HomeMy WebLinkAboutCC Reso 2022-08 - Adopting Eletric Utility Rate Schedule RESOLUTION NO. 2022-08
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING ELECTRIC
UTILITY RATE SCHEDULE ADJUSTMENTS FOR FIVE-YEAR PERIOD COMMENCING
APRIL 1, 2022.
WHEREAS: The City of Ukiah ("City") provides electric utility services to residents and
businesses in the City and Ukiah Electric Utility is the City's publicly owned electric utility with
the City Council providing local governance and oversight; and
WHEREAS: The City has operated the municipal utility for more than 110 years and the
electric rates are based on the cost to provide service; and
WHEREAS: The electric energy costs for the citizens of Ukiah are significantly lower than
what others pay in Mendocino county; and
WHEREAS: In accordance with the Ukiah City Code Division 4, Chapter 6, Sections 3950
through 3957, the City Council will hold a public hearing on February 2, 2022, to receive the
City Manager's Report on electric utility energy rates and consider adoption by resolution of
proposed electric rate increases. legal notices were published successfully in accordance
with City Code section 3953; and
WHEREAS: Since 2017, the electric utility has experienced cost pressures brought upon by
fire mitigation efforts, increased energy and transmission costs, accelerated capital
undergrounding projects, and Inflation. During this period of accelerated system investment,
reserves have been reduced to $3.6 million, with a target reserve of$6.5 to $7.5 million; and
WHEREAS: The electric utility continues to face increasing cost pressures due an inflationary
climate coupled with accelerated capital improvement and maintenance efforts to continue fire
mitigation work, undergrounding of facilities, and maintenance of the system to improve
resiliency; and
WHEREAS: To meet these challenges and increase the cash reserve to acceptable levels, a
phased rate Increase over five years will be implemented. Five rate adjustments will be
implemented starting on April 1, 2022, with four remaining rate changes that will be
implemented every year on April 1st through 2026. Under California Proposition 26, court
rulings have indicated that electric rates must meet cost of service requirements. A cost of
service of the electric rate classes shows that the phased approach of the across-the-board
rate increases will meet Proposition 26 requirements; and
WHEREAS: Customers desire to reduce their greenhouse gas emissions and purchase
100%green energy, the Ukiah 100% Green Energy Rate is being established. The utility will
procure, on the customer's behalf, renewable energy resources to match the customer's
monthly energy consumption. The Ukiah 100% Green Energy Rate will be available to all
customers for an additional 2.021 cents per kilowatt hour; and
WHEREAS: The City Manager, staff and the Electric Rate Ad-Hoc committee recommend
proceeding with proposed electric rate adjustments outlined on Attachment 5 of the City
Manager's Report (Exhibit A); and
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WHEREAS: Beginning with the April 1, 2022, rate adjustment and in April every year
thereafter, the Electric Department shall conduct a review of the rates to determine whether
the annual adjustments adequately account for the actual increases or decreases of the
Utility's reasonable operating costs.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah hereby
adopts the Proposed Electric Rates, as set forth in Exhibit A.
BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be
effective on April 1, 2022, unless otherwise ordered by the City Council on February 2, 2022.
All prior rate schedules in conflict herewith are repealed upon the effective date of the new
schedule. All other contract conditions for service remain unaltered and in full effect and the
City Clerk shall cause the publication of this resolution in the Ukiah Daily Journal within 10
days following Council action on February 2,2022, pursuant to the provisions of Section 3957
of the Ukiah City Code.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the
2nd day of February 2022, by the following roll call vote:
AYES: Councilmembers Orozco, Crane, Rodin, Duenas, and Mayor Brown
NOES: None
ABSENT: None
ABSTAIN: None
Jim . Brown, Mayor
ATTEST:
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Kristine Lawler, City Clerk
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EXHIBIT A
City of Ukiah Electric Rates
Residential Service Electric Rate E1, E2*
Residential Service Electric Rate E1, E2*
Energy kWh Charge Monthly Fixed Charge-per KWH level
Rate Mimimun
Rate Year effective Kwh less than kWh equal to or Less than 201-550 Greater than
Greater than monthly
date Baseline Baseline 200 kWh per kWh per 550 kWh per charge
($/kWh) ($/kWh) month month month
1 April1,2022 $0.14797 $0.19395 $1.00 $1.75 $2.75 $5.00
2 April 1,2023 $0.16009 $0.20983 $2.00 $3.19 $4.56 $5.00
3 April 1,2024 $0.17344 $0.22733 $3.00 $4.63 $6.38 $5.00
4 April 1,2025 $0.18837 $0.24691 $4.00 $6.06 $8.19 $5.00
5 April 1,2026 $0.20493 $0.26861 $5.00 $7.50 $10.00 $5.00
(The amended rates will apply to the first full month's consumption following the rate's effective date)
BASELINE QUANTITIES (kWh PER MONTH)
WINTER SUMMER
(Nov 1-Apr 30) (May 1 -Oct 31)
Basic Service (E1) 360 360
All Electric E2* 660 360
*All Electric Rate E2 was closed to new customers effective 1/1/2017. Current customers will
be allowed to stay on the rate no matter how they qualified. Other rate discounts and or
adjustments to baseline quantities for various programs such as but not exclusive of senior and
life support will remain the same. The minimum charge will be billed if the sum of the basic and
the energy charges are less than the minimum charge amount.
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City of Ukiah Electric Rates
Small Commercial Service Electric Rate E5, E6, C5, C6
This rate schedule is applicable to general commercial and non-commercial residential lighting,
heating and all single phase and three phase alternating current loads in which energy use is
less that 144,000 kWh per meter for 12 consecutive months. This schedule will not be
applicable to commercial uses permitted by the City under a Home Occupation Permit.
Small Commercial Service Electric Rate E5, E6, C5, C6
Energy Charge ($/kWh) Monthly fixed charge ($)
Rate
Rate Year effective
date Winter Summer E5/C5 E6/C6
1 April 1, 2022 $0.16090 $0.20010 $15.50 $16.50
2 April1,2023 $0.17619 $0.21911 $17.21 $18.32
3 April1,2024 $0.19292 $0.23992 $19.10 $20.33
4 April 1, 2025 $0.21125 $0.26272 $20.91 $22.26
5 April 1, 2026 $0.23132 $0.28768 $22.90 $24.38
WINTER (Nov 1—Apr 30)
SUMMER (May 1 —Oct 31)
*New electric accounts with intermittent loads (used infrequently) and disconnected within
the last 12 months shall be charged $50 in addition to all other new account fees
P age 215
City of Ukiah Electric Rates
Medium/Large Commercial Service with Demand Electric Rate E7, C7
This rate is applicable to commercial and non-residential lighting, heating, and all single
phase and three phase loads in which energy use is 144,000 kWh or greater per meter for
12 consecutive months. The customer bill will consist of a basic month charge, energy and
demand charges.
Demand Charge
The customer will be billed for demand according to the customer's "maximum kilowatt
demand" each month. The number of kilowatt (kW) used will be recorded over
15- m i n u t e intervals: the highest 15-minute average kW use in the month will be the
customer's maximum demand.
Medium/Large Commercial Service with Demand Electric Rate E7, C7
Energy Charge ($/kWh) Demand Charge($/kW)
Rate Monthly
Rate Year effective Fixed Charge
date Winter Summer Winter Summer M
1 April 1,2022 $0.11139 $0.13834 $5.48 $8.10 $114.62
2 April 1,2023 $0.12108 $0.15037 $6.42 $8.85 $137.54
3 April1,2024 $0.13260 $0.16470 $7.03 $9.69 $150.61
4 April 1,2025 $0.14520 $0.18030 $7.70 $10.61 $164.92
5 April 1,2026 $0.15900 $0.19740 $8.43 $11.62 $180.59
WINTER (Nov 1—Apr 30)
SUMMER (May 1 —Oct 31)
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City of Ukiah Electric Rates
Industrial Service with Demand Electric Rate 11
This schedule is applicable to large industrial production, lighting, heating and all single and
three phase loads in which energy use is an average of 75,000 kWh monthly or greater
with a demand of 200 kW monthly or greater for at least six consecutive months (multiple
meters at a single location will be combined).
The Industrial rate is applicable to large manufacturing facilities, defined as businesses or
corporations that produce products for either wholesale or retail sales or businesses that
contract to fulfill obligations to produce specific components.
Demand Charge
The customer will be billed for demand according to the customer's "maximum kilowatt
demand" each month. The number of kilowatt (kW) used will be recorded over
15- m i n u t e intervals: the highest 15-minute average kW use in the month will be the
customer's maximum demand.
Industrial Service with Demand Electric Rate 11 (Replaces El Rate)
Energy Charge ($/kWh) Demand Charge($/kW)
Rate Monthly
Rate Year effective Fixed Charge
date Winter Summer Winter Summer ($)
1 April 1,2022 $0.08608 $0.11300 $5.29 $8.10 $143.27
2 April 1,2023 $0.09426 $0.12374 $5.92 $8.83 $179.09
3 April1,2024 $0.10320 $0.13550 $6.48 $9.67 $196.10
4 April 1,2025 $0.11300 $0.14840 $7.10 $10.59 $214.73
5 April 1,2026 $0.12370 $0.16250 $7.77 $11.60 $235.13
WINTER (Nov 1—Apr 30)
SUMMER (May 1 —Oct 31)
P a g e 4 1 5
City of Ukiah Electric Rates
Ukiah Green Energy Program
For customers wishing to promote the development and use of renewable energy; the City
of Ukiah offers a 100 % Green electric rate. This rate is available to all Ukiah electric
customers.
The City will procure, on the customer's behalf, Renewable Energy to match the customer's
monthly energy consumption. Customers choosing the Green Rate will incur an additional
2.021 cents per kWh for every kWh consumed during the billing period. The 100% Green
Rate will be updated yearly and will be based on renewable energy cost, delivery costs and
imposed fees. Customers may opt into the program anytime and may opt out any time
after the second complete billing cycle on the program.
100% Green Energy Rate
Program: Ukiah Green Energy Rate: Billing Period:
Ukiah Green Energy 0.02021 per kWh Monthly
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