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RES-2008-067RESOLUTION NO. 2008R- 067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING THE RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF ELECTRICITY AS ADOPTED BY RESOLUTION NO. 71 -478 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2007R -183 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, on August 8, 2006, the Developmental Schedule TES, Thermal Energy Storage rate (Developmental TES rate) took effect following a public hearing before the Anaheim Public Utilities Board (PUB) and adoption of Resolution 2006 -188 by the City Council; and WHEREAS, the purpose of this Developmental TES rate was to promote new thermal energy storage technologies that shift air conditioning load off -peak and reduce the amount of purchased energy and associated emissions; and WHEREAS, developmental rates which are temporary and experimental in nature must be monitored closely and may require that changes to non -cost components be made somewhat frequently based on participant information and to maintain a rate schedule's relevance as technology, market, or regulatory conditions change; and WHEREAS, due to the volatility of developmental rates, Resolution 2006 -188 granted the Public Utilities General Manager limited authority to make non -cost component changes to the Developmental TES rate to incorporate the advantages of new meter technology and conform to industry standards, as well as implement, modify, extend, restrict, or close this Developmental TES rate to new customers upon approval by the City Council without the requirement of a public hearing; and WHEREAS, on October 23, 2007, the Developmental TES rate was modified following a public hearing before the Anaheim Public Utilities Board (PUB) and adoption of Resolution 2007R -183 by the City Council primarily for the purpose of eliminating the rate' s sunset date because it did not allow interested customers to fully recover their investment in the necessary technology and to offer a voltage discount to applicable customers; and WHEREAS, on May 8, 2008, the Public Utilities Board considered the Public Utilities Department's recommendation that an amendment to the Electric Rates, Rules and Regulations be considered to modify the Developmental TES rate Applicability and Special Conditions provisions, which are non -cost components, by: 1. Limiting eligibility for electric service under this Developmental TES rate to facilities that install and utilize thermal energy storage equipment for air conditioning that have a maximum monthly demand of 500 kW per meter; and 2. Requiring facilities with a maximum monthly demand between 200 kW and 500 kW per meter to shift twenty percent (20%) of the maximum monthly on -peak demand to off -peak demand; and WHEREAS, the Public Utilities Board considered the proposal and recommendation of the Public Utilities Department; and WHEREAS, the Public Utilities Board determined as follows with respect to the need for the proposed amendment to the Electric Rates, Rules and Regulations to modify the Developmental TES rate: 1. Section 1221 of the City Charter provides that the City Council shall periodically review rates to insure that financial goals are being accomplished. 2. It is reasonable and appropriate to modify the Developmental TES rate to clarify that the purpose and intent of this developmental rate is to encourage small and medium commercial industrial customers to shift air conditioning load to less expensive, off -peak power, thereby benefiting both the Department and those customers; and WHEREAS, the proposed modifications to the Developmental TES rate set forth in the text of Attachment A and Attachment B are necessary and appropriate to meet the requirements of the City Charter, as the modifications will ensure adequate revenues necessary to meet electric costs, operations and maintenance expenses, capital expenditures, debt service requirements, and reserve amounts; 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 modification of this developmental rate is 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 amendment to the Electric Rates, Rules and Regulations by modification of the Developmental TES rate as more fully set forth in Attachment A and Attachment B; 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, by Motion, certify that the modification to the Electric Rates, Rules and Regulations is statutorily exempt under the California Environmental Quality Act, Public Resources 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 and concurs with the findings of the Public Utilities Board as set forth hereinabove. NOW, THEREFORE BE IT RESOLVED that: The findings of the Public Utilities Board as set forth herein are hereby adopted by the City Council of the City of Anaheim. The Electric Rates, Rules and Regulations are hereby amended to incorporate the modifications to the Developmental TES rate as reflected in the text of Attachment A and Attachment B effective June 10, 2008, with Attachment B to be implemented November 1, 2008. The Public Utilities General Manager is hereby authorized and directed to prepare, promulgate, publish, and implement 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 10th day of June 2008, by the following roll call vote: AYES: Mayor Pringle, Council. Members Hernandez, Sidhu, (al loway, Kring NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: 0 #11 itid CITY CLERK OF THE CITY OF ANAHEIM 68951 CITY 0 AHEIM MAYOR OF THE C OF AHEM CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 APPLICABILITY ELECTRIC RATES, RULES AND REGULATIONS DEVELOPMENTAL SCHEDULE TES THERMAL ENERGY STORAGE Attachment A Page No. 2.5.1 Applicable to electric service for load in a facility with a monthly maximum demand of 500kW per meter for which the customer installs and utilizes thermal energy storage equipment for air conditioning. Customers must execute an application with APU for service under this rate schedule. For a customer whose monthly maximum demand is between 200 kW and 500kW for a given meter, the customer must shift a minimum of 20 percent (20 of the monthly maximum on -peak demand for a given meter to off -peak demand as a result of the installation and utilization of thermal energy storage equipment for air conditioning. If the customer fails to shift 20 percent (20 of the monthly maximum on -peak demand for a given meter and/or exceeds 500 kW for a given meter for any three (3) months during the preceding 12 months, the customer will be ineligible for service under this rate schedule and the customer's account for that meter shall transfer immediately to the otherwise applicable tariff based on commercial energy usage. This developmental rate will be closed once a permanent Thermal Energy Storage rate is developed. RATE Customer Charge Demand Charge (to be added to Customer Charge) All on -peak billing demand Plus all mid -peak billing demand Plus all off -peak demand Energy Charge (to be added to Demand Charge) All on -peak energy Plus all mid -peak energy Plus all off -peak energy SPECIAL CONDITIONS A. Adjustments, Fees and Taxes B. Voltage Service voltage per rules and regulations. (Continued) Per meter Summer 5.25 Per kW Summer 12.60 4.46 not applicable Per kWh Summer 11.500 6.25¢ 4.15¢ Per meter Winter 5.25 Per kW Winter not applicable 4.73 not applicable Per kWh Winter not applicable 6.25¢ 4.15¢ The rates above are subject to adjustments as provided for in Schedule PCRSA. The applicable power cost adjustment billing factor set forth therein will be applied to all kilowatt-hours billed under this rate schedule. The rates above are subject to the underground surcharge on the total electric charge. The rates above are subject to the collection of the state energy surcharge applied to all kilowatt-hours billed. ISSUED BY: Effective: 06 -10 -08 by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 2007R -183 General Manager Dated: 10 -23 -07 CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 SPECIAL CONDITIONS (Continued) C. Time periods are defined as follows: E. Billing ISSUED BY: Marcie L. Edwards General Manager ELECTRIC RATES, RULES AND REGULATIONS DEVELOPMENTAL SCHEDULE TES THERMAL ENERGY STORAGE Summer: May 1 at 12:01 am to October 31 at 12:00 midnight On -peak: 1:00 pm to 7:00 pm weekdays Mid -peak: 9:00 am to 1:00 pm weekdays Off -peak: 7:00 pm to 9:00 am weekdays and all weekends Winter: November 1 at 12:01 am to April 30 at 12:00 midnight On -peak: Not applicable. Mid -peak: 10:00 am to 5:00 pm weekdays. Off -peak: 5:00 pm to 10:00 am winter weekdays and all weekends Attachment A Page No. 2.5.2 Holidays are New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. When any holiday listed above falls on Sunday, the following Monday will be recognized as an off -peak period. No change in off -peak hours will be made for holidays falling on Saturday. When in the sole opinion of APU, it is impractical to provide single phase service under this rate schedule, three phase service will be provided. D. Determination of Monthly Usage The customer must provide APU information from which APU can determine the level of kWh usage to be consumed and/or the level of service to be provided, such as a TES unit nameplate rating and the number of units to be installed. APU will place the customer in the appropriate usage tier and charge the customer the maximum value of that tier. APU retains the right to perform on -site inspections to verify the energy consumption of the TES unit(s). A customer's bill is calculated according to the rates and conditions listed in this rate schedule. The customer is responsible, subject to APU audit, to report all additions or removals of TES units from the customer's facilities. (Continued) Effective: 06 -10 -08 by Resolution No.: Dated: Superseding Resolution No.: 2007R -183 Dated: 10 -23 -07 CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 SPECIAL CONDITIONS (Continued) F. Billing Demand The billing demand in any month shall be based on electric consumption indicated and recorded by instruments supplied, owned and maintained by APU upon the customer's premises. Separate billing demand shall be determined for the on -peak and mid -peak time periods. The billing demands for the on- peak and mid -peak time periods shall be the maximum rate of consumption of electric energy measured in any 15- minute interval during the monthly billing period. Billing demand shall be determined to the nearest kW. G. Power Factor Adjustment The charges will be adjusted each month for the power factor as follows. The charges will continue to be adjusted by 26 cents per kilovar of reactive demand. The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar -hours to kilowatt- hours. Demand in kilowatts and kilovars shall be determined to the nearest unit. A ratchet device shall be installed on the kilovar -hour meter to prevent its reversal operation on leading power factor. H. Temporary Discontinuation of Service Where the use of energy is seasonal or intermittent, no adjustment will be made for a temporary reduction of load. Any customer who resumes service within 12 months must pay all charges that would have been billed had the service been continuous. I. Public Utilities General Manager J. Voltage Discount: ISSUED BY: Marcie L. Edwards General Manager ELECTRIC RATES, RULES AND REGULATIONS DEVELOPMENTAL SCHEDULE TES THERMAL ENERGY STORAGE Attachment A Page No. 2.5.3 As with all developmental rates, the Public Utilities General Manager, at his or her sole discretion, may modify, restrict, or close this developmental rate schedule upon notification and approval of City Council. The charges excluding the customer charge and Power Factor and Power Cost Adjustment/Rate Stabilization Account will be reduced by 3 percent (3 for service delivered and metered at voltages from 2 or 10 kV; by 6 percent (6 for service delivered and metered at voltages from 11KV to 50KV; customer equipment and metering per Department standards. Service at voltage levels above 50 KV will be by contract. Effective: 06 -10 -08 by Resolution No.: Dated: Superseding Resolution No.: 2007R -183 Dated: 10 -23 -07 CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 APPLICABILITY ELECTRIC RATES, RULES AND REGULATIONS DEVELOPMENTAL SCHEDULE TES THERMAL ENERGY STORAGE Attachment B Page No. 2.5.1 Applicable to electric service for load in a facility with a monthly maximum demand of 500kW per meter for which the customer installs and utilizes thermal energy storage equipment for air conditioning. Customers must execute an application with APU for service under this rate schedule. For a customer whose monthly maximum demand is between 200 kW and 500kW for a given meter, the customer must shift a minimum of 20 percent (20 of the monthly maximum on -peak demand for a given meter to off -peak demand as a result of the installation and utilization of thermal energy storage equipment for air conditioning. If the customer fails to shift 20 percent (20 of the monthly maximum on -peak demand for a given meter and/or exceeds 500 kW for a given meter for any three (3) months during the preceding 12 months, the customer will be ineligible for service under this rate schedule and the customer's account for that meter shall transfer immediately to the otherwise applicable tariff based on commercial energy usage. This developmental rate will be closed once a permanent Thermal Energy Storage rate is developed. RATE Customer Charge Demand Charge (to be added to Customer Charge) All on -peak billing demand Plus all mid -peak billing demand Plus all off -peak demand Energy Charge (to be added to Demand Charge) All on -peak energy Plus all mid -peak energy Plus all off -peak energy SPECIAL CONDITIONS A. Adjustments, Fees and Taxes B. Voltage Service voltage per rules and regulations. (Continued) Per meter Summer 5.50 Per kW Summer 13.20 4.68 not applicable Per kWh Summer 12.000 6.500 4.300 Per meter Winter 5.50 Per kW Winter not applicable 4.95 not applicable Per kWh Winter not applicable 6.500 4.300 The rates above are subject to adjustments as provided for in Schedule PCRSA. The applicable power cost adjustment billing factor set forth therein will be applied to all kilowatt-hours billed under this rate schedule. The rates above are subject to the underground surcharge on the total electric charge. The rates above are subject to the collection of the state energy surcharge applied to all kilowatt-hours billed. ISSUED BY: Effective: 11 -01 -08 by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 2007R -183 Dated: 10 -23 -07 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 SPECIAL CONDITIONS (Continued) C. Time periods are defined as follows: E. Billing ISSUED BY: Marcie L. Edwards General Manager ELECTRIC RATES, RULES AND REGULATIONS DEVELOPMENTAL SCHEDULE TES THERMAL ENERGY STORAGE Summer: May 1 at 12:01 am to October 31 at 12:00 midnight On -peak: 1:00 pm to 7:00 pm weekdays Mid -peak: 9:00 am to 1:00 pm weekdays Off -peak: 7:00 pm to 9:00 am weekdays and all weekends Winter: November 1 at 12:01 am to April 30 at 12:00 midnight On -peak: Not applicable. Mid -peak: 10:00 am to 5:00 pm weekdays. Off -peak: 5:00 pm to 10:00 am winter weekdays and all weekends (Continued) Effective: 06 -10 -08 by Resolution No.: Superseding Resolution No.: 2007R -183 Attachment B Page No. 2.5.2 Holidays are New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. When any holiday listed above falls on Sunday, the following Monday will be recognized as an off -peak period. No change in off -peak hours will be made for holidays falling on Saturday. When in the sole opinion of APU, it is impractical to provide single phase service under this rate schedule, three phase service will be provided. D. Determination of Monthly Usage The customer must provide APU information from which APU can determine the level of kWh usage to be consumed and/or the level of service to be provided, such as a TES unit nameplate rating and the number of units to be installed. APU will place the customer in the appropriate usage tier and charge the customer the maximum value of that tier. APU retains the right to perform on -site inspections to verify the energy consumption of the TES unit(s). A customer's bill is calculated according to the rates and conditions listed in this rate schedule. The customer is responsible, subject to APU audit, to report all additions or removals of TES units from the customer's facilities. Dated: Dated: 10 -23 -07 CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 SPECIAL CONDITIONS (Continued) F. Billing Demand The billing demand in any month shall be based on electric consumption indicated and recorded by instruments supplied, owned and maintained by APU upon the customer's premises. Separate billing demand shall be determined for the on -peak and mid -peak time periods. The billing demands for the on- peak and mid -peak time periods shall be the maximum rate of consumption of electric energy measured in any 15- minute interval during the monthly billing period Billing demand shall be determined to the nearest kW. G. Power Factor Adjustment The charges will be adjusted each month for the power factor as follows. The charges will continue to be adjusted by 28 cents per kilovar of reactive demand. The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar -hours to kilowatt- hours. Demand in kilowatts and kilovars shall be determined to the nearest unit. A ratchet device shall be installed on the kilovar -hour meter to prevent its reversal operation on leading power factor. H. Temporary Discontinuation of Service ISSUED BY: Marcie L. Edwards General Manager ELECTRIC RATES, RULES AND REGULATIONS DEVELOPMENTAL SCHEDULE TES THERMAL ENERGY STORAGE I. Public Utilities General Manager Attachment B Page No. 2.5.3 Where the use of energy is seasonal or intermittent, no adjustment will be made for a temporary reduction of load. Any customer who resumes service within 12 months must pay all charges that would have been billed had the service been continuous. As with all developmental rates, the Public Utilities General Manager, at his or her sole discretion, may modify, restrict, or close this developmental rate schedule upon notification and approval of City Council. J. Voltage Discount: The charges excluding the customer charge and Power Factor and Power Cost Adjustment/Rate Stabilization Account will be reduced by 3 percent (3 for service delivered and metered at voltages from 2 or 10 kV; by 6 percent (6 for service delivered and metered at voltages from 11KV to 50KV; customer equipment and metering per Department standards. Service at voltage levels above 50 KV will be by contract. Effective: 11 -01 -08 by Resolution No.: Superseding Resolution No.: 2007R -183 Dated: Dated: 10 -23 -07