RES-2013-114 RESOLUTION NO. 2013 -114
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM MODIFYING THE ELECTRIC RATES, RULES
AND REGULATIONS BY MODIFYING RULE NOS. 6 AND 7
FOR THE SALE AND DISTRIBUTION OF ELECTRICITY AS
ADOPTED BY RESOLUTION NO. 71R -478 AND MOST
RECENTLY AMENDED BY RESOLUTION NO. 2013 -002.
WHEREAS, the City of Anaheim ( "Anaheim ") maintains an electric generation
and distribution system for the furnishing of electricity to residents and businesses 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 for providing
electric services; and
WHEREAS, Anaheim established various rules of the Rates, Rules and
Regulations for these purposes; and
WHEREAS, the Anaheim Public Utilities Department ( "Department ") is a
publicly owned utility, but nonetheless strives to operate like a business and continuously seeks
opportunities to minimize administrative and fiscal burdens while remaining in a position to
maintain service reliability and high industry standards; and
WHEREAS, the Anaheim Regulatory Relief Task Force was charged with
reviewing the regulatory burden on existing and prospective business in Anaheim and making
recommendations that help foster more freedom for Anaheim's businesses community
( "Anaheim's Regulatory Relief Initiative "); and
WHEREAS, in support of the Anaheim Regulatory Relief Initiative, to provide
regulatory relief to utility customers under certain specific circumstances, and to clarify and
update language, Department staff reviewed and recommends modifications to Rule Nos. 6 and 7
of the Electric Rates, Rules and Regulations to (i) allow installment arrangements on service
deposits; and (ii) add clarifying language and delete obsolete language; and
WHEREAS, the Public Utilities Board of the City of Anaheim ( "Public Utilities
Board ") considered the proposal of Anaheim's Public Utilities Department and made the
following findings with respect to the need for the proposed modification to the Electric Rates,
Rules and Regulations: it is reasonable and appropriate to modify Rule Nos. 6 and 7 as set forth
in Attachment A in order to further Anaheim's Regulatory Relief Initiative and clarify and
update Rule Nos. 6 and 7; and
WHEREAS, the Public Utilities Board considered the requirements of the
California Environmental Quality Act (CEQA) and found that matters covered above come
within Section 15061(b)(3) of Title 14 of the California Administrative Code. Thus, the
proposed modification of the Electric Rates, Rules and Regulations Rule Nos. 6 and 7 are
exempt from CEQA; and
WHEREAS, based on the findings hereinabove made, the Public Utilities Board
recommended to the City Council that the City Council adopt the findings of the Public Utilities
Board with respect to the matters contained herein and modify Rule Nos. 6 and 7 as shown in
Attachment A; and
WHEREAS, based on the findings hereinabove made, the Public Utilities Board
recommended to the City Council that the City Council certify that the modification of Rule Nos.
6 and 7 of the Electric Rates, Rules and Regulations is exempt under CEQA, in accordance with
Title 14 of the California Administrative Code, Section 15061(b)(3), because it can be seen with
certainty that there is no possibility that Rule Nos. 6 and 7 will have a significant effect on the
environment; 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 City Council of the City of Anaheim hereby determines, finds, and
certifies that, in accordance with CEQA and the State CEQA Guidelines, the modification of
Rule Nos. 6 and 7 of the Electric Rates, Rules and Regulations by the City Council is exempt
from CEQA pursuant to Title 14 of the California Administrative Code, Section 15061(b)(3),
because it can be seen with certainty that there is no possibility that Rule Nos. 6 and 7 will have
a significant effect on the environment as the changes are exclusively being made to clarify
language and to pro vide service deposits to the Department's customers.
3. The modifications to Rule Nos. 6 and 7 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 August 1, 2013.
4. The Anaheim 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.
2
THE FOREGOING RESOLUTION is approved and adopted by the City Council
of the City of Anaheim this 23rd day of July , 2013, by the
following roll call vote:
AYES: Mayor Tait, Council Members Eastman, Murray, Brandman and Kring
NOES: None
ABSENT: None
ABSTAIN: None
CITY OF ANAHEIM
( 1
MAYOR OF THE CITY OF ANAHEIM
ATTEST:
p yytak n vi ,
CITY CLERK OF THE CITY OF A AHEIM
96252
3
Attachment A
Rule Nos. 6 and 7 of the
Electric Rates, Rules and Regulations
4
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd. Page No. 3.6.1
Anaheim, CA 92805
RULE NO. 6
ESTABLISHMENT AND REESTABLISHMENT OF CREDIT
A. ESTABLISHMENT OF CREDITWORTHINESS
1. Creditworthiness and Service Deposit. Prior to receiving electrical service from the Utility, each
Applicant, including Applicants who will obtain their electric power and ancillary services from an
Energy Service Provider, must be creditworthy or furnish a deposit to secure payment. An
Applicant is creditworthy if, within the previous twelve (12) months, Applicant has maintained a
record of paying utility bills before becoming past due in the same Applicant's name for a
minimum of twelve (12) consecutive months.
In the alternative, an Applicant who has been a Customer of the Utility may establish
creditworthiness if Applicant establishes all of the following:
(a) Applicant was a Customer for a similar type of service within the past two years;
(b) The billing amount of the previous electric service equals 50% or more of the estimated
billing amount for the new service;
(c) The previous electric service was not disconnected due to non - payment or Diversion (as
defined below);
(d) The previous electric service had not been disconnected by the Utility during the last
twelve (12) months for nonpayment; or the previous electric service had not been
disconnected by the Utility during the last two (2) consecutive annual billing periods (as
defined in Rule No. 7) for nonpayment; and
(e) Any related closing bill was paid within 30 days of the date of issuance.
If Applicant fails to establish creditworthiness in the manner set forth above, Applicant shall
provide the Utility with a service deposit to secure payment for electric service. As set forth in
Rule No. 7 -E, Customers requiring assistance with the payment of a service deposit may request an
extended payment plan to make the required payments to establish or reestablish service.
2. Diversion. If Applicant has committed any form of Diversion (as defined below), the Utility may
require a deposit, and this deposit shall be referred to herein as the Diversion Deposit. For this
rule and Rule No. 7, Diversion shall mean any activity described in California Penal Code section
498(b), as may be amended from time to time. This security shall be in the form of cash,
certificate of deposit, or irrevocable letter of credit, and the amount of this security shall equal that
amount prescribed in Rule No. 7 -B. The Diversion Deposit is a deposit, which is separate from the
Service deposit.
B. REESTABLISHMENT OF CREDIT - ALL CLASSES OF SERVICE
1. An Applicant for domestic service will not be denied service for failure to pay outstanding
amounts for other classes of service.
2. A Customer who fails to pay bills before they become past due as prescribed in Rule No. 11 -B,
and who further fails to pay such bills by the date indicated on a termination of service notice for
nonpayment of bills, may be required to pay all delinquent amounts and reestablish credit by
depositing the amount prescribed in Rule No. 7 -B. The foregoing will apply regardless of whether
or not service has been terminated for such nonpayment.
3. A Customer may be required to provide security in case the conditions of service or basis on which
credit was originally established have, in the opinion of the Utility, materially changed. A material
change may include a Customer having more than one occurrence of late payments, returned items
(including, but not limited to, bad checks and reversed credit card charges), or Diversion.
ISSUED BY: Effective: by Resolution No.: Dated:
Marcie L. Edwards Superseding Resolution No.: 2001R -192 Dated: 07 -10 -01
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd. Page No. 3.7.1
Anaheim, CA 92805
RULE NO. 7
DEPOSITS
A. GENERAL
The Utility may assess two separate deposits to Customers, (a) a service deposit; and/or (b) Diversion
Deposit (as defined in Rule No. 6). Service deposits shall be required when an Applicant or Customer is
otherwise unable to satisfactorily meet the creditworthiness requirements as set forth in Rule No. 6. The
Utility will require Diversion Deposits as set forth in Rule No. 6.
B. AMOUNT OF DEPOSIT
1. The amount of service deposit required to secure payment or reestablish credit for electric service is
twice the estimated average bill or, in the case of a Customer, an amount equal to twice the Customer's
average bill. Notwithstanding the foregoing, the Utility may reduce the service deposit amount for the
Customer in the event of extenuating circumstances. A service deposit shall not be less than the
Minimum Deposit as set forth in Rule No. 23.
For Diversion Deposits, the deposit shall be twice the amount of the estimated loss to the Utility
resulting from the Diversion, but in no case shall the amount be less than the Minimum Diversion
Deposit as set forth in Rule No. 23.
2. If at any time the Utility determines that the amount of an existing deposit or the lack of a deposit, no
longer equals the amount of deposit required, it may require the Customer to provide a deposit or an
increase in the amount of the existing deposit. A reevaluation of the deposit amount will be triggered
when a Customer has more than one occurrence of late payment, returned items (including, but not
limited to, bad checks and reversed credit card charges), or Diversion.
3. Notwithstanding Rule 7 -B.1 above, an Eligible Customer - Generator that elects to pay their electric bill
annually shall pay a deposit equal to the Eligible Customer - Generator's rated solar or wind energy
interconnected at the Utility's meter in accordance with the following schedule:
Kilowatt Rating (AC) Amount of Deposit
1 -5 Kilowatts $500
>5 -10 Kilowatts $1,000
>10 -15 Kilowatts $1,500
>15 -20 Kilowatts $2,000
C. RETURN OF DEPOSIT
1. After a Customer closes their account, the Utility will use the Customer's service deposit and/or
Diversion Deposit to offset any unpaid account balance for services provided. If any amount remains
of the deposit or deposits after this offset, the Utility will refund the remaining balance to the Customer
within a reasonable time; except the Utility shall not be required to refund any deposit balance where
the cost to the Utility for processing such refund, which is determined to be five dollars ($5.00),
exceeds the deposit balance. A Diversion Deposit will only be returned in accordance with this Rule
No. 7 -C.1
(Continued)
ISSUED BY: Effective: by Resolution No.: Dated:
Marcie L. Edwards Superseding Resolution No.: 2010 -193 Dated: 11 -09 -10
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd. Page No. 3.7.2
Anaheim, CA 92805
RULE NO. 7
DEPOSITS
C. RETURN OF DEPOSIT (Continued)
2. For the service deposit of a Customer who is billed monthly, the Utility will refund the service deposit
after the Customer has paid their electric service bills to the Utility (a) for twelve (12) consecutive
monthly billing periods and (b) before the bills become past due. If the Customer fails to meet these
criteria, the Utility will review the Customer's account every monthly billing period to determine
whether the above - described criteria have been met and, once the criteria have been met, the Utility
will refund the deposit. For Rule No. 6 and this Rule No. 7 only, monthly billing period means the one
month period or portion thereof of electric service that the Customer receives from the Utility.
3. For the service deposit of a Customer who is billed every two months, the Utility will refund the service
deposit after the Customer has paid their electric service bills to the Utility (a) for six (6) consecutive
bimonthly billing periods and (b) before the bills become past due. If the Customer fails to meet these
criteria, the Utility will review the Customer's account every bimonthly billing period to determine
whether the above - described criteria have been met and, once the criteria have been met, the Utility
will refund the service deposit. For Rule No. 6 and this Rule No. 7 only, bimonthly billing period
means the two month period or portion thereof of electric service that the Customer receives from the
Utility.
4. The Utility will refund the service deposit after a Customer who is billed annually has timely paid their
electric service bills (a) for two (2) consecutive annual billing cycles and (b) before the bills become
past due. If the Customer fails to meet these criteria, the Utility will not refund the deposit. For every
annual billing period after this review, the Utility will review the Customer's account to determine
whether the above - described criteria have been met and, once the criteria have been met, the Utility
will refund the service deposit. For Rule No. 6 and this Rule No. 7 only, annual billing period means
the one year period or portion thereof of electric service that the Customer receives from the Utility.
5. If a Customer switches their billing period, the Utility will not refund a service deposit until that
Customer meets the requirements of the newly selected billing period.
6. At the Utility's discretion and if a Customer meets the applicable requirements set forth above, the
Utility may return the service deposit to the Customer or the Utility may transfer the service deposit to
other accounts under the same Customer's name.
7. The Utility will only make refunds of deposits to that Customer's name appearing on the Customer's
Utility account.
D. INTEREST ON DEPOSITS
There shall be no interest paid on deposits held by the Utility.
E. ASSISTANCE WITH SERVICE DEPOSITS
Customers requiring assistance with the payment of the service deposit may request an extended payment
plan to make the required payments to establish or reestablish service. If the Customer fails to pay the
deposit in accordance with the payment plan, the Utility may terminate the Customer's service.
ISSUED BY: Effective: by Resolution No.: Dated:
Marcie L. Edwards Superseding Resolution No.: 2010 -193 Dated: 11 -09 -10
General Manager