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RES-2011-164 RESOLUTION NO. 2011 -164 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING RULE NO. 26 OF THE ELECTRIC RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF ELECTRICITY AS ADOPTED BY RESOLUTION NO. 71R -478 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2010 -196. WHEREAS, the City of Anaheim ( "Anaheim ") maintains an electric generation and distribution system for the furnishing of electricity to residents and businesses of the City of Anaheim and has adopted Electric Rates, Rules and Regulations for the sale and distribution of electricity; and WHEREAS, the Anaheim Municipal Code authorizes the City Council to approve reasonable Rates, Rules and Regulations governing electric services and fees and charges for providing electric services; and WHEREAS, Anaheim established various rules of the Electric Rates, Rules and Regulations for that purpose; and WHEREAS, the Anaheim Public Utilities Department offers programs in the areas of energy efficiency; low- income services and rate discounts; research, development and demonstration programs; and renewable resources. All public utilities in California are required to offer these programs, which are collectively referred to as Public Benefit Programs. The Income - Qualified Senior /Long -Term Disabled Energy Discount Program is one of the programs adopted by the City Council in the area of low- income rate discounts; and WHEREAS, the Rule 26 Income - Qualified Senior /Long -Term Disabled Energy Discount Program ( "Program ") provides a ten percent (10 %) discount on residential electric charges for income - qualified senior and long -term disabled customers of Anaheim Public Utilities and sunsets on January 1, 2012; and WHEREAS, the Public Utilities Department is proposing that this Program continue to be made available to eligible customers by eliminating the sunset date and by clarifying the language in the Rule 26 currently in effect; and WHEREAS, the Public Utilities Board considered the proposal of the Public Utilities Department and made the following findings with respect to the need for the proposed modifications to the Electric Rates, Rules and Regulations: 1. It is reasonable and appropriate to modify Rule No. 26 as set forth in Attachment A in order to clarify and update the Rule; and 2. It is reasonable and appropriate that this Program will remain in effect until terminated by the City Council; and WHEREAS, the Public Utilities Board considered the requirements of the California Environmental Quality Act and found that matters covered above come within Section 21080(b)(8) of the Public Resources Code of the State of California. Thus, the modifications to Rule No. 26 of the Electric Rates, Rules and Regulations are statutorily exempt from the California Environmental Quality Act; and WHEREAS, based on the findings hereinabove made, the Public Utilities Board of the City of Anaheim recommends to the City Council that the City Council adopt the findings of the Public Utilities Board with respect to the matters contained herein and adopt the modifications to the Electric Rates, Rules and Regulations as reflected in Attachment A; and WHEREAS, based on the finding hereinabove made, the Public Utilities Board of the City of Anaheim recommends to the City Council that the City Council, by Motion, certify that the modifications to the Electric Rates, Rules and Regulations are statutorily exempt under the California Environmental Quality Act, Public Resource Code, Section 21080(b)(8), in accordance with Title 14 of the California Administrative Code, Section 15273(a); and WHEREAS, the City Council has considered the evidence and concurs with the findings of the Public Utilities Board as set forth herein above. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim as follows: 1. The findings set forth herein are hereby adopted by the City Council of the City of Anaheim. 2. The modifications to Rule No. 26 of the Electric Rates, Rules and Regulations as set forth in Attachment A, shall be, and are hereby adopted by the City Council of the City of Anaheim effective December 15, 2011. 3. The Public Utilities General Manager is authorized and directed to prepare, promulgate, publish, and take any and all actions necessary to implement the changes to the Electric Rates, Rules and Regulations as set forth herein. /// /// /// THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 6th day of December , 2011, by the following roll call vote: AYES: Mayor Tait, Council Members Sidhu, Eastman, Galloway and Murray NOES: NONE ABSENT: NONE ABSTAIN: NONE CITY OF ANAHEIM MA OR OF T E CI Y OF ANAHEIM ATTEST: �i'A ' -ice` C CLERK O 1 TY OF ' NAHEIM 87331.1 ATTACHMENT A Electric Rates, Rules and Regulations Rule No. 26 87331.1 CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.26.1 Anaheim, CA 92805 RULE NO. 26 ENERGY DISCOUNT FOR INCOME - QUALIFIED SENIOR OR INCOME - QUALIFIED LONG -TERM DISABLED CUSTOMERS A. GENERAL Anaheim Public Utilities offers programs in the areas of energy efficiency; low- income services and rate discounts; research, development and demonstration programs; and renewable resources. All public utilities in California are required to offer these programs, which are collectively referred to as Public Benefit Programs. The Income - Qualified Senior /Long -Term Disabled Energy Discount Program is one of the programs adopted by the City Council in the area of low- income rate discounts. The Income - Qualified Senior /Long -Term Disabled Energy Discount Program provides a 10% discount on residential electric charges for income - qualified senior and long -term disabled customers of Anaheim Public Utilities, as set forth in Sections B and E. This program will remain in effect until terminated by the City Council. B. TERMS OF THE AGREEMENT - QUALIFICATIONS To receive the assistance as an income - qualified senior, the customer shall meet the following guidelines: 1. Have an annual household income level of 80% or less of the Orange County median, according to the annual Housing and Urban Development Section 8 income guidelines. 2. Be at least 62 years of age as demonstrated by submitting a copy of state identification. 3. Be an Anaheim residential electric customer of record or submetered master - metered customer. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 2005 -147 Dated: 07 -26 -05 General Manager CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.26.2 Anaheim, CA 92805 RULE NO. 26 ENERGY DISCOUNT FOR INCOME - OUALIFIED SENIOR OR INCOME - QUALIFIED LONG -TERM DISABLED CUSTOMERS To receive the assistance as an income - qualified long -term disabled customer, the following guidelines must be met: 1. Have an annual household income level of 80% or less of the Orange County median, according to the annual Housing and Urban Development Section 8 income guidelines. 2. Submit Social Security Supplement to Income (SSI) documentation or a letter from a physician. 3. Be an Anaheim residential electric customer of record or submetered master - metered customer. C. ADJUSTMENT OF ELECTRIC BILLS Income - qualified senior and long -term disabled residential electric customers will receive an electric discount of 10% on their residential electric charge. For the purpose of this Rule, the electric charge includes the customer charge and the energy charges. The discount shall appear as a line item on the customers' bills. The discount shall be calculated separately for each customer individually metered by Anaheim Public Utilities, based upon the electric charge. Master - metered Anaheim electric customers that provide electric sub - metering to qualified tenants are also eligible for the electric discount. The master - metered customer shall be issued a flat discount amount equal to 10% of the average low- income, senior electric charge. This will be multiplied by the number of income- qualified senior and long -term disabled tenants who are submetered to the master meter. D. TERMINATION OF BILLING DISCOUNT Once instituted, the discount shall remain in effect until one of the following occurs: 1. The annual household income of the income - qualifying senior or long -term disabled person exceeds 80% of the Orange County median. 2. For individually metered accounts, the income - qualifying senior or long -term disabled person is no longer named on the account. 3. For master - metered accounts, the income - qualifying senior or long -term disabled person is no longer named as the tenant. 4. The Public Benefit Programs funds are exhausted. 5. The Income - Qualified Senior /Long -term Disabled Energy Discount Program is terminated for any reason by the City Council. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 2005 -147 Dated: 07 -26 -05 General Manager CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.26.3 Anaheim, CA 92805 RULE NO. 26 ENERGY DISCOUNT FOR INCOME - OUALIFIED SENIOR OR INCOME - QUALIFIED LONG -TERM DISABLED CUSTOMERS E. BILLING DISCOUNT 1. Income - qualified senior and long -term disabled customers who are individually metered by Anaheim Public Utilities will receive a 10% discount applied to the total electric charge on their bill, including the customer charge and total kWh charges, as shown in the following formula: Total customer and kWh charges X .10 = Electric Discount 2. Master - metered Anaheim electric customers that provide electric sub - metering and issue electric bills to their tenants shall be issued a flat monthly discount for their income - qualifying senior and long -term disabled tenants using the following formula: Number of income - qualified senior and long -term disabled tenants X Average* senior and long -term disabled electric bill X .10 = Flat Monthly Electric Discount *The average income - qualified senior or long -term disabled bill shall be calculated from the previous year's average electric charges for a random sample of 500 income - qualified senior and long -term disabled customers (conducted every three years) as described in E 1 above. The master - metered Anaheim electric customer shall pass this savings directly to the income- qualified senior and long -term disabled tenants. 3. The master - metered customer shall maintain records of proof of payment of customer credits to tenants. The receipts are subject to periodic review and audit by the utility. Credits that are misappropriated are subject to recapture by the utility. ISSUED BY: Effective: by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 2005 -147 Dated: 07 -26 -05 General Manager