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HomeMy WebLinkAboutCC Reso 2024-18 - Adopting Electric Utility Rate Schedule Adjustments RESOLUTION NO. 2024-18 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING ELECTRIC UTILITY RATE SCHEDULE ADJUSTMENTS COMMENCING JULY 1, 2024. WHEREAS: The City of Ukiah ("City") provides electric utility service 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 electric utility for more than 110 years and the electric rates are based on the cost to provide service; and I WHEREAS: Cost-of-service rates are established to provide Ukiah customers with power that includes generation, transmission, and distribution components; and WHEREAS: Borismetrics Consulting developed a proforma detailing the revenue requirements for Fiscal Years 2024-25, 2025-26, 2026-27, and 2027-28 with input from Staff; and WHEREAS: The revenue requirements detailed in the proforma show increases in the cost to provide the City with electric service; and WHEREAS: The fair and reasonable allocation of costs to provide electric service is required by California's Proposition 26, Article XIII-C, Section 1 of the California Constitution and the proforma ensures that the proposed electric rates comply with California's Proposition 26; 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 June 7, 2023, 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: The City Manager and Staff recommend implementing the proposed increases, starting in July 2024 as shown in Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah determines that each of the findings set forth above is true and correct. BE IT FURTHER RESOLVED that the City Council of the City of Ukiah hereby adopts the Proposed Electric Rates, as set forth in Exhibit A and that these rates shall be effective the first billing cycle of July 2024, unless otherwise ordered by the City Council on May 15, 2024. All prior rate schedules in conflict herewith are repealed upon the effective date of the new schedule.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 City Council action on May 15, 2024, 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 151"day of May 2024, by the following roll call vote: Page 1 of 7 AYES: Councilmembers Rodin, Orozco, Sher, Crane, and Mayor Duenas NOES: None ABSENT: None ABSTAIN: None Jos 'fin Due as, m1yor ATTEST: r�,'z � Kristine Lawler, City Clerk Page 2 of 7 Exhibit A City of Ukiah Electric Rates Residential Service Electric Rate E1, E2* Residential Electric Service E1, E2* Energy Charge$/kWh Monthly Fixed Charge by kWh level Minimum Rate Effective Date kWh less kWh equal to Less than 201-550 GreaterMinimum or greater than 550 than Baseline 200kWh kWh per Monthly than Baseline kWh per $/kWh $/kWh permon[h month month Charge July 1,2024 $0.21070 $0.27618 $4.88 $7.57 $11.11 $5.00 January 1,2025 $0.22610 $0.29636 $5.32 $8.43 $13.46 $5.00 July 1,2025 $0.24150 $0.31655 $5.80 $9.40 $16.31 $5.00 January 1,2026 $0.25790 $0.33804 $6.32 $10.47 $19.76 $5.00 January 1,2027 $0.27380 $0.35888 $6.88 $11.67 $23.94 $5.00 January 1,2028 $0.29100 1 $0.38143 $7.50 1 $13.00 1 $29.00 $5.00 BASELINE QUANTITIES (kWh PER MONTH) WINTER SUMMER (Nov 1-Apr 30) (May 1-Oct 31) Basic Service (E1) 360 360 All Electric E2* 660 360 This rate schedule is applicable to residential electric service. Other rate discounts and or adjustments to baseline quantities for various programs, such as but not exclusive of senior and life support will remain the same. The minimum charge will be billed if the sum of the basic and the energy charges are less than the minimum charge amount. *All Electric Rate E2 was closed to new customers effective 1/1/2017. Current customers will be allowed to stay on the rate no matter how they qualified. Small Commercial Service Electric Rate E5 E6 C5 C6 E55 This rate schedule is applicable to general commercial and non-commercial residential lighting, heating and all single phase (E5) and three phase (E6) alternating current loads in which energy use is less than 144,000 kWh per meter for 12 consecutive months. This schedule will not be applicable to commercial uses permitted by the City under a Home Occupation Permit. Small Commercial Electric Service Rate E5, E6, C5, C60 ESS Energy Charge$/kWh Monthly Fixed Charge$ Effective Date Winter Summer E5/CS E6/C6 E55 Single Phase Poly Phase Extra Meter July 1,2024 $0.23010 $0,28616 $26.39 $28.09 $26.39 January 1,2025 $0.24736 $0.30762 $28.37 $30.19 $28.37 July 1,2025 $0.26467 $0.32915 $30.35 $32.31 $30.35 January 1,2026 $0.28320 $0.35219 $32.48 $34.57 $32.48 January 1,2027 $0.30161 $0.37508 $34.59 $36.82 $34.59 January 1,2028 $0.32121 $0.39946 $36.84 $39.21 $36.84 WINTER(Nov 1—Apr 30) SUMMER (May 1—Oct 31) Medium/Large Commercial Service with Demand Electric Rate E7, C7 This rate is applicable to commercial and non-residential lighting, heating, and all single phase and three phase loads in which energy use is 144,000 kWh or greater per meter for 12 consecutive months. The customer bill will consist of a basic month charge, energy and demand charges. Demand Charge The customer will be billed for demand according to the customer's"maximum kilowatt demand" each month. The number of kilowatt (kW) used will be recorded over 15-m in u t e intervals: the highest 15-minute average kW use in the month will be the customer's maximum demand. Medium/Large Commercial Electric Service with Demand Rate E7, C7 Effective Date Energy Charge$/kWh Demand Charge$/kW Monthly Fixed Winter Summer Winter Summer Charge July 1,2024 $0.16055 $0.19266 $9.05 $11.94 $210.73 January 1,2025 $0.17259 $0.20711 $9.73 $12.83 $226.53 July 1,2025 $0.18467 $0.22161 $10.41 $13.73 $242.39 January 1,2026 $0.19760 $0.23712 $11.14 $14.69 $259.35 January 1,2027 $0.21044 $0,25253 $11.86 $15.64 $276.21 January 1,2028 1 $0.22412 $0.26895 1 $12.63 $16.66 $294.17 WINTER(Nov 1—Apr 30) SUMMER(May 1—Oct 31) Industrial Service with Demand Electric Rate 11 This schedule is applicable to large industrial production, lighting, heating and all single and three phase loads in which energy use is an average of 75,000 kWh monthly or greater with a demand of 200 kW monthly or greater for at least six consecutive months (multiple meters at a single location will be combined). The Industrial rate is applicable to large manufacturing facilities, defined as businesses or corporations that produce products for either wholesale or retail sales or businesses that contract to fulfill obligations to produce specific components. Demand Charge The customer will be billed for demand according to the customer's "maximum kilowatt demand" each month. The number of kilowatt (kW) used will be recorded over 15- m i n u t e intervals: the highest 15-minute average kW use in the month will be the customer's maximum demand. Industrial Electric Service with Demand 11 Effective Date Energy Charge$/kWh Demand Charge$/kW Monthly Fixed Winter Summer Winter Summer Charge July 1,2024 $0.12380 $0.16251 $8.35 $11.59 $236.11 January 1,2025 $0.13309 $0,17470 $8.98 $12.46 $253.82 July 1,2025 $0.14240 $0.18693 $9.60 $13.33 $271.59 January 1,2026 $0.15237 $0.20002 $10.28 $14.26 $290.60 January 1,2027 $0.16227 $0.21302 $10.94 $15.19 $309.49 January 1,2028 $0.17282 $0.22686 $11.65 $16.18 $329.61 WINTER (Nov 1—Apr 30) SUMMER(May 1—Oct 31)