RES-2006-188RESOLUTION N0.2006-188
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM AMENDING, DELETING, AND ADDING
RATES TO THE RATES, RULES, AND REGULATIONS FOR
THE SALE AND DISTRIBUTION OF ELECTRICITY AS
ADOPTED BY RESOLUTION N0.71-478
AND MOST RECENTLY AMENDED BY
RESOLUTION N0.2003R-187
WHEREAS, the City of Anaheim (Anaheim) maintains an electric generation and
distribution system for the furnishing of electricity to residents and inhabitants 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 June 21, 2006, notice of the public hearing to close the current
Thermal Energy Storage (Schedule TES) and General Service B Experimental (Schedule GS-1BX)
Rates; implement a Developmental Thermal Energy Storage Rate (Developmental Schedule TES);
phase out the existing Economic Development -Citywide Rate (Schedule ED) and implement a new
Developmental Economic Development/Business Retention (Schedule EDBR) Rate; and implement
a Developmental Wireless Technology Rate (Developmental Schedule WTR) of the Electric Rates,
Rules and Regulations was published in the Orange County Register and proof thereof is on file with
the Secretary of the Public Utilities Boazd; and
WHEREAS, the Public Utilities Boazd held a public hearing on July 6, 2006, and
evidence was presented in support of the closure of the current Thermal Energy Storage (Schedule
TES) and General Service B Experimental (Schedule GS-1BX) Rates; implementation of a
Developmental Thermal Energy Storage Rate (Developmental Schedule TES); phasing out of the
existing Economic Development -Citywide Rate (Schedule ED) and implementing a new
Developmental Economic Development/Business Retention (Schedule EDBR) Rate; and
implementing a Developmental Wireless Technology Rate (Developmental Schedule WTR) of the
Electric Rates, Rules and Regulations; and
WHEREAS, the Public Utilities Board considered the proposals of the Public
Utilities Department and considered the evidence presented at the public hearing; and
WHEREAS the Public Utilities Board made the following findings with respect
to the need for amendments, deletions, and additions to the Electric Rates, Rules and Regulations:
Section 1221 of the City Charter provides that utility rates charged to a class of
customers shall be uniform within the class and shall be based on the cost of service
revenue requirement for the class.
2. Section 1221 of the City Charter also provides that the City Council shall
periodically review rates to insure that financial goals are being accomplished.
3. Section 1221 of the City Charter provides that the City Council may establish and
revise ratepayer discount and other programs to assist residential customers in the
payment of their utility bills.
4. In setting rates, it is reasonable and appropriate to recognize the benefits that
Anaheim Public Utilities customers will realize through having rates for non-
domestic customers remain competitive with other local providers.
It is reasonable and appropriate to close the current Thermal Energy Storage
(Schedule TES) Rate and General Service B Experimental (Schedule GS-1BX) Rate
as these rates are outdated given the technologies that exist today. (Attachments A
and B, respectively)
6. It is reasonable and appropriate to phase out the existing Economic Development -
Citywide Rate (Schedule ED) currently utilized over a period of twelve months.
(Attachment C)
7. It is reasonable and appropriate to implement a new Developmental Economic
DevelopmentBusiness Retention (Schedule EDBR) Rate to attract new businesses
to Anaheim, retain existing local businesses, and encourage the development of
"Green Buildings". The new Schedule EDBR rate encourages participation in the
U.S. Green Building Council's Leadership in Energy and Environmental Design
(LEEDTM) program to develop environmentally friendly commercial and industrial
buildings in Anaheim by offering the discount to customers of record who occupy
those buildings for the first three years, and provides additional selling and/or leasing
advantages to developers who meet the requirements of LEEDTM, and promotes new
environmentally friendly businesses to locate within Anaheim. The Schedule EDBR
Rate provides athree-year declining discount of 15, 10 and 5 percent to qualifying
new, expanding, existing or LEEDTM customers. After the three years are complete,
the customer will transfer to the otherwise applicable rate. (Attachment D)
8. It is reasonable to implement a new Developmental Thermal Energy Storage Rate
(Developmental Schedule TES) to address new technologies that shift air
conditioning load off-peak, reduce purchased energy and associated emissions. The
Developmental Schedule TES Rate allows the Anaheim Public Utilities General
Manager (APU GM), upon approval by the Anaheim City Council, to make limited
changes to incorporate the advantages of new meter technology, conform to industry
standards and to streamline a manual portion of the billing process as well as
implement, modify, extend, restrict, or close this Developmental Schedule TES Rate
to new customers upon notification to the City Council. The Developmental
Schedule TES Rate will continue for all customers with a signed contract for a period
of five years, after which, those customers will transfer to the otherwise applicable
rate. (Attachment E)
2
9. It is reasonable and appropriate to implement a Wireless Technology Rate
(Developmental Schedule WTR) to address small fixed energy usage that does not
require individual meters. The Developmental Schedule WTR allows the APU GM,
upon approval by the Anaheim City Council, to make limited changes to incorporate
the advantages of new meter technology, conform to industry standards and to
streamline a manual portion of the billing process as well as implement, modify,
extend, restrict, or close this Developmental Schedule WTR upon notification to the
City Council. The affected customers will transfer to the otherwise applicable rate.
(Attachment F); 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 establishment of these rates
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 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 adopt the changes to the
Electric Rates, Rules, and Regulations as shown in Attachments A, B, C, D, E and F; and
WHEREAS, based on the finding hereinabove made, the Public Utilities Board of
the City of Anaheim recommended to the City Council that the City Council, by Motion, certify that
the adoption of the Electric Rates, Rules and Regulations is 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 hereinabove.
NOW, THEREFORE BE IT RESOLVED that:
The findings of the Public Utilities Board as set forth herein are thereby adopted by
the City Council of the City of Anaheim.
The amendments, deletions, and additions to the Electric Rates, Rules, and
Regulations as shown in Attachments A, B, C, D, E and F, are hereby adopted by the City Council
of the City of Anaheim and will become effective August 8, 2006.
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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 08 day of August , 2006, by the following roll call
vote:
AYES: Mayor Pringle, Council Members Chavez, Hernandez, Galloway, Sidhu
NOES: None
ABSENT: None
ABSTAIN: None
CITY OF HEIM
By
MAYOR OF THE CITY F ANAHEIM
ATTEST:
CI CLE OFT CITY OF ANAHEIM
61985.4
4
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
APPLICABILITY
ELECTRIC RATES, RULES
AND REGULATIONS
Attachment A
SCHEDULE TES
THERMAL ENERGY STORAGE
This schedule is closed to new customers effective July 1, 2006. Applicable to three-phase electric service for
thermal energy storage equipment which is metered separately from other lighting and equipment load.
AVAILABILITY
A customer meeting the requirements set forth above and desiring service on this schedule, or currently served on
this schedule and desiring service on a different schedule, shall notify the City in writing at least ninety (90) days in
advance of his intended change in service schedule (unless meter availability allows less notice). A customer will be
restricted from exercising the option to switch schedules more than once in any twelve-month period.
Service under this schedule is subject to meter availability.
RATES ( ) Per Meter
Summer Per Meter
Winter
Demand Charge:
All on-peak billing demand, per kW $11.90 $11.90
Plus all mid-peak billing demand, per kW $ 4.32 $ 4.56
Plus all off-peak billing demand, per kW N/A N/A
Energy Charge (added to Demand Charge)
All on-peak energy, per kWh 9.98¢ 9.98¢
Plus all mid-peak energy, per kWh 5.28¢ 5.28¢
Plus all off=peak energy, per kWh 2.88¢ 2.88¢
SPECIAL CONDITIONS _
A. Service voltage per rules and regulations.
B. Time periods are defined as follows:
On-Peak: 1:00 p.m to 7:00 p.m. summer weekdays except holidays.
Mid-Peak: 9:00 a.m. to 1:00 p.m. and 7:00 p.m. to 9:00 p.m. summer weekdays except holidays.
10:00 a.m. to 5:00 p.m winter weekdays except holidays.
Off-Peak: All other hours.
Off-peak holidays are New Year's Day, Washington's Birthday, Memorial Day,
Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas.
When any holiday listed above falls on Sunday, the following Monday wilt be recognized as an off-peak
period. No change in ofl=peak hours will be made for holidays falling on Saturday.
The summer season shall commence at 12:01 a.m.on May 1 and- continue until 12:00 midnight on October
31 in each year. The winter season shall commence at 12:01 a.m. on November 1 of each year and continue
until 12:00 midnight on Apri130 of the following year.
C. Billing Demand
The billing
instruments
premises.
demand in any month shall be based on electric consumption indicated or recorded by
supplied, owned, and maintained by the City, at the City's expense, upon the customer's
ISSUED BY: Effective: 01-01-04 by Resolution No.: 2003R-187 Dated: 10-14-03
Marcie L. Edwards Superseding Resolution No.: 92R-25 Dated: 03-17-92
General Manager Superseding Resolution No.: 2006R- Dated: 08-08-06
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
ELECTRIC RATES, RULES
AND REGULATIONS
Attachment A
SCHEDULE TES
THERMAL ENERGY STORAGE
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 30-minute interval during the monthly billing period.
Billing demand shall be determined to the nearest kW. Where the demand is intermittent or subject to
violent fluctuations, the maximum demand may be based on a shorter interval. .
D. Power Factor Adjustment
The charges will be adjusted each month for the power factor as follows:
The charges will be increased by 25 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 will be installed on the kilovar-hour meter to prevent its
reversal operation on leading power factor.
E. Temporary Discontinuance of Service
Where the use of energy is seasonal or internttent, no adjustment will be made for a temporary reduction
of load. Any customer who resumes service within twelve months must pay all charges that would have
been billed had service been continuous.
F. Power Cost Adjustment/Rate Stabilization Account
The rates above are subject to adjustment 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 schedule.
ISSUED BY: Effective: 01-01-04 by Resolution No.: 2003R-187 Dated: 10-14-03
Marcie L. Edwards Superseding Resolution No.: 92R-25 Dated: 03-17-92
General Manager Superseding Resolution No.: 2006R- Dated: 08-08-06
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
APPLICABILITY
ELECTRIC RATES, RULES
AND REGULATIONS
Attachment B
SCHEDULE GS-IBX
GENERAL SERVIC): - E~PEkIMENTAL
This schedule closed to new customers effective August i, 2006. For purposes of business development and
retention, applicable to single and three phase general service, including lighting and power, for production and
manufacturing operations within the City of Anaheim with 15 kW demand or greater, but less than 200 kW demand.
This schedule is available to customers whose normal production hours would include the on-peak time periods as
specified in the Special Conditions set forth herein and who can demonstrate to the Public Utilities General Manager
that it would be to the customer's economic advantage to locate operations elsewhere. Eligibility for this schedule is
solely at the discretion of the Public Utilities General Manager and the number of customers on the schedule at any
time maybe limited.
RATES Per Meter, Per Month
Customer Charge $39.55
Facilities Charge (added to Customer Charge), per kW: $ 1.15
Demand Charge (added to Facilities Charge):
Non Time Related Maximum Demand, per kW $ 1.92
On-Peak Demand, per kW $11.90
Energy Charge (added to Demand Charge):
All kWh; per kWh 7.42¢
Minimum Charge:
The minimum charge shall be the total of the monthly Customer Charge and Facilities Charge.
SPECIAL CONDITIONS
A. Service voltage per rules and regulations
B. The Facilities charge shall be based on the rated transformer capacity, which shall be 50 percent of the
installed transformer kilovolt-amperes dedicated to the customer, or the highest demand recorded in the
preceding eleven billing periods, whichever is greater, but in no event shall it be less than 15 kW.
C. The Maximum Demand shall be the average kilowatt load to the nearest one-tenth kilowatt during the 15-
minute period of greatest use at any time during a rating interval, as recorded by the Department's meter. In
cases where demand is intermittent or subject to severe fluctuations, the Department may establish the
Maximum Demand on the basis of measurement over a shorter interval of time or the kilovolt-amperes of
installed transformer capacity required to meet the customer's load.
D. The on-peak demand charge shall be based on the Maximum Demand recorded within the applicable rating
period.
E. Time periods are defined as follows:
On-Peak: 1:00 p.m. to 5:00 p.m.; summer weekdays except holidays.
Holidays are New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor
Day, Veterans Day, Thanksgiving Day, and Christmas.
When any holiday listed above falls on Sunday, the following Monday will be recognized as an off-peak
period.
The summer season shall commence at 12:01 a.m. on June 1 and continue until 12:00 midnight on
September 30 in each year. The winter season shall commence at 12:01 a.m. on October 1 of each
ISSUED BY: Effective: 01-01-04 by Resolution No.: 20038-187 Dated: 10-14-03
Marcie L. Edwards Superseding Resolution No.: 938-46 Dated: 03-09-93
General Manager Superseding Resolution No.: 20068- Dated: 08-08-06
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd.
Anaheim, CA 92805 Attachment B
SCHEDULE GS-1BX
GENERAL SERVICE -EXPERIMENTAL
SPECIAL CONDITIONS (Continued]
year and continue until 12:00 midnight on May 31 of the following year.
F. Where the Department installs the standard transformer capacity requested by a customer to separately
serve any X-ray installation, the Customer Charge will be increased by $1.00 per kva of the transformer
capacity requested.
G. No adjustment will be made for any temporary reduction in load. Any customer who resumes service
within twelve months must pay all charges that would have been billed had service been continuous.
H. Power Cost Adjustment/Rate Stabilization Account
The rates above are subject to adjustment 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 schedule.
ISSUED BY: Effective: 01-01-04 by Resolution No.: 2003R-187 Dated: 10-14-03
Marcie L. Edwards Superseding Resolution No.: 93R-46 Dated: 03-09-93
General Manager Superseding Resolution No.: 2006R- Dated: 08-08-06
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
APPLICABILITY
ELECTRIC RATES, RULES
AND REGULATIONS
Attachment C
SCHEDULE ED
ECONOMIC DEVELOPMENT -CITYWIDE
This schedule is closed to new customers as of August 1, 2006. The discount for existing customers will sunset
on July 31, 2007. Customers may apply for a similar discounted program under Schedule EDR if they qualify
under the stated requirements.
For purposes of business development, applicable Citywide to single and three phase general service, including
lighting and power, for operations not involved in selling or providing goods and services directly to the general
public. Applicable to new customers having load requirements of 200 kW or greater, and to the facilities of existing
customers whose expanding operations have incremental load requirements of 200 kW or greater at new or existing
locations. _ _ ._ _ _ _ . _ ._ _.. _ .. _.
RATES
A discount from Schedule GS-2 applied to the demand and energy charges only as follows:
Efficiency Range Discount
Less than 60% 0.0%
60% - 64% 5.0%
65% - 69% 5.5%
70% - 74% 6.0%
75% - 79% 6.5%
80% - 84% 7.0%
85% or greater 7.5%
The efficiency Range will be calculated as the actual energy consumption in the billing period divided by the result
of multiplying the maximum demand in the billing period by the number of days in the billing period by 24 hours,
with the final result expressed as a percentage.
(Continued)
Efficiency Range % = actual energy consumption
max billing demand x days in period x 24
SPECIAL CONDITIONS
A. Eligible customers will implement all cost effective energy efficiency measures through programs
sponsored by the Department.
B. Unless otherwise provided for in this Schedule, all of the terms and conditions of the Otherwise Applicable
Tariff apply. The Otherwise Applicable Tariff is Schedule GS-2.
C. For customers locating in the Anaheim Canyon Industrial Area, as defined by the North East Area Specific
Plan, and signing development agreements with the Community Development Department, the discount
percentages specified above will be doubled. If, during the Term of Agreement, any governmental agency,
authority, court or private entity takes an action which materially impacts the City's ability to recover its
cost under Schedule GS-2, less the appropriate Efficiency Range Discount, the City may renegotiate with
the customer the rate for electric service set forth in Phis schedule.
D. For existing customers adding 200 kW or more in new load, the discount applies only to the new load,
which must be served under a separate service, or, at the Department's option, submetered. The customer
shall supply, at no expense to the Department, any metering equipment necessary as well as a location
suitable to the Department for meters and associated equipment used for billing.
ISSUED BY: Effective: OS-15-95 by Resolution No.: 95R-64 Dated: OS-0~ -95
Edward K. Aghjayan Superseding Resolution No.: 2006- Dated: 08-08-06
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd.
Anaheim, CA 92805 Attachment D
DEVELOPMENTAL SCHEDULE EDBR
ECONOMIC DEVELOPMENT !BUSINESS RETENTION RATE
APPLICABILITY:
For purpose of business development, applicable Citywide to commercial or industrial end-use single and
three phase general service
1. New commercial /industrial end-use customers having load requirements of 200 kW or greater,
2. Existing commercial /industrial end-use customers expanding operations at existing locations that
have incremental load requirements of 200 kW or greater,
3. Existing commercial /industrial customers whose load requirements are 200 kW or greater and
except for this rate would relocate from APU service territory,
4. New commercial /industrial end-use customers located in a building deemed eligible for the
benefits of "Green Building" including U.S. Green Building Council Leadership in Energy and
Environmental Design (LEED) certification.
New, incremental and existing load must maintain at least a 60% load factor. Those customers falling
below 60% load factor on any monthly bill will receive a 0% discount on that particular bill.
RATE:
A discount applied only to the demand and energy charges billed to the customer in accordance with the
applicable tariff.
This credit is available for new, expanding, existing or "LEED" customers.
Year Discount
1 15%
2 10%
3 5%
SPECIAL CONDITIONS:
A. Cost Effective Energy Efficiency Measures:
Eligible customers will implement all cost effective energy efficiency measures that are available
through programs sponsored by the Department.
B. Other Applicable Tariff:
Unless otherwise provided for this Schedule, all terms and conditions of the otherwise applicable
tariff apply.
C. Incremental Load:
For existing customers adding 200 kW or more of incremental load as defined in item 2 of
paragraph titled Applicability, the discount shall apply only to the incremental load requirement,
which must be served under a separate service, or at the Department's option, be submetered.
D. Retained Load:
For existing customers, as defined in item 3 of paragraph titled Applicability, retaining 200 kW or
more, the discount applies to the entire load.
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-08-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd.
Anaheim, CA 92805 Attachment D
DEVELOPMENTAL SCHEDULE EDBR
ECONOMIC DEVELOPMENT /BUSINESS RETENTION RATE
SPECIAL CONDITIONS (Continued):
E. Termination Date:
No customers will be accepted on this rate schedule after December 31, 2008, or at the discretion
of the APU General Manager upon notification of City Council. Once athree-year agreement has
begun, the discount will be provided even after the program is no longer offered to new customers.
F. Agreement:
Customers shall execute an economic development rate agreement as specified by the Department
prior to the effective date of any discount.
G. Declaration:
All customers will be required to sign a declaration to be eligible for this rate. The declaration
must include the following:
1. A clause indicating the EDBR was a determining factor in locating, expanding or
retaining business in Anaheim.
2. The load to which the Agreement applies represents load requirements either (i) dces not
already exist in Anaheim, or (ii) the Applicant is considering relocating to a location
outside of Anaheim.
3. The Applicant has discussed with the Department the cost-effective conservation and
load management measures the Applicant may take to reduce its electric bills and the
load that it places on the Urility system.
4. The relative cost of electricity is a significant factor in the customer's evaluation of -
whether to relocate from Anaheim.
H. Green Building:
The "Green Building", as definied in item 4 of paragraph titled Applicability, includes all
commercial or industrial buildings, (in excess of 200 kW) including new construction or major
renovation, that meet LEED certifications and has been pre-qualified for rebates under the
Department's Green Building program. This discount applies to the entire load.
I. Load Factor:
The load factor will be calculated as the actual energy consumption in the billing period divided
by the result of multiplying the maximum demand in the billing period by the number of days in
the billing period by 24 hours, with the final result expressed as a percentage.
Load Factor % = actual energy consumption
max billing demand * days in period * 24
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-OS-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
ELECTRIC RATES, RULES
AND RY+;GULATIONS
Attachment E
DEVELOPMENTAL SCHEDULE TES
THERMAL ENERGY STORAGE RATE
APPLICABILITY:
Applicable to electric service for all load in a facility that installs and utilizes thermal energy storage
equipment. Customers must execute an application with APU for service under this schedule. Effective with
the date the customer becomes ineligible for service under this Schedule, the customer's account shall transfer
immediately to the otherwise applicable tariff based on commercial energy usage.
This developmental rate will be closed December 31, 2011 or such date at the direction of the General
Manager upon notification and approved by City Council that it is appropriate to offer such services under a
permanent Schedule.
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:
Per meter Per meter
Summer Winter
$ 5.00 $ 5.00
Per kW Per kW
Summer Winter
$ 12.00 not applicable
$ 4.25 $ 4.50
not applicable not applicable
Per kWh Per kWh
Summer Winter
10.00¢ not applicable
5.00¢ 5.00¢
3.00¢ 3.00¢
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 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.
B. Voltage:
Service voltage per rules and regulations.
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-08-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd.
Anaheim, CA 92805 Attachment E
DEVELOPMENTAL SCHEDULE TES
THERMAL ENERGY STORAGE RATE
SPECIAL CONDITIONS (Continued):
C. Definition of peak periods:
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 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 weekends
When in the sole opinion of APU, it is impractical to provide single phase service under this
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 level of service to be provided; such as TES unit nameplate rating
and the number of units to be installed. APU will place the customer in the appropriate usage tier
and charge according to 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).
E. Billing:
A customer's bill is calculated according to the rates and conditions listed above. The customer
is responsible, subject to APU audit to report all additions to /removals from APU facilities.
F. Billing Demand:
The billing demand in any month shalt 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 measures 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 25 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 or 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.
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-08-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
ELECTRIC RATES, RULES
AND REGULATIONS
Attachment E
DEVELOPMENTAL SCHEDULE TES
THERMAL ENERGY STORAGE RATE
SPECIAL CONDITIONS (Continued):
H. Temporary discontinuance 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 twelve months must
pay all charges that would have been billed had the service been continuous.
I. General Manager:
The APU general manager may implement, modify, extend, restrict or close this
developmental schedule to new customers upon notification and approval of City Council.
The rate will continue for all customers with a signed application for a period of five years or
until the closing date of December 31, 2011 which ever occurs first, after which, they will be
transferred to the otherwise applicable rate.
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-08-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd.
Anaheim, CA 92805 Attachment F
DEVELOPMENTAL SCHEDULE WTR
WIRELESS TECHNOLOGY RATE
Application and Contract for Electric Service
Provided under Experimental Schedule WTR
Wireless Technology Rate
Customer identification number
Customer location number
To: Anaheim Public Utilities Department (APU):
The undersigned applicant hereby requests APU to supply electric service and to deliver electric energy to
and for the equipment hereinafter described in accordance with the applicable rates and rules of APU
including the tariff set forth.
Applicant agrees to the following:
1. Applicant agrees to comply with rates and rules and with any changes or modifications thereof which
may be authorized by the City Council of Anaheim.
2. Applicant agrees to take and pay for unmetered service under Experimental Schedule WTR based on
fixed usage categories and one customer charge per month.
3. Applicant grants APU right of way as required by APU.
4. Applicant will install per City standards and City inspection and load control device that will ensure
that Applicant does not exceed the fixed used categories.
5. Any other Safety /Engineering requirements.
6. Applicant agrees that once the maximum kWh of a tier has been exceeded, APU may immediately
move applicant to the next available tier.
7. APU will review rate on or before December 31, 2009 and review the applicability of a permanent
rate given future unknown requirements of wireless technology.
8. The contract rate is subject to rate changes approved by Council or changes in the Power Cost Rate
Stabilization Account charge.
9. As described in Rule 14 B, APU will exercise reasonable diligence to furnish a continuous and
sufficient supply of electricity and to minimize the occurrences of outages; however APU does not
guarantee a continuous or sufficient supply or freedom from such conditions which may affect the
electricity provided. APU will exercise reasonable diligence to reinstitute the delivery of electricity.
Device model number Wattage rating Fixed energy usage
Service address
Service voltage
Connected load
Estimated max demand
Corporation /Signature
Dated
APU signature
Dated
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-08-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd.
Anaheim, CA 92805. Attachment F
DEVELOPMENTAL SCHEDULE WTR
WIRELESS TECHNOLOGY RATE
SPECIAL CONDITIONS (Continued):
D. Determination of Monthly Usage:
The customer must provide APU information from which APU can determine the level of IFWh
usage to be consumed and / or level of service to be provided; such as device nameplate rating and
the number of devices to be installed. APU will place the customer in the appropriate usage tier
and charge according to the maximum value of that tier. APU retains the right to perform on-site
inspections to verify the energy consumption of the device(s).
E. Installation:
The device(s) shall be installed on traffic signals and street light facilities. The installation and
removal of such device(s) will be performed by the customer at the customer's expense. Device
installation shall be performed where location, mounting height and / or other considerations is
acceptable to City standards.
F. Modifications:
Where the customer requests a modification of traffic signals and street light facilities, and such
modifications are acceptable to APU, APU will perform the requested modifications at the
customer's expense.
G. Maintenance:
APU shall exercise reasonable care and diligence in maintaining its traffic signals and street light
facilities. Upon installation of device(s) where APU experiences or expects to experience
maintenance costs exceeding its normal expense to maintain its facilities, APU may require the
customer to pay the excess maintenance.
H. Billing:
A customer's bilt is calculated according to the rates and conditions listed above. The customer is
responsible, subject to APU audit to report all additions to /removals from APU facilities.
I. Interruptions:
As described in Rule 14 B, APU will exercise reasonable diligence to famish a continuous and
sufficient supply of electricity and to minimize the occurrences of outages; however APU does not
guarantee a continuous or sufficient supply or freedom from such conditions which may affect the
electricity provided. APU will exercise reasonable diligence to reinstitute the delivery of
electricity.
J. General Manager:
The APU general manager may implement, modify, extend, restrict or close this developmental
schedule upon notification and approval of City Council and the customer will be transferred to
the otherwise applicable rate.
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-08-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
CITY OF ANAHEIM ELECTRIC RATES, RULES
Utilities Financial Services AND R)JGULATIONS
201 S. Anaheim Blvd.
Anaheim, CA 92805 Attachment F
DEVELOPMENTAL SCHEDULE WTR
WIRELESS TECHNOLOGY RATE
Application and Contract for Electric Service
Provided under Experimental Schedule WTR
Wireless Technology Rate
Customer identification number
Customer location number
To: Anaheim Public Utilities Department (APU):
The undersigned applicant hereby requests APU to supply electric service and to deliver electric energy to
and for the equipment hereinafter described in accordance with the applicable rates and rules of APU
including the tariff set forth.
Applicant agrees to the following:
1. Applicant agrees to comply with rates and rules and with any changes or modifications thereof which
may be authorized by the City Council of Anaheim.
2. Applicant agrees to take and pay for unmetered service under Experimental Schedule WTR based on
fixed usage categories and one customer charge per month.
3. Applicant grants APU right of way as required by APU.
4. Applicant will install per City standards and City inspection and load control device that will ensure
that Applicant does not exceed the fixed used categories.
5. Any other Safety /Engineering requirements.
6. Applicant agrees that once the maximum kWh of a tier has been exceeded, APU may immediately
move applicant to the next available tier.
7. APU will review rate on or before December 31, 2009 and review the applicability of a permanent
rate given future unknown requirements of wireless technology.
8. The contract rate is subject to rate changes approved by Council or changes in the Power Cost Rate
Stabilization Account charge.
9. As described in Rule 14 B, APU will exercise reasonable diligence to famish a continuous and
sufficient supply of electricity and to minimize the occurrences of outages; however APU does not
guarantee a continuous or sufficient supply or freedom from such conditions which may affect the
electricity provided. APU will exercise reasonable diligence to reinstitute the delivery of electricity.
Device model number Wattage rating Fixed energy usage
Service address
Service voltage
Connected load
Estimated max demand
Corporation /Signature
Dated
APU signature
Dated
ISSUED BY: Effective: 08-08-06 by Resolution No.: 2006R- Dated:08-08-06
Marcie L. Edwards Superseding Resolution No.: Dated:
General Manager
PUBLIC HEARING
PROPOSED ELfiCTRXC RATES
CITY HALL WEST (CHW) AT 5:00 P.M.
SECOND FLOOR, GORDON HOYT CONFERENCE CENTER
201 SOUTH ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA
TAKEN ON JULY 6, 2006
Reported by:
Deborah K. Sylvester
CSR No. 10532.
HAHN k BOWERSOCK (800) 660-3187 (714) 662-1398 Fax
HA~-iN & BOWERSOCK (800) 660-3187 FAX (714) 662-1398
151 KALMUS DRIVE, SUITE Ll COSTA MESA, CA 92626
1 LIST OF PARTICIPANTS 1 Anaheim, California; Thursday, July 6, 2006 ,
3 PUBLIC Vra~T-ES BOARD (PUB) MEMBERS: 2 5:00 p.m - 5:30 p.m
4 JOHN ELWELL, VICE-CHAIRMAN (CRADLING THE PUBLIC 3
5 MARCIA GAR, IEN. PUBLIC UTILITIES BOARD MEMBIIt 4 1~~. CF1A1R1V1AN: Wltli t118t, I Wlll OpCn t11C
LoN cAHni, Pusuc urnmFS BOARD MEMBER 5 public hearing for approval of proposed closure of
6 DOUG CLA1tIC, PUBLIC UTILITIES BOARD MEMBER
PAr cARROLL, Pueuc ura.mFS BOARD MEMBER
6
the current Thermal Energy Storage (Schedule TES) and
e ATroRNEY FoR THE PUBLIC uTiuTlFS BOARD: '7 General Service - Experimental (Schedule GS-1 B3Q
9 MARx CORDON, ASSISTANT CITY ATTORNEY - cnm, a Rates, and implementation of'a Developmental Themlal
l0
PUBLIC UTD.rrIES DEPARTMENT STAFF (SWORN D~: 9 ~^~.,,,, Stora a Rate vel mental Schedule TES
~"`" 67 g ~ ~ ~~
11 i o phasing out existing Economic DevelOptnent -Citywide
MARCDi L EDWARDS, PUBLIC UTILITIES GENERAL MANAGER 11 Rate Schedule ED and ' lementin anew
( ) mtP g
12 MARK E MA7AK. ASSISTANT GENERAL MANAGER, FDVANCE
AND ADMIDIISiRATION 12 Developmental Economic DevelopmentBusiness Retention
11 ALISOON~ ' DEPUTY CrrY ATTORNEY n . CIVIL. (NOT 13 (Schedule EDBR) Rate; and implementing of a Wireless
1a IAMCE ROOSEVELT, BUSB~ESS DEVELOPMENT MANAGER 14 Technology Rate (Developmental Schedule WTR)
15 RUNDA LE DU CLTI71I7TFS AUTOMATED SYSTEMS SUPERVISOR 15 (Electric Rates, Rules and RCgulatials).
KEN NOLLER, ASSISTANT GENERAL MANAGER. EIF.C7'RIC 16 Now, at this time the public hearing Will be
16 SERVICES
DON CALKiNS. ASSISTANT GENERAL MANAGER, WATER
17
Open. I will Call upon the COUrt fCpOitCr to SWear
17 sERV[CES 1 s all Staff witnesses and other persons who intend to
le
NONPARTICIPANTS:
19
testify Ott this matter.
la
MARK WARD, OBSERVER 2 0 (All witnesses wets sworn by the
s o >~ sTON>; OBSERVER 21 Shorthand Reporter.)
LYNN QUTAMBAO, ADMIM37RJ1TrJE ASSISTANT 2 2 MR, C7:11'~IRMAN: The Of this ub1iC
Pose P
21 GDQA MOLAJA, IXECUTIVE SECRETARY
as 2 3 hearing is to consider the proposed ametldments,
2'
s+ 2 4 deletions, and additions to the Electric Races, Rules
2 s 2 5 and Regulations, effective August 1st, 2006, as covered
2 4
1 1 in the opening statement.
~ IND°t 2 Is them anyone who wishes to present a request
wrlNESS PAGB 3 tO delay the heating?
+ 4 1n that case, if no one is wishing to ask for
irtARC>E L sDWARDS I I 5 such a dela ,then we will
Y P•
5
BY Ms. uoTr 6 I will next present an overview of ow hearing
+
irtARK E MAZAK I3 7 rOCCSS.
p
~ 8 MR. CORDON: John, before we ~clo that, there's
~ "~' >corr 9 One other request. There's another statement that you
~ l o need to read.
to ~~~ 11 lvIIt. C7H;AIRMAN: Oh, Pm sorry.
11 rAGe 12 1VIR. CORDON: It's here at the bottom.
12 STAFF'S DESCRIPTION MARKED 13 MR- CE:IAIRMAld: Oh, yes.
17 1 s-zs.ob kn« P~al~ v~w« 2s
Gercnl Manger a Public 14 Is there any~oae who wishes to present a
is
~
~ 15 Petition to Intervene in this proceeding?
~ 2s
a
2
Md~ie L Edwa,~ 16 Hearing none, then we will proceed and go
16 D ~~ Dirxt wtimony of 26 17 ahead.
17 Made Mmk wd~h aaached 18 I will now present the overview of the hearing
E:bibits MM-1 daou~h MM-2 19 prOCCSS.
le
4 ~~ ML>r1 movan MIEI o 26 2 0 Prior to opening the public participation
19 s APCdwit of Tublia6on z6 21 portion of the hearing, however, I would. like to
z o and Public Notices 2 2 explain the procedures that the Public Utilities Board
;z 23 will follow in conducting this hearing.
z3 24 First, Staff will present its oral and prepared
s+5 25 testimony. Second, at the completion of the Staffs
3 5
2
HAHN & BOWERSOCK (800) 660-3187 FAX (714) 662-1398
151 KALMUS DRIVE, SUITE L1 COSTA MESA, CA 92626
1 entire presentation and testimony, the Board will have
2 an opportunity to ask questions of the Staff related to
3 those matters within the Staffs presentation.
4 Next, we will be hearing testimonyand/or
5 comments from the public, which may be in oral or in
6 written format. First, the Board will hear testimony
7 from persons wishing to testify in favor of the
8 proposed actions and then the Board will hear from
9 persons wishing to present testimony in opposition of
l0 the proposed actions.
11 And fourth, at the close of all testimony,
12 Staff may present closing remarks. And it's also
13 important to note that we would generally like to limit
14 any time of comments to five minutes unless extended by
15 the Chair.
16 Then, after Staff has completed their closing
17 remarks, Staff will move that the testimony and records
18 be accepted into the records of the hearing.
19 Finally, at that time the Board may discuss all
2 0 evidence presented to it but may not ask additional
21 questions of the Staff or the public who have testified
2 2 without reopening the record.
2 3 Now, does tbe Board have any questions as to
2 4 the procedures for this public hearing?
2 5 Has the Secretary of the Board received any
6
1 correspondence or other evidence concerning the subject
2 of the hearing?
3 MS. EDWARDS: No, we have not.
4 MR C~G~IltMAN: I will then call upon the Staff
5 to make its presentation.
6 MS. KOTT: Good evening. As most of you know,
7 my name is Alison Kott, and Pm here representing the
s Anaheim Public Utilities Department.
9 With me today is Marcie Edwards, who has some
l 0 opening remarks she'd like to make.
11 MS. EDWARDS: Thank you, Ms. Kott.
12 Members of the Public Utility Board, we are
13 here today to recommend changes to our ctarent electric
14 rates in six specific areas.
15 First, we propose to sunset the current Thermal
16 Energy Storage Rate and General Service B Experimental
17 Rate, These rates were never used by our customers.
18 These rates represent very early efforts to respond to
19 market changes as well as to incerrtivize certain
2 0 customer behaviors. However, the rates were not
21 designed effectively and were never used; therefore, we
22. propose their elimination. '
2 3 Second, we propose to sunset the current
24 Economic Development Citywide Rate. Ties rate
25 initiallyperfonned its job by inventing high-load,
7
1 energy-efficient businesses to relocate to Anaheim
2 , However, at thi$ point eight customers are currently on
3 this rate, and without a sunset provision, the end
4 result is that the balance of our customers subsidize
5 these eight businesses on an ongoing basis. Therefore
6 we are recommending that this rate be phased out.
7 Third, we propose to implement a more equitable
8 economic rate, one that does include a sunset provision
9 as well as one that includes provisions for business
1 o attraction, business retention, and green building
11 incentives.
12 Fourth, we propose to implement a Developmental
13 Thermal Energy Storage Rate. This new developmental
14 rate is intended to encourage the use of alternate
15 technologies to shift power usage away from peak
16 periods.
17 Fifth, we propose to implement a Developmental
18 Wireless Technology Rato. As you know, wireless
19 technologies are rapidly proliferating. To install
2 o energy-usage meters for every wireless node and to bill
21 for each separately would be cost prohibitive.
2 2 Therefore, we are recommending a rate to address this
2 3 type of consumption, where the energy use is both small
2 4 and predictable.
2 5 In addition, having a wireless rate will ensure
1 that we charge similar carriers for similar use,
2 thereby helping to maintain a level playing field for
3 these industries in terms of cost. Further, this rate
4 will allow for an option requested by our customers,
5 which is single billing for multiple nodes.
6 And finally, we propose to include a new
7 provision in certain rate schedules that allows the
e General Manager to make noncost-component changes to
9 these rates without the current rate hearing and review
1 o process.
11 This flexibility is intended to review problems
12 `that have been exemplified by my earlier comments.
13 Specifically, the Utility was unable to adjust the
14 previous storage rate without a significant investment
15 on the part of Staff both in terms of dollars and time
16 of the Rate Hearing process.
17 Therefore, the changes were never made given
18 that fiscal prudence dictated we wait until more rate
19 changes were needed in order to justify the overall
2 o expense of developing testimony and holding hearings.
21 Therefore, Staff was requested to develop
2 2 language that world allow the General Manager to make
2 3 limited types of changes. As an example, I could
24 adjust sates' applicability to enhance customer
2 5 participation or respond to unexpected negative
3
HAHN & BOWERSOCK (800) 660-3187 FAX (714) 662-1398
151 KALMUS DRIVE, SUITE L1 COSTA MESA, CA 92626
1 implications to either the customer or the Utility.
2 We are not proposing, however, that this be
3 done in any arbitrary manner, rather we arc
4 recommending that we explain the circumstances and
5 utilize the curnnt Counsel Staff Report process via
6 the Board to change the provisions. Therefore, this
7 new process simply allows for smaller changes to be
8 made at much less expense to ratepayers.
9 We are not suggesting any changes to our
1 o current process or base-rate changes be made. These
11 changes can be significant and must benefit from full
12 public discourse.
13 Also, I would like to offer the following:
14 Participation in these type of rates is always
15 voluntary for customers. And I mean the
16 developmental-type rates. If they don't like the
17 change, they can request to be put back on whatever
18 tariff would be otherwise applicable.
19 To give you a specific exarr~le of the typo of
2 0 change that this recommended language would allow me to
21 make, note that the Developmental Wireless Technology
2 2 Rate initially sets the monthlykilowatt-hour-usage cap
2 3 at 250 kilowatt hours. What if we find this is too
2 4 restrictive and want it set at a higher level? That
2 5 gives you one example.
10
1 This is the type of change we would then
2 utilize the Counsel Staff Report process to resolve
3 rather than incur the additional expense of a full
4 hearing and testimony.
- 5 I appreciate the opportunity to bring these
6 recommendations forward. This concludes my opening
- 7 remarks.
8 MS. KOTT: At this time, I call Public
9 Utilities Department's first witness, Marcie Edwards.
10
11 E7{AMINATION .
12 BY MS. KOTT:
13 Q Please state and spell your last name for the
1 4 record.
15 A Marcie Edwards, E-D-W-A-R-D-S.
16 Q Please state your business address.
17 A 201 South Anaheim Boulevard, Suite 1101,
'~, 18 Anaheim, California 92805.
19 Q What position do you hold with the City of
2 o Anaheim?
21 A h'm the General Manager -excuse me -
2 2 General Manager of the Utilities Department.
2 3 Q Ms. Edwards, did you prepare a cause to be
2 4 prepared testimony for the purposes of today's
2 5 hearing?
11
1 A Yes, I did.
2 Q On June 26th, did you cause copies of your
3 prepared testimony with exhibits to be personally
4 served on the members of the Public Utilities Board,
5 the Anaheim City Clerk, and the four Anaheim public
6 libraries?
7 A Yes.
8 Q Do you have any corrections or additions to
9 your prepared testimony ox exhibits?
1 o A Yes, I do.
11 Q I'm inviting }roar attention to Exhibit MLE-5,
12 page 1 of 3, entitled "Developmental Thermal Energy
13 Schedule TES, Thermal Energy Storage Rate."
14 What do you need to revise or correct on this
15 document, if anything?
16 A Under the section entitled "Rate," under the
17 "Energy Charge" section, the subsection "All On-peak
18 Energy," there are two columns. One says "10 cents
19 per meter summer." The next cohrmn says "per meter
2 0 winter." The words should be "not applicable" as
21 opposed to "10 cents" in that column.
2 2 Q Does that conclude all changes or corrections
2 3 to your prepared testimony and exhibits?
2 4 A Yes.
2 5 Q IvLs. Edwards, as modified, is your prepared
12
1 testimony with attached exhibits true and correct to
2 the best of }roar knowledge and belief?
3 A Yes.
4 Q Did you cause the Affidavits of Publication
5 of the Notice of Public Hearing, as well as the Staff
6 Report, to be filed with the Secretary of the Board?
7 A Yes.
e Q To your knowledge, did the Department receive
9 any calls, correspondence, petition for intervention
10 concerning today's hearing?
11 A No.
12 Q Do you have any further testimony at this
13 time?
14 A No, I do not.
15 MS. ICOTT: Thank you.
16 1'd like to call Public Utilities
17 Department's next witness, Mark Mazak.
18
19 EXAMII~IATION
2 o BY MS. KOTT:
21 Q Please state and spell your last name for the
22 record.
2 3 A Mark Mazak, M-A-2rA-K
2 4 Q Please state your business address.
25 A 201 South Anaheim Boulevard, Suite 1101,
13
4
HAHN & BOWERSOCK (800) 660-3187 FAX (714) 662-1398
151 KALMUS DRIVE, SUITE L1 COSTA MESA, CA 92626
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6
7
10
11
12
13
14
15
16
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18
19
20
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7Arraheim, California 92805.
Q What position do you hold with the City of
Anaheim?
A Assistant General Manager, Finance.
Q Mr. Mazak, did you prepare or cause to be
prepared testimony for the purposes of today's
hearing?
A Yes.
Q On June 26th, 2006, did you cause copies of
your prepared testimony with exlnbits to be
personally served on members of the Public Utilities
Board, the Anaheim City Clerk, and the four Anaheim
public libraries?
A Yes.
Q Do you have any corrections or additions to
your prepared testimony?
A No.
Q Mr. Mazak, is }roar prepared testimony with
the attached exhibits true and correct to the best of
your knowledge and belief?
A Yes, it is.
Q Do you have ~y further testir~ny at this
time?
A No, I do not.
MS. KOTT: Thank you.
14
1 Mr. Chairman, that completes the foundational
2 questions for the prepared testimony of the
3 Depamrrent's two witnesses.
4 I request that if them ere any questions
5 from the Board that we take those questionc at this
6 time. Acrd at the conclusion of the
7 question-and-answer sessioq I will ask that the
s Prepared testimorry with exhibits be copied into the
9 record. Thank you.
10 MR CH[AIItMAN: Thank you, Ms. Kett.
1l Are then questions by members of the Board?
12 Keep in mind this is the time that we make those
13 questions.
14 MS. GARTEN: Just to nwiew, what section was
15 that "10 cent" corn;ction in?
16 MS. KOTT: Let me give you a copy of that for
17 yew review.
18 MS. IDWARDS: For purposes of the record, this
19 is not a change to the intent, it's a typo that we
2 0 didnR catch, so it doesn't change the strategic intent
21 or the rate in arty way other than to align it with the
2 2 testimony that you've both heard end read.
23 MS. GART'EN: Thank you.
2 4 MR C'f[AIRMAN: Arty other comments by members of
2 5 the Board or questions to the Staff as part of this
15
1 hearing?
2 MR. CANTLE: Mr. Chairman, I've read through
3 this a number of times, more than once, and I have
4 questions that came to mind as I tried to absorb most
5 all of this. They were pretty much answered.
6 And it appears to me that they are reasonable.
7 All of these items that are proposed changes seem
8 reasonable tome, and appropriate, and I have no real
9 questions, deep questions, concerning this.
10 MR CHAIRMAN: All right, then.
i l Yes, Mr. Carroll?
12 MR. CARROLL: Thank you, Mr. Chairman.
13 I had a question about the changes that would
14 be made by the Gareral Manager that would be outside of
15 the rate changes, and I wonder if we could have a
16 little better description.
17 Is it any changes other than rate changes that
18 can be made by the General Manager?
19 MS. EDWARDS: The changes are specific to what
2 o we're temring "developmental rates." The intent is to
21 be able to adjust problems where normally we would have
2 2 to wait until we'd accumulated enough rate changes to
2 3 then justify a hearing, the cost of which is fairly
2 4 extensive to customers, with Staff; prepared testimony.
2 5 The type of adjustments are in
16
1 noncost-component categories, such as applicability.
2 The most relevant example -actually, the best basis I
3 can show you is the rates that we4e sunsetting -the
4 Thermal Energy Storage hate, the experimental rates -
5 they've been in place 12 years and no customers have
6 ever used them
7 That's because the applicability to a
8 particular customer base, we have no means to adjust
9 those after the fact. If we didn't design it correctly
1 o ar if there are unintended consequences, we basically
11 live with those until we can have a full hearing
12 process and bring it back through counsel.
13 What we are proposing is, in this small area of
14 noncost components, such as applicability, that I have
15 the flexibility to adjust things such as applicability.
16 The example that we offered is we are
17 establishing a use cap of 250 kilowatt hours on the
18 Wireless Technology hate. Well, what if I find it's
19 better at S00 or that it should be less? That's the
2 o kind of change I can make that will than bring to the
21 Board, go through the Board, go to counsel, and then be
2 2 approved.
2 3 So the only part of the process that would be
2 4 different is we wouldn't have the Public Hearing
2 5 process because that change is fairly small, and those
17
5
HAHN & BOWERSOCK (800) 660-3187 FAX (714) 662-1398
151 RALMUS DRIVE, SUITE L1 COSTA MESA, CA 92626
1 that will be affected always have the right to 1 would take effect?
2 voluntarily get off of those particular rates. They're 2 MS. EDWARDS: Yes. The only change would be
3 not mandated change. 3 the lack of a public hearing and the testimony ptncess.
4 So it's to better tailor it to customers, to be 4 It would still go to the Board. It wouid still go to
5 able to make adjustments that were unexpected in terms 5 ~ counsel
6 of particularly areas that limit participation. That's 6 MR CARROLL: Those are my only questions.
7 what I'm more concerned about than any. 7 Thank you.
8 Customers have the right to fall back to an 8 MS. GARTEN: I just wanted to add to a couple
9 otherwise applicable tariff. They`re not required to 9 of those.
1 o stay on it, particularly if they don't like the nature 1 o MR C:biAIRMAN: yes, Ms. Garter?
1l of the change. 1l MS. GARTEN: With regard to the Economic
12 That gives you some idea of the example of the 12 Development Schedule D and Schedule C, would some of
13 type of changes that we're talking about. 13 those adjustments -you alluded to a volume
14 MR CARROI.L: Let me ask a question. One of 14 adjustment, but would some of those also be
15 the things you indicated was that that particular rate 15 geographical adjustments? Because it seems that
16 plan did not have a sunset provision. Would you as the 16 Schedule ED is specifically geographically oriented
17 General Manager be allowed to put a sunset provision 17 toward the Anaheim Canyon Industrial Center.
18 into the program since that doesn't constitute a rate 18 MS. EDWARDS: I will ask Mr. Vodzack to address
19 change? 19 that question.
2 o MS. EDWARDS: Potentially, yes, but anything we 2 o MR VODZACK This Economic Developmeat Rate,
21 would do along those lines, the recommendation would 21 Business Retention Rate right now here is the same
22 still come through the Board and counsel. And I must 22 throughout the entire Anaheim service territory.
2 3 stress that it's not providing me with an opportunity 2 3 That's compared to the current rate, which has
24 to arbitrarily define those provisions but rather, 24 segmented into the Anaheim Capon area and all others.
2 5 thin, to make recommendations and route it through the 2 5 Sothis is strictly a geographical rate applicable
18 20
i typical approving bodies. 1 equally to all of the Anaheim service territory.
2 But what I would suggest in that instance, 2 Does that answer your question? It appears it
3 let's say there were significant unintended 3 does not.
4 consequences as a result of that rate, I would put 4 MS. GARTEN: No, stn, It doesn~. I'm sorry.
s forth a suggestion that we change it, that we have a 5 MR VODZACK Okay. Do you want to rephrase
6 phaseout schedule, that we have a notice schedule. 6 the question?
7 That's what I would bring forward to counsel and then 7 MS. GARTEN: Are there discretionary elements
e to the Board, and then subsequent to counsel to 8 for adjusting the geographical zone that is referred
9 recommend. 9 to? Are you saying it's just citywide?
10 So yeah, I believe that it would allow me to l 0 MR VODZACK: There are no geographical
l i cancel or to sunset rates in order to protect both l 1 provisions and it's citywide. These are all citywide
12 customers' interests and those of the Utility. And we 12 rates
13 could do that now with the exception of having to 13 MS. GARTEN: Okay. I guess I don't
14 create the Public Hearing process, which we still need 14 understand -
15 it piece for base rates because those are significant 1 s MR. CHAIRMAN: The old one was geographical.
16 changes. 16 The one we're eliminating is geographical, and it would
17 MR CARROLL: One more question about something 17 be replaced by a citywide; is that correct?
is you just said. 18 MR VODZACK: That's cortect.
19 MS. EDWARDS: Sure 19 The old one had a geographical provision that
2 0 MR CARROLL: So if you wanted to put in place 2 0 allowed one geographical area to have a higher
21. a sunset provision in something that doesn't affect a 21 incentive than the rest of the city of Anaheim. This
22 rate change, you would be -it's saying that the 22 rate here is the same throughout all of the city of
2 3 General Manager would be allowed to do that, but the 2 3 Anaheim.
24 way you just spoke, it would be done with the approval 24 MS. GARTEN: That just wasn't clear in the memo
2 5 by the commission and the coun.4e1 before that change 2 5 itself. If you look at Subpoint C, it's highlighted
19 21
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6
1 that it's just that one geographical area. Thank you
2 for clarifying that.
3 And then the other question, I suppose, is
4 referencing Attachment D, the Developmental Schedule
5 for the Business Retention Rate. And perhaps you've
6 already explained this. But the percentage of the
7 discounts would not change as that would be affecting
8 the rate itself; is that correct?
9 MS. EDWARDS: It would be a declining rate of
10 15, 10 and 5 percent.
11 MS. GARTEN: Okay.
12 MR. CARTEL: Mr. Chairman?
13 MR. CHAIRMAN: Yes, Mr. Cahill.
14 MR. CARTEL: Mr. Carroll hit on a point, and
15 I'm glad Ms. Edwards reiterated my understanding of
16 what I read regarding the General Manager's ability to
17 make changes. And the way I read it -- and you
18 reinforced it -was it has to go through the Board and
19 then through counsel.
20 MS. EDWARDS: Right.
21 MR CARTEL: That's appropriate, I believe.
2 2 MS. EDWARDS: We're very comfortable in doing
2 3 that, but the amount of time and dollars that go into a
2 4 public process such as this for a change of
2 5 10 kilowatts to make a rate more attractive to a
22
1 broader band of customers, I think, is, in fact, doing
2 the customers a disservice.
3 This was intended to ensure the public would
4 participate in rate making, but I'm not sure it was
5 ever intended to manage every single component.
6 Worse yet, it chills us going forward with
z rates that are intended to test market response, to
8 test liquidity because we.are locked into them for
9 years without being able, then, to make changes or to
1 o recommend changes.
l1 But we are very comfortable in bringing them.to
12 the Board and counsel. We're just trying to save some
13 money and simplify the process.
14 MR. CARTEL: Thank you.
15 MR CI~fAIRMAN: Are there any other questions by
16 members of the Board?
17 MS. GARTEN: I just want to make a comment.
18 MR C'I:[AIRMAN: Yes, Ms. Garter.
19 MS. GARTEN: Thank you.
2 0 I think that these are well thought out, and it
21 seems the impact would be somewhat regligibk yet very
2 2 productive in terms of providing some economic
2 3 inctntive for the business sector, so I must also agree
24 that they're very well thought out.
2 S MR CARTEL: Mr. Chairman, Pm ready to make a
23
1 motion, but it appears to be complicated.
2 MR. CH[~~IRMAN: No, no, not yet. We have to
3 open for public testimony yet, and then that - if
4 there are no further questions of the Staff at this
5 point, then we will open it to hear testimony or
6 comments from the public. This may be in oral or
7 written format.
8 First, the Board will hear testimony from
9 persons wishing to testify in favor of the proposed
1 o action, and then the Board will hear from persons
11 wishing to present testimony in opposition to those
12 proposed actions.
13 Is there any member of the public who wishes to
14 speak to the Board in favor of these proposed changes?
15 Hearing none, is there any evidence of any
16 submission of any written format at this point? I
17 believe I've asked that once before, but I want to be
18 sure it's asked again.
19 MS. EDWARDS: No, sir, there isn'tt
2 o MR CHAIRMAN: Is there anyone here, is there
21 anyone present who wishes to speak in opposition? If
2 2 so, please come forward and identify yourself, state
2 3 your name for the record, and submit }roar testimonry.
2 4 Seeing none, hearing none, no other testimony,
2 5 then in this case we would close the testimony and ask
24
i the Staff for any of their closing remarks.
2 MS. KOTT: Thank you, Mr. Chairman.
3 At this time I move that all evidence, oral and
4 written, submitted by the Sta$ including the prepared
5 testimony with exhibits of Mamie Edwards and .Mark
6 Mazak and the Affidavits of Publication of the Notice
7 of Public Hearing, as well as the Staff Report filed
8 with the Secretary of the Board, be copied into the
9 record and moved into evidence.
l 0 There are no further witnesses or evidence to
11 be submitted by the Department for the Board's
12 considerntion, and therefore I ask that the record of
13 the public hearing be closed.
14 MR CHAIRMAN: All right. Now, at this point
15 the Staff is permitted to write addidonal discussion
16 but not questions. The Board is permitted to have
17 additional - to discuss any evidence presented to it
18 by the Staff or by the public, but the Board may not
19 ask additional questions without reopening the
2 0 testimony section of the hearing.
21 MR GORDON: Mr. Chairman, before there is any
2 2 discussion, the Staff has asked the Board to receive
2 3 the written materials, the written evidencx that's been
2 4 prepared in connection with this hearing, and it would
2 5 be appropriate to rule on that request at this
25
7
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1 particular time. So if there's no objection -- and I 1
2 don't think we've heard any - it would be appropriate 2
3 to receive that information into the record at this 3
4 time. 4
5 MR CHAIRMAN; Let it be so received and 5
6 approved by the Board -- 6
7 MR GORDON: Thank you. 7
s MR CHAIRMAN: -unless there's objection by B
9 the members of the Board. 9
10 (Exhibits 1 through 5 were marked for 10
l 1 identification by the Certified Shorthand Reporter and 11
12 are attached hereto.) 12
13 MR t'HAIRMAN: Any discussion by members of the 13
14 Board for discussion beyond what we've already said or 14
15 done? 15
16 Mr. Carrotl? 16
17 MR CARROLL: Mr. Chairman, td just like to 17
18 join the other Board members in cttntplimenting 18
19 Ms. Edwards and the Staff in the presentation that we 19
2 0 all received. 2 0
21 I, like Lon, did rrad through these things and 21
2 2 found them to be very well organized, and I compliment 2 2
2 3 them on the organization and the preparation. And I 23
24 think these are and will be good changes to be made on 24
2 5 behalf of the Commission. 2 5
26
1 MR. C~IAIIiMAN: All right, then, we do have the
2 motion. We do have We motion on the floor to delete
3 aad add and implement the recommendations as per the
4 Public Hearing; is that correct?
5 MR CAHII,L: Mr. Chairman, would that be all
6 six points that Ms. Edwards brought up in ate motion?
7 MR CHAIRMAN: Yes.
8 MR CARTEL: I so move.
9 MR CARROLL: I second.
l 0 MR CI~[AIRMAN: We have a motion and a second
11 ~ Should the roll be called on-this, Mr. Gordon?
12 MR GORDON: That would be appropriate.
13 MR CI~U~IItMAN: Would the cleric please call the
14 roll -Secretary please call the role for the members
is of the Board.
16 MS. EDWARDS: Member Doug Clark?
17 MR CLARK Aye.
18 MS. EDWARDS: Member Lon Cahill?
19 MR CARTEL: Aye.
2 0 MS. EDWARDS: Vice Chair John Elwell?
21 MR CH;AIItMAN: Aye.
2 2 . MS. EDWARDS: Member Marcia Garttn?
2 3 MR GORDON: Aye.
24 MS. EDWARDS: Member Pat Carroll?
2 5 MR CARROLL: Aye.
27
28
MR CHAIRMAN: Then that would close the matter
of the Public Hearing. So for that, then, we wish to
thank the Staff for their excellent presentation, thank
the court reporter for your participation. With that,
that concludes, I believe, all of the requirements of
the hearing, and you would be free now to leave.
And we would now take a 15-minute recess for
the Board to take a break and•recrrganize for the rest
of our regular meeting.
(End of proceedings.)
8
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A
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30
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eliminating 21:16
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