HomeMy WebLinkAboutMin 04-03-96(1) CITY OF UKIAH
CITY COUNCIL MINUTES
Regular Adjourned Meeting
COUNCIL WORKSHOP REGARDING ELECTRIC UTILITY
April 3, 1996
5:30 p.m.
The City Council convened at 5:31 p.m., in a regular meeting, of
which the agenda was legally noticed and posted, in the Ukiah Civic
Center Council Chambers, 300 Seminary Drive, Ukiah, California. Roll
was taken and the following Councilmembers were present: Mastin,
Malone, Wattenburger, and Mayor Schneiter. Councilmember Shoemaker
was absent at roll call. Councilmember Shoemaker then joined the
meeting at 5:34 p.m. Staff present: City Clerk McKay, City Manager
Horsley, Public Utility Director Barnes, Electric Supervisor
Bartolomei, Electrical Distribution Engineer Wobig, Electrical
Technician Yoast, Water/Sewer Operations Superintendent Borecky,
Engineering Technician Kaye, Finance Director Elton, Assistant to the
City Manager Harris, and Assoc. Civil Engineer Woods.
AUDIENCE COMMENTS ON NON-AGENDA ITEMS - No one came forward.
NEW BUSINESS
3a. Council Workshop Regarding Electric Utility Industry
Restructuring and Its Relationship to the City of Ukiah Electric
Utility
The Public Utility Director Barnes presented overhead slides and
information to Council regarding electric retail wheeling, direct
access and the recent deregulation of the electric industry. He
addressed issues surrounding restructuring, transition charges, the
process of deregulation, and the challenges in the coming competitive
market. He reported on how stranded costs will affect us and outlined
the total debt and noted areas that are risk.
Council queried staff regarding electric markets, stranded costs of
investments recovery by 2005, independent power companies, transition
charges of the CTC, declining future revenues, the City's electric
utility total debt of $79,309,740, and potential consequences if
defaults occur.
The Public Utility Director continued with his presentation regarding
debt, revenue projections, power sales prices, generation and
transmission costs, upgrades, system O & M, distribution overhead
costs, interdepartmental charges, total costs, systems costs,
potential aggregating of retail stores within Ukiah, and possible
competitive strategies.
Peter Caden, PG&E District Representative, stated PG&E has been
preparing for this deregulation, the past 5 years. He explained it
started in 1990's with the California recessions and energy costs
were high. He spoke to issues such as the Federal regulation process
is too long, gas competition is needing fast decisions, and that
this deregulation presents a wide open field, and everyone is going
through this process. He agreed with the Public Utility Director that
there is a need to be customer focused.
Mayor Schneiter questioned Mr. Caden regarding large companies.
Mr. Caden explained that the utilities and independent power
producers are ready to sign up large users, and the political
process is still in the formation stage as there are pending bills
in the legislature, and agreed that service areas are threatened.
Council expressed their appreciation to the Public Utility Director
for his informative presentation and noted we should keep abreast of
this issue. There being no further business, the meeting was
adjourned at 6:31 p.m.
Cathy MoK~y'~MO/A~, City Clerk
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391
Reg. Adj. Mtg.
April 3, 1996
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