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RES-2010-192 RESOLUTION NO. 2010- 192 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING RULE NO. 29 OF THE ELECTRIC RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF ELECTRICITY AS ADOPTED BY RESOLUTION NO. 71R-478 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2010-036. WHEREAS, the City of Anaheim ( "Anaheim ") maintains an electric generation and distribution system for the distribution of electricity to residents and inhabitants 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 Electric Rates, Rules and Regulations for that purpose; and WHEREAS, a voluntary Green Power Adjustment was established by the adoption of Resolution 2002R -170 adding Rule No. 29 to the Electric Rates, Rules and Regulation which created green power programs to provide Anaheim customers the option to pay an additional charge on their electric bills that would be dedicated to the procurement of green power to integrate renewable energy into Anaheim's power resource portfolio ( "Green Power Program "); and WHEREAS, with the increased cost of renewable energy, the charge to Green Power Program participants is to increase from $1.50 per 100 kilowatt -hours to $0.02 per kilowatt -hour to reflect the current cost of green power and to allow Green Power Program participants to continue to contribute to the procurement of green power at the same level as when the Green Power Program was initially deployed; and WHEREAS, the Sun Power for the Schools program set forth in Rule No. 29 offered customers the ability to make tax deductible contributions through their electrical bill that were to be applied toward the purchase and installation of solar systems at Anaheim public schools; and WHEREAS, Senate Bill 1 (Murray) enacted by the California Legislature amends various sections of the Public Utilities Code relating to solar programs; and WHEREAS, Public Utilities Code section 387.5 requires that Anaheim set aside sufficient monies to fund solar programs; and WHEREAS, this State law funding requirement creates a separate funding stream for the Sun Power for the Schools program thereby necessitating that Rule No. 29 be updated to delete outdated information; and WHEREAS, the Public Utilities Board considered the proposals of the Public Utilities Department and made the following findings with respect to the need for the proposed modifications to the Electric Rates, Rules and Regulations: 1. It is reasonable and appropriate to modify Rule No. 29, as set forth in Attachment A, in order to increase the amount charged for green power to Green Power Program participants to more accurately reflect the increase in cost of green power to Anaheim since the inception of the Green Power Program; and 2. It is reasonable and appropriate to modify Rule No. 29, as set forth in Attachment A, in order to eliminate references to the Sun Power for the Schools program since California law mandates that Anaheim provide funding for the installation of solar energy to Anaheim ratepayers; and WHEREAS, the Public Utilities Board considered the requirements of the California Environmental Quality Act and found that matters covered by this Resolution fall within Section 21080 (b)(8) of the Public Resources Code and Section 15061(b)(3) of Title 14 of the California Administrative Code. Thus, the modifications to Rule No. 29 of the Electric Rates, Rules and Regulations are statutorily and categorically 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, by Motion, certify that the adoption of the modified Rule No. 29 of the Electric Rates, Rules and Regulations is statutorily and categorically exempt under the California Environmental Quality Act, Public Resources Code, Section 21080(b)(8) and Section 15061(b)(3) of Title 14 of the California Administrative Code as (i) this is an action to establish and modify charges for the Green Power Program and (ii) it can be seen with certainty that there is no possibility that the activity may 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 modifications to Rule No. 29 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 November 1, 2010. 3. The Public Utilities General Manager is authorized and directed to prepare, promulgate, publish, and take any and all actions necessary to implement the changes to the Electric Rates, Rules and Regulations as set forth herein. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this _ gth day of Nowt.mhar , 2010, by the following roll call vote: AYES: Mayor Pringle, Council Members Sidhu, Hernandez, Galloway, Kring NOES: NONE ABSENT: NONE ABSTAIN: NONE CITY 0 ANAHEIM MAYOR OF THE C ANAHEIM ATTEST: Ott. CITY CLERK OF THE CITY OF NAHEIM 79092.3 ATTACHMENT A Electric Rates, Rules and Regulations Rule No. 29 CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.29.1 Anaheim, CA 92805 RULE NO. 29 GREEN POWER ADJUSTMENT A. GENERAL The Anaheim Public Utilities Department's (Department) green power program provides the Department's electric customers the option to pay an additional charge on their bills that shall be dedicated to the procurement and production of electricity from clean, renewable generation sources such as solar, wind, hydropower, biomass, and geothermal. The intent of the green power program is to increase the proportion of renewable generation in Anaheim's power resource portfolio. The green power program gives customers the choice to pay an additional fee /charge for energy from green power sources; the funds collected shall be dedicated to the purchase of green power (Green Power Program). The Department shall collect these funds in a separate revenue account for use in purchasing the green power on the wholesale market and delivering it to the Anaheim system. The Department shall also determine the mix of available green power. The premium that customers shall pay for the green power is $0.02 per kilowatt -hour purchased. The total amount of funds collected shall determine the amount of green power purchased by the Department. Customers who contribute to the Green Power Program shall not receive electrical energy from a specific renewable resource delivered directly to their premises. Rather, by choosing this program, the customer elects to fund the purchase of a particular level of renewable electrical energy to be added to the Department's overall system. This Rule sets forth the terms and conditions under which the Department shall collect green power funds from customers. B. TERMS OF THE AGREEMENT Participation in the Green Power Program is voluntary. The Green Power Adjustment shall be in addition to, not in lieu of, a customer's regular billing under the Electric Rates, Rules and Regulations. Customers must enroll in the Green Power Program through the Department Customer Service Division as a condition of participation in the Green Power Program offered pursuant to this Rule and must commit to the payment of the Green Power Adjustment on their utility bill. The customer must notify the Department in writing to cancel participation in the Green Power Program. The Green Power Adjustment shall appear as a separate line item on the customer's bill. C. TERMINATION OF BILLING CHARGE Once instituted, the customer must notify the Department in writing of the customer's termination of future contributions to the Green Power Program. Discontinuation of the charge shall be effective with the next scheduled billing cycle. The funds collected for the Green Power Program shall be maintained in a separate Utilities account and be used only for the purchase of renewable power in furtherance of the Green Power Program. ISSUED BY: Effective: by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 2002R -170 Dated: 7 -23 -2002 General Manager