estimate of installation charges will be determined by the Utility and a deposit in that amount will be required prior to commencement of installation. In the event the estimated charge is more than the actual cost of installation, the applicant will receive a refund. Should the deposit be less than the actual installation cost, the applicant will be billed for the additional charges. Meter Size Total Deposit 3/"-1" $3,500 2" $4,000 4" $7,500 6" $9,500 There is a fee for a water service disconnection from the mainline deposit. Charges for disconnection include labor, equipment and materials and overhead. An estimate of installation charges will be determined by the Utility and a deposit in that amount will be required prior to commencement of installation. In the event the estimated charge is more than the actual cost of installation, the applicant will receive a refund. Should the deposit be less than the actual installation cost, the applicant will be billed for the additional charges. Water Disconnection from the Mainline (Deposit): $3,200 N. ADVANCED METERING INFRASTRUCTURE PROGRAM OPT -OUT CHARGE Applicability: This schedule is applicable to residential customers who elect to opt -out of the Advanced Metering Infrastructure (AMI) radio communication meter functionality. These charges are related to the costs of providing and reading disabled two-way radio communication meters. Territory: Within the City of Azusa utility service area for water service. Resolution No. UB -03-2016 Effective?/01/2016-7/01/2020 Water Rate Schedule -10 UB -172 AMI Opt -out Fees: 1. A one-time set up charge in the amount of $75.00 will be billed on the residential customer account for each disabled two-way radio communication meter located at the property. The fee applies to each individual disabled two-way radio communication water meter on the premises. In addition to the applicable monthly Customer Charge for water service, as the same may be revised from time to time, a monthly fee in the amount of $10 will be billed to the residential account for each disabled two-way radio communication metered service located at the property. The fee will cover the expense of manual meter reading and additional operational activities related to the disabled two-way radio communication meters. 3. In addition to the applicable monthly Customer Charge, for customers who are enrolled in the City's low-income customer program, a discounted $5 monthly charge will be billed to the residential account for each disabled two-way radio communication metered service at the property. The documentation and requirements for eligibility in the Azusa Light & Water low- income customer program shall continue to apply. Special Conditions: Opt -out requests may only be made by the owner of the property. 2. Residential customers desiring to opt -out of the AMI radio communication meter functionality must complete an opt -out form within 30 days of being notified of the scheduled AMI meter installation. Residential customers that have experienced meter tampering or manipulation, or have been disconnected for non-payment three times, will not be eligible to opt -out of the AMI meter installation. 4. Residential customers with meters that have historically been difficult to disconnect or obtain a reading for billing purposes will not be eligible to opt -out of the AMI meter installation. Meter locations will be evaluated by Azusa Light & Water staff for eligibility. 5. Commercial, Industrial and Solar customers shall not be eligible to opt -out of the AMI installation. 6. Multi -unit dwellings with homeowner and condominium associations may not collectively opt - out of AMI meter installations on behalf of individual residents who are members of the association. Individual residents who are owners of their residences and have individual connections for water service may submit a request a for disabled two-way radio communication meter service pursuant to the requirements set forth herein. UB Approved 09/24/18 Water Rate Schedule -11 UB -173 WATER UTILITY RULE NO. 1 DEFINITIONS For the purpose of these tariff schedules, the terms and expressions listed below shall have the meanings set forth opposite them: Additional Responsible Party: Any person inhabiting a domestic service location and benefiting from utility service shall be equally responsible for the payment of bills rendered for utility services at that location. Applicant: A person requesting the Utility to supply water service. Application: A documented request for service to Azusa Light & Water or other customer account related transactions, as distinguished from an inquiry as to the availability of such services. Applications may be accepted in written, facsimile, electronic or verbal form as determined by procedures set forth by the Director of Utilities; such procedures may be changed at the discretion of the Director of Utilities to better meet changing business or customer requirements. Billing Period: The time interval between two consecutive meter readings that are taken for billing purposes. City: The City of Azusa. City Council: The City Council of the City of Azusa. City's Operating Convenience: The term refers to the utilization, under certain circumstances, of facilities or practices not ordinarily employed which contribute to the over-all efficiency of the Utility's operations; it does not refer to customer convenience nor the use of facilities or adoption of practices required to comply with applicable laws, ordinances, rules or regulations, or similar requirements of public authorities. Customer: The person in whose name service is rendered as evidenced by the signature on the application, contract, or agreement for that service, or in the absence of a signed instrument, by the receipt and payment of bills regularly issued in his name regardless of the identity of the actual user of the service. A customer may also be a party with whom the City of Azusa is doing business with or without a billing relationship or who is receiving benefit of utility service under another party's name. Customer's Mailing Address: The address specified on 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. Effective: 07/29/2004 Wateluu 1174 Rule No. 1 (continued) Date of Presentation: The date upon which a bill or notice is mailed, or delivered by the Utility, to the customer. Deposit: Certain installations done by the Water Division 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, and work the customer requests to be done outside of normal working hours. Director: The Director of Utilities of Azusa Light & Water of the City of Azusa. Fire Service: The piping, fittings and valving necessary to conduct water for fire protection purposes from the distribution main to and through the fireline assembly detector check valve. Mailed: Any notice or other communication shall be considered "mailed" when properly addressed and deposited in any United States Post Office box, postage prepaid. Meter: The instrument used for measuring the water delivered to the customer. Multifamily Accommodation: An apartment building, duplex, mobilehome park, court group, — — , _+'k— rwni�r..,f-o�i.lonri.11 r.ito l..n.1+o.1 single r .;.� 4— 41,0 ,- o:.10..�;.,1 V1 _1� VL11V1 F",I__F Vl residV11L1L ll {Al11Lo 1V VULVA L Fp a 1 6-v 1Jre111l Ova, F -V "l lllr, L11N leo-1 en lal units therein meet the requirements for a single-family accommodation. Hotel, guest or resort ranches, tourist camps, motels, auto courts and trailer courts consisting primarily of guest rooms and/or transient accommodations are not classed as multifamily accommodations. Person: Any individual, partnership, corporation, public agency or other organization operating as a single entity. Rate Charges: Charges in the rate schedules may include the following: Meter Service Charge: That portion of the charge for service which is a fixed amount without regard to water consumption in accordance with the rate schedule. 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 water service, late payment charge and/or reconnection charge, etc. Effective: 07/29/2004 Wate,UB 2 175 Rule No. 1 (continued) 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. 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. Utility: Electric and/or Water Utility - Azusa Light & Water. Effective: 07/29/2004 Wate UB -476 WATER UTILITY RULE NO.2 APPLICATION FOR WATER SERVICE AND CONNECTION A. APPLICATION FOR SERVICE: Each applicant for water service shall be required to sign an application on a form provided by the Utility and upon request, shall be required to furnish the following information: 1. Name of applicant 2. Date and place of application 3. Location of premises to be served 4. Date applicant shall be ready for service 5. Whether the premises have been heretofore supplied 6. Purpose for which service is to be used 7. Customer's mailing address 8. Whether applicant is owner or tenant of, or agent for, the premises 9. Information to establish credit of applicant 10. Such other information as the Utility may reasonably require The application is a request for service and does not in itself bind the Utility to serve except under reasonable conditions, nor does it bind the customer to take service for a longer period than the minimum requirements of the rate. R INDIVIDUAL i T T A RIT ITY FOR jOINT SERVICE: Two or more plerennc —hn join in one application or contract for service shall be jointly and severally liable and shall be billed by means of a single periodic bill mailed to the person designated on the application to receive the bill. C. When the consumer applies for a service connection, the applicant shall make a written application with the Utility and a deposit in advance shall be made to the Utility. The information required in the application shall include the name and address of the applicant, and the legal description of official house number of the premises for which water is desired. The payment shall be a sum equal to the estimated cost of said water, pipe, connection and other material used, plus the cost of the labor of installation and all other equipment and overhead expenses. After the job is completed, a final reconciliation between the prepayment received and the actual cost shall be made. If the deposit is higher, a refund shall be issued. If actual cost is higher, the customer shall be invoiced and has 30 days to pay. If not paid within 30 days, the Utility shall charge a late fee of I% per month. All service connections shall be installed by Utility personnel. The only exception to this rule is if a contractor has been selected by the City to install new, or replace old, water mains. In this case, the contractor shall be required to install new service laterals. Effective: 07/29/2004 WateMli V 1) 41 / / Rule No. 2 (continued) D. SERVICE ESTABLISHMENT CHARGE: 1. The Utility will charge a service establishment charge for any service or services established at an individual service address. 2. The service establishment charge provided herein is in addition to the charges in accordance with the applicable schedule and may be made each time an account is established. As used herein, establishment means each time an account is opened, including a turn -on of utility service or a change of name which requires a meter reading and shall be included on the first utility billing statement. Same day service may be provided for an additional charge of $35.00 between 7 a.m. and 4 p.m. and $85.00 between 4 p.m. and 5:30 p.m. Friday connection may be provided for an additional charge of $105.00 between 7 a.m. and 8 p.m. and $205.00 on Saturday, Sunday, or holiday between 7 a.m. and 8 p.m. 4. The service establishment charge is not applicable by customers of the Utility to service rendered through submeters to tenants. Resolution No. 2015-09 Effective: 07/27/2015 WateU� 178 WATER UTILITY RULE NO.3 ONE METER FOR MULTIPLE CONNECTIONS A. If one meter connection is used to serve more than one dwelling unit, store, shop or any other concern doing business separate and apart from one another, whether in the same building or not, the responsible consumer shall pay the established Meter Service Charge plus the Commodity Charges for water consumed by all dwelling units, stores, shops or concerns as set forth in paragraphs A and B of the Water Rate Schedule. Where one meter connection serves two or more separate and distinct consumers the utility may, at its option, install separate services and collect the regular rate from each consumer, in which case the owner or consumer shall, at his own expense, install a water pipeline from the property to the meters. No person shall run any water from a meter or service connection to any other consumer whether on the same lot or property or not, for which the rate or rates have not been paid or the Rules and Regulations herein have not been complied with. No change in the use of water shall be made until a written permission to make the change has been granted by the Water Manager. Effective: 07/29/2004 wateU l {t 77 WATER UTILITY 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: If applicant makes a prepayment by cash, money order, debit card or credit card to secure payment of bills for water service as prescribed in Water Utility Rule No. 5. 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 12 months of that prior service because of nonpayment of bills, may be required to re-establish credit by depositing the amount prescribed in Water Utility 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 Water Utility 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 Water Utility Rule No. 5. This rule shall apply regardless of whether or not service has been discontinued for such nonpayment. Effective: 07/29/2004 Watc>>I�ti' 7180 WATER UTILITY RULE NO. 5 PRF,PAVMENTS A. STATEMENT OF PURPOSE: The pre -payment is a guarantee of final payment. B. ESTABLISHMENT OF CREDIT: Customers applying for water service are required to establish credit with Azusa Light & Water prior to receiving service. Residential credit may be established by either passing a credit check or paying a pre -payment. Commercial/industrial customers are required to pay a pre -payment. Acceptable forms of prepayment are cash, money order, check, debit card or credit card. C. CREDIT CHECK: Residential customers applying for service with Azusa Light & Water shall have the option of requesting a Credit Check. Residential customers requesting a credit check will be required to pay a fee equal to the Utility's costs associated with providing the service. Credit Checks will be performed via a nationally recognized credit rating service. D. WAIVING OF PRE -PAYMENT FOR CAUSE: Customers who choose to have a Credit Check performed may have the pre -payment requirement waived if their credit score meets or exceeds the Utility's minimum score. The Director of Utilities shall have authority to set the minimum score. Customers who have had prior service with Azusa Light & Water which was subsequently written off as bad debt will not qualify under this onti nn .,t. E. 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 $55.00. F. BILLING OF PREPAYMENT: Customers required to pay a pre -payment may be offered the option of having their pre -payment billed. This service is offered to customers who provide sufficient credit references as required by the Utility's application procedure. Customers who have had prior service with Azusa Light & Water which was subsequently written off as bad debt will not qualify under this option. All billed pre- payments are due no later than 10:00 a.m. on the 14th day after service is established; if the 14th day falls on a weekend or holiday, pre -payment shall be due on the next business day. G. DISCONNECTION FOR FAILURE TO PAY PRE -PAYMENT: A customer will have their services discontinued for failure to pay the pre -payment by the due date. Customers who have had service discontinued will be required to pay a reconnection fee as applied in Water Utility Rule No. 8 in addition to their pre -payment. Resolution No. 10-C79 Effective: 11/0 1/20 10 WateUR-481 R4Q1 Rule No. 5 (continued) H. FORMS OF PRE -PAYMENT: Acceptable forms of pre -payment for all accounts include: cash, credit card, debit card, check, or money order. I. 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 Prepayment will not be used as payment for past -due bills to avoid discontinuance of service or reconnection charge or other miscellaneous charges. J. INTEREST ON PREPAYMENT: There shall be no interest paid on prepayments held by Azusa Light & Water. K. REFUNDING OF PRE -PAYMENTS: Residential customers with a clear payment history (no late notices, returned checks or disconnections for unpaid bills) are eligible after 24 months to have their pre -payment refunded. Pre -payments refunded under this policy will be applied directly to the customer's account and refund checks will not be issued under this policy. Prepayments held on commercial/industrial accounts will be held until the account closes. L. DELINQUENCY REQUIREMENT OF PRE -PAYMENT: Customer accounts that do not have a pre -payment and are subject to Late Payment Charge and discontinuance of service for nonpayment will be required to pay a pre -payment. If services have been discontinued, the pre -payment must be paid prior to services being restored. Resolution No. 10-C79 Effective: 11/0 1/2010 WateU R 9182 WATER UTILITY RULE NO. 6 NOTICES A. NOTICES TO CUSTOMERS: When notices from the Utility to a customer are required, they shall normally be given in writing, either mail to the customer's mailing address or delivered to him, except that in emergencies the Utility may give notices in the manner most suitable under the existing conditions (radio, TV, telephone, etc.). B. NOTICES FROM CUSTOMERS: Notices from a customer to the Utility shall either be given by written communication mailed to the Utility office or may be given orally by him or his authorized agent at the Utility office,_ except when written notice is specifically_ required in these Rules and Regulations. The Utility shall have the right in an emergency to turn the water off or on without notice. The Water Manager or his designee shall make reasonable effort to notify the consumers in advance of routine maintenance, repairs or other conditions that require the water to be turned off or on. Effective: 01/31/2005 Water V02 8 WATER UTILITY RULE NO.7 RENDERING AND PAYMENT OF BILLS A. RENDERING OF BILLS: Billing Period: Bills for water service shall be rendered monthly orbi-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 Azusa Light & Water 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. 1. Due Date: Bills are considered past due and subject to a LATE PAYMENT PENALTY if payment is not received in the Azusa Light & Water office by the close of business on the 20th calendar day after the date of presentation. If the 20th calendar day falls on a weekend or holiday, the DUE DATE will be the next business day. On or after the 21St calendar day, customers shall receive a PAYMENT REMINDER notice notifying them of their past due status. 2. Delinquent Date: Bills are considered delinquent and subject to additional penalties if payment is not received in the Azusa Light & Water office by 4:00 p.m. on the 15th calendar day after the DUE DATE. If the 15th calendar day falls on a weekend or holiday, the DELINQUENT DATE will be the next business day. On or after the 15th day, customers shall receive a DISCONNECT NOTICE notifying them of their delinquent status and pending disruption of service. Disconnect Date: Accounts are considered subject to disruption of service and additional penalties if payment is not received in the Azusa Light & Water office by 3:00 p.m. on the day prior to the DISCONNECT DATE shown on the DISCONNECT NOTICE. If the DISCONNECT DATE falls on a weekend or holiday, the DISCONNECT DATE will be the next business day. Resolution No. 09-C72 Effective: 06/23/2009 Water }1CiiIL•:Rl t 184 Rule No. 7 (continued) 4. Military Families Qualifying for Shutoff Protection: The California Military Families Financial Relief Act enacted September 22, 2005, mandates that a qualified customer may apply for shutoff protection of a period of 180 days, which may be extended. Qualified customers are members of the militia (including National Guard) called or ordered into active state service by the Governor or into active federal service by the President of the United States for a period of at least 30 consecutive days; Reservists of the United States Military Reserve who have been called to full-time active duty; or any spouse, registered domestic partner, or legal dependent of a service member as described above. a A qualified customer must notify Azusa Light & Water that they are in need of financial assistance because of a reduction in household income as the result of a member of the household being called to active duty status in the military. (1) Notification shall be submitted in writing and accompanied by a copy of the activation or deployment order of a service member that specifies the duration of the active duty status. (2) The written notification shall also include self -certification that the household be occupied by the service member's legal dependent or dependents during the duration of the shutoff protection period. b. A customer receiving assistance under this section shall notify us 'if the active duty status is extended. c If they move out of the residence receiving shutoff protection, the qualifying customer must provide written notice that includes the date of service termination and a forwarding address; they may then reapply at the new address if applicable (the shutoff period at the new address is for the remainder of the original 180 days). d The law states that the customer is still liable for payment of the utility bills. It also states that Azusa Light & Water is required to establish a repayment plan requiring minimum monthly payments that allows the customer to pay any past due amounts over a reasonable time period not to exceed one year after the service member's release from active military duty. A minimum payment amount will be due for each bill during the time of active duty. Late fees will not be charged during the period of active duty. el If the customer fails to follow the terms and conditions, Azusa Light & , Water may follow the normal rules and procedures. Resolution No. 06-C13 Effective: 03/01/2006 Water U X121 Q5 Rule No. 7 (continued) C. RETURNED CHECK CHARGE: The Utility may require payment of a $48.00 check charge for any check returned from the bank unpaid, and payments of bills for the following 6 months must be made in cash or money order. D. LATE PAYMENT CHARGE: An account with a total past due balance shall be subject to imposition of a LATE PAYMENT PENALTY equal to the greater of $7.50 or 5% of the total outstanding account balance on the DELINQUENT DATE. E. CREDIT CARD CHARGE: The credit card payment option is limited to $500.00. Credit card or debit card payments for Azusa Light & Water will be accepted through a third -party vendor, by calling a toll-free number, accessing them from Azusa Light & Water's web site or at the third -party vendor's web site twenty-four hours a day, or with assistance at the Azusa Light & Water office. There will be a convenience charge per increments of $500.00 for this service. If the customer's credit or debit card payment is rejected or payment returned to Azusa Light & Water, there will be a $48.00 return fee added to the customer's account in addition to the original payment. A notice will be mailed to the customer, notifying them to pay the total amount due in cash, cashier's check, or money order by the due date on the notice. If the charges are not paid by the due date, the utility service will be discontinued. In addition, credit card or debit card payments will not be accepted on the customer's account for a period of 6 months. A second returned credit or debit card payment will result in the account being permanently prohibited from accepting further debit or credit card transactions. F. AUTOMATIC PAYMENT: This program provides for the automated monthly payment of customer accounts via the national Automated Clearing House (ACH) system. 1. Eligibility: Customers applying for Automatic Payment must have an account with a bank, savings and loan, or credit union that is part of the ACH system. Utility accounts must be current and paid in full at the time of application, in order to qualify for Automatic Payment service. Azusa Light & Water will provide an application at the customer's request. 2. Payment Terms: Accounts on the Automatic Payment Plan will have their checking accounts debited the entire "Please Pay" amount on or after the "Due Date" printed on their statement. Customers will continue to receive a billing statement each month. Resolution No. 09-C72 Effective: 06/23/2009 WaterUB-186 I B 31 S 6 Rule No. 7 (continued) Termination: Accounts active on the Automatic Pay Plan will remain so until either canceled by the customer or Azusa Light & Water for cause. Customers may cancel the service at any time by notifying the utility in writing or other means provided by the Utility. Customers will be automatically terminated from Automatic Payment Plan on the second occurrence of a returned payment unless documented in writing as a bank error. A customer will be permanently prohibited from Automatic Pay Plan by Azusa Light & Water if the account becomes delinquent and is subject to Late Payment Charge and discontinuance of service for nonpayment. In addition to the aforementioned causes, the Utility reserves the right to cancel Automatic Payment Plan in its entirety at its discretion. 4. Billing Disputes: Due to the nature of the Automatic Payment Plan customers must notify Azusa Light & Water of all billing disputes at least one week prior to the "Due Date" appearing on their statement. Unresolved disputes will require that the account be temporarily suspended from Automatic Payment PIan until such time as the account returns to the status of "paid in full". 5. Returned Items: Customers whose Automatic Payments are refused by the bank will be subject to normal delinquent account processes and fees. Automatic Payments that are refused will be automatically resubmitted to the bank one additional time within four business days. Allowances for documented bank ell Vrs W 111 be aL L11e d13creL1V11 Vf AL.UJa Light Q111lcr. G. Closed accounts unpaid after 20 days from rendering of bill are subject to miscellaneous collection fees. Resolution No. 09-C72 Effective: 06/23/2009 Water VB14187 Q7 WATER UTILITY RULE NO.8 DISCONTINUANCE AND RESTORATION OF SERVICE A. PAST DUE BILLS: When bills are rendered monthly or bi-monthly, they shall be considered past due if not paid within 20 days after date of presentation. B. NON-PAYMENT OF BILLS: When a bill for water service has become past due and a 15 day discontinuance of service for nonpayment has been issued, service may be discontinued if the bill is not paid within the time required by such notice. 2. A customer's service shall be discontinued for nonpayment of a bill for service previously rendered to him at any location served by the Utility, provided such bill is not paid within 15 days after presentation of a notice that service shall be discontinued for nonpayment of such a bill. 3. If a customer is receiving more than one service, any or all services may be discontinued when any service, regardless of location, is discontinued for nonpayment. However, domestic service will not be discontinued because of nonpayment of bills for other classes of service. 4. The Utility shall not terminate domestic service for nonpayment when the customer has established to the satisfaction of the Utility that: a. During the pendency of an investigation by the Utility of a customer dispute or complaint pursuant to procedures set forth in Water Utility Rule No. 9; or b. The customer has been granted an extension of the period for payment of a bill; or C. To do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period, and is willing to enter into an amortization agreement with the Utility pursuant to Paragraph I with respect to all charges that the customer is unable to pay at the time of delinquency; or 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. Resolution No. 2016-05 Effective: 3/20/2016 Water l u ff488 Rule No. 8 (continued) 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 Water Utility Rule No. 4, and he fails to establish or re-establish his credit as provided by a written notice of not less than 15 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 2 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 2 days after receipt of such notice by the utility or until the date of termination specified in the notice, whichever date is later. F. RECONNECTION CHARGE: When restoring service that has been discontinued for nonpayment of bills, or for failure to otherwise comply with tariff schedules, Azusa Light & Water will apply the following charges and procedures. Customer shall be billed 35.00 if service restoration is requested before 4:00 p.m., Monday through Thursday, and 85.00 if service restoration is requested after 4:00 p.m., Monday through Thursday. Customers requesting reconnection of services on Friday between 7:00 a.m. and 8:00 p.m., will be charged $105.00 and $205.00 on Saturday, Sunday, and holiday between 7:00 in. and 8:00 p.m. in addition to the delinquent amount on their account. Customers who are reconnected during after-hours are further required to make payment in full of r; ,., t, 7 7 .t;,. ,,. . t, «. ,� + n T ;—I,+ v 117-+-- t,.. 1 n.nn recoiuiec�ivii Ciiai�e aiiu any u%+uu4M,11L cucusw aL rlT.usa i.1guL uL vv awl vy I V.vv a.iii. the following Monday. Failure to comply will result in services being disconnected again and no reconnection will be provided without receipt of payment. Additionally, no after hour reconnection will be provided for 6 consecutive months. In cases where 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. Resolution No. UB -12-2016 Effective: 10/1/2016 Waterf�i��161 QO Rule No. 8 (continued) G. 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 $35.00 in addition to other amounts due from the customer before service is restored. If the meter is removed, the service charge will be $50.00. If service(s) have been restored illegally or damaged due to tampering, the customer must pay all damage charges prior to reconnection and a theft investigation charge of $500.00. The customer and/or beneficiary of service is responsible for all damage charges whether or not service is reconnected. If a customer restores his own service after it has been discontinued by the Utility, a charge of $35.00 shall be charged to cover the expense of the return trip to the customer's location, locking the service and the subsequent removal of said lock. H. 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. I. THIRD -PARTY NOTIFICATION: The Utility shall make available to its residential customers a third -party notification service, whereby the Utility will send a duplicate final notice to notify a person designated by the customer to receive notification when the customer's account is past due and subject to termination. The notification shall include information on what is required to prevent termination of service. The residential customer shall make a request for third -party notification on a form provided by the Utility and shall include the written consent of the designated third party. The third -party notification does not obligate the third party to pay the over -due charges, nor shall it prevent or delay termination of service. J. AMORTIZATION: Any customer meeting the requirements of subparagraph 3 of paragraph B shall, upon request, be permitted to amortize, over a period not to exceed 12 months, the unpaid balance of the bill asserted to be beyond the means of the customer to pay within the normal period of payment. This provision shall be limited to one unpaid balance within a twelve -billing period. K. MASTER -METERED SERVICE: Master -metered service is when one meter serves several users or is provided through an individual meter and is billed to the landlord. When the landlord is delinquent, Light & Water will make a good faith effort to post notices in English, Spanish, Chinese, Tagalog, Vietnamese and Korean in an available location such as a door hanger or in a common area to inform tenants of this situation and when delinquent amount needs to be paid to avoid service disconnection. To keep service on, tenants can do one of the following: Resolution No. 2016-05 Effective: 3/20/2016 Water' 1-190 1. Come to Light & Water office and pay the total amount owed by a specified date, or 2. One or more of the occupants of individual units may assume responsibility for subsequent charges to the account and get the service put in his/her name. In order to prevent service termination and to establish service, occupants choosing to take financial responsibility for the utility bill for the master meter will be required to provide proper ID and either pass a credit check or pay a prepayment. A new accountholder will not have to pay the delinquent amount and will start out with a zero balance. A signed agreement with specific cost responsibilities among occupants and their unit number is also required. The new account service fee will be charged to the landlord. Light & Water will provide contact information for assistance in this process and also contact information for legal services. If one or more residential occupants are willing to assume responsibility for the charges to the satisfaction of Light & Water, Light & Water will make service available. All residents must agree to this or Light & Water will not make service available. Resolution No. 2016-05 Effective: 3/20/2016 Water if "I 8191 WATER UTILITY RULE NO. 9 DISPUTE RESOLUTION PROCESS When a customer and the Utility fail to agree on a water bill amount, date payment is due, payment plan, meter tampering charge, water diversion/theft charge, or any other service or charge related to water service, the customer may request a review by the Utility by the due date for Current Charges on the original bill. The customer shall follow the Steps below in making an appeal regarding disputed Utility bills or charges: STEP 1 Customer shall make verbal request to speak and consult with Customer Operations Supervisor or Field Services Supervisor (First Level Review). If agreement is not reached on dispute, customer may verbally request a Second Level review. STEP 2 Customer shall make verbal request to speak with the Assistant Director Customer Care & Solutions (Second Level Review). The review shall include consideration of whether the customer should be permitted to amortize the unpaid balance on account over a reasonable period of time, not to exceed a 6 month period. No termination of service shall be effected for any customer complying with the amortization agreement if the customer also keeps the account current as charges accrue in each subsequent billing period. The Assistant Director Customer Care & Solutions will document the outcome of the Second Level review in a letter to the customer within 5 business days of meeting with customer. The customer may either accept the outcome of the Second Level review or escalate the dispute to the Third Level. STEP 3 The customer shall have ten (10) calendar days from the date of the Second Level review letter to either pay the disputed bill or continue the dispute by requesting a hearing with the Director of Utilities (Third Level). Should the customer desire to continue the dispute to the Third Level, the customer shall submit a written request for a hearing with the Director of Utilities within ten (10) calendar days of the date of the Second Level review letter and shall deposit a check with the Assistant Director Customer Care & Solutions in the amount claimed by the Utility to be due within ten (10) calendar days from the date of the Second Level review letter. The Director of Utilities shall hear and review the dispute and issue a letter within five (5) business days of meeting with the customer, and such decision shall be final and end the dispute appeals process. Service will not be discontinued for nonpayment of the disputed bill when a deposit has been made with the Assistant Director Customer Care & Solutions pending the outcome of the Third Level review. Resolution No. 10-C79 Effective: 11/0 1/20 10 Water UID" 91 92 Rule No. 9 (continued) If, before completion of the Director of Utilities' review, additional bills become due which the customer wishes to dispute, customer shall also deposit with the Assistant Director Customer Care & Solutions the additional amounts claimed by the Utility to be due for such additional bills before they become past due. Failure to do so will warrant discontinuance of utility service to customer in accordance with Water Utility Rule No. 8. Resolution No. 10-C79 Effective: 11/01/2010 Water U IPI 93 WATER UTILITY RULE NO. 10 METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR A. TESTS: 1. Prior to Installation: Every meter shall be tested at or prior to the time of installation and no meter shall be placed in service if found to register more than I% fast or 1 % slow. 2. On Customer Request: A customer may, on notice of not less than one week, require the Utility to test the meter for his service. No charge shall be made for such test but, should a customer demand a test within 6 months after installation or more often than once in 6 months, he shall be required to deposit $165.00 to pay, in part, the cost of the test. This deposit shall be returned if the meter is found to register more than 2% fast or 2% slow. A customer shall have the right to require the Utility to conduct the test in his presence or in the presence of an expert or other representative appointed by him. The results of the test shall be furnished to the customer within a reasonable time after completion of the test. B. ADJUSTMENT OF BILLS FOR METER ERRORS: Fast Meters: When, upon test, a meter is found to be registering more than 2% fast, the Utility shall refund to the customer the amount of the overcharge based on corrected meter reading subject to the provisions of paragraph 4 hereof. 2. Slow Meters: When, upon test, a meter for domestic service is found to be registering more than 2% slow, or any meter for other class of service is found to be registering more than 2% slow, the Utility shall bill the customer for the amount of the undercharge based on corrected meter readings subject to the provisions of paragraph 4 hereof. 3. Non -Registering Meters: When, upon test, a meter is found to be non - registering, the Utility shall bill the customer for the estimated water consumer but not registered subject to the provisions of paragraph 4 hereof. Bills for this purpose shall be estimated from the customer's prior use, the customer's subsequent use correctly metered, the Utility's experience with other customers of the same class, and the general characteristics of the customer's operation. Water VW 194 Rule No. 10 (continued) 4. General: When it is found that the error in a meter is due to causes, the date of which can be reliably established, the overcharge or the undercharge may be computed back to that date, provided, however, that in no case shall a bill for an undercharge exceed a 4 month period for single-family domestic service schedules or a 36 month period for all other service schedules. C. ADJUSTMENT OF BILLS FOR UTILITY ERROR: 1. General: When it is found that an error in billing has occurred due to a Utility error, the date of which can be reliably established, the overcharge or the undercharee may be computed back to that date provided_ however_ that in no case shallva bill for an undercharge exceed a 4 month period for single-family domestic service schedules for a 36 month period for all other service schedules and that in no case shall a bill for an overcharge exceed a 36 month period for all service schedules. 2. There shall be no interest paid to an overcharged bill or collected from an undercharged bill. The Utility is authorized to refund a credit balance. Resolution No. 10-C79 Effective: 11/0 1/20 10 Water VY -1195 WATER UTILITY RULE NO. 11 TEMPORARY SERVICE A. All water services within the system owned and operated by the City of Azusa shall be metered by meters that are owned and issued by Azusa Light & Water. B. Temporary water service refers to metered water service which is subject to removal or relocation in the future. Applications include, but are not limited to construction, street sweeping or other non -permanent service connections. C. The applicant shall establish credit as required by Water Utility Rule No. 4 except that the amount of prepayment prescribed in Water Utility Rule No. 5 shall be $1,000.00 plus a one time charge of $100.00. D. Use of Temporary Service water meters may be limited to designated connection points as set forth by representatives of Azusa Light & Water. E. Where it is necessary for the Utility to install a temporary service line and meter, the applicant shall pay in advance the estimated cost to install, plus the estimated cost of removal, less the estimated salvage of the facilities necessary for furnishing service. F. The minimum charge for each such connection or any water supplied shall be not less than the prevailing service charge as set forth in the rate schedule. G_ Representatives of Azusa Light & Water shall watch for illegal connections to the City's water system and report information to appropriate City personnel. Violators who make any type of un -metered connection to the system shall be given a one-time warning and an initial charge of $100.00, and documentation of such fact will be maintained by Azusa Light & Water. Subsequent violations will result in a charge equal to $250.00 plus two times the estimated amount of water consumed for each violation. Violators may, at the discretion of the City, be back billed for the estimated consumption used during the period that can be reasonably established, not to exceed 36 months. Application of this policy is pursuant to Section 498 of the California Penal Code. H. Temporary meters shall be billed according to rates set forth under the Water Rate Schedule. I. Temporary meters that are designated to a single point of connection shall be secured in place for the purpose of meter reading. Meters with multiple points of designated connection must be brought to Azusa Light & Water office at 729 N. Azusa Avenue during business hours the third week of every month for purpose of meter reading. Damaged meters shall be reported immediately. Failure to comply may result in the loss of temporary water meter privileges. Effective: 10/26/2010 Water U X3196 Rule No. 11 (continued) I Temporary unmetered service connection for house construction shall be available for $100.00 per connection at the discretion of the Assistant Director for construction water on site. Effective: 10/26/2010 Water V 11197 WATER UTILITY RULE NO. 12 APPLICATION FOR WATER MAINS AND WATER MAIN EXTENSIONS A written application must be made with the Utility for the installation of water mains and water extensions. No main shall be installed and no pipe laid or extensions made by the Utility's contractor unless an application in writing is filed with the Utility and signed by the applicant and is accompanied by a sum of money equal to the estimated cost of said pipeline or main or extension and the installation, including labor, engineering, supervision, inspection and the like. A bond may be accepted in the case of a customer contracting for the full cost of the main or extension. All such applications for mains and extensions must be approved by the utility. All work performed and all materials used under such approved applications shall be subject to the inspection and approval of the Utility and the cost for such inspection shall be borne by the contractor. After such water mains and extensions, valves, hydrants and appurtenances have been installed and accepted by the Utility, they shall thereafter be the property of the Utility and maintained by the Utility. Effective: 10/26/2010 Water u9`2 �jQ WATER UTILITY RULE NO. 13 FIRE HYDRANTS AND FIRE FLOW TESTS A. Fire hydrants are provided for the sole purpose of extinguishing fires and shall be opened and used only by the Fire Department or other officials of the City authorized to do so. Except for fire protection or emergency purposes, fire hydrants shall not be used to obtain unmetered water unless a permit to do so has been first obtained from the Utility. Every person authorized to open fire hydrants shall replace the caps on the outlets when the same are not in use and leave the hvdrant in as sood condition as when found, and said person shall report to the Water Manager any leaks, breaks or damage to the fire hydrant immediately upon discovery. A one time charge of $100.00 plus a deposit of $1,000.00 shall be made for a fire hydrant meter, in addition to charges for water used. Refer to Water Utility Rule No. 11. The Utility reserves the right to require consumers to refrain from using water when in the opinion of the Utility there exists a situation necessitating such action. B. Fire flow availability tests shall be performed at the customer's request. A fee of $300.00 shall be paid in advance to the Utility for the performance of the test. Resolution No. 2016-05 Effective: 3/20/2016 Water' "-IW6-1.t WATER UTILITY RULE NO. 14 SHUT-OFF VALVE REQUIREMENT Consumers shall install at their own expense, a shut-off valve inside the property line at a location accessible in case of emergency. Effective: 10/26/2010 Water ilk - 7110 (j WATER UTILITY 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. 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. Effective: 10/26/2010 Water V" (j I WATER UTILITY RULE NO. 16 SUPPLY TO SEPARATE PREMISES AND RESALE No person purchasing or receiving water from the Utility shall, without express written authority from the Utility, supply any such water to any person other than the occupant or occupants of such premises of such consumer. The Water Manager may give such written authority when and to the extent that the same is required by the public convenience and necessity or would serve a beneficial temporary purpose without detriment to the Utility. No person shall sell, furnish or supply water which is not purchased or received from the Utility to any person or to any premises within the Utility's service area or within any area hereafter annexed to the City, except when, to the extent that and for the purpose that, such water was sold, furnished or supplied to such person or premises prior to the effective date of this provision or prior to the annexation of the said premises to the City. The prohibitions of this section shall not apply within any area of the City or any annexation in which the City Council has declared by resolution that it does not intend to supply or furnish City water so long as such resolution is in effect. The prohibitions of this section also shall not apply to the selling of commercially bottled water. Effective: 10/26/2010 Water UBBIP "14f 02 WATER UTILITY RULE NO. 17 TESTING OF SERVICE PIPE Whenever a contractor or any other person connecting a service pipe to the property side of a meter uses the water for testing the pipes, he must leave the service box in as good condition as found, and shall leave the water shut off, if found shut off, and shall notify the Utility at the time the connection is made. Any damage caused by the negligence or carelessness of any contractor or other person to any part of the meter, box or connection, must be paid on demand. Effective: 10/26/2010 Water UBE",r 03 WATER UTILITY RULE NO. 18 SEWER PIPE / DISTANCE FROM WATER PIPE No sewer pipe or sewer ditch shall be installed nearer than 10 feet to any water service pipe or meter without the approval of the Water Manager and/or the State Department of Health Services. Effective: 10/26/2010 Water flu Bi 120 4 WATER UTILITY RULE NO. 19 ACCESS TO PREMISES, TRESPASSING ON CITY PROPERTY A. An authorized employee of the Utility shall have reasonable access to any premises supplied with water for the purpose of making inspection of the water system and meter upon the premises. B. No person shall open any fire hydrant, street hydrant, stop cock, gate valve or interfere in any manner with any street water service, water connection, or any water meter attached to any service pipe connected with the water mains, or turn on or off water mains or water pipes of the Utilitv or to tan. break or injure anv water main or water nine of the Utility or any reservoir of the Utility or to tap any water service pipe, or to take or draw water from any water main, pipe or hydrant of the Utility, without prior authorization from the Utility or paying the established water rental therefore, or in any way to trespass upon the public property of the Azusa Light & Water without written permission first being obtained from the Utility. C. No person or contractor is permitted to take water from the water system without prior approval from the Water Manager. If water is taken from the water system without being metered, the person or contractor shall be subject to a $100.00 fine, plus the costs for amount of water used, actual or estimated, by the Utility. Effective: 10/26/2010 WaterEii1LB 2205 WATER UTILITY RULE NO. 20 CROSS -CONNECTION CONTROL A. PURPOSE: This rule is adopted to protect the public water supply against actual or potential cross - connection by isolating contamination which may occur because of undiscovered or unauthorized cross -connections. This rule is also adopted to eliminate existing cross - connections between drinking water systems and other sources of water supply which are not approved as safe and potable for human consumption. These regulations are adopted pursuant to the California Administrative Code, Title 17. B. PROHIBITION: It is unlawful for any person at any time to make or maintain or cause to be made or maintained, temporarily or permanently, any cross -connection between the water system served with water by the City and any other source of water supply, or to maintain any sanitary fixture or other appurtenance or fixture which, by reason of their construction, may cause or allow backflow of water or other substances into the water supply system of the City or the water supply system of any customer of the City. C. DEFINITIONS: The following terms have been defined in the California regulations relating to cross - connections as set forth in Title 17 of the California Code of Regulations. The definitions for these terms as set forth in the Administrative Code are hereby adopted: 1. Air gap separation 2. Approved backflow prevention device 3. Approved water supply 4. Auxiliary supply 5. AWWA standards 6. Backflow 7. Contamination 8. Cross -connection 9. Double-check valve assembly 10. Health agency 11. Local health agency 12. Person 13. Premises Effective: 10/26/2010 Water V'3�'7 0 Rule No. 20 (continued) 14. Public water supply 15. Reclaimed water 16. Reduced pressure principle backflow prevention device 17. Service connection 18. Water supplier 19. Water user D. CROSS -CONNECTION PROTECTION REQUIREMENTS: 1. Whenever backflow protection has been found necessary to protect against cross- cnnnectinnc the Citv will renmira tha water near to inetnll an gnnrnvarl harlrflnut prevention device at the customer's expense as a condition of continued service or before new service will be rendered. Whenever backflow prevention has been found necessary on a water supply line entering a water user's premises, any and all water supply lines from the City's mains entering such premises shall be protected by an approved backflow prevention device installed in accordance with the requirements of this rule. 2. Backflow protection devices are required when the Utility supplies water to a premises under the following circumstances: a The premises have an auxiliary water supply, unless the auxiliary water supply is accepted as an additional source by the Utility, and is approved by the public health agency with jurisdiction by law. b. Substances are handled on the premises in such a fashion as may allow its entry into the water system, including the handling of process water and waters originating from the Utility water system which have been subject to deterioration in sanitary quality. a The premises have internal cross connections that cannot be permanently corrected or controlled to the satisfaction of the health agency with jurisdiction by law, or intricate plumbing or piping arrangements exist, or where entry to all portions of the premises is not readily accessible for inspection purposes, making it impracticable or impossible to ascertain whether or not cross connections exist. 3. The type of protection that shall be provided to prevent backflow shall be commensurate with the degree of hazard that exists on the customer's premises. Title 17 of the California Administrative Code specifies the types of systems to be installed under varying circumstances. Effective: 10/26/2010 Water V "`207 Rule No. 20 (continued) E. BACKFLOW PREVENTION DEVICES: 1. Only backflow prevention devices which have been approved by the Utility shall be installed by the water user. The Utility will provide a list of approved backflow prevention devices to customers upon request. 2. Backflow prevention devices shall be installed as required by Title 17 of the California Code of Regulations. The device shall be located as close as practicable to the user's connection. The Utility shall determine the required location of the backflow prevention device and inspect the installation of the device. The fee for this service shall be $340.00 per device. 3. The owner of any premises on which a backflow prevention device is installed shall have the device tested by a qualified person immediately after installation, relocation or repair, and at least annually thereafter. The Utility may require more frequent testing. A report in a form acceptable to the Utility shall be filed with the Utility for review each time a device is tested. The fee for this service shall be $80.00 per review. The devices found to be defective; all cost of testing, repair and maintenance shall be borne by the water user. The Utility will supply water users with a list of persons qualified to test backflow prevention devices upon request. 4. No device shall be removed, relocated or replaced without Utility approval. Devices shall be removed only upon the presentation of satisfactory evidence showing that a hazard no longer exists and it is not likely to be created in the future. F. USER SUPERVISION: The Utility may require the water user to designate a supervisor responsible for monitoring compliance with this rule when water is supplied to property owned or occupied by several residents. If a supervisor is required, the supervisor shall be the responsible agent of the water user with respect to compliance with this rule. G. ADMINISTRATIVE PROCEDURES; SYSTEM SURVEY: 1. The Utility shall review all requests for new service to determine if backflow prevention is required. Plans and specifications shall be submitted upon request for review of possible cross connection hazards. If it is determined that a backflow prevention device is necessary to protect the public water system, the required device shall be installed before service commences. Effective: 10/26/2010 Water Uff 52 0 Q Rule No. 20 (continued) 2. The Utility may require on premises inspection, and reinspection to evaluate cross connection hazards. Such inspection shall be preceded by adequate notice to the property owner. If the property owner refuses to permit the Utility to inspect the property, the Utility shall either, obtain an inspection warrant and inspect the property or, refer the matter to appropriate health officials. H. ADMINISTRATIVE PROCEDURES; CUSTOMER NOTIFICATION: 1, The Utility shall notify the water user of its finding and corrective action to be taken under this rule. If no action is taken by the water user within 60 days of this notice, a second notice will be Qiven to the water user. If corrective action still is not taken within 2 weeks of the second notice, the Utility shall commence proceedings to terminate water service. 2. The Utility shall also notify each affected water user when backflow prevention devices shall be tested. If the backflow devices are not tested within 30 days of the notice, the Utility will provide the water user with a second notice of the required test. If the device is not tested within 2 weeks after the second notice, the Utility will commence proceedings to terminate service. Effective: 10/26/2010 Water UB3'2 0 O A. 191 C. WATER UTILITY RULE NO. 21 WATER CONSERVATION DEFINITIONS: The following words, terms and phrases, shall have the meanings ascribed to them under this Rule, except where the context clearly indicates a different meaning: Baseline Water Conditions: For the purposes of this Rule 21, baseline water conditions is when desired/projected water consumption is 20% below 2013 water consumption levels. Commercial and public agency water user includes: (1) any water user or customer conducting business, either retail, commercial, or industrial; and (2) any water user that is a public or governmental entity, such as the state government, school district, community college, the county, city or municipal government, or special district; and (3) any water user that owns and manages residential property, including HOAs, where the water meter serves landscaped areas commonly shared by multiple residential units. Excess runoff: means water accumulation on streets, gutters, neighboring properties or other surfaces in an amount sufficient to cause flow. Residential water user: means water customers that pay for water service to their individual residential dwelling unit or customers that pay for water service provided to single dwelling units that are rented or leased. Water user: means any person customer or property served within the incorporated boundaries of the city and the area outside the city boundary served by the city water utility. Water Utility: means Azusa Light & Water's water utility. APPLICABILITY: This division shall apply to all water users within the service area of Azusa Light & Water. WATER USER RESPONSIBILITY: Water users are deemed to have under control at all times their water distribution and facilities and to know the manner and extent of their water use and excess runoff. In multiple dwellings, the owner is the water user in control of the premises and is in control and responsible for the water usage. Resolution No. UB -06-2017 Effective: 06/01/2017 Water ftZ210 D. MANDATORY WATER CONSERVATION MEASURES: Unless formally suspended and/or modified by the Azusa Utility Board from time -to - time, the following Mandatory Water Conservation Measures shall be in continuous effect. 1. No water user shall cause or permit Excess Runoff to occur from any hose, pipe, valve, faucet, sprinkler or irrigation device onto any sidewalk, street or gutter or to otherwise escape from the property if such flow or runoff can reasonably be prevented. 2 If a break or leak occurs within the water user's plumbing or private distribution system, the leak shall be repaired within 48 hours after the water user discovers the leak or after the water user is notified of the leak. 3. Watering of grass, lawns, ground cover, open ground, shrubbery, crops, gardens and trees, including agricultural irrigation, in a manner or to an extent which allows Excess Runoff from the area being watered shall not be permitted. Runoff which is a natural consequence of conservative watering, either by hand or mechanical sprinkling facilities, is permitted so long as such runoff is not Excess Runoff. 4. There shall be no lawn (turf) watering and landscape irrigation between the hours of 9:00 a.m. and 6:00 p.m. on any day of the week. Lawn (turf) watering shall be limited to no more than 30 minutes per location per day. 5. Water users shall not operate a water hose without a positive shutoff nozzle. 6. There shall be no washing down of sidewalks, walkways, driveways, garages, patios, parking lots and all other paved surfaces, except to alleviate immediate health, fire or sanitation hazards. It is unlawful to remove, replace, alter or damage any water meter or any components thereof, including but not limited to the meter face, its counters that register water usage, wires and transceivers, and any flow -restricting device that may be installed. 8. Water from fire hydrants shall not be used for any purpose other than to fight fires or for other activities where such use is immediately necessary to maintain the health, safety and welfare of the residents and customers in the water utility's service area (such as required flushing by utility personnel). Metered water use for control of dust and at construction sites shall be considered necessary to maintain health and safety and are eligible uses of water from fire hydrants. 9. The utility may require commercial water users to submit diagrams of irrigation systems for all water meters that are supplying water exclusively for irrigation purposes. Such diagrams are to show, at a minimum, location of irrigation meter, meter number, and irrigation sprinklers or stations connected to the Resolution No. UB -06-2017 Effective: 06/01/2017 vwsl 1 dedicated irrigation water meter. Other information may be required, including copy of a water conservation plan and landscape irrigation schedules. 10. Washing of motor vehicles, trailers, boats and other types of equipment shall be done only with a hand-held bucket or a hose equipped with a positive shutoff nozzle for quick rinse, except that washing may be done with reclaimed wastewater or by a commercial car wash using recycled water. No Excess Runoff shall result from such activities. 11. No potable water shall be used to fill or maintain water levels in fountains, ponds, lakes or other similar aesthetic structures, unless such water is part of a recirculating system. 12 There shall be no watering during rain events or within 48 hours after rain events. 13. Irrigation of ornamental turf in public street medians is prohibited except as a limited byproduct of keeping existing median trees healthy. E. OPTIONAL WATERING RESTRICTIONS: From time to time, the director of utilities may recommend and implement lawn and landscape watering restrictions as deemed appropriate to obtain desired water use reduction goals. Possible restrictions include the following: 1. Three days per week watering 2 Three days per week watering during Summer Period (April 1 through October 31) and two days per week during Winter period (November 1 through March 31) 3. Two days per week watering 4. Two days per week watering during Summer Period and one day per week watering during Winter Period 5. One day per week watering 6. Voluntary restrictions only When recommending lawn/landscape restrictions, the director of utilities may specify the maximum amount of time a particular location can be watered, the time(s) of day for allowed watering, and exceptions for various watering methods and types of water. F. CURRENT LAWN/LANDSCAPE WATERING RESTRICTIONS: Effective June 1, 2017, water customers may water their lawns, landscapes and other turf areas subject to the following: 1. For Residential and Commercial/HOA customers, lawn (turf) and landscape watering shall be restricted to the following days: Resolution No. UB -06-2017 Effective 06/01/2017 V91TY2 1_ If a hand-held hose with a positive shut-off nozzle; a bucket or watering can; a rain barrel; a drip irrigation system; or reclaimed, recycled or gray wastewater is used; lawn or landscape watering may be done on any day. 2. All Mandatory Water Conservation Measures of Section D shall continue to apply to include paragraph D4 which says: "There shall be no lawn (turf) watering between the hours of 9:00 a.m. and 6:00 p.m. on any day of the week. Lawn (turf) watering shall be limited to no more than 30 minutes per location per day." 3. In order to facilitate recharge of the local groundwater basin in preparation for future water shortage periods, water users shall actively seek to limit total water usage in any month to an amount equal to (or less than) the corresponding month of the prior calendar year. G. ADDITIONAL WATER SHORTAGE DECLARATIONS: L Phase I Water Shortage: A Phase I Water Shortage may be declared by the director of utilities if it has been determined that there is need to reduce water consumption by five percent (5%) below Baseline Water Conditions based on available water supply and demand information. Z Phase II Water Shortage: A Phase II Water Shortage may be declared by the director of utilities if it has been determined that there is need to reduce water consumption by ten percent (10%) below Baseline Water Conditions based on available water supply and demand information. 3. Phase III Water Shortage: A Phase III Water Shortage may be declared by the director of utilities if it has been determined that there is need to reduce water consumption by fifteen percent (15%) below Baseline Water Conditions based on available water supply and demand information. Resolution No. UB -06-2017 Effective 06/01/2017 Summer Months Winter Months (April through October) (Novernber through March) Residential Even Address Tuesday, Thursday, Sunda Thursday, Sunda Odd Address Monday, Wednesda , Saturda Wednesday, Saturday Commercial/HOA Monday, Wednesday, Friday Monday, Friday 1_ If a hand-held hose with a positive shut-off nozzle; a bucket or watering can; a rain barrel; a drip irrigation system; or reclaimed, recycled or gray wastewater is used; lawn or landscape watering may be done on any day. 2. All Mandatory Water Conservation Measures of Section D shall continue to apply to include paragraph D4 which says: "There shall be no lawn (turf) watering between the hours of 9:00 a.m. and 6:00 p.m. on any day of the week. Lawn (turf) watering shall be limited to no more than 30 minutes per location per day." 3. In order to facilitate recharge of the local groundwater basin in preparation for future water shortage periods, water users shall actively seek to limit total water usage in any month to an amount equal to (or less than) the corresponding month of the prior calendar year. G. ADDITIONAL WATER SHORTAGE DECLARATIONS: L Phase I Water Shortage: A Phase I Water Shortage may be declared by the director of utilities if it has been determined that there is need to reduce water consumption by five percent (5%) below Baseline Water Conditions based on available water supply and demand information. Z Phase II Water Shortage: A Phase II Water Shortage may be declared by the director of utilities if it has been determined that there is need to reduce water consumption by ten percent (10%) below Baseline Water Conditions based on available water supply and demand information. 3. Phase III Water Shortage: A Phase III Water Shortage may be declared by the director of utilities if it has been determined that there is need to reduce water consumption by fifteen percent (15%) below Baseline Water Conditions based on available water supply and demand information. Resolution No. UB -06-2017 Effective 06/01/2017 4 Phase IV Water Shortage: A Phase IV Water Shortage may be declared by the director of utilities if it has been determined that there is need to reduce water consumption by twenty percent (20%) or more Baseline Water Conditions based on available water supply and demand information. Prior to making a public announcement of a Water Shortage phase, the director of utilities shall document the basis for the water shortage declaration and communicate this information to the Utility Board. If a Water Shortage phase is declared, water users will be subject to the Commodity Drought Rate Schedule corresponding to the adopted water shortage phase (see Section C of the Water Rate Schedule). Azusa Light & Water shall publish the declaration of a Water Shortage phase in a local newspaper of general circulation, including the applicable Commodity Drought Rate Schedule and implementation/effective date of the declaration. H. REQUEST FOR RELIEF FROM COMPLIANCE: 1. A water user may file a written request for relief from compliance with the various programmatic water use restrictions of this Rule 21 to the director of utilities. The director of utilities may delegate his duties and responsibilities for review of "Relief Requests" under this section as appropriate. 2 The Relief Request may include a request that the water user be relieved, in whole or in part, from the water use restrictions in effect during a declared water shortage. A water user may not apply for relief from Commodity Drought Rates. 3. The Relief Request may include various justifications for exemption, including but not limited to the following: a. Whether any additional reduction in water consumption will result in unemployment or significant loss of income from commercial or industrial activities; b. Water uses during new construction; C. Adjustments to water use caused by emergency health or safety hazards; d Water use necessary for reasons related to family illness or health. 4. In order to be considered, a water user must submit a written request for relief including the justification for such relief to the director of utilities. No relief shall be granted unless the water user shows that the maximum practical reduction in water consumption has been achieved by the water user. No relief shall be granted to any water user who, when requested by the director of Resolution No. UB -06-2017 Effective 06/01/0217 tf,B l4 utilities, fails to provide any information necessary for resolution of the water user's Relief Request. The decision to issue relief or exemption from certain rules or requirements shall be issued within 15 days of receiving all required information and provided in writing to the water user. 5. A decision hereunder may be appealed to the city manager through a written appeal request within 15 days of receipt of an adverse decision. The city manager's decision will be issued within 15 days following an appeal hearing and this decision will be final. I. NOTICES, CITATIONS, PENALTIES, CHARGES, AND SERVICE TERMINATION: Any employee of the Water Utility, or other employees as designated by the director of „r;14;A ;+.+;..,,� F .1��; ,,,� ..F�1,;- R le 71 1111 +__ TT�,o ,� A-f'.-oa :« +1— K.aal.a 5 ...-j� iJJ uv v1.N�iViiJ iVi Y1V 1{.L�1V 11J vi h41 i\NiV Li. V, {A— VJV1J UJ 4Vili.V� 111 &.—a Rule shall be presumed to be the violator. Imposed fines will be added to the water bill of a cited customer and failure to pay shall result in termination of water service. The Water Utility will impose the following penalties on violators of this Rule 21: L For violations of Sections D and F, first-time violators shall be provided with a courtesy notice (warning) for the violation. Upon second and subsequent violations, the violator shall receive a citation and fine pursuant to the next paragraph. Note: Warnings and citations/fines received by water users prior to June 1, 2017 shall not be considered when issuing warnings and citations/fines on and after that date. Z if a violator has received a prior warning of a Rule 21 violation, the violator shall receive a citation and fine as specified below on a form that describes the nature of the violation, the rule violated, the date on which it occurred and the corrective measures to be taken: a Residential Water Users i. For the first violation, $50.00. ii. For the second violation, $100.00. iii. For the third violation, $200.00. iv. For a fourth and subsequent violations, $200. In addition, the director of utilities may authorize the installation of a flow restriction device at the customer's premises or terminate water service for flagrant or continuing disregard by the customer of mandatory water shortage restrictions including the designated days of watering. Such flow restrictor installation or termination of service shall continue until the director of utilities is satisfied that the customer will comply with all water shortage rules going forward. The water user shall also pay flow restrictor installation and removal costs and, in the case of service termination, reconnection charges in effect at the time of service termination in order to restore water service. Resolution No. UB -06-2017 Effective 06/01/2017 b. Commercial and Public Agency Water Users i. For the first violation, $100.00. ii. For the second violation, $300.00. iii. For the third violation, $600.00. iv. For a fourth and subsequent violation, $600. In addition, the director of utilities may authorize the installation of a flow restriction device at the customer's premises or terminate water service for flagrant or continuing disregard by the customer of mandatory water shortage restrictions including the designated days of watering. Such flow restrictor installation or termination of service shall continue until the director of utilities is satisfied that the customer will comply with all water shortage rules going forward. The water user shall also pay flow restrictor installation and removal costs and, in the case of service termination, reconnection charges in effect at the time of service termination in order to restore water service. J. APPEAL/HEARING REGARDING VIOLATIONS: 1. Any Water User receiving notice of a violation of this Rule 21 shall have a right to appeal the citation to the assistant director — customer care & solutions (or designee) within ten (10) days of the notice of violation. The appeal, and the basis for the appeal, shall be in writing and contain a contact email address or telephone number in case further information or clarification is desired. The decision by the assistant director shall be in writing and shall be made within 15 days of receipt of the appeal or date upon which all requested information or clarification is received by the Water Utility. For an appeal of a first citation, the decision of the assistant director shall be final. 2 A water user may request a hearing by the director of utilities (or designee) to appeal the decision by the assistant director for a second or subsequent citation. The request for hearing shall be made in writing within ten (10) days of the appeal decision. 3. The appeal hearing will be scheduled to occur within a reasonable period of time following filing of the appeal. No formal rules of evidence shall apply. All evidence customarily relied upon by reasonable persons in the conduct of serious business affairs will be allowed, and the water user may present any such evidence which shows the alleged violation of this Rule's water use restrictions has not occurred. The decision of the director of utilities will be given in writing to the water user within 15 days after the appeal hearing, and that decision shall be final. K. ADDITIONAL MEASURES: The Azusa Utility Board may order implementation of water conservation measures in Resolution No. UB -06-2017 Effective 06/01/2017 wUBWZ16 addition to those set forth in this Rule. Such additional water conservation measures shall be adopted by resolution published one time in a daily newspaper of general circulation covering the service area of the water utility. Any prohibitions on the use of water shall become effective immediately upon such publication or such later date as set forth in such resolution. L. EFFECT ON PUBLIC HEALTH AND SAFETY: Nothing in this Rule 21 shall be construed to require the director of utilities to curtail the supply of water to any water user when such water is required by that customer to maintain an adequate level of public health and safety. M. AZUSA MUNICIPAL CODE: A z ., A/F—,.«..1 1--A„ Q �* L..11 L., . A—A — L_ _ .tel_ d_._ r__1_ n1 �usa iviuluVlYa1 �.vuV JGl.UV11J shall VG ULJUMUU W VG LA)MIsLURL W1111 WIN 1<U1G L 1. 7 Effective 06/01/2017 Resolutions Ordinance No. 756 Amending provisions of the Azusa Municipal code relating to water rates and water department rules and regulations. (August 19, 1963) Resolution No. 3874 Establishing electric rate schedules and adopting rules and regulations for the operation of the Light & Power Department. Effective: April 1, 1959 Resolution No. 4543 Adopting rules and regulations governing and fixing and establishing the rates to be charged by the Water Department of the City of Azusa. Effective: October 1, 1963 Resolution No. 5191 Amending Resolution No. 4543 fixing and establishing water rates to be charged by the water department of the City so as to establish a rate for irrigation and golf course purposes. Effective: March 1, 1967 Resolution No. 5598 Amending Resolution No. 4543 and Resolution No. 5191 fixing and establishing the rates to be charged by the water department of the City of Azusa and amending the rules and regulations. Effective: July 7, 1969 Resolution No. 5752 Amending Resolution No. 4543, Resolution No. 5191 and Resolution No. 5598 fixing and establishing the rates to be charged by the water department of the City of Azusa and amending the rules and regulations. Effective: June 29, 1970 Resolution No. 6179 Amending Resolution No. 4543, Resolution No. 5191, Resolution No. 5598, and Resolution No. 5752 fixing and establishing the rates to be charged by the water department of the City of Azusa. Effective: February 19, 1974 Resolution No. 7198 Amending the schedule of rates and charges for the Power and Light Department of the City of Azusa. Effective: October 1, 1982 Resolution No. 7305 Amending the schedule of rates, charges and regulations for the Light & Power Department of the City of Azusa. Adopted: July 18, 1983 Resolution No. 7356 Amending the schedule of rates, charges and regulations for the Light & Power Department of the City of Azusa (Water and/or space heating rate). Effective: November 1, 1983 Resohio ff 218 Resolution No. 7574 Amending the schedule of rates, charges and regulations for the Light & Power Department of the City of Azusa. Effective: October 1, 1984 Resolution No. 7589 Fixing and establishing the rates to be charged for water by the City of Azusa. Effective: January 1, 1985 Resolution No. 8030 Amending the schedule of rates, charges and regulations for the Light & Water Department of the City of Azusa. Effective: July 1, 1986 Resolution No. 8038 Amending the rules and regulations governing the electric service supplied by the Light & Water Department of the City of Azusa. Effective: July 1, 1986 Resolution No. 8438 Amending the rules and regulations governing the water service supplied by the Light & Water Department of the City of Azusa. Effective: July 1, 1988 Resolution No. 8488 Amending the schedule of rates, charges and regulations for the Light & Water Department of the City of Azusa. Effective: September 1, 1988 Resolution No. 8559 Adopting the water system improvement plan and establishing the formula for calculating the amounts of the water system development fee. Effective: January 3, 1989 Resolution No. 8833 Amending the schedule of rates, charges and regulations for the Light & Water Department of the City of Azusa. Effective: Mayl, 1990 Resolution No. 92-C115 Fixing and establishing the rates to be charged for water by the City of Azusa. Effective: September 1, 1992 Resolution No. 92-C 118 Amending the rates, charges and rules and regulations of the City of Azusa Light & Water Department. Effective: October 1, 1992 Resolution No. 94-C174 Amending the schedule of electric rates and charges and amending the rules and regulations for the City of Azusa Light & Water Department. Effective: January 3, 1995 Resolution No. 95-C47 Amending the schedule of water rates and charges for the Azusa Valley Water Company, A division of the City of Azusa Light & Water Department. Effective: May 1, 1995 Resolution No. 96-C44 Amending the schedule of water rates and charges for the Azusa Valley Water Company, A division of the City of Azusa Light & Water Department. Effective: May 1, 1996 Resol " 219 Resolution No. 97-C48 Amending the schedule of charges, rules and regulations for the Light & Water Department of the City of Azusa. Effective: May 1, 1997 Resolution No. 97-C84 Amending the schedule of charges, rules and regulations for the Light & Water Department of the City of Azusa. Effective: July 1, 1997 Resolution No. 99-C81 Amending the schedule of water rates and charges for the Azusa Light & Water Department. Effective: July 1, 1999 Resolution No. 00-C37 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by the Light & Water Department of the City of Azusa. Effective: April 1, 2000 Resolution No. 00-C133 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by the Light & Water Department of the City of Azusa. Effective: December 1, 2000 Resolution No. 01-C17 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by the Light & Water Department of the City of Azusa. Effective: April 1, 2001 Resolution No. 01-06 Amending the schedule of water rates and charges for the Azusa Light & Water Department. Effective: May 1, 2001 Resolution No. 01-C83 Recognizing and authorizing the Azusa Light &Water Department, an enterprise operation of the City of Azusa, to conduct business as "Azusa Light & Water". Effective: September 1, 2001 Resolution No. 01-C105 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by the Light & Water Department of the City of Azusa. Effective: November 1, 2001 Resolution No. 01-C120 Amending the schedule of charges and rules and regulations governing street lighting service supplied and maintained by Azusa Light & Water. Effective: November 1, 2001 ` Resolution No. 02-C36 Amending the schedule of charges and rules and regulations governing outdoor area lighting service where customer owns and maintains lighting equipment. Effective: April 2, 2002 Resolution No. 02-057 Amending water rate schedule applicable to domestic meter installation charges. Effective: June 1, 2002 ResolVU 220 Resolution No. 02-C87 Establishing a user fee schedule for various municipal activities and services. Effective: September 3, 2002 Resolution No. 02-C94 Amending the schedule of electric rates and charges for Azusa Light & Water. Effective: October 1, 2002 Resolution No. 02-C102 Adopting the amounts of the water system 2002 development fee. Adopted: October 7, 2002 Resolution No. 02-C103 Adopting the water system 2002 annexation fee. Adopted: October 7, 2002 Resolution No. 02-C125 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by Azusa Light & Water. Effective: November 1, 2002 Resolution No. 03-05 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by Azusa Light & Water. Effective: February 1, 2003 Resolution No. 03-C46 Amending the schedule of electric rates and charges for Azusa Light & Water. Effective: July 1, 2003 Resolution No. 03-C49 Establishing a user fee schedule for various municipal activities and services. Effective: June 16, 2003 Resolution No. 03-C60 Amending the schedule of water rates and charges for Azusa Light & Water. Effective: August 1, 2003 Resolution No. 03-C63 Amending water system development fees. Effective: August 5, 2003 Resolution No. 03-C64 Amending water system annexation fees. Effective: August 5, 2003 Resolution No. 03-C85 Awarding a contract for third party utility bill payment services to Speedpay and amending the schedule of charges and rules and regulations governing the electric and water service supplied by Azusa Light & Water. Effective: November 1, 2003 Resolution No. 03-C98 Amending the schedule of water rates and charges to add a schedule for residential service with fire sprinkler system. Effective: December 1, 2003 Resolution No. 04-Cll Amending the schedule of charges and rules and regulations governing the electric and water service supplied by Azusa Light & Water. Effective: February 1, 2004 Resolkt�4 221 Resolution No. 04-057 Amending the schedule of electric rates and charges to add a schedule for recovery of San Juan replacement energy cost via fuel cost adjustment clause. Effective: October 1, 2004 Resolution No. 04-058 Amending water system development fees. Effective: August 3, 2004 Resolution No. 04-059 Amending water system annexation fees. Effective: August 3, 2004 Resolution No. 05-C4 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by Azusa Light & Water. Effective: February 1, 2005 Resolution No. 05-C62 Amending development project fees and service charges. Effective: September 18, 2005. Resolution No. 05-C69 Amending water system annexation fees. Effective: September 7, 2005 Resolution No. 05-C70 Amending water system development fees. Effective: September 7, 2005 Resolution No. 05-C73 Amending the schedule of electric rates and charges for Azusa Light & Water. Effective: October 1, 2005 Resolution No. 05-C93 Amending the schedule of water rates and charges for Azusa Light & Water. Effective: November 1, 2005 Resolution No. 06-C13 Amending the schedule of charges included in Azusa Light & Water's rules and regulations governing electric and water services. (Provide shutoff protection for eligible military families pursuant to AB 1666, the California Military Families Financial Relief Act.) Effective: March 1, 2006 Resolution No. 06-C 14 Amending the schedule of charges included in Azusa Light & Water's rules and regulations governing electric and water services. (Amend late payment charge threshold.) Effective: March 1, 2006 Resolution No. 06-C62 Amending water system annexation fees. Effective: August 8, 2006 Resolution No. 06-C63 Amending water system development fees. Effective: August 8, 2006 Resolution No. 06-C94 Amending the schedule of fees and charges for Azusa Light & Water. Effective: October 16, 2006 Resolujn IBI 222 Resolution No. 06-C110 Amending the rules and regulations governing the electric and water service supplied by Azusa Light & Water. Effective: December 1, 2006 Resolution No. 07-C 16 Amending the schedule of charges and rules and regulations governing the water service supplied by Azusa Light & Water. Effective: March 1, 2007 Resolution No. 07-C36 Amending the schedule of charges and rules and regulations governing the electric and water service supplied by Azusa Light & Water. Effective: May 21, 2007 Resolution No. 07 -UN -2 Adopt new water rates. Effective: July 1, 2007 Resolution No. 07-C62 Adoption of schedule of fees and charges. Effective: July 16. 2007 Resolution No. 07-C80 Adoption of new electric rates. Effective: October 1, 2007. Resolution No. 08-C22 Amending the street lighting schedule included in Azusa Light & Water's rules and regulations governing the electric and water services. Effective: March 25, 2008 Resolution No. 08-054 Amending the water rate schedule included in Azusa Light & Water's rules and regulations eovernine electric and water services. Effective: August 1, 2008 v Resolution No. 08-C60 Establishing certain development project fees and service charges. Effective: August 1, 2008 Resolution No. 08-C82 Amending the Light & Water rules and regulations to add Rule No. 21 regarding water conservation. Effective: September 1, 2008 Resolution No. 09-C46 Adoption of new water rates effective July 1, 2009 and July 1, 2010. Effective: July 1, 2009 Resolution No. 09-052 Amending the Azusa Light & Water Rules and Regulations governing the electric and water supplied by Azusa Light & Water. Effective: June 23, 2009 Resolution No. 09-053 Establishing a user fee schedule for various municipal activities and services. Effective: July 1, 2009 Resolution No. 09-C95 Adoption of new electric rates. Effective: December 1, 2009 Resoh ntt-223 Resolution No. 10-C24 Amending the Azusa Light & Water Rules and Regulations governing the electric and water supplied by Azusa Light & Water. Effective: May 1, 2010 Resolution No. 10-C39 Replacing Electric Rate Schedule "FCA -Fuel Cost Adjustment -San Juan Resource" with PCA -Power Cost Adjustment" Schedule. Effective: July 1, 2010 Resolution No. 10-C40 Approving Electricity Rate Schedule "EDR-Economic Development Rate" providing economic incentives for qualified commercial and industrial electric customers. Effective: July 1, 2010 Resolution No. 10-C44 Establishing a user fee schedule for various municipal activities and services. Effective: July 19, 2010 Resolution No. 10-C79 Amending the establishment of credit and disputed bills in Azusa Light and Water's Rules and Regulations governing electric and water services. Effective: November 1, 2010 Resolution No. 10-C88 Amending the Azusa Light & Water's Rules and Regulation to include a net generator payment schedule for Electric utility customers. Effective: January 1, 2011 Resolution No. 11-C43 Establishing a user fee schedule for various municipal activities and services. Effective: July 1, 2011 Resolution No. 12-C36 Establishing a user fee schedule for various municipal activities and services. Effective: July 1, 2012 Resolution No. 12-C45 Approving electric utility rate schedule `EDR-2-Economic Development Rate" providing economic development incentives for qualified commercial and industrial electric customers. Effective: July 1, 2012 Resolution No. 12-057 Amending the electric utility rate schedule "EDR-2 Economic Development Rate" providing economic development incentives for qualified commercial and industrial electric customers. Effective July 24, 2012 Resolution No. 12-C82 Approving electric utility rate schedule EV titled "Electric Vehicle Off - Peak Charging Discount" to encourage off-peak charging of electric vehicles by residential customers. Effective January 1, 2013 Resolution No. 13-054 Establishing a user fee schedule for various municipal activities and services. Effective: September 16, 2013 Resolujff 22 Resolution No. 13-C83 Amending Azusa Light & Water Rules and Regulations to include a Public Benefit Charge Schedule for Electric Utility Customers. Resolution No. UB -3-14 Amending Water Rule No. 21 Section A -Definitions. Effective: May 1, 2014 Resolution No. UB -6-14 Amending Rule No. 21, Section D -Request for Relief, Section E - Notices, Citations, Penalties, Charges, and Service Termination, and Section F -Hearing Regarding Violations. Effective July 1, 2014 Resolution No. UB -7-14 Adding a new rate schedule CEM "Co -Energy Metering", amending Schedule TOU to incorporate a generation component, and amending Schedule NGP to exclude CEM eligible customers. Effective July 1, 2014 Resolution No. 14-C41 Establishing a user fee schedule for various municipal activities and services. Effective: July 21, 2014 Resolution No. UB -13-14 Approving revision of electricity utility rate schedule EV titled "Electric Vehicle Off Peak Charging Discount" to encourage off-peak charging of electric vehicles by residential customers. Resolution No. UB -7-2015 Amending Water Rule 21, Water Conservation (Modifications to Phase Restrictions). Effective: June 1, 2015 Resolution No. UB -8-2015 Amending Water Rule 21, Water Conservation (Additional Modifications to Phase Restrictions). Effective: June 1, 2015 Resolution No. UB -9-2015 Amending Water Rule 21, Water Conservation (Definitions). Effective: July 1, 2015 Resolution No. UB -11-2015 Amending Water Rule 21, Water Conservation (Drought Penalty). Effective: July 1, 2015 Resolution No. UB -13-2015 Approving electric utility rate schedule EDR-3 Economic Development Rate -3 providing economic development incentives for qualified noresidential electric customers. Effective: August 1, 2015 Resolution No. 2015-C39 Establishing a user fee schedule for various municipal activities and services. Effective: July 27, 2015 Resolution No. UB -14-2015 Approving electric utility rate Schedule DC `Electric Vehicle DC Fast Charging Service" for providing public charging to electric vehicles using a DC fast charger. Effective: November 1, 2015 ResolVU-225 iUX7'15 Resolution No. 2016-05 Establishing a user fee schedule for various municipal activities and services. Effective: March 20, 2016 Resolution No. UB -03-2016 A resolution of the Utility Board/City Council of the City of Azusa, California, to amend the Azusa Light & Water water rate schedules. Effective: July 1, 2016 -July 1, 2020 Resolution No. UB -05-2016 A resolution of the Utility Board/City Council of the City of Azusa, California to amend Water Rule 21, Water Conservation Effective: July 1, 2016 Resolution No. UB -12-2016 A resolution of the Utility Board/City Council of the City of Azusa amending the Azusa Light & Water Rules and Regulations (Electric Rule 91 & Rule 3, D.3 and Water Rule 21, Water Conservation) Effective: October 1, 2016 Resolution No. UB -13-2016 A resolution of the Utility Board of the City of Azusa approving the revision of the utility rate Schedule EV titled "Electric Vehicle Off - Peak Charging Discount" to encourage off-peak charging of electric vehicles by residential customers. Effective: January 1, 2017 Resolution No. UB -14-2016 A resolution of the Utility Board of the City of Azusa, California, approving the electric utility rate Schedule EV -Level 2 titles "Electric Vehicle Level 2 Charging Service" for providing charging to electric vehicles using a Level 2 charge. Effective: January 1, 2017 Resolution No. 2017-C2 A resolution of the City Council of the City of Azusa, California, approving and adopting a revised schedule for certain development project fees and service charges. Adopted: January 19, 2017 Effective 60 days after adoption Resolution No. UB -01-2017 A resolution of the City Council and Utility Board of the City of Azusa, California, approving a revision of electric utility rate Schedule RL titled "Residential Service with Life -Support Devices" to simplify the life-support equipment discount program. Effective: February 1, 2017 Resolution No. UB -03-2017 A resolution of the City Council and Utility Board of the City of Azusa, California, extending the term of Electric Rate Schedule CEM "Co -Energy Metering." Effective: July 1, 2017 Resolution No. UB -04-2017 A resolution of the City Council and Utility Board of the City of Azusa, California, approving revision of Electric Utility Rule No. 18 Resol1 N] 226 titled "Public Benefit Program" to update and simplify the Public Benefit Program. Effective: May 1, 2015 Resolution No. UB -06-2017 A resolution of the Utility Board/City Council of the City of Azusa, California to amend Water Rule 21, Water Conservation. Effective: June 1, 2017 Resolution No. UB -08-2017 A resolution of the Utility Board/City Council of the City of Azusa, California to establish a Power Cost Stabilization Plan (Note: This is reflected in PCA in all electric utility bills rendered to customers as of July 1, 2017) Effective: July 1, 2017 Resolution UB -01-2018 A resolution of the Utility Board/City Council of the City of Azusa, California, to amend the Azusa Light & Water Electric Rate Schedules. Effective: July 1, 2018 ResoltuB-2,27 l { , 2 7 r 7 SCHEDULED ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: YAREK LEHR, P.E., ACTING DIRECTOR OF UTILITIES - DATE: APRIL 23, 2018 SUBJECT: ADJUSTMENT OF THE ELECTRIC RATE SCHEDULES SUMMARY: In March 2018, Staff presented to the Board findings and recommendations of the cost of service and rate design study performed by Burns & McDonnell for the Electric Enterprise. Following the Board's authorization, Staff is moving to implement the rate design recommendations. Accordingly, Staff is seeking to amend the Electric Rate Schedule with minor modifications to fixed and energy cost components to account for reduction in the Utility's power supply cost and other industry changes. RECOMMENDATION: Staff recommends the Utility Board take the following action: 1) Adopt Resolution UB -01-2018, a resolution of the Utility Board/City Council of the City of Azusa, California to amend Azusa Light &Water's Electric Rate Schedules. DISCUSSION: As reported to the Board in March, 2018 Staff commissioned Burns & McDonnell to perform a Cost of Service and Rate Design Study for Azusa Electric utility. Need for the study stemmed primarily from substantial changes in the Azusa resource portfolio - retirement of San Juan 3, increased mandatory renewable energy purchases, and new Hoover contract. In March, 2018 Board accepted all presented consultant recommendations and directed Staff to proceed with implementation of rate adjustments. Since consultant determined that there is no need for additional revenue, the proposed adjustments to the Electric Rate Schedule are intended to be revenue neutral. Accordingly, Staff is seeking to make the following modifications to the Electric Rate Schedule: Amend the Electric Rate Schedule April 23, 2018 Page 2 1. Adjust fixed costs and energy charge to reallocate customer fixed and energy costs to allow for the recovery of more fixed costs and lower the variable energy costs. 2. Adjust the baseline energy cost component in the Power Cost Adjustment formula to reflect the lower cost in power supply. 3. Extend the TOU Summer season to include October, to better capture the time -based Power Supply costs incurred by the system. Burns & McDonnell also suggested additional rate design steps that Azusa may consider or revisit in the future: 1. Consider devising a modified TOU rate, and offer it as an option, whereby energy component of the rate would be closely linked to the ISO wholesale energy prices in the Los Angeles Basin. 2. Consider additional rate options once the AMI program is completed and AL&W has a minimum of one year's worth of usage data on the system. 3. Continue to monitor their financial position and revisit a rate analysis in three to five years; or after the AMI system has been in place for at least one year. Staff will return to the Board with additional rate considerations once implementation of the AMI project has been in place for a year and data from Smart meters are available for detailed analysis. Pursuant to Azusa Municipal Code Section 78-36 — Rates, the proposed modifications to the Electric Rate Schedules will be approved by resolution. No public hearing is required. FISCAL IMPACT: Based on consultant modeling and assessment there is no net impact expected on the budget or Electric Fund, as the rate adjustments are aimed to be revenue neutral. Prepared by: Judy B. Tran Utilities Admin & Financial Services Manager Reviewed and Approved by: Sergio Gonzalez City Manager Reviewed and Approved by: Yarek Lehr, P.E. Acting Director of Utilities Attachments: 1) Resolution No. UB -01-2018 to Amend Light & Water's Electric Rate Schedule 2) Revised Electric Rate Schedules, effective July 01, 2018 LJB-229 RESOLUTION NO. UB -01-2018 A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, TO AMEND THE AZUSA LIGHT & WATER ELECTRIC RATE SCHEDULES WHEREAS, the City of Azusa owns and operates an electric utility that provides power to over 17,000 customers; and WHEREAS, in 2017 the utility commissioned a cost of service and rate design study resulting in recommended electric rate adjustments; and WHEREAS, recommended electric rate adjustments, based on modeling utilizing prior years usage and account analysis, will likely be revenue neutral; and WHEREAS, the reduction in baseline energy cost in the Power Cost Adjustment formula reflects the overall lower cost of power supply and delivery; and WHEREAS, recommended extension of the TOU Summer Season to include October will reflect more accurately the power supply cost incurred by the Utility; and WHEREAS, a Public Hearing was not required to make adjustments in electric rates; NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Amendment of Azusa Light & Water "Electric Rate Schedules". The Utility Board/City Council amends the Electric Rate Schedules of Azusa Light & Water in its entirety as set forth in Exhibit "A" which is attached to this resolution and made a part hereof. SECTION 2. Effective Date. The amended Azusa Light & Water "Electric Rate Schedules" shall become effective July 1, 2018 and operative for all utility bills rendered on and after August 1, 2018. PASSED, APPROVED AND ADOPTED THIS 23rd day of April, 2018. Joseph Romero Rocha Mayor UB -230 ATTEST: Jeffrey Lawrence Cornejo, Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) 114FR FRY CFRTiFY that the fnreanina Recnlutinn 11R-01-2(11 R wac duly adnnted by the I ltility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility Board on the 2P day of April, 2018. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: Best Best & Krieger, LLP City Attorney 2 UB -231. Electric Cost of Service and Rate Design Study AZUSA LIGHT & WATER City of Azusa, California Azusa Light & Water Project No. 98925 3/16/2018 UB -232 Electric Cost of Service and Rate Design Study prepareud 1CO City of Azusa, California Azusa Light & Water Azusa, California Project No. 98925 3/16/2018 prepared by Burns & McDonnell Engineering Company, Inc. Azusa, California COPYRIGHT © 2018 BURNS & McDONNELL ENGINEERING COMPANY, INC. UJB -233 March 16, 2018 Mr. Yarek Lehr Acting Director of Utilities Azusa Light & Water 729 N. Azusa Avenue Azusa, California 91702 Re: Report on the 2017 Electric Cost of Service and Rate Design Study Dear Mr. Lehr: Burns & McDonnell is pleased to present this report on the Electric Cost of Service and Rate Design Study (the Study) completed on behalf of the City of Azusa, California (the City) for the Azusa Light & Water (AL&W). This report presents the results of the Study, including proposed retail electric rate modifications. The report also provides an explanation of the analyses performed to develop the five-year financial forecast, the test year revenue requirement, and the allocated, unbundled cost -of -service for each of AL&W's electric rate classifications. It describes, in detail, the data, assumptions, and methodology used in completing the Study. The report also provides Burns & McDonnell's recommendations for AL&W for retail electric rates. Throughout each phase of the Study, Burns & McDonnell worked closely with AL&W staff to gather the utility staff's opinions and input. We greatly appreciate the opportunity to work with the City, AL&W and its staff. We specifically wish to thank you, Yarek, for your guidance and input throughout the Study process. Please contact us with any questions or comments you may have regarding this report. Sincerely, Burns & McDonnell �J TedJ. Kelly Senior Project Manager TJK/sr Sara Ruckman Project Analyst UB -234 TABLE OF CONTENTS Page_ No. 1.0 EXECUTIVE SUMMARY...................................................................................1-1 1.1 Overview.........................................................................................................-.— 1-1 1.2 Study Scope.......................................................................................................... 1-1 1.3 Revenue Requirements Analysis......................................................................... 1-1 1.4 Cost -of -Service Analysis..................................................................................... 1-2 1.5 Rate Analysis....................................................................................................... 1-3 1.6 Recommendations..................................:............................................................. 1-4 2.0 IN I RODUC 1 iON............................................................................................... 2-1 2.1 Overview......................................................... -................................................... 2-1 2.1.1 Current Rate Classifications................................................................. 2-1 2.2 Study Scope......................................................................................................... 2-1 2.3 Method of Analysis.............................................................................................. 2-2 3.0 REVENUE REQUIREMENTS ANALYSIS.............—........................................ 3-1 3.1 Overview ............................----.............................................. .. ..... ............ 3-1 3.1.1 Customer Accounts................................................................................ 3-1 3.1.2 Energy Requirements............................................................. ............. 3-1 3.1.3 Peak Demand........................................................................................ 3-2 3 2 Financial Foorecas.. ✓.�. Financial 1 vl vvuu....................................................................... ........................... ] J -L 3.2.1 Operating Revenues.............................................................................. 3-3 3.2.2 Operating Expenses..............................................•..--•---.......----............ 3-3 3.2.3 Capital Improvement Expenditures..................................................-.. 3-5 3.2.4 Debt Service.......................................................................................... 3-5 3.2.5 Projected Cash Flow............................................................................. 3-6 3.2.6 Projected Revenue Requirements......................................................... 3-8 4.0 COST -OF -SERVICE ANALYSIS......................................................................4-1 4.1 Overview.............................................................................................................. 4-1 4.2 Revenue Requirement Unbundling ........................... -...... ................................... 4-1 4.2.1 Functionalization................................... ................................................ 4-1 4.2.2 Revenue Requirement Classification ................... :........ :....................... 4-2 4.2.3 Revenue Requirement Allocation......................................................... 4-2 4.3 Cost -of -Service Summary .................................... ...........4-6 5.0 RATE ANALYSIS..............................................................................................5-1 5.1 Overview......................................................................................................:....... 5-1 5.1.1 Rate Analysis Objectives........ ..................... ................ 5-1 ......................... 5.2 Rate Classifications.............................................................................................. 5-1 5.2.1 Existing Rate Schedules........................................................................ 5-2 5.2.2 Proposed Rate Schedules...................................................................... 5-6 UB -235 6.0 SUMMARY & RECOMMENDATIONS ................................... .. 6-1 ......................... 6.1 Summary .............................................................................................................. 6-1 6.2 Recommendations................................................................................................6-1 U B-236 LIST OF TABLES Page No.. Table 1-1: Test Year Base Rate Revenue Requirement........................................................... 1-2 Table 1-2: Cost -of -Service Summary ...................................................................................... 1-3 Table 1-3: Current Rate Classes and Structures...................................................................... 1-3 Table 3-1: Projected Customer Accounts................................................................................ 3-1 Table 3-2: Projected Energy Sales ............................ .................. 3-2 Table 3-3: Projected System Load.......................................................................................... 3-2 Table 3-4: Projected Base Rate Revenue at Current Rates ...................................................... 3-3 Table 3-5: Purchased Power Expenses..................................................................................... 3-4 Table 3-6: Projected O&M Expenses...................................................................................... 3-4 Table 3-7: Projected Capital Improvements............................................................................ 3-5 Table 3-8: Projected Debt Obligations.................................................................................... 3-6 Table 3-9: Base Rate Revenues............................................................................................... 3-7 Table3-10: Cash Flow............................................................................................................... 3-8 Table 3-12: Projected Revenue Requirements........................................................................... 3-9 Table 4-1: Revenue Requirement Unbundled Assignment Summary ..................................... 4-3 Table 4-2: Allocation Factors by Type.................................................................................... 4-4 Table 4-3: Functional Cost Allocation Summary .................................................................... 4-6 Table 4-4: Cost -of -Service Summary ...................................................................................... 4-7 Table 5-1: Current Rate Classes and Structures...................................................................... 5-2 Table 5-2: Existing Residential Service Electric Rates........................................................... 5-3 Table 5-3: Existing' -mall Business Electric Rates.................................................................. 5-3 Table 5-4: Existing Medium Business Electric Rates............................................................. 5-3 Table 5-5: Existing Large Business TOU Electric Rates ..........................:............................. 5-4 Table 5-6: Existing Municipal Accounts Electric Rates.......................................................... 5-4 Table 5-7: Existing Street Lighting and Outdoor Lighting Electric Rates .............................. 5-5 Table 5-8: Proposed Residential Service Electric Rates.......................................................... 5-6 Table 5-9: Proposed Small Business Electric Rates................................................................ 5-6 Table 5-10: Proposed Medium Business Electric Rates............................................................ 5-7 Table 5-11: Proposed Large Business TOU Electric Rates ....................................................... 5-7 UB -237 LIST OF ABBREVIATIONS Abbreviation Term/Phrase/Name AMI Advanced Metering Infrastructure Burns & McDonnell Burns & McDonnell Engineering Company, Inc. CIP Capital Improvement Plan City City of Azusa, California FARECAL Financing Authority for Resource Efficiency of California FY Fiscal Year kW kilowatt kWh kilowatt-hour AL&W Azusa Light & Water MW megawatt MWh megawatt -hour NEM Net Energy Metering O&M Operating & Maintenance Expense Study Electric Cost of Service and Rate Design Study TOU Time -of -Use WH/SH Water and/or Space Heat UB -238 STATEMENT OF LIMITATIONS In preparation of the Electric Cost of Service and Rate Design Study (the Study), Burns & McDonnell has relied upon information obtained from the City of Azusa, California (the City) WEB portal and provided by the electric division of Azusa Light & Water (AL&W). The information included various analyses, computer-generated information and reports, audited financial reports, and other financial and statistical information, as well as other documents such as operating budgets and current retail electric rate schedules. In addition, input to key assumptions regarding expected future levels of revenue, sales, and expenditures was provided by AL&W staff to Burns & McDonnell. While Burns & McDonnell has no reason to believe that the information provided, and upon which Burns & McDonnell has relied, is inaccurate or incomplete in any material respect, Burns & McDonnell has not independently verified such information and cannot guarantee its accuracy or completeness. Estimates and projections prepared by Burns & McDonnell relating to performance and costs are based on Burns & McDonnell's experience, qualifications, and judgment as a professional consultant. Since Burns & McDonnell has no control over weather, cost and availability of labor, material and equipment, labor productivity, contractors' procedures and methods, unavoidable delays, economic conditions, government regulations and laws (including interpretation thereof), competitive bidding, and market conditions or other factors affecting such estimates or projections, Burns & McDonnell does not guarantee the accuracy of its estimates or predictions. For this report, Burns & McDonnell utilized unaudited actuals for fiscal year (FI) 2017 since the audit is not yet available. Revision History Rmsion issue Date ,Author Reviewer Description 0 8 -Nov -2017 Kelly Ruckman Initial Draft I 4 -Jan -2018 Judy Tran Initial Draft Edits 1 14 -Feb -2018 Yarek Lehr Initial Draft Edits 2 13 -Mar -2018 Kelly Ruckman I Final Draft UB -239 1.0 - EXECUTIVE SUMMARY UB -240 1.0 EXECUTIVE SUMMARY 1.1 Overview To evaluate the adequacy of revenue requirements and to develop recommendations for a financial plan and prepare appropriate rate adjustments and design, Azusa Light & Water (AL&W) retained Burns & McDonnell to prepare a comprehensive Electric Cost of Service and Rate Design Study (the Study). This report provides a review and the results of the Study, which included a revenue requirements analysis, a cost -of -service analysis, and the development of electric rate modification recommendations. The Study provides the basis for updated electric rates and develops updated unbundled rates for customer service, power supply and power delivery. The report describes the development of the five-year financial forecast used to illustrate the financial effects of new customers and load on the system. 1.2 Study Scope This cost -of -service and rate analysis was conducted to address the ongoing changes taking place in the electric industry. AL&W's directive was to conduct a study that, when completed, meets the following goals: • Provide a five-year financial forecast • Allocate costs to customer classes following industry guidelines • Prepare revisions or recommendations to current rates, as needed • Prepare and provide a financial forecast and rate analysis model for future use by AL&W 1.3 Revenue Requirements Analysis The first phase of the Study completed for AL&W was the determination of the test year net revenue requirement. This net revenue requirement was used as the basis for the subsequent phases of the project, namely the cost -of -service and rate analyses. In order to calculate the test year net revenue requirement, a five-year financial forecast was developed to project the results from the electric operations of AL&W. The financial forecast is modeled on a fiscal year (FY) basis of July 1 through June 30. Following the development of the financial forecast, a comparison of annual revenue and revenue requirements was completed to determine whether sufficient revenue would be available to cover projected operating and capital expenditures or if revenue adjustments would be required. Based on the analysis completed and specific discussion regarding rates, Burns & McDonnell recommends AL&W take no action to raise additional revenue over and above monies generated by current rates. AL&W is UB -241 maintaining adequate operating income and operating fund cash balances, meeting debt service coverage requirements, and generating sufficient rate base returns. A test year FY 2018 rate revenue and revenue requirement comparison is presented in Table 1-1. The revenue requirement is equal to the annual cost -of -service minus other revenue. The annual cost -of - service consists of total operating expenses, non-operating expenses, transfers, capital improvement plan (CIP), debt service, and net change in operating reserves. The total test year FY 2018 rate revenue requirement was calculated to be $33.2 million. AL&W desires to maintain a revenue -to -cost ratio of at least 1.0. For the test year and beyond this minimum requirement is being met. Table 1-1: Test Year Base Rate Revenue Requirement 1.4 Cost -of -Service Analysis The development of the cost -of -service analysis followed the revenue requirements analysis. The cost -of - service analysis included the assignment, or unbundling, of the various costs included in the test year 201.8 revenue requirement to AL&W's functional services. These unbundled cost components of the revenue requirement were then allocated to the various electric rate classifications to determine cost recovery requirements. The results of the cost -of -service analysis and the allocation of the test year revenue requirement to AL&W's rate classes are summarized in Table 1-2. The results are expressed in both dollars and 0/kWh. UB -242 'Unaudited Actuals Test Year Fiscal Yearduly 1 -June 30 2017 2018 2019 2020 2021 Annual Revenue Requirement $ Power Supply Bpenses S 23,408,509 S 18,568,317 S 18,396,300 S 19,347,000 S 20,348,000 'Nonoperating Expenses (FF, PILOT, Transfers, Int. Exp) $ 4,077,320 S 4,495,375 S 4,630,200 S 4,265,260 S 4,316,300 'Transfers out - Other (Fund 33 to Fund 31) $ 2,587,217 S 2,807,870 S 2,892,100 S 2,978,900 S 3,068,300 Transferto PCA Stabilization Account $ - S 2,892,900 S 3,416,063 S 2,442,463 S 1,417,523 ,Operating Expenses $ 7,677,207 S 8,934,301 S 9,931,600 5 9,478,800 5 9,763,200 ,Capital Improvement Plan (Cash Financed) $ 500,000 S 2,965,000 S 5,100,000 S 2,850,000 S 1,100,000 Debt Service $ 850,912 S 952,689 S 945,644 S 946,419 S 944,331 'Net Change in Operating Reserves $ 6,366,951 S 955,843 S 4477,459 S (1,429.340) S (31,288) Cost of Service $ 45,468,117 $ 42,572,296 $ 40,834,448 $ 40,879,501 $ 40,926,366 l.rsa Other Rewnurs A Inenme Misc. Billing Revenue $ 1,298,587 S 1,448,628 S 1,448,628 S 1,448,628 S 1,448,628 Sales to Public Authorities (Major Only) $ 1,376,120 S 1,376,120 S 1,376,120 S 1,376,120 S 1,376,120 Sales for Resale $ 4,017,473 S 3,479,486 S 2,000,000 S 2,000,000 S 2;000,000 Other Operating Revenues $ 1,113,825 S 1,113,825 S 1,113,825 S 1,113,825 S 1,113,825 Nonoperating Revenues $ 818,811 S 818,803 S 818,803 S. 818,803 S 818,803 Power Cost Adjustment Revenues $ 3,910,300 S 1,185,134 S 698,472 S 514,525 S 321,990 Interfund Transfers $ S - S - $ S Total Other Revenues & Income $ 12,535,115 $ 9,421,996 $ 7,455,848 $ 7,271,901 $ 7,079,366 Net Revenue Requirements $ 32,933,002 $ 33,150 300 $ 33,378,600 $ 33,607.600 $ 33,847,000 1.4 Cost -of -Service Analysis The development of the cost -of -service analysis followed the revenue requirements analysis. The cost -of - service analysis included the assignment, or unbundling, of the various costs included in the test year 201.8 revenue requirement to AL&W's functional services. These unbundled cost components of the revenue requirement were then allocated to the various electric rate classifications to determine cost recovery requirements. The results of the cost -of -service analysis and the allocation of the test year revenue requirement to AL&W's rate classes are summarized in Table 1-2. The results are expressed in both dollars and 0/kWh. UB -242 Table 1-2: Cost -of -Service Summary The lines labeled `Difference' in Table 1-2 indicate the extent to which the projected annual revenues generated from the current rates for each class would either exceed or fall short of the corresponding revenue requirement. The table shows some cross subsidization between the rate classes, but not to a significant degree. 1.5 Rate Analysis The final phase of the Study completed for AL&W was the rate analysis. As previously discussed, the financial forecast indicated that AL&W is on sound financial footing and the periodic rate adjustment approach employed to date should sufficiently support the financial health of the utility moving forward. Minimal base rate adjustments are recommended for the utility such as increasing the customer charge, or fixed portion of the rate, and decreasing the energy portion of the rate. A summary of the rate schedule components for each classification is provided below. Table 1-3: Current Rate Classes and Structures Total System SmaO Medium business (G-11 business (Cr2) Large business (T O U) (SL -1, SL -2, Lights (SL -2, SL -3) OL) Accounts (MS) Residential (D, WH/SH) Comparison ofRewnues X X X Large Bus ienss (Q,) X X X Large Business (TOU+D) X X X Street Lights (SL -1) X Street Lights & Outdoor Lights (SLr2) X Street Lights Customer Owned (SLr3) X Outdoor Lights (OL) Fhergy Sales - kWh 269,123,473 20,564,666 54,928,246 90,769,909 37,605 94,012 11,992834 90,736,200 X X Revenue Requirement $33150.300 $ 2,659,428 $ 6175,517 $ 9,214.1961 $ 10,300 $ 17,300 $ 1,444 820 $13,628.739 Revenue Generated BvDjstin Rates $33150,300 $ 3,111000 $ 6950300 $ 10145800 $ 10,300 $ 17,300 $ 1,342,500 $11,573,100 Difference $ - $ 451 572 $ 774,783 $ 931.604 $ $ $ 102,320 $ 2,055,639 Revenue Adjustment Required 0.00 % -14.52% 1 -11.15 % -9.18% 0.00%l 0.00% 7.62%. 17.76 Comparison ofRewnues WkWhl `n - Revenue Requirement $ 0.1287 $ 0.1351 $ Q1174 $ Q1060 $ 02861 $ 0.1922 $ 01258 $ 0.1569 Revenue Generated By Ddsting Rates $ 0.1287 $ 01580 $ Q1322 $ 0.1168 $ 0.2861 $ 0.1922 $ 0.1169 $ 0.1332 Difference $ $ (Q 0229) $ 0.0147 $ 0.0107 $ - $ $ 0.0089 S; 0.0237 R"us tment Regkilred 0.00%1 .-14.52% -11.15% -9.18% 0.00% 0.00% 7.62% 17.76 The lines labeled `Difference' in Table 1-2 indicate the extent to which the projected annual revenues generated from the current rates for each class would either exceed or fall short of the corresponding revenue requirement. The table shows some cross subsidization between the rate classes, but not to a significant degree. 1.5 Rate Analysis The final phase of the Study completed for AL&W was the rate analysis. As previously discussed, the financial forecast indicated that AL&W is on sound financial footing and the periodic rate adjustment approach employed to date should sufficiently support the financial health of the utility moving forward. Minimal base rate adjustments are recommended for the utility such as increasing the customer charge, or fixed portion of the rate, and decreasing the energy portion of the rate. A summary of the rate schedule components for each classification is provided below. Table 1-3: Current Rate Classes and Structures UB -243 Basic/Cust Charge Fnergy Usage Demand Charge Minimum Monthly Charge Charge Small Business (Cr l) X X Medium Business (G-2) X X X Large Bus ienss (Q,) X X X Large Business (TOU+D) X X X Street Lights (SL -1) X Street Lights & Outdoor Lights (SLr2) X Street Lights Customer Owned (SLr3) X Outdoor Lights (OL) X Municipal Accounts (MS) X X Residential (D) X X Residential WWSH) X X UB -243 1.6 Recommendations Burns & McDonnell recommends a number of actions be taken by AL&W based on the analyses conducted during the Study. The Study recommendations are presented herein. Based on the analysis completed and specific discussion regarding rates, Burns & McDonnell recommends AL&W take no action to raise additional revenue over and above monies generated by current rates. • Burns & McDonnell recommends adjustments be made to rate structures by increasing the fixed charge portion of the rate and lowering the energy charge portion of the rate. These adjustments are revenue neutral for the system. • AL&W should consider reassessing the PCA to more closely reflect reductions in power supply costs. One approach may be to reassess the PCA base rate and adjust it if significantly different than one currently used. • AL&W should consider implementing the recommended time of use (TOU) seasonal rate adjustments to more accurately reflect time -based power supply costs incurred by the system. • AL&W may consider devising a modified TOU rate, and offer it as an option, whereby energy component of the rate would be closely linked to the ISO wholesale energy prices in the Los Angeles Basin. • Burns & McDonnell recommends consideration of additional rate options once the advanced metering infrastructure (AMI) program is completed and AL&W has a minimum of one year's worth of usage data on the system. ■ AL&W should continue to monitor their financial position and revisit a rate analysis in three to five years; or after the AMI system has been in place for at least one year. AL&W should monitor its financial position, including adequacy of cost recovery and cash balances on an on-going basis to help ensure the utility continues to meet its financial requirements. Burns & McDonnell recommends the reexamination of the utility's financial plan, costs -of -service, and electric rates at most every five years. UB -244 2.0 - INTRODUCTION UB -245 2.0 INTRODUCTION 2.1 Overview Azusa Light & Water (AL&W) is a municipally owned and operated electric utility established by the City of Azusa, California (the City). AL&W provides retail electric services to consumers within the City and the surrounding areas. The utility presently serves over 16,500 electric customers in its service territory. To reevaluate the adequacy of revenue requirements and to develop a financial plan, AL&W retained Burns & McDonnell to prepare a comprehensive Electric Cost of Service and Rate Design Study (the Study). This report provides a review and the results of the Study, which included a revenue requirements analysis, a cost -of -service analysis, and the development of electric rate modification recommendations. The report describes the development of the five-year financial forecast used to illustrate the financial effects of new customers and load on the system. 2.1.1 Current Rate Classifications AL&W customers are charged based on their service application, overall monthly kilowatt-hour (kWh) energy consumption, and/or kilowatt (kW) demand characteristics. AL&W serves the following customer classes: • Small Business — Schedule G-1 • Medium Business — Schedule G-2 • Large Business — Schedule GL • Large Business — Schedule Time -of -Use (TOU) • Street Lights — Schedule SL -1, SL -2, SL -3 • Outdoor Lights — Schedule SL -2, OL • Municipal Accounts — Schedule MS • Residential — Schedule D, Water and/or Space Heat (WH/SH) 2.2 Study Scope This cost -of -service and rate analysis was conducted primarily to address changes in the Azusa supply portfolio and operations resulting from ISO markets/requirements and the ongoing changes and impacts of renewable energy and climate change regulatory policies taking place in the electric industry. AL&W directive was to conduct a study that, when completed, meets the following goals: UB -246 • Provide a five-year financial forecast ■ Allocate costs to customer classes following industry guidelines ■ Prepare recommendations for revision of current rates, if and as needed Prepare and provide a financial forecast and rate analysis model for future use by AL&W 2.3 Method of Analysis The Study completed by Burns & McDonnell consisted of three phases. The first phase was the development of a financial plan. The financial plan, and the resulting test year net revenue requirement used in the subsequent phases of the Study, was developed based on a five-year financial forecast of AL&W's revenues and expenses. The financial forecast includes projections of known changes in annual costs such as power cost projections and is based on information provided by AL&W. Other categories of expenses were forecasted using historical trends or assumed annual rates of inflation. The forecast results for FY 2018 were used as the test year net revenue requirement from which the cost -of -service analysis was based. Section 3.0 of this report describes the development of the five-year financial forecast and net revenue requirement. The second phase of this Study consisted of the cost -of -service analysis which included the assignment, or unbundling, of the various costs and margins included in the test year revenue requirement to AL&W's fL,nct.on_al Se::.cese.g. power supply, distribution, customer s....Cc, etc.). These unbundlCd Cost components of the test year revenue requirement were then allocated to the various electric rate classifications. The resulting allocated cost -of -service for each rate classification was compared to the adjusted annual revenues for each class in the FY 2018 test year to assess the projected cost recovery provided by the existing retail rates. These steps and the corresponding results are explained in Section 4.0 of this report. The results of the financial forecast and cost -of -service analysis provided a basis for the third phase which was the development of recommendations pertaining to electric service rates to be considered by AL&W. Section 5.0 of this report discusses the implications of the financial plan and cost -of -service results on AL&W's current electric rates and describes the proposed modifications to those retail rates. Section 6.0 summarizes the results of the Study and Burns & McDonnell's recommendations for AL&W moving forward. Throughout this report, references are made to various tables that detail specific aspects of the analyses completed. UB -247 3.0 - REVENUE REQUIREMENTS ANALYSIS UB -248 3.0 REVENUE REQUIREMENTS ANALYSIS 3.1 Overview The first phase of the Study completed for AL&W was the determination of the test year net revenue requirement. This net revenue requirement was used as the basis for the subsequent phases of the project, namely the cost -of -service and rate analyses. In order to calculate the test year net revenue requirement, a five-year financial forecast was developed to project the results from the electric operations of AL&W. 3.1.1 Customer Accounts Table 3-1 presents the projected numbers of electric customer accounts for AL&W from FY 2018 to FY 2021. Over the past few years, AL&W has experienced moderate growth in customer accounts. Table 3-1: Projected Customer Accounts ,CUSTONIIRS ki Small business (&1) 1,332 1,353 1,375 1,397 1,419 Medium business (G-2) 278 278 278 278 278 Large business (T.O.U.) 34 34 34 34 34 Street Lights (SLI I, SLr2, SL -3) 65 54 45 37 31 Outdoor Lights (SL -2, OL) 42 46 50 55 60 Municipal Accounts (MS) 137 147 158 169 181 1,888 Total Commercial 1,912 1,940 1,970 21003 Residential (D, WH/SH) 14,667 14,765 14,863 14,963 15,063 Total Customers 16,555 16,677 16,803 16,933 17,066 3.1.2 Energy Requirements For the analysis, AL&W provided historical actuals, by class, through FY 2017. The energy sales projections assume relatively unchanged use of kWh per customer, with customer count increasing at a rate slightly below one percent on average. As presented in Table 3-2, annual energy sales total 225,975,406 kWh in FY 2017 and are projected to increase to 263,018,182 kWh in FY 2021. Projected energy sales include all municipal energy requirements. 1961MM Table 3-2: Projected Energy Sales Forecast energy requirements were calculated assuming a system loss factor of 4.27 percent from FY 2018 through FY 2021, which is equal to the average system loss factor from FY 2015 to FY 2017. As presented in Table 3-3, annual AL&W energy purchases are projected to increase from 267,387,041 kWh in FY 2017 to 274,743,791 kWh in FY 2021. 3.1.3 Peak Demand The basis for projecting annual system peak demands from FY 2018 through FY 2021 were determined by dividing the total annual energy requirement by the annual system load factor multiplied by 8760. Table 3-3 summarizes the annual system peak demand for each year of the analysis. Table 3-3: Projected System Load Unaudited Actuals Forecast Fiscal YearJuIvl-June 30 2017 2018 2019 2020 2021 MERGYSALES kWh Small business (G-1) 19,381,913 19,687,000 20,008,000 20,328,000 20,648,000 Medium business (&2) 52,584,411 52,584,000 52,584,000 52,584,000 52,584,000 Large business (T.O.U.) 86,896,074 86,896,000 86,896,000 86,896,000 86,896,000 Street Lights (SL -1, SL -2, SL -3) 43,301 36,000 30,000 25,000 21,000 Outdoor Lights (SL -2, OL) 82,464 90,000 98,000 108,000 118,000 Municipal Accounts (MS) 10,699,604 11:481,0110 12,340A00 _ 13,199.000 14,136,000 169,687,767 Total Commercial 170,774,000 171,956,000 173,140,000 174,403,000 Residential (D, WHUSH) 86,287,639 86,863,730 87,443,667 88,027,475 88,615,182 Total.Fner Sales kWh 255,975,406 257,637,730 259,399,667 261,167,475 263,018,182 Forecast energy requirements were calculated assuming a system loss factor of 4.27 percent from FY 2018 through FY 2021, which is equal to the average system loss factor from FY 2015 to FY 2017. As presented in Table 3-3, annual AL&W energy purchases are projected to increase from 267,387,041 kWh in FY 2017 to 274,743,791 kWh in FY 2021. 3.1.3 Peak Demand The basis for projecting annual system peak demands from FY 2018 through FY 2021 were determined by dividing the total annual energy requirement by the annual system load factor multiplied by 8760. Table 3-3 summarizes the annual system peak demand for each year of the analysis. Table 3-3: Projected System Load 3.2 Financial Forecast The financial forecast was developed to estimate AL& W's annual revenue requirements and included projections of annual operating revenues, operating expenses, net non-operating income, and the resulting net income, as well as projections of plant investment, debt service, and other cash flows from FY 2017 UB -250 Unaudited Actuals Forecast Fiseal.YearJul 1 -June 30 2017 2018 2019 2020 2021 Energy Sales and Su Billed Energy Sales (kWh) [11 255,975,406 257,637,730 259,399,667 261,167,475 263,018,182 Line Losses, Electric Dent, Street 1: htin (kWh) 11,41 l 635 11,485,743 11,564,292 11,643,102 11,725 609 Total Energy Requirement (kWh) 267,387,041 269,123,473 270,963,958 272,810,578 274,743,791 Purchased Power (kWh) [21 267,387,041 269,123,473 270,963,958 272,810,578 274,743,791 :Sales (%) 95.73% 95.73% 95.73% 95.73% 95,73% Line Losses, Electric Dept, Street Lighting (%) 4.27% 4.27% 4.27% 4,27% 4.27-/a Total Requirements (%) 10000% 100,00% 100.00% 100,00% l0Q00% Average System Billing Demand (MW) 653 658 662 66,7 67.1 S stem Load Factor (%) [41 4675% 46,71% 46,71% 46.71% 46.71% 3.2 Financial Forecast The financial forecast was developed to estimate AL& W's annual revenue requirements and included projections of annual operating revenues, operating expenses, net non-operating income, and the resulting net income, as well as projections of plant investment, debt service, and other cash flows from FY 2017 UB -250 and forecast FY 2018 through FY 2021. The forecast considered annual levels of internally generated funds from operations and AL&W's projected capital expenditure requirements. These estimates are typically used to forecast the need for additional funds through retail rate adjustments, transfers from reserves, and/or external capital financing. The projections developed were summarized in a cash flow statement. The annual revenue requirements were determined from this financial statement. The basis of the projections and the assumptions used in the development of each component of the forecast are described herein. 3.2.1 Operating Revenues 3.2.1.1 Base Rate Revenues Burns & McDonnell projected annual base rate revenues from current rates based on the average revenue per kWh for each class and annual billing determinants from the projected energy sales. Table 3-4 presents projected base rate revenue for each year of the analysis period. Table 3-4: Projected Base Rate Revenue at Current Rates 3.2.2 Operating Expenses 3.2.2.1 Power Supply Expense Purchased power cost projections were developed based on projected energy and distribution costs provided by AL&W. Table 3-5 presents an annual forecast of purchased power expenses. The cost of purchased power for FY 2017 was based on unaudited actuals provided by AL&W and was projected for each of the subsequent years in the forecast. The cost of purchased power is estimated to decrease from $23.1 million in FY 2017 to $20.3 million in FY 2019. The primary reason for this drop in Purchased UB -251 Unaudited Actuals Forecast Fiscal Year JuIv l - June 30 2017 1 2018 2019 2020 2021 BILL ® REVENUES S Small business (&I) S -4,061,227 S 3,111,000 $ 3,161,700 $ 3,212,200 S 3,262,800 Medium business (Cr2) $ 6,950,329 $ 6,950,300 $ 6,950,300 $ 6,950,300 $ 6,950,300 Large business(T.O.U.) $ 10,145,766 $ 10,145,800 $ 10,145,800 $ 10,145,800 $ 10,145,800 Street Lights (SL -I, SL -2, SL -3) $ 12,369 $ 10,300 $ 8,600 $ 7,100 $ 6,000 Outdoor Lights (SL -2, OL) $ 15,837 $ 17,300 $ 18,800 $ 20,700 $ 22,700 Municipal Accounts (MS) $ 1,251,142 S 1]42,500 S 1.443.000 S 1,5+43,400 S 1,653.000 $ 21,436,671 Total Commercial $ 21,577,200 $ 21,728,200 $ 21,879,500 $ 22,040,600 Residential (D,WWSH) $ 11,496,331 $ 11,573,100 $ 11,650,400 $ 11,728,100 $ 11,806,400 Total Billed Rewnue (S) S 32.933,002 1 S 33,150,300 $ 33,378,600 $ 33,607,600 S 33,847,000 3.2.2 Operating Expenses 3.2.2.1 Power Supply Expense Purchased power cost projections were developed based on projected energy and distribution costs provided by AL&W. Table 3-5 presents an annual forecast of purchased power expenses. The cost of purchased power for FY 2017 was based on unaudited actuals provided by AL&W and was projected for each of the subsequent years in the forecast. The cost of purchased power is estimated to decrease from $23.1 million in FY 2017 to $20.3 million in FY 2019. The primary reason for this drop in Purchased UB -251 Power cost is the retirement of the San Juan resource as part of the power supply portfolio and replacing it with a lower cost resources. Table 3-5: Purchased Power Expenses 3.2.2.2 Operation and Maintenance Expense In addition to purchased power expenses, the AL&W electric utility incurs operating and maintenance expenses (O&M) from its distribution and general plant, maintenance work, customer accounts, and administrative operations. Including purchased power, O&M expenses for FY 2017 are estimated to be $31.1 million, and future O&M expenses are projected to range from $27.5 million in FY 2018 to $30.1 million in FY 2021 as illustrated in Table 3-6. Table 3-6: Projected O&M Expenses Unaudited Actuals Actuals Forecast Forecast 'Fiscal Year Jul l - June 30 2017 2018 2019 2018 2020 2021 Purchased Power IN nse Oper0w Fspensr8umrn ,...—..... ..._.,.:....—_...:;'e,:r..:77-77••. Total Energy Cost (S) $ 23,329,856 $ 17,459,287 $ 16,319,840 $ 16,319,840 $ 16,319,840 Total Resource Energy (kWh) 267,387,041 269,123,473 270,963,958 - S 272,810,578 274,743,791 Total Energy Cost (S/kW h) $ 0-0873 S 0.0649 $ 00602 $ 0.0626 $ 0.0651 Escalation % S 3,503,932 S 3,975,790 $ 4,095,100 S 4.0% 40% Energy Cost ($) $ 23,329,900 $ 17,459,300 S 16,319,800 $ 17,088,300 $ 17,897,800 TotalTransnussion Cost ($) $ 3,353,558 S 4,018,411 S 3,506,411 $ 3,506,411 $ 3,506,411 Total Transmission Energy (kWh) 267,387,041 269,123,473 270,963,958 3,713,600 S 272,810,578 274,743,791 'Total Transmission Cost (S/kWh) $ 0.0125 S 0.0149 S 0.0129 $ U0135 $ Q0140 Escalation % 1 31,085,716 1 S 27,502,618 28,327,900 4.0% 4.0% 'Transmission Cost ($) $ 3,353,600 $ 4,018,400 $ 3,506,400 S 3,671,500 $ 3,845,400 'Total Purchase Power Expense ($) $ 26,683,500 $ 21,477,700 $ 19,826,200 $ 20,759,800 $ 21,743,200 Scheduling, System Control and Dispatching Services $ 433,641 $ 570,103 $ 570,100 $ 587,200 $ 604,800 RESALE(Excesswholesale+Balancing/optimization) $ (4,017,473) $ (3,479,486) $ (2,000,000) $ (2,000,000) $ (2,000.900 Total Purchase Power Expense ($) $ 23,099,668 $ 18568,317 $ 18,396,300 $ 19,347,000 $ 20,348,000 Total Puichase Power Expense ($/kWh) $ 0.0864 $ 0.0690 $ 0.0679 $ 00709 $ 0.0741 3.2.2.2 Operation and Maintenance Expense In addition to purchased power expenses, the AL&W electric utility incurs operating and maintenance expenses (O&M) from its distribution and general plant, maintenance work, customer accounts, and administrative operations. Including purchased power, O&M expenses for FY 2017 are estimated to be $31.1 million, and future O&M expenses are projected to range from $27.5 million in FY 2018 to $30.1 million in FY 2021 as illustrated in Table 3-6. Table 3-6: Projected O&M Expenses UB -252 Unaudited Actuals Forecast Fiscal Ycnr Jul t - June 30 20 17 2018 2009 2020 2021 Oper0w Fspensr8umrn ,...—..... ..._.,.:....—_...:;'e,:r..:77-77••. DISTRIBUTION PLANT EXPENSES (S) 5 890,000 5 890,000 S 916,700 S 944,400 $ 972,800 UbNERALPLANT EXPENSES (S) S 357,849 5 - $ - S . $ POWER SUPPLY EXPENSES ($) $ 23,099,668 S 18,568,317 S 19,125,400 S 19,347,000 $ 20,348,0110 DISTRIBUTION EXPENSES (MAINTENANCE) (S) S 3,503,932 S 3,975,790 $ 4,095,100 S 4,217,900 $ 4,344,400 DISTRIBUTION EXPENSES (OPERATION) ($) S 31,615 S 40,565 S 41,900 S 43,200 $ 44,500 DISTRIBUTION EXPENSES (MAINTENANCE) ($) S 418,241 S 418,241 $ 430,800 S 443,700 $ 457,000 CUSTOMER ACCOUNT EXPENSES (S) S 2,780,162 S 3,605,455 S 3,713,600 S 3,825,100 S 3,939,900 ADMINISTRATIVE AND CENERALEXPENSES $) $ 4,250 S 4,250 S 4,400 5 4,500 $ 4600 Total Operating nses S 1 31,085,716 1 S 27,502,618 28,327,900 28 825 800 30 111 00 UB -252 3.2.3 Capital Improvement Expenditures A forecast of capital expenditures for the electric system was developed by AL&W. The capital expenditures forecast was incorporated into the financial model and utilized to determine the forecasted annual plant in service and depreciation expense. AL&W funds its capital expenditures through a combination of cash financing, debt financing and operating fund transfers. The largest of these capital expenditures is the advanced metering infrastructure (AMI) upgrades, and substation facility improvements. The electric system's total estimated cost for the AMI project is $6.3 million in the next 3 years, and the estimated cost for the substation improvements totals to $5.1 million for FY 2018 through FY 2021. Table 3-7 presents a summary of projected capital improvements for the forecast period. Table 3-7: Projected Capital Improvements 3.2.4 Debt Service Currently the electric utility pays annual payments on two series of revenue bonds, with one issued by the Financing Authority for Resource Efficiency of California (FARECal) and the other issued by the City. The bonds were issued to finance the acquisition, construction and installation of certain capital improvement projects for the City of Azusa's electric system. The projections of outstanding debt service obligations from FY 2018 through FY 2021 are based on debt service schedules provided by AL&W. Table 3-8 presents annual projections of outstanding debt service obligations of the electric utility. UB -253 Unaudited Actuals Forecast Fiscal Year July 1- June 30 2017 2018 2019 2020 2021 Capital Un owments $ a.::. �. .. ."......, Department Equipment AMI $ 500,000 $ 2,500,000 $ 2,500,000 S 750,000 $ Underground Electric Line Replacements & Line Fidensio $ - $ 100,000 $ 600,000 S 100,000 $ 100,000 Electric Substations Facility Improvements $ - $ 100,000 $ 2,000,000 S 2,000,000 $ 1,000,000 Todd & 10th Street Electric Line Extension and Equipment $ $ 150,000 $ - $ • $ - LED Street Lights Figure Retrofit $ $ 115,000 $ - S - $ - Total Capital hn owments $ $ 500,000 1 S 2,965,000 S 5,100,000 S 2,850,000 S 1,100,000 Re-mnue nnanecd Calital Improwments 500,000 S 2,965,000 $ 5,100,000 a 2,850,000 $ 1,100,000 DebtFlnancedCa'tal uwments $ - $ - S 5 - $ 1 Ca 'tal improwments for 2018 through 2021 are based on a 5 year capital planpro,,ided by Azusa 3.2.4 Debt Service Currently the electric utility pays annual payments on two series of revenue bonds, with one issued by the Financing Authority for Resource Efficiency of California (FARECal) and the other issued by the City. The bonds were issued to finance the acquisition, construction and installation of certain capital improvement projects for the City of Azusa's electric system. The projections of outstanding debt service obligations from FY 2018 through FY 2021 are based on debt service schedules provided by AL&W. Table 3-8 presents annual projections of outstanding debt service obligations of the electric utility. UB -253 Table 3-8: Projected Debt Obligations 3.2.5 Projected Cash Flow The projection of cash flow for each year provided the basis for determining if the revenue generated from operations sufficiently covered costs. Ultimately, the cash flow was used to establish AL&W test year rate revenue requirement for FY 2018. Annual base rate revenues were projected using the average retail rate revenue for each class and annual billing determinants from the load forecast. Annual base rate revenues from base or customer charges, energy usage charges, and demand charges were generated from the following classes: Small Business, Medium Business, Large Business, Street Lights, Outdoor Lights, Municipal Accounts, and Residential Service. In total, base rate revenues are projected to total $33.2 million in FY 2018 and reach $33.8 million in FY 2021 as seen in Table 3-9. Other types of electric revenues include revenue from sales to public authorities, power cost adjustments, sales for resale, miscellaneous billing revenues and other operating and non-operating revenues. Adding all these sources of revenues together with revenue from retail sales produced total revenues in FY 2017 of $45.5 million. Total revenues are projected to decrease to $40.9 million by 2021. This decrease, starting in FY 2018, can mainly be attributed to lower overall power supply costs after the completion of San Juan divestiture in December and replacement with lower cost forward contracts. This is shown in Table 3-10. Electric expenses were projected for each year of the financial forecast. Expenses include purchased power expenses, allocations to Fund 31 for customer related services, transfers to the PCA stabilization account (including the stabilization requirement) and operating and maintenance expenses. Franchise Fees, Payments in Lieu of Taxes (PILOT), and interest expense are included in non-operating expenses. Expenses are projected to increase from $37.7 million in FY 2017 to $38.9 million in FY 2021. UB -254 Unaudited Actuals Forecast Fiscal Year July 1 - June 30 2017 2018 2019 2020 2021 ,Outs tandin Debt (S) Principal Outstanding - Beg.Bal. $ 6,600,000 $ 5,950,000 $ 5,170,000 $ 4,375,000 $ 3,555,000 Principal $ - $ 780,000 $ 795,000 $ 820,000 $ 845,000 Sinking Fund $ 650,000 $ - $ - $ - $ Interest $ 25,344 $ 3,621 $ - $ - $ $ 675,344 $ 783,621 $ 795,000 $ 820,000 $ 845,000 Total Payment Debt Issue Cost Amort -Outstanding Debt $ - $ - $ $ - $ Principal Outstandin-End. Bal. I $ 5,950,000 $ 5,170,000 $ 4,375,000 $ 3,555,000 $ 2,710,000 3.2.5 Projected Cash Flow The projection of cash flow for each year provided the basis for determining if the revenue generated from operations sufficiently covered costs. Ultimately, the cash flow was used to establish AL&W test year rate revenue requirement for FY 2018. Annual base rate revenues were projected using the average retail rate revenue for each class and annual billing determinants from the load forecast. Annual base rate revenues from base or customer charges, energy usage charges, and demand charges were generated from the following classes: Small Business, Medium Business, Large Business, Street Lights, Outdoor Lights, Municipal Accounts, and Residential Service. In total, base rate revenues are projected to total $33.2 million in FY 2018 and reach $33.8 million in FY 2021 as seen in Table 3-9. Other types of electric revenues include revenue from sales to public authorities, power cost adjustments, sales for resale, miscellaneous billing revenues and other operating and non-operating revenues. Adding all these sources of revenues together with revenue from retail sales produced total revenues in FY 2017 of $45.5 million. Total revenues are projected to decrease to $40.9 million by 2021. This decrease, starting in FY 2018, can mainly be attributed to lower overall power supply costs after the completion of San Juan divestiture in December and replacement with lower cost forward contracts. This is shown in Table 3-10. Electric expenses were projected for each year of the financial forecast. Expenses include purchased power expenses, allocations to Fund 31 for customer related services, transfers to the PCA stabilization account (including the stabilization requirement) and operating and maintenance expenses. Franchise Fees, Payments in Lieu of Taxes (PILOT), and interest expense are included in non-operating expenses. Expenses are projected to increase from $37.7 million in FY 2017 to $38.9 million in FY 2021. UB -254 Net income before capital infrastructure plan (CIP) and debt service was $7.7 million in FY 2017, and decreases to $2.0 million by FY 2021. This decrease is a result of the drop in total revenues while total expenses increase slightly. After CIP and debt service are accounted for, cash and cash reserves remain at a healthy level of $29.6 million in FY 2017 and $24.6 million in FY 2021. After deducting the $12.6 million minimum reserve requirement, unrestricted funds were at $17.0 million in FY 2017 and $12.0 in FY 2021. Table 3-9: Base Rate Revenues 'Fiscal Year J 1 - June 30 Unaudited Actuals 2017 2018 Forecast 2019 2020 2021 SysternOperadans Annual Energy Sales (kWh) 255,975,406 257,637,730 259,399,667 261,167,475 263,018,182 Average Electric Rate ($/kWh) $ 0.1701 $ 0.1577 $ 0.1500 $ 0.1491 $ 0.1483 Base Rate Revenues Commercial Electric Sales $ 21,436,671 $ 21,577,200 $ 21,728,200 $ 21,879,500 $ 22,040,600 Residential Electric Sales $ 11,496,331 $ 11,573,100 $ 11,650,400 $ 11,728,100 $ 11,806,400 Revenue from Retail Sales - Existing Rates $ 32,933,002 $ 33,150,300 $ 33,378,600 $ 33,607.600 $ 33.847.000 US -255 Table 3-10: Cash Flow 3.2.6 Projected Revenue Requirements A summary of the test year FY 2018 rate revenue requirement is presented in Table 3-11. The annual cost -of -service consists of total operating expenses, non-operating expenses, transfers, CIP, debt service, and net change in operating reserves. Based on the revenue requirements analysis completed and specific discussion regarding rate revenues and requirements, Burns & McDonnell recommends AL&W take no action to raise additional revenue over and above monies generated by current rates and to go forward with the approved PCA Stabilization Plan adjustments. UB -256 Unaudited Actuals Forecast Fiscal Year J I - June 30 2017 2018 2019 2020 2021 S stem0 rations WWI is) S Beginning Balance - Cash & Cash Reserves 23,229,032 29,595,983 30,551,827 26,074,368 24,645,027 Revenues: Commercial Electric Sales 21,436,671 21,577,200 21,728,200 21,879,500 22,040,600 Residential Electric Saks 11,496,331 11,573,100 11,650,400 11,728,100 11,806,400 Saks to Public Authorities (Major Only) 1,376,120 1,376,120 1,376,120 1,376,120 1,376,120 Power Cost Adjustment Revenues 3,910,300 1 1,185,134 698,472 514,525 321,990 38,219,421 35,711,554 35,453,192 35.498,245 35,545,110 Revenue from Retail Sales - Existing Rates Sales for Resale 4,017,473 3,479,486 2,000,000 2,000,000 2,000,000 Misc. Billing Revenue 1,298,587 1,448,628 1,448,628 1,448,628 1,448,628 41535.481 40,639.668 38.901.820 38.946.873 38.993.738 Total Electric Sales Revenues 1,113,825 1,113,825 1,113,825 1,113,825 1,113,825 Other Operating Revenues NonoperatmgRevenues &18,811 4 818.803 818.803 818803 818.803 45.468,117 42,572,296 40,834.448 40.879,501 40.926.366 Total Revenues Exegnses: Power Supply Expenses 23,408,509 18,568,317 18,396,300 19,347,000 20,348,000 Nonoperatmg Expenses (FF, PILOT, Tmnsfers, Int Exp) 4,077,320 4,495,375 4,630,200 4,265,260 4,316,300 Transfers out- Other (Fund 33 to Fund 31) 2,587,217 2,807,870 2,892,100 2,978,900 3,068,300 Transfer to PCA Stabili7ationAccount 2,892,900 3,416,063 2,442,463 1,417,523 Operating Expenses 7 677,207 8934,301 9,931,600 9,478,800 9,763.200 3.7,750,253 37,698,763 39,266,263 38,512,423 38,913,323 Subtotal Expenses Net income/(Expense) Before CIP & Debt Service 7,717,864 4,873,533 1,568,185 2,367,078 2,013,043 Plant Capital Expenditures (Cash Financed) 500,000 2,965,000 5,100,000 2,850,000 1,100,000 Annual Debt Service 850,912 952,689 945,644 946,419 944,331 Subtotal Capital Improvements and Debt Service 1,350,912 3,917,689 6,045,644 3,796,419 2,044,331 Net Increase/Decrease in Cash& Reserves 6,366,951 955,843 (4,477,459) (1,429,340) (31,288) Ending Balance - Cash & Cash Reserves 29,595,983 30,551,827 26.074,368 24,645,027 24613 739 Minirnum Reserve Requirement 12,600,000 12,600,000 12,600,000 12,600,000 12,600,000 Unrestricted Funds 16,995,983 17,951,827 13 474,368 12.045,027 12.013,739 17ebt Service Covera Net Revenues Available for Debt Service 7,717,864 4,873,533 1,568,185 2,367,078 2,013,043 Debt Service 850,912 952,689 945,644 946,419 944,331 Reserves Available for Debt Service Net Revenues and Reserves Available for Debt Service 7,717,864 4,873,533 1,568,185 2,367,078 2,013,043 Debt Service Coverage Based on Net Operating Revenues & Reserves 1 9.07 1 5.12 1,66 2,50 2.13 3.2.6 Projected Revenue Requirements A summary of the test year FY 2018 rate revenue requirement is presented in Table 3-11. The annual cost -of -service consists of total operating expenses, non-operating expenses, transfers, CIP, debt service, and net change in operating reserves. Based on the revenue requirements analysis completed and specific discussion regarding rate revenues and requirements, Burns & McDonnell recommends AL&W take no action to raise additional revenue over and above monies generated by current rates and to go forward with the approved PCA Stabilization Plan adjustments. UB -256 Table 3-11: Projected Revenue Requirements UB -257 Unaudited Actuals Test Year Fiscal Yeai Jul. 1 - June 30 2017 2018 2019 2020 2021 Annual Revenue Re uiremenl($) Power Supply Expenses $ 23,408,509 $ 18,568,317 $ 18,396,300 $ 19,347,000 $ 20,348,000 Nonoperating Expenses (FF, PILOT, Transfers, Int. Fes) $ 4,077,320 $ 4,495,375 $ 4,630,200 S 4,265,260 $ 4,316,300 'Transfers out - Other (Fund 33 to Fund 31) $ 2,587,217 $ 2,807,870 $ 2,892,100 $ 2,978,900 $ 3,068,300 'Transfer to PCA Stabilization Account $ - $ 2,892,900 $ 3,416,063 $ 2,442,463 $ 1,417,523 ,Operating Expenses $ 7,677,207 $ 8,934,301 $ 9,931,600 $ 9,478,800 $ 9,763,200 ,Capital Improvement Plan (Cash Financed) $ 500,000 $ 2,965,000 $ 5,100,000 $ 2,850,000 $ 1,100,000 Debt Service $ 850,912 $ 952,689 $ 945,644 $ 946,419 $ 944,331 Net Change in Operating Reserves $ 6.366.951 $ 955,943 $ 4,477,459 $ 11,429,340 $ 31 Cost of Service $ 45,468,117 $ 42,572,296 S 40,834,448 $ 40,879,501 $ 40,926,366 Ws Other Hrvenues & Income Misc. Billing Revenue $ 1,298,587 $ 1,448,628 $ 1,448,628 $ 1,448,628 $ 1,448,628 Sales to Public Authorities (Major Only) $ 1,376,120 $ 1,376,120 $ 1,376,120 $ 1,376,120 $ 1,376,120 Sales for Resale $ 4,017,473 $ 3,479,486 $ 2,000,000 $ 2,000,000 $ 2,000,000 Other Operating Revenues $ 1,113,825 S 1,113,825 S 1,113,825 $ 1,113,825 $ 1,113,825 Nonoperating Revenues S 818,811 $ 818,803 S 818,803 $ 818,803 $ 818,803 Power Cost Adjustment Revenues $ 3,910,300 S 1,185,134 $ 698,472 $ 514,525 S 321,990 Interfund Transfers $ - $ - S - $ - $ Total Other Revenues & Income $ 12,535,115 $ 9,421,996 $ 7,455,848 $ 7,271,901 $ 7,079,366 Net Revenue Requirements $ 32 933.002 $ 33,150,300 $ 33,378,600 S 33,607,600 $ 33.847,000 UB -257 4.0 - COST -OF -SERVICE ANALYSIS U B-258 4.0 COST -OF -SERVICE ANALYSIS 4.1 Overview The second phase of this Study was the development of the cost -of -service analysis. The test year revenue requirement for FY 2018 developed from the financial forecast, described in Section 3.0 of this report, was used as the basis for the cost -of -service analysis. Section 4.0 explains the basis of the functionalization, classification and allocation efforts of the cost -of -service analysis. Tables showing the assignment of the test year revenue requirement among functional services, as well as the development of allocation factors and the allocation of the test year revenue requirement to AL&W's rate classifications, are presented in the following subsections. 4.2 Revenue Requirement Unbundling The first step in the development of the cost -of -service analysis was the unbundling of the various components of the test year revenue requirement by functional utility service. To a certain degree, the electric service AL&W provides its customers is sold as a bundled product. However, this bundled product involves the provision of multiple functional services. Utilities such as AL&W have a need to unbundle the costs of providing the component services making up this bundled product. AL&W will benefit from this separation of costs and providing its services at a functional level. New information, provided by the AMI system currently being deployed, will aid AL&W in the overall management of its costs and in the communication of service costs with its customers. The unbundling of AL&W's costs also allows separate pricing of individual services to be easily implemented if desired. 4.2.1 Functionalization Four functional services were identified while analyzing AL&W's three cost categories: Power Production, Power Delivery, and Customer Services. Each cost category and its subordinate functional services are summarized below. + Power Production o Demand — kW o Energy — kWh • Power Delivery o Distribution — DIST • Customer Service — CUST UB -259 4.2.2 Revenue Requirement Classification The test year cost for each component of the revenue requirement was assigned to one or more of the unbundled services. The unbundled assignment of each amount was based on the utilization of specific data to estimate the portions of each item attributable to the various functional services. The amount for each item was assigned using one of the following approaches: • Direct Assignment — to one or more specific functional services due to the nature of the account/element. For example, customer records and collection expenses under the Customer Accounts cost category were assigned to the CUST functional service due to the nature of these positions which are typically customer service or support oriented. • Percentage Utilization — based on estimated level of activities within the account/element, costs were assigned to multiple functional service categories. • Composite Ratio Assignment — involves the assignment of costs based on the ratio of costs by functional service, whose percentage allocations have already been established, to the associated functional services for the test year. For example, interest income was assigned to functional services based on the percentage distribution of all other system costs. The manner in which each component was assigned to the functional services varied based on the nature of the item. Burns & McDonnell developed the proposed unbundling of the components of the FY 2018 revenue requirement based on its understanding of the types of associated costs. A summary of the assignment of each detailed component of the test year revenue requirement is shown in Table 4-1. In Table 4-1, the assignment of the components of the test year revenue requirement for FY 2018 shows that $16.7 million, or 50.33 percent, of AL&W's test year revenue requirement was related to the power supply energy — kWh functional service. 4.2.3 Revenue Requirement Allocation Following the unbundling of the various components of the test year revenue requirement to the functional utility services, the unbundled test year revenue requirement was allocated to AL&W's retail rate classifications. These allocations were developed to reflect the relative impact each rate class will have on the level of each component of the test year revenue requirement. UB -260 Table 4-1: Revenue Requirement Unbundled Assignment Summary AL&W currently bills its retail electric customers based on rate schedules that became effective in July 201 The r,. ♦ 4 11 ♦ � 41ic 4 ♦ Tl. � r�r (. C �.,s. year rcvci^.11c rcqulrcr;.cr.� was a..Gca�cd based (G trr,,sc categorizations. The tc5t "y'car 2018 rate classifications examined for the cost -of -service analysis are as follows: • Small Business- Schedule G-1 • Medium Business - Schedule G-2 • Large Business - Schedule GL, TOU • Street Lights - Schedule SL -1, SL -2, SL -3 ■ Outdoor Lights - Schedule SL -2, OL • Municipal Accounts - Schedule MS ■ Residential - Schedule D, WH/SH 4.2.3.1 Allocation Factors Burns & McDonnell utilized billing history data and projections of future sales and loads to develop a series of allocation factors. The allocation factors were developed based on billing determinants, estimates of the contributions of each rate classification to AL&W's total annual system energy requirements, average monthly coincident system peak demand, and average monthly non -coincident system peak demand. In addition, the total number of customers in each rate category was determined. UB -261 Test Year UNBUNDLED COSTS 2018 I(W kWh DIST CUST Description TOTALO&MEXPFNSE $ 31,997,993 $ 4,720975 $ 18,166,632 $ 4,929,198 $ 4,181,188 Cost of Service Ratio t4.75% 56.77% 15A0% 13.07 OTHER REVENUE REQUR2EVIEVTS Debt Service $ 952,689 S 238,172 $ _ $ 666,882 $ 47,634 Transfers out - Other (Fund 33 to Fund 31) $ 2,807,870 S 701,968 $ - $ 1,965,509 $ 140,394 Interfund Transfers Out - Surplus Fund $ - $ - $ . $ - $ - Transfer to PCA Stabdization Account $ 2,892,900 5 426,818 $ 1,642,423 $ 445,643 S 378,016 Plant Capital Expenditures (Cash Financed) $ 2,965,000 S 437,455 $ 1,683,358 $ 456,750 $ 387,437 Net Chan a in Operating Reserves $ 955.843 S 141,025 $ 542,673 $ 147.245 $ 124.900 Total Other Revenue Requirements $ 10,574,303 $ 1,945,438 $ 3,868,454 S 3,682,029 $ 1,078,382 Cost ofservice $ 42.572.296 $ 6.666.413 $ 22,035,086 $ 8.611.227 S 5,259,569 Cost of Service Ratio 15.66% 51.76% 20.23% 12.35 OTHER OPERATING REVENUES t Misc. Billing Revenue (Fees $ (1,448,628) S (213,730) S (822,448) $ (223,157) $ (189,293) OtherSales toFlub licAuthorities (Major Only) $ (1,376,12() S (203,032) S (781,282) 8 (211,987) $ (179,818) Sales for Resale $ (3,479,486) S (513,362) S (1,975,453) S (536,005) $ (454,665) Other Revenues $ (1,113,825) S (164,333) S (632,366) S (171,582) $ (145,544) Power Cost Adjustment Revenues $ (1,185,134) S (174,854) S (672,851) S (182,566) $ (154,862) Miscellaneous Revenues (Fees, Reimb., Collections) $ (554,703) S (81,841) S (314,929) S (85,450) $ (72,483) Interest leveuue $ (264,100) S (38,965) S (149,941) S (40,684) $ (34,510) Interfund Transfers $ - 11 S - S - S - $ Total Other Revenues $ (9,421,996) $ (1,390,11?) $ 5,349.271 $ (1,451,431) $ 1,231.175 Net Revenue Requirements S 33,150300 $ 5.276,294 $ 16,685,815 S 7,159,796 S 4,02gr394 15.92% 50.33% 21.60% 12.15 AL&W currently bills its retail electric customers based on rate schedules that became effective in July 201 The r,. ♦ 4 11 ♦ � 41ic 4 ♦ Tl. � r�r (. C �.,s. year rcvci^.11c rcqulrcr;.cr.� was a..Gca�cd based (G trr,,sc categorizations. The tc5t "y'car 2018 rate classifications examined for the cost -of -service analysis are as follows: • Small Business- Schedule G-1 • Medium Business - Schedule G-2 • Large Business - Schedule GL, TOU • Street Lights - Schedule SL -1, SL -2, SL -3 ■ Outdoor Lights - Schedule SL -2, OL • Municipal Accounts - Schedule MS ■ Residential - Schedule D, WH/SH 4.2.3.1 Allocation Factors Burns & McDonnell utilized billing history data and projections of future sales and loads to develop a series of allocation factors. The allocation factors were developed based on billing determinants, estimates of the contributions of each rate classification to AL&W's total annual system energy requirements, average monthly coincident system peak demand, and average monthly non -coincident system peak demand. In addition, the total number of customers in each rate category was determined. UB -261 Ratios were calculated of each class's contribution for each statistic to the corresponding total. These ratios were used as cost allocation factors to allocate each unbundled component of the test year revenue requirement to the rate classes. These allocation factors are presented in Table 4-2 and the basis for their development are provided in the following sections. Table 42: Allocation Factors by Type 4.2.3.1.1 Energy Allocation An energy allocation factor was developed for use in the apportionment of all energy-related expenses. Based on the billing data provided, energy sales to each of AL&W's rate classes were determined. The energy sales for each class were factored up to the system level. System losses were assumed to occur between three voltage levels, from power supply to transmission, from transmission voltage to primary distribution voltage, and from primary distribution voltage to secondary distribution voltage. All customer classes receive service at secondary distribution voltage levels, so for the analysis, each class shared proportionally equal losses based on energy sales. The ratios of the resulting estimated contributions of each class to the total system energy requirements represented the energy allocation factor. 4.2.3.1.2 Demand Allocation The determination of system demand contributions for each rate class was more complex than the development of the energy allocation factors for two reasons. First, the normal operation of an electric utility does not require maintaining the same amount of demand -related data as it does energy-related data. Therefore, there was not an equal amount of data from which to base the analysis. The second reason is that there are a variety of methodologies that may be used in allocating the demand costs of an electric utility. Ideally, hourly demand meters and load profile information would be available for all AL&W customers from which accurate coincident and non -coincident peak demand data could be US -262 Total Svstem Small business (G 1) Medium business (6-2) Large business (TOU) Street Ligh is (SL, I, S[`2, SG3) Outdoor Lights (SLr2, OL) Municipal Accounts (MS) Residential (D, WTVSH) Ener Allocations Total Energy Requirement Eae AllocAil"n Facia. 269,123,473 1.000 20,564,666 0.076 54,928,746 0204 90,769,909 0.337 37,605 0000 94,012 0000 11,992,834 0.045 90,736,200 x337 Demand Allocations -- -.---' ,Contribution to Coincident Peak 'Coincident Peak Alloc Factor 65,768 1.000 6,010 0091 15,224 0231 18.239 0277 0 0.000 0 0000 3,856 0059 22,440 0341 'Contribution to Non -Coin. Peak System NCPAllvcationFactor 56,114 1.000 4,515 O.OBD 11,612 0207 16,447 0793 9 0.000 21 0IX1P 2,794 D.IlSA 20,716 0369 Liu tamer All wrldn Numbarof Customers Un%v hied Cumnlr Atluca0otl Fact or 16,677 1000 1,353 0.081 278 0017 34 0002 54 0.003 46 0006 147 RON 14,765 0M Relative Weight Weighted No. of Customers WaighiedCusiviwAilocationFaclor 16,718 1000 10 1,353 0091 10 278 0.017 3.0 102 0006 0.5 27 0002 10 46 0.03 L0 147 D." LO 14,765 0883 4.2.3.1.1 Energy Allocation An energy allocation factor was developed for use in the apportionment of all energy-related expenses. Based on the billing data provided, energy sales to each of AL&W's rate classes were determined. The energy sales for each class were factored up to the system level. System losses were assumed to occur between three voltage levels, from power supply to transmission, from transmission voltage to primary distribution voltage, and from primary distribution voltage to secondary distribution voltage. All customer classes receive service at secondary distribution voltage levels, so for the analysis, each class shared proportionally equal losses based on energy sales. The ratios of the resulting estimated contributions of each class to the total system energy requirements represented the energy allocation factor. 4.2.3.1.2 Demand Allocation The determination of system demand contributions for each rate class was more complex than the development of the energy allocation factors for two reasons. First, the normal operation of an electric utility does not require maintaining the same amount of demand -related data as it does energy-related data. Therefore, there was not an equal amount of data from which to base the analysis. The second reason is that there are a variety of methodologies that may be used in allocating the demand costs of an electric utility. Ideally, hourly demand meters and load profile information would be available for all AL&W customers from which accurate coincident and non -coincident peak demand data could be US -262 obtained. If data is compiled from a statistically valid sample of each classification, load profile results obtained from each sample could be analyzed and applied to entire classes in the future. In the future, once the AMI installations are complete, data will be available for all customers. Burns & McDonnell refined proxy load research data to develop representative coincident peak and non - coincident peak load data for each of AL&W's customer classes. Since the test year system peak is expected to occur in the afternoon hours of the summer season, it was assumed that the Street Lighting classes would have no load on the system at that time and, therefore, would not contribute to the system coincident peak demand. r or each class, rnauururrr del iandS were estunateu uaNeu vu rvau iat wig rrurrr ure PIVAy luau uata available to Burns & McDonnell from a comparable electric utility in Southern California. The load factors were applied to the corresponding test year energy sales for each class to determine the average non -coincident peak for each class. Ratios of each class's non -coincident peak demands to the total for all classes were calculated. These ratios represented the factors to be used in allocating the system demand costs among the various rate classes. 4.2.3.1.3 Customer Allocation Customer allocation factors were developed to allocate the costs of metering, billing, call center, and other administrative costs to the various rate classifications. Customer allocation factors were based on relative weighting of the number of customers included in each rate class served by AL&W. Relative weights were estimated to reflect differences in the effort required and the cost incurred to provide customer services to customers in the different rate classes. 4.2.3.2 Cost Allocation Each component item of the test year revenue requirement, which was classified and assigned to the various functional utility services, was allocated to the appropriate customer rate classifications using the corresponding allocation factors. The allocated amounts were summarized for each rate class. Table 4-3 presents a summary of the allocation of the net revenue requirement to the rate classifications by the unbundled functional services. The total amounts in Table 4-3 for each unbundled service within each component of the test year revenue requirement were carried forward from Table 4-1. UB -263 Table 4-3: Functional Cost Allocation Summary 4.3 Cost -of -Service Summary The results of the cost -of -service analysis and the allocation of the test year revenue requirement to AL&W's rate classes are presented in Table 4-4. The results are broken out into energy-related costs, expressed in both dollars and cents per kWh; peak demand -related costs, expressed in both dollars and cents per kW of system power supply billing demand per month; distribution -related costs, expressed in both dollars and dollars per kW of system power supply billing demand per month; and customer -related costs, expressed in dollars per customer per month. The total cost -of -'service is expressed in both dollars and cents per kWh. AL&W's rate revenue requirement of $33.2 million and the total projected system sales of 269,123 MWh translates to an average cost of 12.87¢/kWh. Table 4-4 also shows the net requirement of providing service to each class. For example, the cost allocated to the Residential Service rate class in FY 2018 totals $13.6 million. Based on the total energy sales from Residential Service customers of 90,736 NM, the base rate requirement to provide service to the Residential Service customer class is 15.69¢/kWh. Table 4-4 includes a Revenue Comparison that compares the net revenue requirement to the projected revenue that would be generated by current rates. This analysis indicates the extent to which the test year revenues generated from existing rates for each class would either exceed or fall short of the corresponding revenue requirement. The results show the current conditions of how revenues are generated in comparison to how costs are incurred among classes. For example, the Residential class is receiving the largest subsidy under current rates. Conversely, the Small Business class is recovering more cost than it has been allocated, and therefore, is subsidizing more cost than any other class. Since AL&W wants to continue providing low cost rates to the Residential class, no changes to current rates are recommended to mitigate this slight subsidization. UB -264 Total Svstem Small business (trl) Mediumbusiness (G2) Large business (T.O.U,) Street Lights (SL- 1, SL -2, SL,3) Outdoor -Lights (SL -27 OL) Municipal Accounts (11S) Residential (D, PBC) Total kW $ 5_76294 $ 481,192 $ 141318 $ 1,463,231 1 S - $ 309,323 S 1,800231'i kWh $ 16685815 $ 1,275022 S 3,405,584 $ 5,627,788 S 2,332 S 5329 S 743,563 $ 5,625,698 DIST $ 7,159,796 $ 576,031 S 1 181 94 $ 2,098.595 $ 1,095 $ 2.739 S 356,495 S 4643248 CUSC S 4,028394 $ 326.022 S 66,988 $ 24,78 S 6,506 $ 11,084 S 35,422 $ 3,557,794 Total Revenue uirerrent S 33,150,300 1 S 2,659_66 1 S 6,175483 S 9_14,192 S 9,933 $ 19,652 S 1,444,802 S 13 626971 4.3 Cost -of -Service Summary The results of the cost -of -service analysis and the allocation of the test year revenue requirement to AL&W's rate classes are presented in Table 4-4. The results are broken out into energy-related costs, expressed in both dollars and cents per kWh; peak demand -related costs, expressed in both dollars and cents per kW of system power supply billing demand per month; distribution -related costs, expressed in both dollars and dollars per kW of system power supply billing demand per month; and customer -related costs, expressed in dollars per customer per month. The total cost -of -'service is expressed in both dollars and cents per kWh. AL&W's rate revenue requirement of $33.2 million and the total projected system sales of 269,123 MWh translates to an average cost of 12.87¢/kWh. Table 4-4 also shows the net requirement of providing service to each class. For example, the cost allocated to the Residential Service rate class in FY 2018 totals $13.6 million. Based on the total energy sales from Residential Service customers of 90,736 NM, the base rate requirement to provide service to the Residential Service customer class is 15.69¢/kWh. Table 4-4 includes a Revenue Comparison that compares the net revenue requirement to the projected revenue that would be generated by current rates. This analysis indicates the extent to which the test year revenues generated from existing rates for each class would either exceed or fall short of the corresponding revenue requirement. The results show the current conditions of how revenues are generated in comparison to how costs are incurred among classes. For example, the Residential class is receiving the largest subsidy under current rates. Conversely, the Small Business class is recovering more cost than it has been allocated, and therefore, is subsidizing more cost than any other class. Since AL&W wants to continue providing low cost rates to the Residential class, no changes to current rates are recommended to mitigate this slight subsidization. UB -264 Table 4-4: Cost -of -Service Summary UB -265 Street lights Outdoor Municipal Total Small Medium large business (SLI, SIr2, lights (SLr2, Accounts Residential System business (G-1) business (Cr2) (T.O.U) SLA) OL) (MS) (D, WH/SH) S ummary of Cost of Service Energy Cost: Energy Sales (kWh) 257,637,730 19,687,000 52,584,000 86,896,000 36,000 90,000 11,481,000 86,863,730 Total Cost $16,685,815 $ 1,275,022 $ 3,405,584 $ 5,627,788 $ 2,332 $ 5,829 $ 743,563 $ 5,625,698 Dollars/kWh 0.06476 0.06476 0.06476 0.06476 0.06476 0.06476 0.06476 0.06476 Demand Cost (Peak): Contribution Coincident Peak (kW) 65,768 6,010 15,224 18,239 0 0 3,856 22,440 Total Cost $ 5,276,294 $ 482,192 $ 1,221,318 $ 1,463,231 $ - $ - $ 309,323 $ 1,800,231 $/kW -mo 6.69 6.69 6.69 6.69 0.00 0,00 6.69 6.69 Demand Cost (Distribution): Contribution Non -Coincident Peak ( 56,114 4,515 11,612 16,447 9 21 2,794 20,716 Total Cost $ 7,159,796 $ 576,031 $ 1,481,594 $ 2,098,595 $ 1,095 $ 2,739 $ 356,495 $ 2,643,248 $/kW -mo 10.63 10.63 10.63 10.63 10.63 10.63 10.63 10.63 Demand Cost (Total): Contribution Non -Coincident Peak 56,114 4,515 11,612 16,447 9 21 2,794 20,716 Total Cost $12,436,090 $ 1,058,222 $ 2,702,912 $ 3,561,826 $ 1,095 $ 2,739 $ 665,818 $ 4,443,478 $/kW -mo 18.47 19.53 19.40 18.05 10.63 10.63 19.86 17.87 Customer Service Cost: NumberofCustomers 16,677 1,353 278 34 54 46 147 14,765 Total Cost $ 4,028,394 $ 326,022 $ 66,988 $ 24,578 $ 6,506 $ 11,084 $ 35,422 $ 3,557,794 $/Customer/Month 20.13 20.08 20.08 60.24 10.04 20.08 20.08 20.08 Revenue Requirement Before Adjust $31150,300 $ 2.659.266 $ 6.175,483 $ 9.214.192 $ 9.933 $ 19,652 $ 1444 802 $ 13,626,971 Lighting Adjustment $ - $ 162 $ 33 $ 4 $ 367 $ (2,352) $ 18 S 1,768 Total Revenue Re uirernent (S) $33.150.300 $ 2.659.428 $ 6,175,517 $ 9.214.196 $ 10,300 $ 17,300 $ 1.444,820 $13,628 739 0.1287 0.1351 0.1174 0-1060 1 0,2861 0.1922 0.1258 01569 Total Revenue Requirement (S/kWh) Total Small Medium Large business (SLA, SL2, Lights (SL2, Accounts Residential System business (G-1) business (G-2) (T.O.U) SL3) OL) (M S) (D, WH/SH) Comparison of Revenues ($) Energy Sales - kWh 269,123,473 20.564,666 54,928,246 90,769,909 37,605 94,012 11,992,834 90,736-200 Revenue Requirement $33.150,300 $ 2.659.428 $ 6,175,517 $ 9.214.196 $ 10,300 $ 17.300 $ 1.444.820 $13.628.739 Revenue Generated By Edstine Rates $33.150,300 $ 3.111,000 $ 6,950,300 $ 10,145.800 $ 10,300 $ 17,300 $ 1,342,500 $11.573.100 Difference $ - $ (451,572) $ 774,783 $ (931,604 $ - $ $ 102,320 $ 2,055,639 Revenue Adjustment 0.00 % -14.52% -11.15%1 -9.18% 0.00% 0.00% 7.62 % 17.76 Com ,.. Comparison ofRe�enues ($/kWh) A".:.:.-:..:�.,. Revenue Re uirement $ 0.1287 $ 0.1351 $ 0.1174 $ 0.1060 S 0.2861 $ 0.1922 $ 0.1258 $ 0.1569 Revenue Generated By Existing Rates $ 0.1287 $ 0.1580 $ 0.1322 $ 0.1168 $ 0.2861 $ 0.1922 $ 0.1169 $ 0.1332 Difference $ $ 0.0229) $ 0.0147) $ (0.0107_) $ - $ - $ 0.0089 $ 0.0237 RevenueAd'ustment 0.00% -14,52% -11.15% -9.18% 0100% 0.00% 7,62% 17,76% UB -265 5.0 - RATE ANALYSIS UIQ -266 5.0 RATE ANALYSIS 5.1 Overview The third and final phase of the Study completed for AL&W was the rate analysis. The cost -of -service analysis described in Section 4.0 of this report served as one input into the rate analysis and rate recommendations. Input from AL&W was also taken into consideration in the development of the recommendations. As discussed in Section 3.0 of this report, the financial forecast indicated that AL&W is on sound financial footing and the periodic rate adjustment approach employed to date should sufficiently support the financial health of the utility moving forward. While no overall rate revenue adjustments are recommended for the utility, a discussion of the rates for each classification is presented below. 5.1.1 Rate Analysis Objectives The rate recommendations submitted to AL&W for consideration and adoption were developed in order to continue to meet the following electric utility rate criteria for service provided by municipally owned utilities: Electric rates should be based on a policy which calls for the lowest possible price consistent with meeting customer energy requirements, efficient and reliable operations, and sufficient cost recovery by AL&W to provide service. • Electric rates should be simple and understandable. ■ Electric rates should be equitable among classes of customers and individuals within classes, taking into consideration the cost -of -service analysis. ■ Electric rates should be designed to encourage the most efficient use of power and discourage unnecessary or wasteful use of electricity. Electric rates should comply with the applicable orders and requirements of local and state regulatory authorities that have jurisdiction. 5.2 Rate Classifications AL&W customers are charged based on their service application, overall monthly kWh energy consumption, and/or kW demand characteristics. AL&W serves the following customer classes: • Small Business — Schedule G-1 • Medium Business — Schedule G-2 • Large Business — Schedule GL, TOU UB -267 • Street Lights — Schedule SL -1, SL -2, SL -3 ■ Outdoor Lights — Schedule SL -2, OL • Municipal Accounts — Schedule MS • Residential — Schedule D, WH/SH AL&W also offers a Net Energy Metering tariff. The Net Energy Metering program offers eligible renewable energy generators compensation for net surplus energy injected into the system. No adjustment to the net energy metering tariff is proposed at this time. 5.2.1 Existing Rate Schedules Table 5-1 summarizes the current classes and associated charges. Table 5-1: Current Rate Classes and Structures Residential Service customers are billed a monthly basic charge on a $/month basis for electric service. Residential Service customers are not billed an unbundled monthly demand charge. Small and Medium Business customers are billed a monthly customer charge on a $/month basis for electric service. Energy usage is billed on an inclining block basis based on the deviation of current customer usage from a baseline. Small Business customers are not billed an unbundled monthly demand charge, while Medium Business customers are. The large Business non-TOU rate is similar to the Medium Business rate with the exception of the minimum charge and power factor adjustment. � 1 � Basic/Cust Charge Energy Usage Demand Charge NfiiuimumMonthly Charge Charge Small Business (G1) X X MediumBusiness (Cr2) X X X Large Busienss (Q.) X X X Large Business (TOU+D) X X X Street Lights (SL -1) X Street Lights & Outdoor Lights (SL -2) X Street Lights Customer Owned (SL -3) X Outdoor Lights (OL) X Municipal Accounts (M S) X X Residential (D) X X Residential (WH/SH) X X Residential Service customers are billed a monthly basic charge on a $/month basis for electric service. Residential Service customers are not billed an unbundled monthly demand charge. Small and Medium Business customers are billed a monthly customer charge on a $/month basis for electric service. Energy usage is billed on an inclining block basis based on the deviation of current customer usage from a baseline. Small Business customers are not billed an unbundled monthly demand charge, while Medium Business customers are. The large Business non-TOU rate is similar to the Medium Business rate with the exception of the minimum charge and power factor adjustment. � 1 � Table 5-2: Existing Residential Service Electric Rates Residential Summer Rates Winter Rates Customer Charge ($/month) Energy Charge (kWh) First 250 kWh All excess kWh $ 3.81 S - ' 1 Winter Rates S 0.1160 S 0.1160 S 0.1487 S 0.1487 Residential (WH/SH) .............. Summer Rates Summer Rates Customer Charge($/month) Energy Charge (kWh) 0-500 500+ Winter Rates Customer Charge ($/month) Energy Charge (kWh) First 250 kWh Allowance for water heating, per month 250 kWh Allowance for water heating, per month 550 kWh All excess kWh S 3.81 S 3.81 4: 0.1426 S 0.1160 S 0.1160 S 0.1160 S 0.1160 $ 0.1160 S 0.1160 S 0.1497 C 0 1497 Table 5-3: Existing Small Business Electric Rates ....... Small Business (GI) .............. Summer Rates Winter Rates Customer Charge($/month) Energy Charge (kWh) 0-500 500+ .96 S 6.96 '= 0.1740 4: 0.1426 Table 5-4: Existing Medium Business Electric Rates Medium Business (G2) Summer Rates Winter Rates c,u�wulci c.iai Sc Demand Charge First 20 KW or lessAdditional KW of demand Energy Charge (kWh) 0-500 500-4,500 4,500+ Minimum Monthly Charge (if bill does not exceed) S 8.39 S 8.39 S 0.1748 $ 0.1748 S 0.1539 S 0.1539 S 0.0950 $ 0.0950 $ 167.81 $ 167.81 Large Business TOU customers are billed a monthly customer charge on a $/month basis for electric service. Energy usage is billed on a TOU basis with varying rates during peak, mid -peak, and off-peak time periods, and include power factor adjustment charges. Billing demand is calculated on a TOU basis with varying rates during peak, mid -peak and off-peak time periods. Municipal Account customers are billed a monthly basic charge on a $/month basis for electric service. Energy usage is billed on a flat $/kWh rate, and are not billed an unbundled monthly demand charge. UB -269 AL&W offers Metered and Non -Metered Street Lighting, and Outdoor Lighting Service to individual customers and the City where it is economically feasible to serve. Customers are billed monthly for lighting service on either a $/lamp/mo. plus 0/kWh energy basis or simply a $/lamp/mo. basis if unmetered. In some cases, a Customer Service charge is applied to the bill on a $/month basis. Table 5-5: Existing Large Business TOU Electric Rates Large Business (TOU+D) Summer Rates Winter Rates Summer Rates 7.09 1 $ 7.09 Winter Rates Customer Charge ($/month) Demand Charge All kW of Max Demand, per kW (non -time related) On -Peak Mid -Peak Off -Peak Energy Charge (kWh) On -Peak Mid -Peak Off -Peak 42.15 S 42.15 $ 4.50 $ 4.50 S 7.51 $ - $ 1.31 $ 1.03 - S 0.1546 $ - $ 0.1044 $ 0.1194 S 0.0703 $ 0.0703 Table 5-6: Existing Municipal Accounts Electric Rates Municipal Accounts (MS) Summer Rates Winter Rates Customer Charge ($/month) Energy Charge (kWh) 7.09 1 $ 7.09 $ 0.1157 $ 0.1157 UB -270 Table 5-7: Existing Street Lighting and Outdoor Lighting Electric Rates Street Lights (SL -1 A kWh per Month Per Lamp per Month Incandescent 4,000 Lumen (300W) Mercury Vapor 7,000 Lumen (175W) 11,000 Lumen (250W) 20,000 Lumen (400W) I•ligh-Pressure Sodium 9,500 (100W) 9,500 Lumen (2-100W) 14.000 Lumen (150W - 14') 14,000 Lumen (150W - 28') 22,000 Lumen (220W) 22,500 Lumen (250W) $ 3.84 $ 0.1102 $ 104 $ 5.32 $ 29.23 $ A kWh per Month Per Lampper 60 $ 15.74 86 $ 20.32 138 $ 27.84 $ 20.19 $ 60 $ 15.74 86 $ 20.32 138 $ 35 $ 14.26 70 $ 32.11 52 $ 24.30 52 $ 29.00 76 $ 19.83 86 $ 21.22 Outdoor Lights SL -2 Summer Rates Winter Rates Customer Charge ($/month) Energy Charge (kWh) Incandescent 4,000 Lumen (300W) Mercury Vapor 7,000 Lumen (175W) 11,000 Lumen (250W) 20,000 Lumen (400W ) Flieh-Pressure Sodium 9,500 (100W) 22,000 Lumen (220W) 22,500 Lumen (250W) $ 3.84 $ 3.84 $ 0.1102 $ 0.1102 19.91 $ 29.23 $ A kWh per Month Per Lampper Month 104 $ 5.32 18.15 $ 20.19 $ 60 $ 15.74 86 $ 20.32 138 $ 27.84 35 $ 14.26 76 $ 19.83 86 $ 21.22 Outdoor Lights(SIA) Avg kWh per Month Per Lanipper Month Hieh-Pressure Sodium 9,500 (100W) 22,500 Lumen (250W) 35 $ 14.26 86 $ 21.22 Outdoor Lights(OL)_Fxistin Pole New Pole Mercury Vapor 7,000 Lumen (175W) 20,000 Lumen (400W) Hip -h -Pressure Sodium 9,500 (100W) _ 22,500 Lumen 250W) $ 16.01 $ 19.91 $ 29.23 $ 33.12 $ 14.26 $ 18.15 $ 20.19 $ 24.09 UB -271. 5.2.2 Proposed Rate Schedules As previously discussed, the financial forecast indicated that AL&W is on sound financial footing and the periodic rate adjustment approach employed to date should sufficiently support the financial health of the utility moving forward. Burns & McDonnell recommends AL&W take no action to raise additional revenue over and above monies generated by current rates. AL&W is maintaining adequate operating income and operating fund cash balances, meeting debt service coverage requirements, and generating sufficient rate base returns. However, Burns & McDonnell does recommend that minimal base rate adjustments be made, such that the fixed charge portion of residential and commercial rates are increased, and the variable, or energy, portion of the rate is decreased. These adjustments would keep rates revenue neutral. An increase in solar customers on the system and the increase in customers participating in net energy metering (NEM), fixed costs incurred by AL&W will not be sufficiently recovered under the existing rate structures. Increasing the fixed portion of the rates will help AL&W recover these fixed costs and maintain adequate levels of income from base rates. On average, customers will not see an increase in their monthly bills. Street Lighting, Outdoor Lighting and Municipal Account rates are recommended to remain the same. Table 5-8: Proposed Residential Service Electric Rates Residential D Summer Rates Winter Rates Customer Charge ($/month) Energy Charge (kWh) First 250 kWh All excess kWh $ 5.80 $ 5.80 10.00 S 0.1091 $ 0.1091 S 0.1487 S 0.1487 Residential WS Summer Rates Winter Rates Customer Charge ($/month) Energy Charge (kWh) 0-500 500+ 10.00 Customer Charge ($/month) Energy Charge (kWh) First 250 kWh Allowance for water heating, per month 250 kWh Allowance for water heating, per month 550 kWh All excess kWh $ 5.80 S 5.80 $ 0.1430 $ 0.1430 S 0.1091 S 0.1091 $ 0.1091 S 0.1091 S 0.1091 1S 0.1091 $ 0.1487 1 S 0.1487 Table 5-9: Proposed Small Business Electric Rates Small Business (Gl) Summer Rates Winter Rates Customer Charge ($/month) Energy Charge (kWh) 0-500 500+ 10.00 S 10.00 $ 0.1650 $ 0.1650 $ 0.1430 $ 0.1430 UB -272 2 Table 5-10: Proposed Medium Business Electric Rates Me(Hum Business (G2) Summer Rates Winter Rates Customer Charge ($/month) Demand Charge First 20 KW or less Additional KW of demand Energy Charge (kWh) 0-500 500-4,500 4,500+ MinimumMonthly Charge (if bill does not exceed) 42.15 S 42..15 S 4.50 S 4.50 S S - S 9.75 $ 9.75 S 0.1689 $ 0.17 $ 0.1498 $ 0.15 $ 0.0950 $ 0.10 $ 167.81 S 167.81 Table 5-11: Proposed Large Business TOU Electric Rates Large Business (TOU+D) Summer Rates Winter Rates Customer Charge ($/month) Demand Charge All kW of Max Demand, per kW (non -time related) On -Peak Mid -Peak Off -Peak Energy Charge (kWh) On -Peak Mid -Peak Off -Peak 42.15 S 42..15 S 4.50 S 4.50 S 7.51 S - S 1.31 S 1.03 S 0.1546 S S 0.1044 S0.1194 S 0.0703 S 0.0703 UB -273 6.0 - SUMMARY & RECOMMENDATIONS UB -274 6.0 SUMMARY & RECOMMENDATIONS 6.1 Summary This report described the approach and assumptions used to complete the Electric Cost of Service and Rate Design Study. The following is a summary of the results of the Study and Burns & McDonnell's recommendations for AL&W. The first phase of the Study completed for AL&W determined the test year net revenue requirement. In order to determine the test year net revenue requirement, a five-year financial forecast was developed to estimate the results from the electric operations of AL&W. Following the development of the financial forecast, a comparison of annual revenue and revenue requirements was completed to determine whether sufficient revenue would be available to cover projected operating and capital expenditures or if revenue adjustments would be required. This phase of the Study showed that AL&W is maintaining adequate operating income and operating fund cash balances, meeting debt service coverage requirements, and generating sufficient rate base returns. The development of the cost -of -service analysis followed the revenue requirements analysis. The cost -of - service analysis included the assignment, or unbundling, of the various costs included in the test year 2018 revenue requirement to AL&W's functional services. These unbundled cost components of the revenue requirement were then allocated to the various electric rate classifications to determine cost recovery requirements. The results of the cost -of -service analysis indicated some cross subsidization between the rate classes. The final phase of the Study was the rate analysis. As previously discussed, the financial forecast indicated that AL&W is on sound financial footing and the periodic rate adjustment approach employed to date should sufficiently support the financial health of the utility moving forward. Based on sufficient financial results and rate design constraints, moderate base rate adjustments are recommended while mainlining revenue neutrality among existing and proposed rates. 6.2 Recommendations Burns & McDonnell recommends a number of actions be taken by AL&W based on the analyses conducted during the Study. The Study recommendations are presented herein. • Based on the analysis completed and specific discussion regarding rates, Burns & McDonnell recommends AL&W take no action to raise additional revenue over and above monies generated by current rates. UB -275 • Burns & McDonnell recommends adjustments be made to rate structures by increasing the fixed charge portion of the rate and lowering the energy charge portion of the rate. These adjustments are revenue neutral for the system. • AL&W should consider reassessing the PCA to more closely reflect reductions in power supply costs. One approach may be to reassess the PCA base rate and adjust it if significantly different than one currently used. • AL&W should consider implementing the recommended time of use (TOU) seasonal rate adjustments to more accurately reflect time -based power supply costs incurred by the system. • AL&W may consider devising a modified TOU rate, and offer it as an option, whereby energy component of the rate would be closely linked to the ISO wholesale energy prices in the Los Angeles Basin. • Burns & McDonnell recommends consideration of additional rate options once the advanced metering infrastructure (AMI) program is completed and AL&W has a minimum of one year's worth of usage data on the system. • AL&W should continue to monitor their financial position and revisit a rate analysis in three to five years; or after the AMI system has been in place for at least one year. The City should monitor the financial position of AL&W, including adequacy of cost recovery and cash balances on an on-going basis to help ensure the utility continues to meet its financial requirements. Burns & McDonnell recommends the reexamination of the utility's financial plan, costs -of -service, and electric rates at most every five years. Reexamination of financial position and rates may have to be contemplated sooner or on more frequent bases when major capital infrastructure projects are contemplated and/or endeavored. UB -276 BURNS &MGDONNELL_ CREATE AMAZING. UB -277