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Ordinance No. 940 1 2 3 4 5 6 ORDINANCE NO. 940 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON PROVIDING THAT RATES TO BE CHARGED FOR ELECTRICAL ENERGY DISTRIBUTED AND SUPPLIED BY SAID CITY WITHIN ITS BOUNDARIES SHALL BE SET BY RESOLUTION AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT THEREWITH 7 WHEREAS, the City Council of the City of Vernon has 8 previously established rates to be charged for electrical energy 9 distributed and supplied by said city within its boundaries by 10 ordinance; and 11 WHEREAS, the City of Vernon purchases substantially 12 all of its power and energy from Southern California Edison 13 Company pursuant to tariff schedules approved by the Federal 14 Energy Regulatory Corrrrnission ("FERC"); and 15 \VHEREAS, the FERC has amended its suspension policy 16 from a five (5) month suspension to a one (1) day suspension 17 for rate increases filed by wholesale suppliers when incorporated 18 into a two (2) step rate filing; and 19 WHEREAS, a one (1) day suspension by the FERC does not 20 provide sufficient time for the City of Vernon to adopt rates 21 by ordinance; and 22 WHEREAS, the City Council of the City of Vernon intends 23 by this Ordinance to amend its previous policy and set future 24 rates to include rates for demand, energy, fuel adjustment and 25 any and all other factors necessary for the collection of revenue 26 to meet the costs incurred in operating the utility service 27 by resolution. 28 III III 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VERNON 2 DOES ORDAIN AS FOLLOWS: 3 SECTION 1: That the City Council of tre City of Vernon 4 hereby finds and determines that the recitals contained herein- 5 above are true and correct. 6 SECTION 2: That the rates to be charged for electrical 7 energy distributed and supplied by the City of Vernon within 8 its boundaries shall be set by resolution. 9 SECTION 3: That in all other respects, Ordinance No. 10 929, as amended by Resolution No. 5051 and 5061, shall remain 11 in full force and effect and that the provisions in Ordinance 12 No. 929, as amended by Resolution Nos. 5051 and 5061, not 13 consistent with or in conflict with this Ordinance is hereby 14 repealed. Any other ordinance or portion thereof in conflict 15 with this Ordinance is hereby repealed. 16 SECTION 4: There being no newspaper printed, published 17 or circulated in the City of Vernon, the City Clerk is hereby 18 directed to certify to the passage of this Ordinance and shall 19 post the same, or cause the same to be posted, in three (3) of 20 the most public places in the City of Vernon, to wit: the 21 northwest corner of 38th Street and Santa Fe Avenue; the 22 northeast corner of Leonis Boulevard and Pacific Boulevard, and 23 on the bulletin board in the lobby of the City Hall of said 24 City, located at 4305 Santa Fe Avenue, all in the City of Vernon, 25 County of Los Angeles, State of California; that this Ordinance 26 I / I I I I 27 I I I I I I 28 I I I I I I -2- 1 shall be in full force and effect thirty (30) days from and 2 after the passage of the same. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 APPROVED AND ADOPTED this 6th day of December, 1983. ATTEST: ~~144 //?~y BRUCE V. MALKENHORST, City Clerk 27 28 -3- 10 11 12 13 14 15 17 18 1 STATE OF CALIFORNIA ss. 2 COUNTY OF LOS ANGELES 3 4 I, BRUCE V. MALKENHORST, City Clerk of the City of 5 Vernon, do hereby certify that the foregoing Ordinance, being 6 940 , was duly and regularly introduced 7 Ordinance No. ladjourned at a regular meeting of the City Council of the City of Vernon, 8 held on November 15. 1983 , and thereafter finally adopted 9 at a regular meeting of said City Council held on 6th December 1983 , by the following vote: Halburg, Davis, Gonzales, ~,fcCormi k Councilmen: Ybarra Councilmen: None AYES: NOES: ABSENT: Councilmen: None 16 .t/~-Z"_d/;Y~~~ , Bruce V. Malkenhorst, City Clerk 19 (SEAL) 20 21 22 23 24 25 26 27 28 -4 - 1 AFFIDAVIT OF POS~ 2 STATE OF CALIFORNIA ) ) 3 COUNTY OF LOS ANGELES) SS ) 4 CITY OF VERNON ) 5 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that I did, on the 7th day of December , 19 83, post three (3) cODt"es of ORDINANCE N?" . 940-Prov~d~ng That Ra'f'eS To Be Charged For E ectr~~d.l Euer~, Dl.~tr - buted and Supplied By Said City Within Its Boundar~es Shall Be Set By Resolut~on & l{epeal~ng All Ordinanc.;e~ Or. t8ftFri8t1hgfgW~tfi~ In one in each of the follOlN'ing places, to TtJit: At the northwest 6 7 8 9 10 11 corner of 38th Street and Santa Fe Avenue, at the northeast cor- ner of Leonis Boulevard and Pacific Boulevard, and on the bulletin 12 board in the lobby of the City Hall of the City of Vernon, locat- 13 ed at 4305 Santa Fe Avenue, all in said City, there being no 14 newspaper of general circulation printed and published in the City 15 of Vernon. 16 Signed this 7thday of December , 1983 . 17 &~/~~ BRUCEV. MALKEilliORST, City Clerk l8 19 20 Subscribed and sworn to before me this 7th day of December ,19~. ;;? 21 22 23 24 25 :::::=~~-~~""f- OFFICIAL SL\L ~' LOi:; J HiLTON ., NOTIl.RY PUBLIC - CALfi'Or.~N'lA Las M,C"),':';,'{ My comm. ex.:.::::; rj;: t" F ',.' 26 27 ..~ 28 430'5 Santa Fe Avenue, Ver.~'::;;l, CA see:3 . . " I. . , . ~~,(...,.~_. ,~.".,,-.....,. "" SUPPORTING DOCUMENTS v ...... . .....-C,.). I . BAKER G CLAY !:!( ^SSOC1ATES. INC REPORT ON RA TE DESIGN "b ! i.0 u 1--1 - t-f. r l,.v.~t. , . . CI Y OF VERNON, CALIFORNIA unicipal Light Department May 1984 REPORT ON RATE DESIGN SUPPLEMENT TO DECEMBER 1983 REPORT CITY OF VERNON, CALIFORNIA MUNICIPAL LIGHT DEPARTMENT MAY 1984 PREPARED BY: BAKER G. CLAY & ASSOCIATES, INC. TABLE OF CONTENTS Section Description Page I Introduction 1 II Elimination of Two Step Increase 2 III Revised Cost of Service to Reflect Edison's Reduced Rates 3 IV Cogeneration 4 V Miscellaneous Changes in Rate Schedules 6 VI Changes in the Energy Cost Adjustment Billing Factor 8 VII Adjustments to Vernon Costs 9 I. INTRODUCTION As reported in the December 1983 Report, on November 8, 1983 Southern California Edison Company (Edison) tendered for filing with the Federal Energy Regulatory Commission (FERC) in Docket No. ER84-75 a proposed t~o-step increase in its wholesale rates for service to Vernon. Edison requested effective dates for the Step 1 and Step 2 rates of January 7, 1984 and January 8, 1984, respectively. Vernon and the other resale Cities filed protests with the Commission and requested maximum suspensions of both steps of this proposed increase. On January 5, 1984 the Commission issued an order providing for a maximum suspension of the proposed two-step increase to June 8, 1984. Among other reasons cited for the maximum suspension, the Commission cited Vernon's protest: }'. Vernon alleges, inter alia, that Southern California Edison (SCE) has included excessive depreciation expenses, decommissioning expenses, and operation and maintenance (O&M) expenses; that the company has over- stated demand projections; and that SCE has claimed an excessive rate of return. Vernon also challenges the allocation of costs among customer classes. In its January 5, 1984 order, the Commission also granted summary disp~sition on certain issues, whi~h results in a reduction in Edison's resale revenue requirements from $290,835,000 to $289,946,000. Edison filed reduced rates in February 1984 in compliance with the Commission's January 5, 1984 order. The proposed rates applicable to Vernon as set forth in the original filing and in the February 1984 compliance filing are as follows: Original F i 1 i ng Compliance Filing Customer Charge: $ 490.00 $600.00 Demand Charge On-Peak Mid-Peak $ 15.63 $ 1. 56 $ 15.54 $ 1.55 Energy Charge On-Peak Mid-Peak Off-Peak 4.795t 4.495~ 4.045t 4.793t 4.493t 4.043,t The January 5, 1984 suspension order and the February 1984 Compliance filing make it appropriate to supplement our December 1983 Report as set forth herein. -1- II. ELIMINATION OF TWO-STEP INCREASE The Commission's order suspending Edison's increased rates until June 8, 1984 also eliminated the two-step approach proposed by Edison. Edison's total increase will become effective on June 8, 1984. In our December 1983 Report, we proposed a surcharge to track Edison's Step 2 increase. This will no longer be necessary, of course, and the revised rates proposed herein will reflect Edison's total increase and no surcharge will be necessary. -2- I ~ i I I I III. REVISED COST OF SERVICE TO REFLECT EDISON'S REDUCED RATES Edison's reduced rates, filed in compliance with the Commission's Summary Disposition of certain issues, results in a decrease in the cost of service that we set forth in our December 1983 Report from $75,279,990 to $75,071,999. The various schedules set forth in our December 1983 Report, including the rate design schedules and tariff sheets, have been revised to reflect this reduction in our cost of service. -3- VI. COGENERATION At pages 23 - 25 of our December 1983 Report we outlined an approach for the calculation of transportation demand rates for cogeneration, but did not recommend precise rates because several pieces of vital information were missing, and at that time, had no firm proposals in hand. In summary, we recommended that monthly transportation demand rates be computed by dividing the sum of Vernon's fixed costs, including Contract Services, Miscellaneous Expenses, Operating Agreement Costs, Depreciation, Return, and Payments in Lieu of Taxes and Franchises, by the sum of Vernon's system demands. We did recommend, however, that the Contract Services portion of the costs be reduced by the amounts pertaining to activities associated with purchases of power and energy and that Vernon consider a reduction in the In Lieu payments on an individual basis. In that report we noted that the estimated demands for transportation for the cogenerators would have to be added to existing system demands to arrive at adjusted system demands for use in developing rates. We did not make a projection of these transportation for cogenerators demands, however, and thus merely computed an "example" demand rate for transportation for cogeneration customers on Exhibit C, Sheet 2. We have now entered into a Letter of Intent with Sunlaw Energy Corporation (Sunlaw) in which Vernon proposes to transport 58,~9~ kilowatts per hour for Sunlaw at a rate of $1.996 per kilowatt-month. The Letter of Intent provides for a charge of 2 mills per kilowatt hour for interruptible transportation of energy in excess of 58,~99 per hour. As part of this Agreement, Vernon reserves the right to modify the rate after the fifth year by a formula to be developed by the parties in accordance with the approach contained in the current Vernon Rate Report. We have revised Exhibit C, Sheets 1 and 2 to develop a Transportation demand rate for Sunlaw that reflects the situation that will exist after Sunlaw transportation begins. We have revised Sheet 1 of Exhibit C to reflect transportation for Sunlaw of 58,~9~ kW. We have revised Sheet 2 of Exhibit C to assume that none of contracted services relates to transportation. Also Section 11.1 makes clear that Vernon has reduced its rate in recognition that Sunlaw's cogeneration project will consume natural gas as its fuel source and that Vernon will therefore receive additional franchise fees from Southern California Gas Co. Sunlaw is also obligated to pay Vernon an equivalent percentage of the purchase price of alternate fuels which are consumed in this project. As we indicated in the December 1983 Report, it is appropriate that the City consider a reduction in the In-Lieu payments on an individual basis. Because of the additional franchise fee payments to Vernon on the fuel consumption at this project, we have reflected an 85 percent discounting of the In-Lieu payments in the calculation of -4- I i I I i I I transportation rates for Sunlaw. Note that it may be appropriate to reflect a different discounting in the calculation of transportation rates for other cogenerators. The revised transportation rate for Sunlaw computed on this basis (applicable solely to Sunlaw) would be $1.24. The rate of $1,.006 proposed in the Letter of Intent is somewhat lower than the calculated rate of $1.24 per kW-month, but is well within the zone of reasonableness considering the level of precision attainable in projecting system demands and the need to implement a rate that will encourage cogeneration in the City of Vernon. ! "\ ./ ". -5- V. MISCELLANEOUS CHANGES IN RATE SCHEDULES A. Schedule No. TOU-V The applicability section of proposed Schedule No. TOU-V now provides that any customer whose monthly maximum demand has fallen below 500 kW for 12 consecutive months may elect to take service on any other applicable rate schedule. We now propose to revise this section to provide that any customer whose maximum demand has fallen below 450 kW for 12 consecutive months may elect to take service on any other applicable rate schedule. B. Schedule No. GS-l The applicability section of Schedule No. GS-l now provides that this schedule is not applicable when in the opinion of the~tility, the maximum demand may exceed 20 mW. We now propose that the applicability of Schedule No. GS-l be made available to customers with maximum demands greater than 20 mW. We also now propose that the customer charge of $6.00 per month be eliminated. C. Schedule No. D. Schedule No. D is now applicable to domestic farm service and summer cottage customers. No such customers exist, or are likely to exist, in the City of Vernon and we propose that Schedule No. D be revised to eliminate the mention of this service. -~ l?~ ,j'ftj.. ~- 1~/ All customers having!ffionthly requirements of 500 kW or higher during the last 12 months now have magnetic tape meters. We therefore propose that Schedule No. A-7 be withdrawn and customers now purchasing under this schedule having monthly requirements of 500 kW or more be required to purchase under Schedule No. TOU-V. Customers having monthly requirements of less than 509 kW would purchase under Schedule No. GS-2. D. Schedule No. A-7 We have not proposed adjustments to the rates for Schedule Nos. TOU-V and GS-2 to reflect the increase in service under these schedules resulting from the transfer of customers from Schedule A-7. Instead, we have assumed that the total revenues from the customers transferring from Schedule A-7 to Schedule Nos. TOU-V and GS-2 will be approximately the same under those schedules as the revenues we have projected for Schedule No. A-7. While this assumption will obviously result in some error, we do not -6- have the data with which to make more precise calculations of rates. The time-of-use billing data that is now available is limited to the large customers purchasing under Schedule No. A-a, but data with which we can make a more precise calculation of billing determinants for the TOU-V and GS-2 customers will be available shortly and adjustments to these rates can be made at that time, if necessary. E. Schedule No. TOU-V The voltage adjustment for Schedule Nos. A-a and A-7 have applied only to the demand charges. Because energy losses are associated with transformation, it would be appropriate to apply the voltage adjustment to the energy component as well. We have therefore proposed a voltage adjustment provision for inclusion in Schedule TOU-V that adjusts both the demand and energy co~ponent. F. Schedule No. GS-2 We have included a power factor adjustment provision and a voltage adjustment provision in Schedule No. GS-2 because it will be necessary to apply these provisions to the customers transferring from Schedule No. A-7. The voltage adjustment for Schedule No. GS-2 will apply to both the demand and energy components of the rate. -7- VI. CHANGES IN THE ENERGY COST ADJUSTMENT BILLING FACTOR As set forth in the revised Exhibit H, the Energy Cost of purchases from Edison under the compliance rates is 4.385t/kWh, which will be the base cost of energy from which the ECABF is to be computed. Also, because the meter reading of Vernon's large customers does not necessarily coincide with the date that Edison reads Vernon's meters, Vernon's recorded monthly sales sometimes vary considerably from its recorded purchases. In instances where there is a substantial difference between recorded sales and recorded purchases, it would be appropriate to make adjustments to reflect these differences. A ledger should be established in which to make entries of positive and negative adjustments in kWh sales, and adjustments should be made such that positive and negative adjustments are in balance as of each November 39. A provision for these adjustments has been set forth in Exhibit H, Sheet 4 of 4. -8- VII. ADJUSTMENTS TO VERNON COSTS Subsequent to the submission of our December Report, Vernon has prioisedl revusuibs .illS! uts budget expenditures for the fiscal year ~uly 1, 1984 through June 30, 1985, as follows: 000's December Report Current Estimate Contracted Services Operating Expenses Miscellaneous Expenses $ 585 2,161 152 $1,275 2,640 316 We have therefore reflected the current estimates in the sales rates proposed herein. We have not reflected the increase in the miscellaneous expenses in the cost of services used to develop transportation demand rates for cogenerators. We have, however, increased the In Lieu payment from $2,300,100 to $2,400,000, and included 15 percent of the larger amount. -9- E;.:tllblt fl City at Ve~non Sheet 1 01 4 Compa~ison at Revenue Requi~ements (Revised) Actual Yea~ v.s. Estimated Unde~ Edison's Step 1 Rates (thousands) Actual E>~pen$es as Adjusted Estimated E>:penses w/Step 1 Rates A B c 725 $75,071 1,275 316 :...:,640 400 750 $80.45:.::: 1 Cost of Powe~ & Ene~gy 2 Cont~acted Service ..;;. t-ti sce!l aneOLlS 4 Ope~atinq Agreement 5 Depreciation b RetLl~n 7 lotal Revenue Requirement * $65,694 6.36 113 2,092 399 $69,659 Sources : Col B. Line 1 Cost ot Purchases for year ending October 31, 1983 from Sheet 2, Reflects Step 2 rates in Docket No ER82-427. Col B. Llnes 2-5: City of Vernon statement of Revenue and Expenses for year ending October 31, 1983. Col B, Line 6 Average Rate base @ 12.65 % Col C. Line 1 Power and energy purchased during year ended October 31, 1983 , priced at compliance rates. Col C, Lines 2-5: City of Vernon proposed budget . Col C, Line 6 Average Rate Base @ 12.65 % Rate of Return. * Does not include payment in lieu of taxes and franchise fee. Citv ot Vernon Costs of Purchases from Edison Under step 1 Rates (Schedule f<-~.J Billinq Units (thousands) Step 1 Rates A B c es 1 Customer Charge 1 $bOO.OO Demand Charge 2 On Peak 3 Mid Peak 4 Subtotal 1 !ISb1 2~042 $15.54 1.55 5 Voltage Adjustment 1 , 861 $0.55 b Power Factor Adjustment 7 Vernon City Hall ~ 8 lotal Demand Energy Chat-ge 9 On Peak 10 I-b d Peak 11 0++ Peak 12 Subtotal 1~; FCA 14 Vernon Litv Hall * 15 Subtotal Energy 196,894 322, 9(7~8 508,729 1,028,621 $0). (l479~5 0.0449::::. 0.04043 16 lotal Sources : b:hibl t B Sheet 3 01 4 ,Re...,.l sed) Amount (thousands) D $7.20 28,920 3,165 $32,085 ($1!1024) $24 (11) it :::;.1.l)81 9,437 14,512 2(), ~,68 44,517 ~46:3;Jit* (65)* $4:::. !I ;:Y'-td t;7~1!I (I} 1 Col. B: W/P B-2 !I 12 months ending October 31, 1983. Col. C Step 1 rates from filing in Docket No. ERB4-75 Col. U, Lines 6, 7 & 14 : W/P B-2 .. lotal Lity Hall Demand @ 15/. E.nergy @ 85 I. $76 11 65 ** Based on neqatlve .045c/kWh from Statement DB in Docket No. ER84-75. Citv 0+ Vernon Costs of Purchases from Edison Under step .2 Rates (Schedule R-3j Billing Units <thousands) step 2 Rates E>: h i bit El Sheet 4 of 4 (Revised) Amount (thousands) ---------------------- --------- --------- --------- PI B C iJ 1 Customer Charge 1 $6uO.00 $7.20 Demand Charge 2. On Peak 3 I'Ii d Peak 4 Subtotal 1,,861 2,,042 $15.54 1.55 5 Voltage Adlustment 1,,861 $0.55 6 Power Factor Adjustment 7 Vernon Cltv Hall 8 fotal Demand Energy Charge 9 On Peak 1 (I I'h d f'ea k 11 Off Peak 12 Subtotal 13 FCA 14 Vernon City Hall 15 Subtotal Energy 196,8(14 322,998 508,729 1,028,,621 $0.0479::::; 0.04493 i) . 04043 16 fotal Sources : 28,920 ~;, 166 $32,086 ($1,024' $24 <11 )-It -31, ('82 9.437 14,512 20,568 44,517 (4o"3J ** (6~) .. 1;4-3, 990 $75,072 Col. B : W/p [1-:':;: . lL months ending October -.::.1, 1'7'8:2:.. Col. C : Step 1 rates from filing in Docket No. ER84-75 Col. D. Lines 6" 7 & 13: W/P B-2 * lotal City Hall Demand @ 151. Ener-gy @ 85 % $76 11 65 ** Based on negative .045c/kWh trom Statement DB in Docket No.ER84-75. Litv ot Vel-non Billing Demands tor lransportatlon tor Logeneration b:t1ibi t L Sheet 1 01 3 (Revised) Bll1ing Demand .. mW-.t-lonths) H fJ 1 Sunl aw (12*58) 2 Customer 2. ~. Customer ~. 696 '-' (I 4 Tot al 696 Cltv of Vernon Development ot fixed Costs tor Iransportation tor Cogeneration Customers Vernon~s Fixed Costs 1 Contracted Services 2 Miscellaneous 3 Operating Agreement 4 Depreciation 5 Return 6 In Lieu Payment (.15*2400) 7 fotal Costs Vernon's System Demands 8 lotal system Oemand 9 lransportation for Cogeneration 10 Additional Firm 11 Hdjusted System Demands (Temporary) 12 Unit Cost per kW Sources : Lines 1-5 Exhibit B~ Sheet 1. b:hibit L . Sheet 2 of:., (Revised) 14mount (OOO~s} $0 152 2.040 40(1 750 360 2,785 696 Line 6: Payments to General Fund In-Lieu of 1.axes and Franchise Payments Line 9: Exhibit C~ Sheet 1 $4,31)2 3;.481 III So 3~)2 I A-B 2/H 3 65-2 4 65-1 S D b lS-1 7 lS- 2 8 Ol-1 481 Y PII-l Iii ril-i .24 II 1(-1 12 lotal Exhlbl t ( Sheet J of 3 \f(evlSed I li tv of Vernon Energy and peak deaand Adjusted for losses leaT Ending "arch 31, 1983 loss fercentages Energy tit/hi BillIng De.and (tN-Ho.) Schedule ------- ------------------------------- f'naary !list. lotil "eler frans. Heter Inns. A 8 Sources : (Dlu.n F: N/r (-1 Colu.n H: Wry (-2, Nir b-i. f l.puted @ 2S~ load factor I. I.puted @351 load factor Sec. line iiI 01 c,;; -------- -------- --------- ------- --------- --------- --------- t II E F II tI t>1 01 01 645,Wt,020 045,969, {)2(I 1,416,613 1,41b,613 01 11 11 214,373,500 216,517,29& ilb,359 723,52L n 1l 21 123,284,114 125,749,796 544,675 555,5b9 II 11 n 9,774,896 10,165,892 0 56,OB8 . n n 4l 126,652 131,718 (I 727 f 21 21 61 1,835,724 1,945,867 4,571 4,845 21 21 61 227,748 241,413 5bO 594 21 21 61 1,615,042 1,111, '45 (I (I 21 2); 61 3,652,610 3,871,761 IB,953 15,258 if 01 n n 1,719,280 1,791,073 8,31b 8,399 n 1l 21 516,375 52b,703 (J 2,90b f 1,(~3,155,021 1,008,628,489 2,716,047 2,1&4,521 21 2); 21 21 27, 11 01 01 11 tt ot Vernon Allocation of tost of &ervlce Vernon's Costs Under Edison', Step 1 Rates Deland Schedules Total hat -------------------------- "id Puk Ii B 2 TOU-V $14,186,278 $12,882,892 A-8 4,353,989 3,953,960 A-7 9,409,278 8,5",273 65-2 7,117,566 6,b03,09b 65-1 718,557 066,618 D 9,310 8,&37 PA-l 195,478 181,348 PH-2 107,&0& 99,B28 1C-l 37.229 34.538 Subtotal .36,195,290 $33,030,190 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17 IB 19 lOU-V A-a A-] 65-Z 65-1 II PA-l PA-2 TC-l 1,083,936 332,677 723,522 5S5,Sb9 Sb,088 727 15,258 8,399 2,9% 2,779,082 Subtotal 20 21 22 lS-1 lS-2 Ol-1 4,845 594 o C $1,303,386 400,029 870,004 514,411 51,939 673 14,129 7,718 2,091 $3,165,100 bhlbl t 0 Sheet 1 of 1. \Ren sed I Energy Total ------- -------------------------------- Peilt "id Peat Oft Peak D $23,822,694 4,230,518 9,402,936 5,038,2U 455,806 5,900 173, S9B 80,575 23,610 "3,833,864 E F 6 o o o 1,945,B07 241,413 1,711,945 $4,423,8Z4 $7,290,259 $12,108,&11 785,598 1,294,630 2,150,290 1,746,105 2,877,501 4,779,329 1,092,179 2,682,121 1,263,911 136,799 216,829 102,177 1,172 2,809 1,324 52,101 82,581 38,915 24,183 38,330 18,062 7,098 11,234 5,294 $1,869,650 $14,496,300 $20,467,913 1,407,506 549,5fJ4,144 95,921,845 15B,bb4,314 293,9b8,SB5 431,995 97,414,216 11,034,138 28,17&,106 52,203,973 939,504 216,517,296 37,800,831 62,625,597 110,030,8b8 555,569 125,149,196 30,691,532 58,373.485 30,684,179 50,088 10,165,892 2,966,225 4,719,942 2,480,625 727 131,718 38,433 bl,144 32,141 15,258 3,871,167 1,129,712 1,797,287 944,7b7 8,399 1,797,073 524,354 834,207 438,512 2,906 520,703 153,b82 244,497 128,5:i3 3,417,942 1,004,729,264 192,320,751 315,495,739 496,912,773 142,242,948 41,503,938 bb,029,b63 34,709,348 Colulns D,F,6 , H lines 12-13: Sal! ratio as TOU-V . um (6J (1Q<1i Lines 20-22 , Colulns B & E: Exhibit C, Sheet 3 of 4 . Lines 20-22 , Colulns C,D,F,6 , H: Exhibit D, Sheet 2 of 2 . (20i (2) UBi (8) III 171 fotal 2,784,521 2,778,84Q 3,417,942 1,008,628,489 192,320,711 315,495,123 49b,912,b73 Sources : Line 10: Exhlbit D, Sheet 2. Line 11: VIP D-2 Colulns C , E: Exhibit C, Sheet 3 tMote: line 12 is total A-8 less TOU-V). CoIulns F,6 , H lines 14-19: RatIO based on total sv:tel less lines 11-13. fotal Alount H $38, O(IB, ~i~ 8.584, SU7 18,872,214 12,755,782 1,174,3b3 15,210 369,075 188,181 60,845 $80,029,154 (501 101 (44) 1. 950.565 241,998 1,711,81& 83,933,535 1 i I ! Citv of Vernon Exhlll1t [, Cla5sification ot kevenue ReQUire.ent5 Sheet 2 of 2 Purchases fro. Edison @ Step 1 Rates Utev15edl A.ount fotal --------- ----------- -------.-- --------- ----------- ---------- Illunt lotil De.and Energy Pirticulars Peak Ih d-Peak Peak "id-Peak Off -Peak -------------------- -------- -------- -------- -------- -------- ------- A II C D E f 6 8, ~Il 1 Purchased Power $75,071 $27,916 $3,165 tll,91(\ $14,512 $2V,568 .,507 2 Contracted Service 1,275 1,275 2,214 3 "iscellaneous 316 31b 5,782 4 Operating Agree.ent 2,040 2,040 4,363 5 Depreciation 400 400 5,21b 6 Return 150 750 ,9,075 a,181 7 Total Revenue Req $80,452 $33,297 $3,165 t8,910 $14,512 $20,568 ,(1,845 :9,154 8 "iscellaneous Rev. t$2S) tt2SJ 9 lS-1 Revenues (t2QSi ($127) (t20) ($8; t$501 10 lS-2 Revenues (IS; tb) t2) l1i (o) 11 OL-l Revenues (178) U~J (18) m (441 12 Total for Allocation tSO,029 133,030 $3,105 tll,870 $14,490 $20.468 Sources : Line 1: Exhibit II, Sheet 3. SO,50S H,'1~8 11,81~ lines 2-7: Exhibit I, Sheet 1. line 8: MiP C-3. )3,535 lInes 9-11: KIP [-4 ....- o ~ .... ~ -~ .... .. 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IXJ .... :=: IN ...... . .... ..0 - Citv 0+ Vernon Revenues @Existing Rates Revenues @ the Proposed Rates and the Resulting Increase b:hi bi t G Sheet 1 o-f 4 (Revised) Schedule No. fo:evenues ~ E:<isting Rates Revenues @ Proposed Rates Incr-ease -------------- A B c D 1 lOU-V "'34,598,316 "'39,184,589 "'4,586,273 2 A-7 16,080,720 19,455,932 3,375,212 3 8S-2 11,418,981 13, 150,319 1,731,~';38 4 65-1 947,285 1,210,686 263,401 c- PA-1 293,922 380,491 86,569 ;.J 6 PA--2 169,856 194,001 24,144 7 lC-1 38,870 42,754 :;:.,884 8 D 5,571 5,699 128 9 LS-l 205 205 (I 10 LS-- 2 15 15 (l 11 OL-l 178 178 (l 12 Total "'63,553,91 '7' $7::::.,624,868 $10,0"70,949 Sources : Line!: 1--6 Exhibit G, Sheet 2 Lines 7-8 W/P 6-2. Lines 9--11: E:-:hibit D, Sheet '2 ~ , . , . 0'- ' . iJ' ~ :=: -0 ,=- . . 111 + N ' . t~ ' , 0 1":' .... Q) , , . . , . :.!) ,., . - -0 ' . , . . . U1 . 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III tti Ci... il.. to.: 5 o:t ...... +' ... E III ..... E ..r: v " E c C ! C C U .... .... "'- +' U l'!i "'- Ll fti '0 l'!i '0 ~ .... E E .{l E E: ill . <r 0 111 <" ... 0 f1I .... III ..-t '+- ::i :i :i :i - u.. .... UI 0 L1.. L- il- l: " I: 0 .... If! ...... -< 1fl ..... ...; ..... i r- OJ ! i ! l'!i 1IJ 0 0 il! a ,... Q: i .... 0.1:] >- 1) e 1) >- +-' r::: :..J ' , r::: < , ..J '-' C r::: 0- 1IJ 0 C 0 0 III .... .r'f .,.. t(j L- If! ~ t(j L- - f1I ..J ...J '* +' e III 0 III '=' III U III 1IJ C 0- ::l iii i- L- .r'f ::l iJj 0 (J ,..... iJj ::i ..... L- a ... m w - ~ ti r"~t <:t if) .l) , CD rt- - ..... - -t .,...; Ci tv of Ver'nan Development of Surcharge tor Step 2 Rate lncrease Schedule Demands -------- ------- (A) (B) 1 TOU-V 1,083,936 '-:\ A-B 332,677 "'- '" A-7 723,522 - 4 65-2 555,569 5 6S-1 56,088 6 D 727 7 LS'-1 4,845 8 LS-2 594 9 OL-l (I 10 F'A-l 15,258 11 PA-2 8, :399 12 TC-'1 2,906 1-. Total 2,784,521 ~~ Demand Surcharge TOU-V, A-8 14 A-] and 6S-2 2,695,704 15 Net for- Energy Surchcu-ge 16 kWh for Remaining Sch. Sources : Demand Amount (C) $180 55 120 92 9 o 1 (I (I 3 1 o $463 448 19,528, :T27 Column B Exhibit C, Sheet 3. E:-:hibit G Sheet 4 of 4 U=<evi sed) Peak Demand (D> $.000 .000 .000 .000 $0.00017 $15 $.00000 Energ. , ----- (F, $('. t.1~.-.... "'~ ~). (;("~'. ~ ~J. tJt..~ '..-: ('. (j'.-._-..: t). (),tJlll_- _ -:. t). (Hj'_.: (J. '..tt.jl).: O. t)<".,_ ': ':..'. t..a~,c..__ .... (J. (JI_"_' _-: 'J. '~U.h}.. ': t). I.U..h./ .:~ Column C, Line 13: Difference Between Exhibit B. Sheets :3 & 4. Column D : .85468/1.1 Line 14, Column B: Exhibit C, Sheet 3. Line 16 : Exhibit C, Sheet 3. * Includes .025 c/kWh for energy component of step 2 increase . ':ltv base i;.ne'- S c05 t -. ve'- ( .. ~ e.5 i E)( 1 ~ toe So l t , I I I i i ~ 9'. . --. tk..>Q .. :'v, ,~:: ........... ~..~,~ )\.tV;'~ )VI.. . ~ JIj\; .(:. ....L).~ )V....-: .11.......: )(k.'.-:' h,"h..~.-"", I(j\o.".'t t- ...,',.~ ----- -I tv. 0'1 Vernon ;..se kat.e tor . t".EI-OY Lost I-\dJLtstment A cost ot Enerqy Purchase \'ernon Sal es ~e5e Cost of Energy " t:.n st i ng Base Cost ~ Increase in Base Cost ~OL'r ces . . Line 1 .. E>:hi bi t B~ Sheet 3. .. Line '-, .. E>:hibi t C, Sheet :!. . .. .. E>:hlbi t H Sheet 1 of 4 (Revised> t.c $4~. ~ 989,864 1,003,155,021 $0.04:3:85 $0.05185 ($0.00800) Exhibit H Sheet 2 of 4 (Revised) City of Vernon Procedures for Calculating the Energy Cost Adjustment Billing Factor The rate schedules contained herein are to contain 1 addition to the base rates included in the current tariff" i~ Energy Cost Ad j ustment Bi 11 ing Factor (ECABF) to reflect ~~l";'~" in the cost of fuel and purchased energy. The ECABF is to be calculated pursuant to the followln} equation: ECABF = EC e + C --------- - B S e Where, ECABF = Energy Cost Adjustment Billing Factor per Kilowatt-hour Sold EC = Estimated Fuel and Energy Costs for the Current e Period ,. ..... = Correction for Previous Period's Ov-r or Under-recovery* S = Estimated Kilowatt-hours to be sold in current e Period B = Energy Cost per Kilowatt-hour included in Base Rates = 4.385 cents/kWh * If the previous period average costs were less than 4.33S cents/kWh, C is negative. If such average costS were greater than 4.385 cents/kWh, C is positiV.' Ita Co scfttd IJ to' 11. uti. W ~ %u.S i ar' t * tIt ia '! tare. ~. I co.pr ,t lad .uad eo..1 To ea utiai lold 1ft . i t,ftat Une to 0 u d . en." prob It w oae. Une tntr .rrt ~ :t ! . ~ ~ l l J t ~- !eel revI co 1 11I0 . ~ Energy Clause Adjustment Billing Factor Exhibit H Sheet 3 of 4 (Revised) ~ (Continued) .. 'A computation !;.-- 4.ntdl.l1e V-l is 4,'~ .11 periods ,c. Sheet attached to provide the computation sheet once implementation is completed. wIn9 l.tte.ted Energy Costs (ECel - %t..s 1 through 3 represent the estimated energy costs which ,r. to be used 1n computing the period's ECA. This is an t,ttmate of the costs the City expects to incur for the tl':rte lIonth period to which this ECA will apply. It is (o.prtsed only of commodity or energy costs in keeping with ,t.ndards only of commodity or energy costs 1n keeping with standards established by the Federal Energy Regulatory Coemission and various state regulatory bodies. , in ft, I. 't Chit.;., io calculate items 1(a) and 1(b), the City must obtain f.timates from Edison of the kilowatt hours expected to be .old to the City of Vernon during the period the ECA will be In effect. Edison must also provide an estimate of the ECA thlt they will be charging the City during that period. rent Ltne 2 would be comprised of estimated fuei costs required to operate the City'S generating units. This charge would ~t deSignated on the billing for operating expenses as being th.rged to FERC account 541. Fuel. At the outset there will Frobably be no cost associated with this line item. However It will become a factor when the units become operational once again. !nt Line 3 represents an estimate of the cost of interruptible .nergy to be purchased during the period the ECA will be in tfhct. se Correction Factor JSS lines q through 1 of the computation sheet are used to c.lcualte the amount needed to correct for over- or under- recovery of energy costs In previous periods. Line 4 represents a true-up of the previous period's estimate of tnergy cost~ on Line~ 1 and 2. These amounts can be taken ~ro. the billings of Edison both for purchased power and for uel used by the Vernon generating unlt~ for the appropriate periods being corrected. 8~cause there Is a delay in the availability of expense and revenue data for individual months, the period for which a ~orrection factor is calculated will lag behind by one Onth. )st$ :1\'1. -- CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS-l GENERAL SERVICE RATES Per I't1eter Per "1onth APPLICABILITY Applicable to single- and three-phase general servi~~ including lighting and power. TERRITORY Within the city limits of the City of Vernon. Energy Charge All k~h, per kWh.......................... l2.014t Minimum Charge: The Energy Charge shall be subject to a monthly ~ini-~' charge of $5.00. SPECI~L CONDITIONS 1. Voltage: Service will be supplied at one stan1ar1 volta:;je. 2. X-Ray Installations: Where the Utility installs :~l standard transformer capacity requested by a customer to sc:.~ separately an X-ray installation, the billing will be in=r~';~ by $l.0~ per kVA of transformer capacity requested. 3. Temporary Discontinuance of Service: Where t~e us~ ~~ energy is seasonal or intermittent, no adjustments wIll b~~' for a temoorary discontinuance of service. Any custoner rt,.. to resumi~g service within twelve months after such servi=; .... discontinued will be required to pay all charges which wo~.' been billed if service had not been discontinued. i I t I ~ . . $ f I I i t Effective F:ffective Effective Effective ~ t i f I 1 ! ~ ~ l Authorized by the City of Ordinance No. Ordinance No. Resolution t.,Jo. Resolution No. Vernon - 1 - I I t I ".'. Schedule No. SE SERVICE ESTABLISHMENT Ca~GE APPLICABILITY Applicable to General Service and Domestic Service customers. TERRITORY Within the City limits of the City of Vernon. RATE For each establishment of electric service.... .........$ 5.00 SPECIAL CONDITIONS 1. The service establishment charge provided for herein is in addition to the charges calculated in accordance with the applicabl~ schedule and may be made each time an account is established. As used herein. establishment means each time an account is opened. including a turn on of electric service or a change of name which requires a meter reading. 2. In case the customer requests that electric service be es- tablished on the day of his request or outside of regular business hours. an additional charge of $5.00 may be made. 3. The service establishment charge is not applicable by cus- tomers of the Company to service rendered through submeters to tenants. , i\llth:)rizeo ':Jy tho? City af V2rn0;1 'Jrdi~ancc "b. 0rdinanc2 ^h. Resolution "-JO. R2s:)lution :--Ia. Effective Effective Ef f eC t i \1 e Eff(~ctive J ~........ 4. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statment. 5. In-Lieu of Tax and Franchise Payment: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in-lieu of tax and franchise payments. 6. Excess Transformer Capacity: The amount of transformer capacity requested by a customer which is in excess of the applicable standard transformer size determined by the Utility as required to serve the customer's measurable kilowatt demand. Excess transformer capacity shall be available to all customers under this schedule and shall be billed at $1.00 per kVA per month. A~thorized by the City of Vernon Ordinance "Jo. Ordin?nce No. Resolution No. Resolution No. Effective Effective Effective Effective - 2 - -""'Iili& I t i ~ CITY OF VER~ON LIGHT ~ND POWER DEPARTM~NT SChedule No. GS-2 GENERAL SERVICE APPLICABILITY Applicable to single- and three-phase general servic~ including lighting and power. TERRITORY Within the city limits of the City of Vernon. R.I\TES Per .1 ~ t ~ r Per '''or.,::.-, Demand Charge: All kW of billing demand, per kW........ (Subject to Contract Demand. See Special Condition No. 10). $ 9.7:; Energy charge (to be added to Demand Charge): All kWh per kWh .......................... S.(l)3t Minimum Charge: The Demand Charge plus the energy charge shall be 5~~,-' a monthly minimum charge of S19S.ea. SPECIAL CONDITIONS 1. Voltage: Service will be sup?lied at one standad vol tage. 2. Billing Demand: Billing demand shall be the kilo~l~'~ rnaximumdemand, determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month 5~1:: the measured maximum average kilowatt input, indicated or ~_. recorded by instruments to be supplied by the Utility, duri;~: IS-minute metered interval in the month, but shall not be - than the diversified resistance welder load comouted in 3::=~: . ance with the section designated Welder Service' in Rule ~~. .' Authorized by the City of Ordinance "Jo. Ordinance No. Resol ut ion No. Resolution "Jo. Vernon Effective Effective Effective Effective - 3 - ~. 1 ; 1 i f i I ~ I i I t I t I I 1 1 t t , f ~ i I I Co r t', - s . . ... .<,. .... .;:l" ~ ~ " .. .. ~ ~ " ~ 1 ~ : ~ ,.. .;: - . ~ .. l~o: ... -... .. _.~ . p .... .... ~ - ). lit *' .~ ..- 4. Voltage Discount: The charges before adjustment will b~ reduced by 3% for service delivered and metered at voltages of from 2 kV to 10 kV; by 4% for service delivered and metered at voltages of from 11 kV to 50 kV; and by 5% for service delivered and metered at voltages over 50 kV; except that when only one transformation from a transmission voltage level is involved, a customer normally entitled to a 3% discount will be entitled to 3 4% discount. 5. Power Factor Adjustment: When the billing demand has exceeded 200 kW for three consecutive months, a kilovar-hour meter will be installed as soon as practical, and, thereafter, until the billing demand has been less than 150 kW for twelve consecutive months, the charges will be adjusted each month for power factor, as follows: The Charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 2~ cents per kilovar of reactive demand. However, in no case s~l~ll the number of kilovars used for the adjustment be less than one-fifth the number of kilowatts. The Kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatt-hours. Demands in kilowatts and kilovars shall be determinej to the nearest unit. A ratchet device will be installed on the kilovar-hour meter to prevent its reverse o?eration O~ leading power factors. 6. X-Ray Installations: Where the Utility installs the standard transformer capacity requested by a customer to serve separately an X-Ray installation, the minimum charge will be increased by $l.O~ per kVA of transformer capacity requested. 7. Temporary Discontinuance of Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. .3. Energy Cost Adjustment: The rates above are subject to adJustment as provided for in Part G of the Preliminary Authorized by the City of Vernon Ordinance No. Or:-1 inance No. Resolution No. Re301ution "lo. Effective Effective Effective Effective - 4 - Statement. 9. Excess Transformer Capacity: The transformer CdQa--. excess of a customer's contract demand which is either ~~-~:: by the Utility because of the nature of the customer's lo~~"= requested by the customer. Excess transformer capacity sh'\;' billed at $1.00 per kVl.. per month. . a.. 10. Contract Demand: A contract demand will be esta=>li.s:-.e' \ the Utility, based upon applicant's demand requiremants f~r _ ? customer newly requesting service on this schedule and for i~,' ! customer of record on this schedule who requests an incc~15e ., I decrease in transformer capac i ty in accordance wi th Rule ':0 -. - I A contract demand arrangement is available upon requ~st for'~"- i customers of record on this schedule. Contract demand i3 :>H:: t upon the nominal kilovolt-ampere rating of the Utility's 5~!.'~ " t transforiller(s) or the standard transformer size detemined '::;, !". I' Utility as required to serve the customer's stated mea3JC3~!d . kilowatt deilland, whichever is less and is expressed in kil,_~!~~ } 1 i g i ! i I J ~ I t I I 1 , ! ~ I I 11. Minimum Demand Charge: Where a contract demnnd is established, the monthly minimum demand charge shall be 51.':~. kilowatt of contract demand. 12. In-Lieu of Tax and Franchise Payment: The total Cj1!J~. computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax J~! franchise payments. 13. Recordinq Meters: A recording-type meter sh~ll be installed for all customers purchasing under this schedule,~~' having peak requirements of 500 kV or more. Customers haVl~i recording-type meters are not eligible to purchase under t~l~ schedule and must be transferred to Schedule No. TaU-V. Authorized by th~ City of Vernon Ordinance ~o. Ordinance No. Resolution ~o. Resolutio:1 No. Effective Effective Effective Effective - 5 - T j ~ f i i . ~ f I $ l t ~ ! ! ~ ~ """"""," CITY OF VERNON ~ i t i [uhf;' Id '"'. ... ill 11 :. LIGHT AND POWER DEPART~ENT Schedule No. TOU-V GENERAL SERVICE-LARGE shC'~ ,r A' t a~, ,. S~ ~: ;0. 1;' r a:~ ou.'~ . ern! t;y t ! ~l(' APPLICABILITY - Applicable to general service, including lighting and power. This schedule is applicable for all customers with demands of 5~0 kW or higher for whom magnetic tape recording meters have been installed. Any customer whose monthly maximu'l demand has fallen below 450 kW for 12 consecutive months may elect to take service on any other applicable schedule. TERRITORY Within the city limits of the~ity of Vernon. RATES Per 1I1eter Per !\1onth :>.4:' ~ ~ * .~: ;t:, Customer Charge:........................... $55~'.0:: .IJ r :';. ~ ~~; a:-.... Demand Charge (to be added to Customer Charge): All kW of on-peak billing demand, per kW $9.9':35 Plus all kW of mid-peak billing demand, per kW $1.55 at'4 -: Plus all kW of off-peak billing demand, per kW (Subject to Minimum Demand Charge. See Special Condition No. l~) no char-je 1~1 his Energy Charge (to be added to All on-peak kWh, per kWh Plus all mid-peak kWh, per Plus all off-peak kWh, per Demand Charge) kWh kWh . . . 5.03 5~ 4.719t 4.247t . . . . . . . . Auth~rized by the City of Vernon Ordinance No. Ordinan::::e No. Resolution ~o. Resolution No. Effective Effective Effective Effective -- - 6 - SPECIAL CONDITIO~S 1. Time periods: Time Periods are defined as follows: On-peak: 1:00 p.m. to 7:00 p.m. summer weekdays except holid~ys 5:00 p.m. to 10:00 p.m. winter weekdays except holidays Mid-Peak: 9:~0 a.m. to 1:00 p.m. and 7:00 p.m. to 11:00 p.m. summer weekdays except holidays 8:09 a.m. to 5:00 p.m. winter weekdays except holidays Off-Peak: all other hours Off-Peak Holidays are: New Year's Day, Washin1t~n'j Birthday, Memorial Day, Independence Day, Labor Jal, Veteran's Day, Thanksgiving Day and Christmas. When any holiday listed above falls on Sunday, t~~ following Monday will be recognized as an off-pe~( period. No change in off-peak will be made for h)l1 .. falling on Saturday. The summer season time periods shall commence at 1:: '. a .m. May 1 and continue through October 31 of ea:j t;:~~ and the winter season time periods shall com~ence J~ 12:" 1 a .m. November 1 and cont inue through Apr il n ') t the following year. 2. Billing Demands: Separate billing demands for th.~ . . on-peak, mid-peak, and off-peak time periods shall be estat~;~ for each monthly billing period. The billing demand for 7~:; time period shall be the maximum demand for that time peCl).J occurring during the respective monthly billing period. T~~ billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demands shall be estaoli$' for the on-peak, mid-peak, and off-peak periods. The m3xi~)' demand for each period shall be the measured maximum averaJe kilowatt input indicated or recorded by instruments, durin) if IS-minute metered interval, but (~xcept for new customers ~r Authorized by the City of Vernon Ordinance No. Ordinan:::-e No. Resolution No. Resolution No. Effective Effective Effective Effective - 7 - T ~- ! 1 I t :i;. ~ ~ I . . t f ~ . t ~ . I . t I I 1 r ~, j , 1 I J i I I I ! , , , I 1 I t I I J ~ , _-di>..." ~ ~ existing customers electing Contract Demand as defined in these special Conditions) not less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where the demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. 4. Voltage Discount: The charges before adjustment will be reduced by 3% for service delivered and metered at voltages of from 2 kV to 10 kVi by 4% for service delivered and metered at voltages of from 11 kV to 50 kVi and by 5% for service delivered and metered at voltages over 50 kVi except that when only one transformation from a transmission voltage level is involved, a customer normally entitled to a 3% discount will be entitled to 3 4% discount. Ii 5. Power Factor Adjustment: a. Service Delivered and Metered at 4 kV or Greater: The charges will be adjusted each month for rea~tive de~and as follows: " . t i The charges will be increased by 20 cents per kilovar of maximum reactive demand imposed on the Utility in excess of 20 percent of the maximum number of kilowatts. :JK The maximum reactive demand shall be the highest measured maximum average kilovar demand indicated or recorded by metering to be supplied by the Utility during any 15-minute metered interval in the month. The kilovars shall be determined to the nearest unit. A ratchet device will be installed on each kilovar meter to prevent reverse operation of the meter. , .0" . ; if. ; ~ . . i ~ " : b. Service Delivered and Metered at Less than 4 kV: The charges will be adjusted each month for the power factor as follows: ~' ' The charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 23 cents per kilovar of reactive demand. However, in no case shall the kilovars used for the adjustment be less than one-fifth the number of kilowatts. IF: The kilovars of reactive demand shall be calculated by Authorized by the City of Vernon Ordinance No. Ordina:1ce No. Resolution ~o. Resolutio:1 No. Effective Effective Effective Effective - 8 - - multiplying the kilowatts of measured 'T'laxi:nu. " the rati~ of. the kilovar-h~urs to the kilowa~t~~-i~: Demands In kIlowatts and kllovars shall be det~ ~:'. to the nearest unit. A ratchet device will be.f". ;: installed on the kilovar-hour meter to prevent i~1 reverse operation on leading power factors. 6. Temporary Discontinuance of Service: Where the u~~ ,. energy is seasonal or intermittent, no adjustments will b~ ~:. for a temporary discontinuance of service. Any Customer ~r", resuming service within twelve months after such service :~;_. discontinued will be required to pay all charges which ~~J' . been billed if service had not been discontinued. .~ 7. Energy Cost Adjustment: The rates above are Subje:: . adjustment as provided for in Part G of the Preliminary State:nent. 8. Excess Transformer Capacity: The transformer capa:i:... _ excess of a customer's contract demand which is either r~~Ji~~' by the Utility becaus~ ~f the nature of the customer's lo~~ ,; requested by the customer. Excess transformer capacity s~a:: billed at $1.00 per kVA per ~onth. 9. Contract Demand: A contract demand will be establi~',' the Uti! i ty, based upon apPl icant' s demand requi re:nents fJr , i customer newly requesting service on this schedule an1 f~r J_. customer of record on this schedule who requests an incre15~ decrease in transformer capacity in accordance with Rule ~). A contract demand arrangement is available upon request for J;; customers of record on this schedule. Contract demand is =l~- upon the nominal kilovolt-ampere rating of the Utility's set.; transformer(s) or the standard transformer size deter~i:1~~ ::! : Utility as required to serve the customer's stated mea5lJrJ::::'~ kilowatt demand, whichever is less and is express,ed in I(il)~!~~" 13. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be Sl.~' kilowatt of contract demand. 11.1" In-Lieu of Tax and Franchise Payment: The total c:,.,r;-: computed pursuant to the above rates and charges are to b~ ~, increased by 3 percent to reflect payments in lieu of tax)- franchise payments. A:Jthorized by the City of Ordinance No. Ordinance No. Resolution "lo. R~solution No. Vernon Effective Effective Effective Effective - 9 - 1 ! ; I I I t- ~ ~ I i 1 i ~ i ; } . i t i i I I I, ~ .....- r ~ ~ ~ f . . . <,I.. : :,-: ~ . , . , i f < ' ". . . , t>o, . .- 11 . ? , . ~ ~_ eo: .- 12. Contracts: An additional initial three-year facilities contract may be required where applicant requires new or added servin3 capacity exceeding 2,Oe~ kVA. 13. Voltage: Service will be supplied at one standard voltage. Authoriz~d by the City of Vernon Ordinance !'Jo. Ordina:1ce ~o. Resolution No. Resolution No. Effective Effe::::tive Effective Effective - 10 - ,I t? J/ CI'fY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. LS-I LIGHTING-STREET AND HIGHWAY UTILITY-OWNED SYSTEM T' I I t i t f i. i , su")..,' ',' I . . . . - . t!ie f I \ I I 1 S~r"li:e t ! i. APPLICABILITY Applicable to street and highway lighting service from overhead lines where the Utility owns and maintains street lighting equipment. TERRITORY Within the City limits of the City of Vernon. RATES Energy Curtailment Midn ight 0 r Equivalent Service Per La:n? Per Month Lamp Size-Lumens All Night Service Pe r Lam:> Per Month Mercury Vapor La:nps 3,50~ Lumens 7,0:J0 Lumens Il,O!J~ Lumens 2", iHHJ Lumens 35,000 Lumens 55,0:30 LUr:lens High Pressure Sodium Vapor 5,800 Lumens 9,500 Lumens 16,000 Lumens 22,01:J L.lmens 25,5"0 Lumens 47,(]00 Lumens 8.04 10.44 13.76 19.86 30.90 44.65 6.80 7.89 9.9~ 13.11 18.65 25.28 Lamps 7.78 9.CH 11.26 13.19 14.42 2~.40 6.96 7.61 8.98 10.09 10.78 13.92 Authorized by the City of Vernon Ordin.::lnce No. Ordinance ~o. Resolution ~o. Resolutio:1 "Jo. Effective Effective Effective Effective - 11 - Faciliti~5 Chaqe Per L3'=, Per '1o~t.: $5.1:- 5.15 5.7~ I).J5 t) . t, .~ 6.';S 5.3) 5.5' 6. ~.~ S. 35 6 ., ." . Ii. 7,' , l i j 1 i i 1 , , ! I 1 I j ! .......,." . -- SPECI~L CON9ITIONS 1. Standard Equipment Furnished: Bracket or mast arm construction will be furnished. Where feasible with existing facilities, center suspension construction may be furnished. Enclosed luminaires will be furnished for lamps of 2,500 lumens, or larger, and open reflector lighting units will be furnished for lamps of 1,000 lumens. Such standard lighting equipment will be attached to wood poles. ~: l t ~ 2. Other than Standard Equipment: Where the customer requests the installation of other than the standard equipment furnished by the Utility and such requested equipment is acceptable to the Utility, the Utility will install the request2~ equipment provided the customer agrees to advance the estimated difference in cost installed between such equipment and standarc1 equipment. Advances made in connection with such agreements become and remain the sole property of the Utility; as do the said equipment. vie.. s 3. Hours of Service: Under the Utility's standard all nig~t operating schedule approximately 4,149 hours of service per year will be furnished. 4. Removal or Modification of Equipment: Where street lighting service and facilities were ordered removed or modifiej by a custower and such services and facilities, or their equivalent, are ordered reinstalled within 36 months from the date of the order to remove or to modify, the customer shall pay to the Utility in advance of such reinstallation a nonrefundable amount equal to the cost of removal or modification of the prior facilities and the estimated cost of such reinstallation. Facjlities removed or installed remain the sole property of the Utility. 5. Energy Cost Adjustment: The rates above for all-night service are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjust~ent billing factors set forth therein will be applied to 29 kWh per month per 1,090 lumens for incandescent lamps, to 10 kWh per month per 1,000 lumens for mercury vapor lamps, and to 4 kWh per month per 1,030 lumens for high pressure sodium vapor lamps. 6. Energy Curtailment Service: Auth0rized by the City of Vernon Ordinance No. Ordinance No. Resolution "Jo. Resolution No. Effective Effective Effective Effective - 12 - -- a. Where the Customer requests the installation andl remov~l of equip~ent in order to obtai~ Ener]y Jr CurtaIlment SerVIce, and such request IS acc~ot~jl' . the Utility, the Utility will comply with such r~q=e~: provided the customer first agrees to pay to the Jti;-. the estimated installation cost for any additional..' equipment required and/or the removal cost of any equipment currently installed. Such payments will ~1' be refunded and shall be paid in advance or in ins~~'_ ments acceptable to Utility over a period of not t~ '. exceed three years. Facilities installed in =on~~:t:_- with such request become and remain the sole pro~e!ti the Utility. b. Under the Utility's midnight (PST) or equivale~t operating schedule, approximately 2,09~ hours of per year will be furnished. 5.3,. , . 6. .... : s~r-;~;-= c. Facilities charges shall be applicable under this schedule only when the ~tility has been requestei t1 discontinue the existing service by the custo~er 3~: t customer has stipulated that the facilities are tJ ',' left in place for future use. d. The rates above for midnight or equivalent servic~ )" subject to adjustment as provided for in Part G of ':.. " Preliminary Statement. The applicable energy cost adjustment billing factors set forth therein will ~~ applied to 15 kWh per month per 1,000 lumens for incandescennt lamps, to 5 kWh per month per 1,33J IJ': for mercury vapor lam?s, and to 2 kWh per month ?~r 1,000 lumens for high pressure sodium vapor lamps. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution ~o. Resolutio~ No. Effective Effective Effective Effective - 13 - T I ! I i I t I ! ! j ! i t l i ! I I i I, ! I } , } i I , I I \ --"! ........--' CITY OF VERNON LIGHT AND POWER DEPARTMENT . , I).~. . . ~ . Schedule No. LS-2 i : . . LIGHTING-STREET AND HIGHWAY ...~. ....' ~ CUSTOMER-OWNED INSTALLATION ~! :. t i~:" ~ 'w' ~ .' ;: APPLICABILITY Applicable to service for the lighting of streets, highways, other publ ic thoroughfares, and publ icly-owned and publ icly-opera te': automobile parkin9 lots which are open to the general public, W!1er~ the customer owns the street lighting equipment. ~ i :.' ... \' 1 :: .: TERRITORY Within the city limits of the City of Vernon. t ~. RATES :: ... RATE A-UN~ETERED SERVICE: Per Month All Night Service Midnight Servi" Multiple Series Multiple Serio ; r For each k~ of lamp load, per kW..$26.19 $34.05 $15.23 $13.: .- ~ ." ': RATE B-~ETERED SERVICE: Per Meter Meter Charge: Per Month Multiple Service.............................$ 4.50 Series Service............................... 12.00 Energy Charge (to be added to Meter Charge): All kWh, per kWh............................. 1\,1\ ~ 7.03t 1./ RATE C-~AINTENANCE SERVICE-OPTIONAL: In addition to the Rate A and Rate B charges Lamp Rating Lumens 1,O"~ 2,500 4,0:HJ 6,000 Lamp Type Incandescent Extended Incandescent Extended Incandescent Extended Incandescent Extended Per Lallp per Month Service......$ 0.33 Service...... 0.33 Service...... 0.43 Service...... 0.42 AJthorized by the City of Vernon Ordinance !\lo. Ordinance No. Resolution NQ. Resolution lb. Effective Effective Effective Effective - 14 - ..-.......olIiIIi.~ 10,;)00 3,500 7,;':HJ 11,003 2J,003 35,000 55,000 5,800 9,50:1 16,000 22,000 25,500 47,000 Incandescent Extended Service...... Mercury Vapor................. -._... Mer cu r y Va po. r . . . . . . . . . . . . . . . . . . . . . . Mercury Vapor...................... Mercury Vapor...................... Mercury Vapor...................... Mercury Vapor...................... High Pressure Sodium Vapor......... High Pressure Sodium Vapor......... High Pressure Sodium Vapor......... High Pressure Sodium Vapor......... High Pressure Sodium Vapor......... High Pressure Sodium Vapor......... SPECIAL CONDITIONS 1. Ownership of Facilities: C.45 0.35 0.33 0.40 0.35 0.54 0.49 0.9el 0.31 0.79 0.79 0.79 0.81 a. For multiple systems the Utility will deliver service at 120, 120/240 volts, or, at the opti~n ~: the Utility, at 240/283 volts, three-wire, sinJ!-- phase. For series systems the Utility will furr.~ " and maintain constant current regulating transformers and deliver service at the secondar; side of such transformers. b. T~e customer will furnish and maintain all utilization equipment beyond the point of deliv~ri except for maintenance service provided by th~ Utility in accordance with Special Conditio~ 3. c. Meter locations for multiple systems shall be at points ~utually agreed upon. Meter locations f" series systems shall be on the primary supply circuit to the constant current regulating transformer at a point acceptable to the Utilitt. 2. Lamp Load: The lamp load for regular (general pur?';' multiple incandescent lamps shall be the manufacturers' lam? rating in watts. The lamp load in watts for lumen rated street lightin] 1\--~ shall be as follows: Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective EffeCtive Effective - 15 - i I I i I i ! I I i ! 1 I i i I I I I , \ \ i I I I i --L "..~ HIG'i MERCUR"f PRSSS~.HE INCANDESCENT VAPOH S ::)1:)1 !J ..., V\D .~ "'1ULTIPLE SERIES GROUP EXT- GROUP EXT- RE- EN,!)- RE- EN~- R~G:.J- PLACE ED REGU- PLACE ED LUr-1ENS LAR MENT SVC. LAR SVC. SVC. for] LT. ~F:~I:::'. Watts Watts Watts Watts Watts Watts Watts Watts .~? t t.;-3 6~~ 55 58 42 44 S:J3 57 1,03;) 35 92 lC13 62 65 73 2,5~O 175 139 202 143 152 164 3,501 125 4,~110 258 295 327 210 220 251 ,,' 5,8J:l 32 3:> .. . !),~3:J 37a 4~' 5 443 31 ~ 325 364 ~- 1 < , 7,CJ~:J 2a8 .' 9,5(}a 140 121 f 10,01:1 575 520 59:l 525 558 1J~5 11,30a 292 15,0J~ 80;' 8Sfl 755 822 447 1fi,3J:1 202 17 c; r i 2J,OJrJ 447 22,:J:10 2~3 233 25,001 1,275 25,5:3;' 32:1 3 5 ,DC :1 753 r 47,::}~0 435 , 55,0:D 1,059 Total lamp load shall be determined to the nearest 1 11:~ l< '" . ~. A~th~rized by the City of Verno~ Ordinance 'lJo. Ordinance N~. Re s ~ III t ion ~,Jo. Resolution No. Effective Effective Effective Effective - 16 - --- 3. Maintenance Service: Maintenance service furnis~~~ ~I the Utility under Rate C for the lamps specified shall incl~~~ the followin]: a. Renewal of lamps after the original installati~n the customer. b. Re)ular inspection. c. periodic cleaning of globes. d. Labor of replacing lamps and globes. Incandescent lamps furnished under this provision will ~e extended service lamps only. Mercury vapor lamps and hi1h pressure sodium vapor lamps furnished under this provisio~ ~ill be as s?e~ified by the Utility. Globes for renewal shall be furnished by the customer. Maintenance service will be furni5:- only w~ere, in the opinion of the ~tility, no undue hazard )r expense will result be~ause of lo~ation, mounting height, ~r other reasons. 4. Switching Facilities: For all night or midnight (?1:,'. Standard Time) service under the Utility's standardoperatinJ schedules, the Utility will furnish, maintain, and operate t~! necessary switching facilities. For other operating scheJ~l~~, the customer shall furnish, maintain, and operate switchin) facilities as specified by the Utility and take metered serv::! under Rate B. 5. Hours of Service: Under the ~tility's standard all :-.:;: operating schedule, approximately 4,140 hours of service ?~( i~ir will be furnished and under the Utility's standard midni1'1!: (Pacific Standard Time) operating schedule approximately 2,~)' hours of service per year will be furnished. 6. Removal of Equipment: Where street lighting servi~:_:~' facilities were ordered removed by a customer and such 5erv~~~ and facilities, or their equivalent, are ordered reinstall~~ within 36 months from the date of the order to remove, th~: , customer shall pay to the Utility in advance of reinstallat~)' nonrefundable amount equal to the cost of removal of the pel)! Authorized by the City of Vernon Ordinance ~o. Ordinance No. Resolution No. Resolution \Jo. Effective Effective Effective Effective - 17 - T I 1 . I I I I I , ! I I I i 1 I ! i I I ! I ! I I ! t I ! I i I ~~"".7- ---- facilities and the estimated cost of such reinstallation. Utility owned facilities removed or installed remain the sole property of the ~tility. 7. Energy Curtailment Service: Where the customer requ~sts the installation and/or removal of equipment in order to curtail energy requirements, and such request is acceptable to the Utility, the Utility will comply with such request provided the customer first agrees to pay to Utility the estimated cost installed or any additional equipment required and/or the removal cost of any equipment currently installed. Such payments .....ill not be refunded and shall be paid in advance or in installments acceptable to Utility over a period of not to exceed three ye~rs. Facilities installed in connection with such requests become an~ re~ain the sole property of the Utility. 8. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to the kWh shown below: -\" . - Type of Service k!1h Pe r ki-: - Per Month All Ni3ht ~ultiple All Night Series ~idnight Multiple !Y1idni3ht Series 355 462 180 233 ;' . . . : '\ r ;> Authorized ~y the City of Vernon Jrdi!1ance "lo. Ordin.::3nce No. Resolution No. Resolution :-Jo. Effective Effective Effective Effective - 18 - "'ITY OF Vi::RNJN LI~HT AND PO',tJER DEPARTMEI-lT Schedule No. OL-1 OUTDOOR AREA LIGHTING SERVICE APPLICABILITY Applicable to outdoor area lighting service, other th~~ street and highway lighting service~ supplied from overhead li~:. where the Utility owns and maintains the area lighting eq~i?~".~. 'fSHRITORY Within the city limits of the City of Vernon. RATES LU~I~~IaE CHAR;~: ENERGY CURTAIL~E~r S~l~. . MIDNIGHT OR EOUIV~LENT FA:IL::: ALL NIGHT SERVICE SERVICE C;L\ ,--:.~ LA~P SIZE-LUM8NS PER Ll\!\1P PER MONTH PER LA"-1P PER MON'rH * MER:JRY VAPO~ L\~PS 7,0;1J LU'":lens. 2(1,C1~H~ Lumens. $10.49 $21. 03 $ S.07 $14.17 HI'3n P~ESS:J:lE SODIUM VAPOR LAMPS 5,SJO Lumens. 9,50!J Lumens. 22,300 Lumens. $ 7.83 $ 9.05 $13.24 $ 7.~5 $ 7.72 $10.31 . . POLE CHARGE (to be added to Luminaire Char3e): For each additional new wood pole installed. . . . *Clos~d to new installations as of February 1, 1930. Authorized ~y the City of Vernon Ordinance ~o. Ord i nance l-Jo. Resolution "Jo. rt2so1ution No. Effective Effective Effective Effective - 19 - P::~ L\" PE!~ <')'. SS.l:"} $'j.l~ $5. ~ ' $5.SS S'1.4.~ PC;q ?~:.- PE1 .j;. .~ . $ ~. '). -~'It"'; i . I , I ! I I I j ! I I I i ! i I t i , I ...."'.. -----l'!__... SPECIAL CO~9ITIO~S 1. Hours of Service: Area all night lighting service will he furnished from dusk to dawn, approxi~ately 4,140 hours per year, by Utility-owned luminaires supplied from the Utility's existin) 120/240 volt overhead circuits and mounted on existin~ Utility-owned wood poles as standard equipment. ." , ... ... ... . 2. Other Than Standard Equipment: Where the customer requests the installation of other than the stand3rd equipment furnished by the Utility and such requested equipment is acceptable to the Utility, the Utility will install the request~~ equipment provided the customer agrees to advance the estimate~ difference in installation cost installed between such equip~ent and standard equipment. Advances made for this purpose will not be refunded. Facilities installed in connection with such agreements become and re~ain the sole property of the Utility. 1 :". : _ 3. Service and Facilities Furnished: This service will be in accordance with Utility's specifications as to the e~uipment, installation, maintenance, and operation. .,. - -,0 . . . ~ ~-~ " " 4. 4. Replacement of Lamps: The Ut i 1 i ty will repl ace la:n?s 0:1 :; scheduled basis, and individual lamps will be repla~ed upon service failure, as soon as practical after notification by customer, subject to Utility's operating schedules. 5. Contract: A written contract for a term of one year ~ill be required by the Utility when service is first establis'1e:~ under this schedule. ~. Type of Service: This service will be furnished only where the installation is considered by the Utility to be of d permanent And establishe(l chara~ter. 7. Removal or Modification of Equipment: Where area li)htin] service and facilities were ordered removed or modified by a custo~er and such service and facilities, or their equivalent, are ordered reinstalled within 3~months from the date of th? order to remove or to modify, the customer shall pay to the Utility in advance of reinstallation a nonrefunda~le amo~~t e~j~l to the cost of removal or modification of the prior faciliti25 and the estimated cost of such reinstallation. Facilities removed or installed remain the sole property of the Utility. A;Jt~lOrizcd by the City of Vernon Ordinance '..Jo. Or:jinance No. Resolution "Jo. Resolution "Jo. Effective Effective Effective Effective - 2:1 - ~ 8. Energy ~ost Adjustment: The rates above for all-ni __ service are subject to adjustment as provided for in Part GJ--; t~~ ~reliminary Statement. The.app~icable ene~gy cost ~~ju3~:'-' bllllng factors set forth thereln wlll be applled to 10 k~h ~.~ . month per 1,0n~ lumens for mercury vapor lamps and to 4 ~~~ ~:: month per 1,3JB lumens for high pressure sodium vapor lam?s.' . 9. Energy Curtailment Service: a. Where the customer requests the installation anj/~r removal of equipment in order to obtain Energy Curtailment Service, and such request is acceot3~1. . . the Utility, the Utility will comply with such re4~:~~ provided the customer first agrees to advance th~ est i:n ate din s tall a t ion co s t 0 f any add i t i on a 1 I?'~ U i :.., . reqJired and/or the removal cost of any eqJip~e~t . currently installed. Such advances will not ~~ refunded. Fa~ilities installed in connection wit~; i..l:_ requests become and remain the sole property of t~~ Utility. b. Under th~ Utility's midnight Pa~ific Standard Ti,e (PST) or equivalent service operating schedule, a?proximately 2,090 hours of service per year will ~: furnished. c. Facilities charges shall be applicable under this schedule only when the Utility has bee~ request?~ t) discontinue the existin3 service by the custo~~r 1~: the customer has stipulated that the facilities ar~ t) be left in place for future use. d. The rates above for midni-Jht or equivalent servi:~3 H- subject to adjustment as provided for in Part J ): : - . Preliminary statement: ~ ~ ~--- ~(Lp~ ~'7 tz::!f;: ~~~ ::;.:;~-:;%/ ! ;t; r ~ f(ltu-t, ~ ~--~/---? ~. /fYZFO_f~~ ~ ~~ /{;r6M~~ ~ & ;J- k~~~ 4i--~ ~/~ ~ tf r-7/~LLk.~ l~ /--_~ ~/ L-~~/ / /' Authorized by the City elf Ordinance :-b. Jrdinan~e ;\l:J. Resolution >":0. R~301ution Nel. Vernon Effective Effective Effective Effective , I I ! i I \ -'l.-'~, - 21 - ...4 CITY OF VERNON :. ~ . LIGHT & Pv~ER DEPARTMENT r Schedule No. TC-I TRAFFIC CONTROL SERVICE ~ . APPLICABILITY Applicable to single-phase service for traffic-directional si'gns or traffic-signal systems located on streets, highways and other public thoroughfares and to railway crossing and track si':Jna1s. t'J T':::RRITJRY Within th~ city li~its of the City of Vernon. ..I: RATES p~~ "'ETF:1 PE!{ "'Tn~l Customer Charge: S~.75~ En~rgy Charge (to be added to Customer Charge): All k~h, per kWh 8.G2;t ~inimum Charge: The monthly minimum charge sh?ll be t~e monthly Customer charge. :: t: SPECIAL CO~ryITIONS 1. Voltage: Service will be supplied at one st?ndrtrJ voltage not in excess of 243 volts or, at the option of the Utility, at 24]/43~ volts, three-wire, single-phase. r! ~. 2. Energy Cost Adjustment: The rates above are subject t~ adjust~ent as provided for in partG of the Prelimin~ry Sta tellle n t . al 3. In-Lieu of Tax and Franchise Payment: The total chArge.:; computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax -"Int) franchise payments. Auth~rized by the City of Vernon o r din i) n c e !.J 0 . Orrli ni)!):;e No. Resolution !'Jo. Resolution "l'J. Effective Effective Effective Effective - 22 - -- -- CITY ~F VEq~ON LIGHT AND POWER DEPARTMENT Schedule No. S STANDBY APPLICABILITY Applicable to standby or breakdown service where the entir: electri~al requirements on the customer's premises are not regularly supplied by the Utility. TE:{RIf()KY Within the city liillits of the City of Vernon. R..'\TES Pe r '-1e t ~ r Standby Charge: Per ""Iont:l First 21 kW of ~ontract demand, per kW........$ 4.00 All ex~ess kW of demand, per kW...............$ 1.71 The standby charge sh~ll not be less than S20.0J ?er n?,t" . Regular Schedule Charges (to be added to Standby Char]e): All energy ch~rges of the applicable regular service schedule designated in the service contract plus a char]~ ~! $9.25 per kW of on-peak demand in any month. Minimum Charge: The monthly minimum charge shall be the standby charge plus the regular schedule minimum charge. SPECIAL CONDITIONS 1. Contract Demand: In case the customer desires th~ Jti:.:. to stand ready to supply the entire connected load of the . ," customer's plant, or an isolated part thereof, then such maxI. load will be estimated by the Utility, based on tests and o~~~~ . information available. In case the customer desires the Utl~:'1 to stand ready to supply a number of kilowatts less than t~d. maximum demand of the entire customer's plant, or an isolat~: part thereof, then the customer and the Utility shall agra~ ~~~ the number of kilowatts the Utility will stand ready to sU~?~: and the custOr.1er shall, at his own expense, furnish 'and inst3 ~. Authorized by the City of Vernon Ordi:1ance !'Jo. Ordin-3:1ce !'Jo. Resolution "Jo. Resolution \Jo. Effective Effective Effective Effective - 23 - -'" h. .~~ f' L .. . .&. ... j J :; ~ / In ......-. suitable circuit breaker enclosed in a steel box equipped with a lock, all to be approved by and under the sole control of the Utility, and adjustment and operation of said circuit breaker to be in no way interfered with by the customer. This circuit breaker shall be set to break the connection with the Utility's service when the customer's maximum demand exceeds the number of kilowatts which the Utility stands ready to supply, in '.-lhich caS2 the Utility will renew the connections upon due notice. 2. Contract: This schedule will apply only where the customer will sign a service contract for at least one year. 3. Parallel Operation: This schedule is not ap?licable for parallel operation of the customer's plant with the service of the Utility. 4. Maximum Load: The Utility reserves the right to establisl the maximum load served under this schedule. ,l\ilthori zed by the Ci ty of Vernon Ordinance ~o. :)rdinan~e r-Jo. Resolution No. Resolutio:1 "Jo. Effective Effective Effective Effective - 24 - CITY JF VE~NJN LIGHT AND POWER DEPARTMENT Schedule No. D DOMESTIC SERVICE ! J i , ! I APPLICABILITY I Applicable to domestic service including lighting, heatin], :; I and po~er or combination thereof in a single-family accommod~ti)~. . ! TERRITJRY I Within the city li~its of the City of Vernon. I I Per Meter Per ~J~t. I Domestic Servic~ I ! i I , I ! f I : Customer Charge.............................~.. S 1. 5;~ Ra.TES Ener~y Ch~r3e (to be added to Customer Charge): All kWh, per kWh............................... 4.5t ~inimum Charge: The monthly minimu~ charge shall be the monthly Customer Charge. 2. In-Lieu of Tax and Franchise Payments: The total c~:r1!; com?uted pursuant to the above rates and charges are to be. l:1:r.. . . by 3 percent to reflect payments in-lieu of tax and franC~lS! payments. SPECIAL CQN~ITIONS 1. Energy Cost Adjustment: The rates a~ove are su~je=t t1 adjustment as provided for in Part G of the Preliminary Stata'~':. j ! I I , I I I l Effective Effective Effective Effective I i I I I I I ; , I I I I --- Authorize::1 by tho: Ci ty of Ordin-3nce No. Jrdin-:lnce ~o. Resolution 1\10. q~5olution 'I/o. Vernon - 25 - ......."..- CITY OF VERNOI~ LIGHT .I\ND POWER DEP.I\RTMENT Schedule No. PA-l POWER-AGRICULTURAL AND PUMPING CONNECTED LOAD BASIS - . -.~ APPLICABILITY Applicable to power service for general agricultural purpos~s or for general water or sewerage pumping. i y;. TER~ITJRY Within the city limits of the City of Vernon. RATES ~ . , ..\,. . Monthl y Service Char]2 Per ""!eter Horsepower of Co:mected Loa1 Per Meter 2 and over Per hp $1.00 Energy Charge to be added to Service Charge-Rate All kWh, per kWh............................ 9.5S3t ~inim~m Charge: The monthly minimum charge shall be the ~o~thly Sarvice Charge. ? t t. SPECIAL C~NDITIONS 1. Voltage: Service will be supplied at one standard ?o~er voltage. ? S r c: ;. :, 2. Connected Load: Connected load is the sum of tbe rate.l capacities of all of the customer's equipment that it is ?ossi~l~ to connect to the Utility's lines at the same time, determin~J :'0 the nearest 1/10 hp. In no case will charges be based on less than 2 hp for sinjle-phase service or no less than 3 hp for three-phase service. The rated capacity of the customer's equipment will be the rated horsepower output of standard ratei Authorized by the City of Vernon ~rdinance "Jo. Ordinan.:::e :-.lo. Resolu~ion 11/0. Resolution "Jo. Effective Effective Effective Effective - 2'i - motors, th~ rated horsepower of welders determined in aCC0r~3~~. with the section designated Welder Service in Rule ~o. 2, ani ":: rated kilovolt~n~?ere input capacity of other equipment, wit~ - each kilovol t-ampere of input considered equal to one hors~?').:.r Normally such ratinJs will be based on the manufacturer's ra~i:~. as shown on the nameplate or elsewhere but may, at the oPtio~';~ the Utility, be based on tests or other reliable information. . 3. Overloaded Motors: Whenever, upon test, any motor unj0f normal operating conditions is found to be delivering more t1,', 115 percent of its capacity as indicated by its nameplate rati~: the Utility may disregard the nameplate rating and base its .1 charges upon the output as calculated from test. Any motor ""::li::. is billed on a basis in excess of its nameplate rating in accordance with this special condition shall be tested at intervals to be deter~ined by the Utility or u?on notificati?~ :/ the customer of a permanent change in operating conditions. 4. Temporary Reduction of Connected Load: Where the us~ )f energy is seasonable or intermittent, no adjustment will be ~~~! for any te~?orary reductio~ of connected load. Any cU3to~er, prior to resuming service o~ such connected load within 12 D?~t~: after it w~s disconnected, will be required to pay all Char]93 which would have been billed if the temporary reduction of connected load had not been made. 5. Energy Cost Adjustment: The rates above are subject t~ adjustment as provided for in Part G of the Preliminary Statement. s. In-Lieu Tax and Franchise Payments: The total Char]~3 co.ilputed f)ursuant to the above rates and charges are to be increased by 3 p.:rcent to reflect payments in-lieu of tax n:d franchise payments. Authorized by the City of Vernon Ordinance ~o. Or::linance No. Resolution ~o. qesolution "Jo. Effective Effective Effective Effective - 27 - ~ - CITY 8F VERNON I:.:: t. ". LIGHT AND PO~-JER DEPoZ\RTI'v1ENT 1-2 r . Schedule No. P~-2 :: : 'J[ P~WER-ASRICULTURAL AND PUMPIN~ DE~.Z\~D BASIS 'f \", 1; -. .... . APPLICABILITY A?plicable to power service for general agricultural purposes or for general water or sewerage pumping. .:)j, TERRIT0RY Within the city limits of the City of Vernon. ) ~ I RATES ) f Demand Charge: Per ~eter Per Month i:; : . . - 1\"..J I First 75 kW or less of billing demand..... $ All excess k~ of billing demand, per kW... $ 525.01 7.JO Ener)y Charges (to be added to Demand Charge): All ko,tJh per kl^lh 7.305t Minimum Char-]e: The ~onthly ~inimum charge sh3ll be the ~onthly De~3nJ Char'je. SPSCIAL CONDITI')NS 1. Voltage: Service will be supplied at one stand3ra '''01 tage. 2. Billing Demand: The billing demand shall be the kilo'N3tts of maximu:n demand but not less than 50% of the highest maximJ;;) deman~ ~stablished in the preceding eleven months, however, in nJ case shall the billing demand be less than 75 kW. Billin3 de~an~ sh:'l be determined to the nearest kW. 3. ~aximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Utility, durin] ~~y 15-minute metered interval in the month, but not less tha~ th~ ^~th'Jrized by the City of Vernon Ordinan~e No. Ordinance No. Resolution ~o. ~':;301ution \lo. Effective Effective Effective Effective - 23 - ~~. I diversified resistance welder load computed in aCCorj3~-~ 4i~. the section designated Weljer Service in Rule No. 2. '~;0C~ demand is intermittent or su~ject to violent fluctu3tio~s, ] 5-minute interval may be used. 4. Power Factor Adjustment: When the billing demanj ~'5 exceeded 203 kW for three consecutive months, a kilovar-h)u( meter will be installed as soon as practical, and, therea:~.~ until the billing de~and has been less than 150 kW for t~;i~:' consecutive months, the charges will be adjusted ea~h mO~t~ !;~ power factor, as follows: The Charges will be decreased by 20 cents per kilo~3:: ~: measured maximum demand and will be increased by 2~ =~.:~ per kilovar of reactive demand. However, in no ~a5~ ~.,' the nu~ber of kilovars used for the adjustment be l~s! .- than one-fifth the number of kilowatts. The Kilovars of reactive demand shall be calculat:d ~I multiplyin] th~ kilowatts of measured maximu~ 1e~~~] ~I the ratio of the kilovar-hours to the kilowatt-~our5. Der.1ands in kilowatts -"'nd kilovars shall be deter1in.~' tJ the nearest unit. A ratchet device will be install~; J. the kilovar-hour meter to prevent its reverse op~r~ti" leading power factors. 5. Temporary 9iscontinuance of Service: Where t~~ J3~ )~ energy is seasonable or intermittent, no adjust1~nt3 11~: be made for a tem?orary discontinuance of service. ~'i customer, prior to resuming service within twel'J:?--:).lt.\~ after such service was discontinued will be regJir~1 :1 pay all charges which would have been billed if sec~i:' had not been rliscontinu~d. 6. EnerJY Cost Adjustment: The rates above are 5~hj~~t t' aJjustment as provided for in Part G of the Preli~i1'ri Statement. 7. In-Lieu of Tax and Franchise Payments: The total c:':"o computed ?ursuant to the above rates and ch~r~e~ ~r~l"" increased by 3 percent to reflect payments In-Ileu " and franchise payments. 8. ...... i ..' Excess Transformer Capacity: The transformer ca~~- :: . h . - elt"1c:. excess of a customer's contract demand whlc l~ Authorizej by th~ ~ity of Vernon Ordi:1ance "Jo. Ordina:1ce ~:). aesolution No. Resolution 'lJ0. Effective Effective Effective EffectiVe - 29 - ...;i.;",. required by the ~tility because of the nature custo~er's load or requested by the custo~er. transformer capacity shall be billed at $1.0J month. of the Excess ?er kVA. :)i~ r 3 9. Contract Demand: A contract demand will be establishe0 ~j the Utility, based on applicant's demand requirements for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordan~e with Rule No. 12u. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Utility's serving transformer(s) or the standard transformer size determine-] by the Utility as required to serve the customer's state1 measurable kilow3tt demand, whichever is less and is expressed in kilowatts. " L 11 l~. ~inimum Demand Charge: Where' a contract de~~nd is established, the monthly minimum demand charge shall be $1.00 per kilowatt of contract demand. ):) 1 5 :)~ x n A~thorizeJ by the City of Vernon Jrdinance No. Ordinan~e "Jo. Resolution No. Resolutio:1 No. Effective Effective Effective Effective - 3;1 - f' $ C:1TY.OF VERNON LIGHT AND.POWER'OEPARTMENT Schedule N~~ C-l COGENERATION .SOOR.CE APPLICABILITY Applicability - applicable to transportation for cogenerators. TERRITORY Within the city limits of the. City: of Vernon. RATES Transportation demand rates will: be provided for in ~ transportation agreement with each individual cogenerator in accordance with recommendations contained in the Rate. Oesign Report approved herein. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 31 - 'V (14 ?o g , 9P BAKER G. CLAY & ASSOCIATES. INC. REPORT ON RATE DESIGN CITY OF VERNON,' CALIFORNIA Municipal Light Department December 1983 REPORT ON RATE DESIGN CITY OF VERNON, CALIFORNIA MUNICIPAL LIGHT DEPARTMENT December 1983 Prepared by Baker G. Clay & Associates, Inc. Section I. II. III. IV. V. VI. VII. VIII. IX. x. Table of Contents Description Introduction Adequacy of Revenues Under Existing Rates Revenue Requirements Allocation of Revenue Requirements Proposed Changes in Rate Schedule Structure Edison Rates The Design of Rates The Energy Cost Adjustment Billing Factor (ECABF) PURPA Standards Concl us ion Page 1 5 7 10 12 17 21 27 28 35 I. INTRODUCTION On November 8, 1983, Southern California Edison Company (Edison) tendered for filing with the Federal Energy Regulatory Commission (FERC) in Docket No. ER84-75 a proposed two-step increase in its wholesale rates for service to Vernon and seven other wholesale customers. The Step 1 rates provide for an increase in jurisdictional revenues of approximately $32.6 million (13.19\) for the twelve month test period ending December 31, 1984. The Step 2 rates would result in an additional increase in revenues above the Step 1 rates of approximately $9.9 million (4.9\), for a total increase of $42.6 million (17.1\). Edison requested effective dates for the Step 1 and Step 2 rates of January 7, 1984 and January 8, 1984 respectively. The Step 1 rates reflect a return on equity of 13.25 percent wh~ch, in Edison's opinion, should encourage the FERC to grant a suspension of only one day, while Step 2 rates reflect a return on equity of 16 percent. The Commission may suspend a rate increase for as long as five months or as little as one day, depending upon the recommendations of its staff after a preliminary review. We believe the proposed rate to be so as excessive as to require a full five month suspension. The Step 1 rates could become effective as early as January or as late as June. Likewise, the Step 2 rates could become effective in January, or be suspended to a date as late as early June. At this time the Commission has not issued an order and probably will not until early January, and we will not know the actual efective dates until that time. We thus recommend that the rates designed herein to track Edison's Step 1 and Step 2 rates be made effective on the same dates -1- II that the FERC allows Edison's Step 1 and Step 2 rates. Both Step 1 and Step 2 rates are subject to ultimate refund pending FERC action on the merits of the proposed increases. While Vernon and the other wholesale customers have vigorously protested the proposed increase, and while such rates may ultimately be reduced and some refunds required, Vernon's cost of purchases will increase dramatically with the proposed increases. Edison's Testimony indicates that the major reasons for the proposed increase is to reflect SONGS 2 and SONGS 3 costs and to include 50 percent of construction work in progress (CWIP) in the rate base. Under the policy of including CWIP in progress in the rate base, today's ratepayer is paying plant costs on plant that will go into service to serve future customers. This is not allowed at the CPUC, but the FERC has recently adopted a policy of permitting such practice. Sheets 2, 3, and 4 of Exhibit B show the calculation of Vernon's cost of purchases from Edison under existing rates, Step 1 rates and Step 2 rates, respectively. The following table shows Edison's estimate of the increases in costs to Vernon under the Step 1 and Step 2 increases: Cost to Vernon (000's) Step 1 Step 2 Increased Rates Existing rates Increase $72,983 65,694 $ 7,289 $75,297 65,694 $9,603 The Step 1 increase in the cost of Vernon's purchases from Edison will ,amount to approximately $7.3 million per year, assuming the same billing demands experienced during -2- 1 12/4/83 the year ending October 31, 1983, while the Step 2 increase will amount to another $2.3 million per year for a total increase in the cost of Vernon's purchases from Edison of $9.6 million per year, or by 14.6 percent. The increases in the energy component of the rates are routinely reflected in Vernon's Energy Clause Adjustment Billing Factor (ECABF) which is changed every three months. The increases in Edison's demand charges, however, are not reflected in the ECABF, and Vernon must therefore increase its base rates to recover these increased costs. This rate increase follows major rate increases in three other filings that have yet to be resolved wherein Edison estimated its increases to be as follows: No. Amount of Increase (Millions) Percent of Increase Docket ER79-l50 ER8l-l77 ER82-427 $5.5 $28.6 $34.4 4.0% 7.4% 15.7% The above noted increases are without the increases proposed for nuclear stations that had in fact been included in the proposed increases in Docket Nos. ER81-177 and ER82-427. The rates established in each of these three filings are effective subject to judicial determination and may be rolled back. If so, this will result in refunds to the cities. Edison also proposes major changes in its rate design, including the addition of a demand charge during the mid peak period and time of use (TOU) energy rates. The new rates filed by Edison, including the changed rate form, will also become effective subject to judicial determination and may be changed. If so, power and energy purchased during -3- 12/6/83 the period subsequent to the change in rates will be priced at the rates resulting from the regulatory process and the excess revenues collected by Edison will be refunded. This report contains my following recommendations for the adjustments of Vernon's rates to allow Vernon to recover its cost of service, including the increased cost of purchases from Edison, in a fair and equitable manner, pursuant to costs estimated to be incurred in the estimated test year ending December 31, 1984: (1) design rates to become effective January 7, 1984 , or whenever Edison's rates are allowed to become effective, to recover Vernon's costs, including the cost of purchased power and energy under Edison's Step 1 rates, as allocated among the various classes of service; and, (2) provide for a surcharge to recover the increase in the cost of purchases under Step 2 rates, to become effective at the time that the FERC allows Edison's Step 2 rates to become effective. We also recommend several changes in Vernon's rate schedules to track Edison's changes in its rate schedule. Because of Edison's greatly expanded time of use rates, we recommend the conversion of Schedule A-8 to a time of use rate, Rate Scehdule TOU-V. With such a rate schedule, it will be appropriate to eliminate the special contracts with Byron Jackson and Steel Casting. This new form of rate should be helpful to our larger customers in several ways. Because of the favorable load patterns of these customers, they will enjoy lower overall rates than would exist without a time of use rate. Also, because the savings realized by the system because of any improvement in the load patterns of individual customers will be flowed directly through to the customers responsible for the savings. This gives each customer more flexibility in controlling its cost of power and energy. The metering equipment to make this rate design feasible is in place, or will shortly be in place. -4- 12/5/38 II. ADEQUACY OF REVENUES UNDER PRESENT RATES Vernon's revenues under its existing rates are approximately equal to its cost of providing utility service, including its operating costs and cost of purchases from Edison, as shown in Exhibit A. Column B of Exhibit A shows Vernon's monthly revenues for the twelve month period October 1982 through September 1983. Column C shows Vernon's cost of purchases from Edison during this period, and Column D shows the excess of Vernon's revenues over its cost of purchases from Edison. As shown on Line 13, Column D, Vernon's revenues for the year exceeded its cost of purchases from Edison by approximately $4.7 million. During this period, however, Vernon reduced the reserve in its ECAC account under its Energy Cost Adjustment Clause by $1.1 million. This results in a negative adjustment to revenues. Also, Vernon flowed through refunds of $2.0 million during this period, which results in a positive adjustment to revenues. Finally, Vernon's off system purchases, including all costs, amounted to $1.1 million, which requires a positive adjustment to costs. The net result is that Vernon's adjusted revenues exceed its cost of purchases by $4.4, which was available to cover Vernon's fixed cost of owning and operating its utility system. Vernon's annual costs, in addition to its cost of purchased power and energy, as set forth on Sheet 1 of Exhibit B, -5- 12/6/83 amounted to $4.0 million, and payments in lieu of taxes and franchise fees amounts to $1.8 million, for a total of $5.8 million. Vernon's net revenues were thus deficient by approximately $1,429,000. This comparison is set forth in the following table: Revenues Amount (000' s) $60,988 1,985 <1,102> $61,871 56,268 1,154 $4,449 5,878 $1,429 Refund Flow thru Increase in ECAC Reserve Net Revenues Cost of Purchases from Edison Other Purchases Difference Vernon's Non-purchase Costs Deficiency -6- r f I I 12/4/83 III. REVENUE REQUIREMENTS ." ~ The City of Vernon has certain revenue requirements (cost of service) associated with the rendering of electrical service to its customers. These revenue requirements are made up of the cost of purchases from Edison, the cost of operations under the operating agreement with Edison, other miscellaneous costs, depreciation of the electrical facilities used to provide the service, and return (or interest) on the investment in the electrical facilities owned by Vernon. A breakdown of Vernon's annual revenue requirements including the cost of purchases from Edison under the filed rates (without giving effect to the fuel clause adjustment) is shown on Sheet 1 of Exhibit B for the year ended October 31, 1983. Vernon's annual revenue requi~ements as estimated for the future with Edison's Step 1 rate increase in effect is shown in Column C of this schedule. The cost of purchases from Edison are projected to increase from $65.7 million per year to $73.0 million per year assuming the Step 1 rates are to remain in effect for the entire year. Under the Step 1 rates, the cost of purchases from Edison of $73.0 million will thus amount to approximately 95 percent of Vernon's total revenue requirements of $77 million. The projected costs of power and energy (purchases from Edison) under the Step 1 rates are set forth on Line 1, Column C of Exhibit B, Sheet 1. This projection is based upon the assumptions: (l) that purchases from Edison during the year ending December 31, 1984 will be the same as Vernon's total energy requirements during the year ended October 31, 1983; (2) that Vernon's billing demand units will be the same as the billing demand units with Edison during the year ended October 31, 1983; and, (3) the Step 1 rates will be in effect throughout the projected year. The -7- 12/4/83 calculation of the cost of purchases from Edison under these assumptions is set forth on Sheet 3 of Exhibit B. The computations of the cost of purchases from Edison under existing rates, under Step 1 rates and under Step 2 rates are set forth in Sheets 2, 3, and 4, respectively of Exhibit B. The purchases from Edison are set equal to Vernon's actual energy requirements during the year ending October 31, 1983. Exhibit B, Sheet 1, Line 2, Column C shows the projected cost of contractual services including consulting engineering, special accounting, engineering, an? legal counsel of $585,330. Line 3 shows miscellaneous costs of $152,003 for services of City personnel and supplies and expenses. Line 4 shows the projected cost of $2,161,030 payable to Edison for operating Vernon's system pursuant to its Operating Agreement. Line 5 shows a projection of depreciation of City's electrical facilities of $403,030. Line 6 shows an allowance for return on net investment in electric plant of $753,330. This allowance for return was computed by applying a rate of return of 12.65 percent, based upon Edison's cost of capital as determined by the CPUC, to Vernon's gross plant less accumulated depreciation. Edison's cost of capital was used because Vernon's experience with financing is too limited to use as a measure of the cost of capital. A more appropriate measure of the cost of capital is the requirements of a private utility that makes frequent transactions in the bond and stock markets. Edison is, in this instance, an appropriate model upon which to base Vernon's cost of capital. The retur~ component was thus computed at a rate of 12.65 percent which is the rate of return allowed for 1984 by the California Public Utilities Commission in Edison's retail case by Decision No. 82-12-055 issued December 33, 1980 in Edison's Application No. 61138. As shown on Line 7 of this Exhibit the annual revenue requirements of the City of Vernon from its electrical -8- 12/4/83 system are approximately $77.~ million under Edison's Step 1 rates. -9- /1 IV. ALLOCATION OF REVENUE REQUIREMENTS Exhibit 0, Sheet 1 shows an allocation of the demand and energy components of the system's revenue requirements among the-various classes of service. This allocation of system revenue requirements among the various customer classes was made in the following manner. The total revenue requirements of $77,931,909 as set forth on Exhibit B, Sheet I were classified as demand or energy and further broken down as costs associated with service during Edison's on peak, mid peak and off peak time of use periods. As shown on Sheet 2 of Exhibit 0, the energy cost of purchases from Edison were classified to the energy component. All other costs were classified to the demand component. Mi~cellaneous revenues ($25,999), demand costs associated with service to the Special Contract Customers and revenues from service to LS-I, LS-2, and OL-l customers were then deducted from the classified cost of service. Revenues from the lighting class of customers were deducted from the cost of service, rather than allocating costs to such customers because, as explained in the Rate Design Section, we have determined that it is appropriate to base the rates for these Schedules upon Edison's retail rates rather than upon allocated costs. The remaining classified costs were then allocated as set forth on Sheet 1 of Exhibit O. The cost of energy purchased from Edison as shown in Column C was allocated between classes of service on the basis of kWh sales to each class, respectively, as adjusted for losses. The development of the allocation factors including the adjustment for losses is shown on Sheet 3 of Exhibit C. For purposes of this adjustment, it was assumed that some of the customers purcha~e from secondary lines, some purchase from primary lines, some purchase from distribution lines and -19- I II some purchase from transmission lines. Inasmuch as there are losses at each step along the way, the percent loss responsibility varies depending upon the voltage level of service. Therefore, Sheet 3 of Exhibit C shows an extimate of the total kWh responsibilityof each class of service assuming losses to a common point, the transmission system. (r"~ The other costs, including demand costs associated with purchases from Edison, Power Factor Adjustments and Voltage Discounts, were allocaated on the basis of the billing demands of the respective classes, again at the transmission level vol tage. Bill ing demands were used for this' purpose because this is the best information available for this purpose. It would be preferable to allocate such costs on the basis of coincident peak.demands, but such data is not available. In some instances, billing demands were not recorded, but were imputed. Billing demands for Schedule no. D and Schedule Nos. GS-l and TC-l were imputed on the basis of 25 percent load factor purchases while billing demands for Schedule No. PA-l were imputed on the basis of 6e percent load factor purchases. -11- 12/4/83 V. PROPOSED CHANGES IN RATE SCHEDULE STRUCTURE Edison instituted time of use (TOU) rates for Vernon and the other resale cities on an optional basis in its filing in Docket No. ER79-1Se by providing that a demand charge be applied to peak requirements occuring during the on peak period. A higher requirement during other ti~es of the day would not result in higher demand charges. The o~F peak period occurs during the afternoon hours in the winter and during the evening hours in the summer. This fil ing in Docket No. ER79-lSe partially tracked the retail time of use rates, which was based on 3 time periods. At the retail level, the peak period was generally the same as that filed for resale customers in Docket No. ER79-lSe. The off peak period was generally the late night and early morning hours. The mid peak period included the hours not covered by the on peak and off peak periods. Edison stated in its filing that it was its attempt to make its resale rates similar to its retail rates, and in its new filing in Docket No. ER84-7S, proposes to levy a demand charge for the peak requirements during its mid peak period equal to le percent of its demand charge for on peak requirements and institute time of use energy rates as well. Vernon, being an industrial city, has unique features that make this form of rate exceptionally valuable to it and its customers. Not only will Vernon's customers realize savings on the basis of their existing load patterns, they will also be in a position to effect further reductions in their cost of power and energy by rescheduling their operations to further improve their load patterns. -12- 12/4/83 The proposed Step 2 rates in Edison's proposed R-3 rate schedule at the FERC by time of use period are set forth in the table below: CUSTOMER CHARGE: Demand Charge (to be added to Customer Charge): All kW of on-peak billing demand, per kW Plus all kW of mid-peak billing demand, per kW Plus all kW of off-peak billing demand, per kW Energy Charge (to be added to Customer and Demand Charges): All on-peak kWh, per kWh Plus all mid-peak kWh, per kWh Plus all off-peak kWh, per kWh Time periods: Per Meter Per Month $490.00 $15.63 1.56 No Charge 4.795t 4.495t 4.045t Time Periods are defined as follows: On-Peak: 1:00 p.m. to 7:00 p.m. summer weekdays except holidays 5:00 p.m. to 10:00 p.m. winter weekdays except holidays Mid-Peak: 9:00 a.m. to 1:00 p.m. and 7:00 p.m. to 11:00 p.m. summer weekdays except holidays 8:00 a.m. to 5:00 p.m. winter weekdays except holidays Off~Peak: All other hours. Holidays are: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas. -13- 12/4/83 1. Schedule TOU-V Because of Edison's new rate form, with the additional time of use rate components, we recommend that Vernon consider the implementation of a new rate form for the larger customers that will result in a more precise tracking of the cost of purchases from Edison on behalf of these customers. Without such a rate form it will not be possible to design rates that will recover the cost of purchases from Edison with reasonable accuracy in the event of changes in the load patterns of the customers because the rates will necessarily be designed on the basis of an expected mix of on peak, off peak and mid peak energy, and an expected relationship between on peak ~nd mid demands. The time of use rate will also encourage customers to implement load management techniques to reduce their bills. The existing rate structure would result in an over or under collection if load patterns vary from the expected. A time of use schedule would adjust revenues to reflect this change in load patterns to meet the cost of purchases from Edison, however. We are therefore proposing the elimination of rate schedules now available to the larger customers. These rate schedules to be eliminated include the special contracts for Steel Casting and Byron Jackson as well as Rate Schedule A-8, now mandatory for customers other than the special contract customers having peak requirements in excess of 1,000 kW, and the substitution of a time of use rate schedule, TOU-V, for customers having magnetic tape recording type meters. Approximately 55 customers have such meters now. These customers include all of the customers purchasing under Schedule No. A-8, and some of the customers currently purchasing under Schedule No. A-7. Magnetic tape recording devices are scheduled to be installed for all remaining customers purchasing under Schedule No. A-7 in the near future. To fully implement this proposal an additional rule should be included in Vernon's tariff to provide (1) that a -14- 12/4/83 recording type meter be installed for all customers having peak requirements in excess of Se0 kW, and (2) that all customers having recording type meters be required to receive service under Schedule No. TOU-V. Such a proposed condition is included in Exhibit E, Page 1. 2. Payment In-Lieu of Taxes and Franchise Fees Edison has traditionally made franchise fee payments and various tax payments to the cities in which they render service at retail, and has included these payments in their retail rates. In similiar fashion, Vernon has traditionally made payments from its electric utility operations to its general fund as a recovery of taxes or in-lieu franchise fee. This payment has averaged about 3 percent of the total revenues from electric service and has been built into the base rates. We propose, however, that rather than build the tax and in-lieu payment into the rates, an increment be added to revenues otherwise payable under the rates filed to provide for the tax and in-lieu franchise fee. A paragraph has been added to each of the rate schedules to provide that the total charges computed under the rates and charges of a rate schedule are to be increased by three (3) percent to reflect payments in lieu of taxes and franchise fees. This provlslon is shown in Exhibit E, Sheet 2. These funds when collected are transferred to the General Fund account to help defray the cost of general city operations. 3. Excess Transformer Capacity Rate Schedule Nos. A-8, A-7, and GS-2 now contain provisions requiring a customer to reimburse Vernon for transformer capacity in excess of a customer's contract demand which is either required by the company because of the nature of the customer's load or requested by the customer. At the recommendations of Energy Services, Inc., we have included such a condition in Rate Schedule GS-l also. This provision is shown in Exhibit E, Sheet 3. -15- 12/6/83 4. Determination of GS-2 Billing Demand Special condition No.2 of Rate Schedule No. GS-2 now provides that the billing demand shall be determined to the nearest l/le kW. Vernon's Rate Schedule Nos. A-8 and A-7 provide that the billing demand is to be determined to the nearest kW. We have thus changed the provision of Rate Schedule GS-2 to determine billing demands to the nearest kW, consistent with the other rate schedules. This provision is shown iQ Exhibit E, Sheet 4. 5. Rules for Schedule No. PA-2. The City of Vernon has adopted Special Conditions for Schedule Nos. A-8, A-7 and GS-2 dealing with Excess Transformer Capacity, Contract Demand and Minimum Demand Charges. We now recommend that these Special Conditions be adopted for Schedule No. PA-2 as well. These provisions are shown on Exhibit E, Sheet 5. -16- 12/6/83 VI. EDISON RATES The regulatory methodology of the FERC, which establishes the rates under which Vernon purchases from Edison, differs markedly from the regulatory methodology of theCPUC, which establishes the rates which Edison's retail customers purchase under. The FERC, for instance, will allow rate increases to become effective without serious examination soon after they are filed but will subsequently require the refunding of the portion of the proposed increase that is subsequently found to be excessive. The CPUC, however, must investigate the rates prior to their effectiveness. If a comparison were made of Edison'S retail rates with Vernon's rates, one must take into consideration that Vernon may receive refunds that can be used to reduce future costs of service. Other major differences exist with respect to the form of Edison's wholesale and retail rates, both of which are now undergoing major changes in form. These problems are discussed below. 1. Edison's Existing Retail Rates - The rates at which Edison bills its retail customers are composites of several components. The first is the base rate under which Edison recovers its projected fixed costs. These base rates are established in general rate cases which Edison may file only once every two years. Edison recovers its projected fixed costs associated with return on investment, depreciation, income taxes, other taxes, and operating expenses under its base rates. Next is the Energy Cost Adjustment Clause (ECAC) under which Edison may file three times a year; January 1, May 1, and september 1. Edison recovers 98 percent of its cost of energy under the ECAC. The other 2 percent of the cost of energy, along with miscellaneous costs associated mostly with fuel oil inventory, is recovered under the annual energy rate (AER). -17- 12/4/83 Edison also has a Major Additions Adjustment Billing Factor (MAABF) under which it recovers the cost of major additions prior to their inclusion in the base rates, an Electric Revenue Adjustment Billing Factor (ERAMF) to adjust revenues for sales fluctuations, the Steel Surcharge Adjustment Billing Factor (SSABF) and the Annual Major Additions Rate (AMAR). The other component presently included in Edison's rates is the Conservation Load Management Adjustment Clause (CLMAC) . Edison included the MAABF to recover the costs of SONGS 2 that cannot be projected with reasonable accuracy; and, (b) an Annual Major Additions Rate (AMAR) designed to recover the SONGS 2 costs that can be projected with reasonable accuracy. These various components of Edison's rates are discussed more fully below, with reference to Exhibit F. Sheet 1 of Exhibit F shows the composite Edison retail rates for Schedule Nos. TOU-8, GS-2, GS-1, PA-l, and PA-2 that are to be effective in November 1983. Column A shows the rate schedules and the functional components of the rates (demand, energy, and customer components). Columns B - J show the levels of the various increments of the functional components of the rates. Column B shows the base rates that became effective on January 1, 1983 pursuant to the CPUC Decision No. 82-12-055 issued December 13, 1982 in Edison's Application No. 61138. Edison will be allowed additional increases to be effective on or after January 1, 1984 to offset the affects of attrition and to more fully reflect SONGS 2 costs. The rate levels set forth in Column B are designed to recover Edison's fixed costs associated with generation, transmission, and distribution. These costs include return on investment, depreciation, in<;:ome taxes, other taxes, and operation and maintenance (O&M) expenses. The levels of the functional components of Schedule TOU-8 are shown on Lines 1 - 8. Edison has established a -18- 12/4/83 base rate demand charge of $5.05 per kW per month for the kW of demand purchased under this schedule during the on-peak period. In addition, Edison has established a base rate demand charge for the mid-peak period of $.65. The customer charge of $560 per month has been established on the basis that customers taking as little as 500 kW per month must purchase under Schedule No. TOU-8. Edison has established an energy charge of 2.l45t/kWh for the on-peak periods. the mid-peak period, and the off-peak periods. Edison has proposed thus a uniform level for the base rate energy component in its Schedule No. TOU-8 but has provided, instead, that the ECABF reflect differences in costs between the on-peak, mid-peak, and off-peak energy. Column C shows the Energy Cost Adjustment Billing Factor (ECABF) to be added to the base energy rate of all rate schedules. Column D shows the Annual Energy Rate (AER) of .390t/kWh. The Annual Energy Rate is designed so as to recover 2 percent of the annual energy costs plus miscellaneous costs, mostly associated with fuel oil inventory. Column F shows the Conservation Load Management Adjustment Clause (CLMAC) of .027t/kWh to be added to the energy component of the rates for each rate schedule. Column F shows the composite rates in effect as of May 4, 1982 for each of these Edison rate schedules. Edison thus filed a proposal in Application No. 82-02-40 to establish a Major Additions Adjustments Clause (MAAC) to implement a Major Additions Adjustment Billing Factor (MAABF) and an Annual Major Additions Rate (AMAR) to recover the costs of owning, operating, and maintaining SONGS 2. The surcharges resulting in this filing are set forth in Columns G and H. Column G shows the surcharge associated with the MAABF to be .0311t/kWh. The MAABF is to be based upon an estimate of SONGS 2 costs which cannot be reasonably estimated. Any variation between the estimated -19- 12/6/83 level of these expenses and the recorded expenses will be placed in the MAAC balancing account and adjusted periodically to reflect any over-collection or under-collection. The AMAR is designed to recover costs of SONGS 2 that are fixed or can be reasonably estimated. The initial AMAR is to be .07lt/kWh. Column I shows the PUC reimbursement fee and Column J shows the composite rates to reflect the base rates, the ECAC and the various surcharges including the surcharges to recover the cost of SONGS 2. It is expected that these rates will remain in effect until January 1, 1984 at which time the rates will be adjusted to reflect attrition and additional SONGS 2 costs.No. 61138. The MAABF and the AMAR, shown in Columns G and H, respectively, will remain in effect until December 31, 1985 because Application No. 61138 did not reflect the costs associated with SONGS 2. Edison has filed -Notice of Intent- to file a rate increase application with the CPUC at that time and roll SONGS 2 costs into the base rate as well. -20- 12/6/83 VII. THE DESIGN OF RATES 1. To Reflect Edison's Step 1 Increase in Rates - Exhibit G, Sheet 1 shows the revenues at existing rates, the proposed revenue increase and the resulting revenues at the proposed rates. The proposed revenue increase is shown in Column E. With minor exceptions, the proposed rates are designed to recover the allocated costs to each customer class, as set forth in Exhibit D, Sheet 1. Two exceptions are with respect to Schedule No. D and the lighting schedules. The customer charge in Schedule No. D (Domestic) of $1.50 per month has been retained and the energy charge has been increased from' 4.399 to 4.50t per kWh. The revenues under these rates are less than allocated costs. Likewise, the lighting rates, Schedule ~os. OL-l, LS-l, and LS-2, have not been changed from the existing rates, on the basis of a study comparing the existing rates with the rates that Edison charges for similiar service. Edison's rates are based upon studies of the unique character of the service rendered by these types of schedules, and thus probably result in a better measure of the cost to serve under these schedules-than an allocation of costs. The rates for Schedules OL-l, LS-l and LS-2 designed to track the Edison rates, using Vernon's energy costs, are very close to the existing rates for these schedules. We therefore recommended no changes in Rate Schedule Nos. OL-l, LS-l and LS-2. Sheet 2 of Exhibit G shows the design of rates for Schedule Nos. A-7, GS-2, GS-l, PA-l, and PA-2. As noted above, these rates have been designed to recover the costs allocated to these classes of service on Sheet.l, Schedule D. Rates for Schedule TOU-V were likewise designed to recover the costs al)ocated to such service. As of this -21- & ~ , 12/6/83 time, there are 30 customers for whom we have data from a recording metering device for the full year ending October 31, 1983. Annual sales to this group of customers represents 63.4 percent of the total sales to customers purchasing under Schedule Nos. A-8 and A-7. While we would prefer to have data for a complete year for all of the customers that will soon be purchasing under Schedule TOU-V, and this includes all of the customers under Schedule Nos. A-8 and A-7, we feel that under these circumstances it is necessary to design TOU-V rates on the basis of costs allocated to these 30 customers. The mid-peak demand charge under Schedule TOU-V was set equal to Edison's midpeak demand charges. While there will be losses associated with deliveries to Schedule No. TOU-V customers, these losses will be more than offset by diversity among the TOU-V customers. That is, the sum of the customers peaks during the mid peak period will be less than Vernon's mid peak maximum requirements because not all of the customers will peak at the same time. The mid peak and off peak energy charges under Schedule No. TOU-V were set equal to Edison's mid peak and off peak energy charges, respectively, to reflect losses. The rates for Standby Service under Schedule No. Shave been designed to recover Vernon's cost of rendering this service. The rate for the first 20 kW has been increased from $4.00 per kW to $4.50 per kW to contribute more toward the customer costs associated with this service. The rate for all excess standby demand has been set at $2.30 per kW, which represents Vernon's unit fixed costs, as set-forth on Sheet 2 of Schedule C. The rates for demands actually used has been set at Vernon's incremental costs of $14.64 per kW under Edison's Step 1 rates. The energy used is to be billed at the energy rates under the applicable rate schedule. -22- 12/6/83 2. To Reflect Edison's Step 2 Increase in Rates - As pointed out above, Edison's Step 2 rate increase to Vernon will also result in an increase in Vernon's cost of purchases from Edison. To enable Vernon to reflect this increase in its rates, we have designed surcharges to become effective on the date the Step 2 rates become effective. The surcharge to reflect the additional cost of Edison's Step 2 increase is set forth on Sheet 3 of Exhibit G. The demand surcharge of .777 per kW of on-peak demand for Schedule Nos. TOU-V, A-7, and GS-2 was calculated by dividing Vernon's increase in demand costs of $2,374,159 by the sum of the 12 monthly system demands. The unit surcharge for the mid-peak demands is calculated as 10 percent of the on-peak demand charge, or $.078. The energy surcharge for these customers is the increase in Step 2 energy rates (.024t/kWh) adjusted to .025 to reflect the losses. The .384t/kWh unit surcharge applicable to the energy purchased by customers in other classes, most of whom do not have billing demands, was arrived at by subtracting the annual demand surcharges to the Schedule Nos. TOU-V, A-7, and GS-2 customers from the Step 2 increase in demand cost and dividing by system annual kWh sales to such customers, and adding the energy surcharge of .025t/kWh. This calculation is shown on Sheet 3 of Exhibit G. 3. Transportation for Cogeneration We recognize that Vernon may be asked to perform a transportation service for cogeneration customers, and while it is not appropriate to recommend a rate for this service now, we do recommend a procedure that may be followed, which is set forth on Sheet 2 of Exhibit C. This schedule shows the development of a unit cost for transportation by dividing the sum of Vernon's fixed costs, including Contract -23- .,;I.'-...,'... ~ <;.,~c 12/6/83 Services, Miscellaneous Expenses, Operating Agreement Costs, Depreciation Return and Payments in lieu of taxes and franchises, by the sum of Vernon's system demands. We recommend, however, that the contract services portion be reduced by the amounts paid for ~urchases, to retain the amounts expended for cogeneration. We also recommend that the City consider a reduction in the in lieu payments on an individual basis. The demands of the transportation for cogeneration customers are to be added to existing system demands to arrive at the Adjusted System Demands on line 11. If, for instance, the demands of the cogenerators amount to l~~ mW, the total annual demand of 1,2~~ mW would be set forth on Exhibit C, Sheet 1. This 1,2~~ mW added to system demands of 2,778 mW results in adjusted system demands of 3,978 mW on line 11 of Exhibit C, Sheet 1. Assuming no change in the cost of contracted services or in lieu payments, the monthly demand rate ,for transportation for cogeneration would be $6,348 divided by 3,978 or $1.6~ per kW. -- 23a - 12/6/83 Services, Miscellaneous Expenses, Operating Agreement Costs, Depreciation Return and Payments in lieu of taxes and franchises, by the sum of Verno~'s system demands. We recommend, however, that the contract services portion be reduced by the amounts paid for purchases, to retain the amounts expended for cogeneration. We also recommend that the City consider a reduction in the in lieu payments on an individual basis. The demands of the transportation for cogeneration customers are to be added to existing system demands to arrive at the Adjusted System Demands on line 11. If, for instance, the demands of the cogenerators amount to 100 mW, the total annual demand of 1,200 mW would be set forth on Exhibit C, Sheet 1. This 1,200 mW added to system demands of 2,778 mW results in adjusted system demands of 3,978 mW on line 11 of Exhibit C, Sheet 1. Assuming no change in the cost of contracted services or in lieu payments, the monthly demand rate for transportation for cogeneration would be $6,348 divided by 3,978 or $1.60 per kW. In develdping this methodology of designing rates for transportation for cogeneration we were very much concerned with the need to be consistent in the treatment of sales and transportation customers. The transportation is to be on a firm basis and the rate for such transportationshould be comparable to rates for sales, less the energy increment. This principle has been followed at the FERC in both gas and electric cases. In gas cases the Commission routinely approves rates for transportation services by subtracting the gas component from comparable sales rates. Similiar procedures are followed in electric rate cases. When designed in this manner, the rates for transportation for cogeneration will recover revenues that will go toward reducing the sales rates to all customers, including the rates charges for s~les to the cogeneration customers. The increased markets resulting from the transportation for cogeneration will thus not be a burden to other customers on -24- the system, under the proposed rate design. We have also determined that it is appropriate to develop rates for transportation for cogeneration on a fully allocated basis, to avoid making a distinction for cogeneration customers. We have never made a distinction among services or customers based on the date of institution of service. Also, Vernon's system was designed and is operated as an integrated system. We have thus felt that it is unreasonable to attempt to develop rates for any service on the basis of a segment of the system. .4. Comparison of ratemaking at the FERC with the CPUC There are various differences in the rates as set by the FERC as compared with the rates as set by the CPUC, which makes it necessary to carefully study the situations existing at any point in time when comparing the levels of Vernon's rates with the levels of Edison's rates. While it is generally possible to reconcile these diffenences so as to arrive at meaningful conclusions, care should be taken to consider all the important differences involved. This requires a great deal of work, however, and considerable knowledge of the rate making process. Some of these differences are as follows: a. With respect to the energy cost adjustment clauses, Edison is required to track changes in the cost of energy on a monthly basis at the FERC while the CPUC provides for less frequent changes, and requires that any under or over collections be retained in a deferred account. b. There is a fundamental difference between the methodologies used by the FERC and the CPUC in the processing of general rate increases. The CPUC will analyze a rate proposal in detail prior to allowing it to become effective. The rate that -25- does become effective is final and there will be no refunds. The FERC, on the other hand, will allow an increased rate to become effective, without much analysis, but may require substantial refunds later. Vernon, for instance, has refunded to its customers approximately $5 million that Edison refunded to Vernon under the terms of an order in Docket No. 76-205 with respect to an Edison wholesale increase in 1976. c. Other differences exist with respect to the timing of general rate increases. At the retail level, one huge rate increase became effective on January If 1983 and another is to follow on January 1, 1984. At the wholesale level one rate increase became effective June 2, 1982 and another is to become effective on or shortly after January 7, 1984. Both of these rate increases will be subject to refund. d. Edison has filen surcharges to its retail rates to reflect the cost of SONGS 2. The surcharges (MAABF and AMAR) became effective on in-service Date of SONGS 2 to reflect this unit. Surcharges for the other units will follow. With respect to the wholesale rates, however, the cost of major new facilities may be incluned in the rates only during major rate incrense filings. -26- 12/6/83 IX. THE ENERGY COST ADJUSTMENT BILLING FACTOR /' ;",. Vernon's existing rates include a component of 5.185t/kWh to recover the cost of Energy purchased from Edison. These rates also contain an Energy Cost Adjustment Clause under which Vernon tracks increase and decrease in the energy component of the cost of its purchases from Edison by applying an Energy Clause Adjustment Billing Factor (ECABF) to its kWh sales of energy. Vernon presently makes changes in its ECABF on a quarterly basis to reflect the estimated cost of energy for the current period, adjusted to reflect any over.or under collections during the prior period. This method is working very well and there appears to be no reason to make substantive changes in such methodology. All that is necessary is to set forth the Energy Cost per kWh that is included in Base Rates. As shown in Exhibit H, the cost of the energy component of purchases from Edison amounts to 4.363t/kWh. The existing base cost of energy from which the ECABF is computed is 5.l85t/kWh, resulting in a decrease of .822t/kWh in the base cost. The change in the base energy rate does not really change the cost of energy to the customer, of course. It merely means that more of the cost of energy is to be collected in the base energy rate and less is to be collected in the ECABF. Vernon has made arrangements to purchase interruptible energy from Nevada Power Company, which may result in substantial savings in the cost of energy purchases. Any such savings realized will be flowed-through to the customers in the ECABF. -27- 12/6/83 IX. PURPA STANDARDS While Vernon is not subject to the Public Utility Regulatory policies Act of 1978 (PURPA), this report nevertheless addresses the various concerns of this legislation. Sections III and Il3 of PURPA provide for the following standards: 1. Cost of Service 2. Declining Block Rates 3. Time-of-Day Rates 4. Seasonal Rates 5. Interruptible Rates 6. Load Management Techniques 7. Master Metering 8. Automatic Adjustment Clauses 9. Information to Consumers 10. Procedures for Termination of Electric Service 11. Advertising This report has examined all of these standards to determine what if any action Vernon should take so as to meet its public service obligations. In some cases we determined that no action was required because of the nature of the service area. In the remaining instances we have concluded that steps taken by Vernon fully meet the objectives and standards of the legislation. 1. Cost of Service The Cost of Service Standard provides that the cost of providing electric service to each class of electric consumers shall to the maximum extent practicable - -28- 12/6/83 1. Permit identification of differences in cost-incurrence for each such class of electric consumers, attributable to daily and seasonal time of use of service; and 2. Permit identification of differences in cost-incurrence attributable to differences in customer, demand, and energy components of cost. In prescribing such methods, such State regulatory authority or nonregulated electric utility shall take into account the extent to which total costs to an electric utility are likely to change if-- a. Additional capacity is added to meet peak demand relative to base demand; and b. Additional kilowatt-hours of electric energy are delivered to electric consumers. As discussed above, a cost allocation was made to develop a cost of service for each customer class, using the best information and techniques available. The rates proposed herein are based upon the results of this allocation. The schedules under which service is rendered to the larger customers do reflect time of use considerations. Schedule Nos. A-8 and A-7 provide for an adjustment for off-peak demand and special contracts have been negotiated with some customers having the flexibility of operation that make load management techniques workable. 2. Declining Block Rates The PURPA Declining Block Rates Standard provides that: -29- 12/6/83 UThe energy component of a rate, or the amount attributable to the energy component of a rate, charged by any electric utility for providing electric service during any period to any class of electric consumers may not decrease as kilo-watt-hour consumption by such class increases during such period except to the extent that such utility demonstrates that the costs to such utility of providing electric service to such class which costs are attributable to such energy component decrease as such consumption increases during such period." The rates proposed in this report do not contain declining blocks in the energy component. 3. Time-of-Day Rates The Time-of-Day Rates Standard provides: "The rates charged by an electric utility for providing electric service to each class of electric consumers shall be on a time-of-day basis which reflects the costs of providing electric service to such class of electric consumers at different times of the day unless such rates are not cost-effective with respect to such class, as determined under Section l15(b)". As pointed out above, Vernon is extending Time-of-Day Rates to all customers having demands of 500kW per day or more. As pointed out in more detail at a later point, Vernon's sales to smaller customers amount to a relatively small amount, making it not cost effective to institute time-of-date rates for these customers. 4. Seasonal Rates The Seasonal R~tes Standard provides: "The rates -30- 12/6/83 charged by an electric utility for providing electric service to each class of electric consumers shall be on a seasonal basis which reflects the costs of providing service to such class of consumers at different seasons of the year to the extent that such costs vary seasonally for such utility." This report concludes that because of the relatively small difference between the winter and summer monthly peaks and the relatively small difference between costs during the winter and summer periods, that there is little reason to differentiate costs by season. This is particularly true because of the rate structure of Vernon's sole supplier, Edison. Vernon's billing demands upon which demand charges payable to Edison are based, are set at the level of Vernon's highest takes during the on-peak and mid-peak periods of the day, each month. There is no ratchet in these billing demands. Thus, there is no basis for a seasonal demand charge. 5. Interruptible Rates The Interruptible Rates Standard provides that: "Each . electric utility shall offer each industrial and commercial electric consumer an interruptible rate which reflects the cost of providing interruptible service to the class of which such consumer is a member." The cost savings resulting from interruptible service has been examined and discussed with potential customers from time to time in the past, and there is customer interest in this concept. However, because Vernon purchases its power and energy from Edison, this concept is feasible only if Edison makes energy available to Vernon on an interruptible basis. Vernon has proposed in its testimony in Edison's FERC ra~e proceeding, Docket Nos. ER81-177 and -31- 12/6/83 ER82-427, that Edison be required to institute an interruptible rate for its wholesale customers. If this effort is successful, Vernon will make such rate available to its customers where feasible. 6. Load Management Techniques The Load Management Technique Standard provides that: Each electric utility shall offer to its electric consumers such load management techniques as the State regulatory authority has determined will-- 1. be practicable and cost-effective, 2. be reliable, and 3. provide to the electric utility some enhancement in its ability to manage energy or capacity. It also provides that: a load management technique shall be determined, by the State regulatory authority to be cost-effective if-- a. such technique is likely to reduce maximum kilowatt demand on the electric utility, and b. the long-run cost-savings to the utility of such reductions are likely to exceed the long-run costs to the utility associated with implementation of such technique. As discussed above, Vernon has investigated Time-of-Day Rates, Interruptible Rates and Special Contracts as a way to control maximum demands. These methods are considered to be the most effective means available of achieving meaningful load management, because of the nature of Vernon's loads. Vernon, being an industrial City, has a relatively small number of customers, -32- 12/6/83 most of which, however, are relatively large. Consequently, it is feasible to deal with load management on an individualized basis in areas where there is a potential for load management. Because of the relative small number of customers, however, and the limited amount of sales to smaller customers, it is not economically nor adminis- tratively feasible to experiment with such techniques as time-of- use rates for water heating as load management techniques. 7. Master Metering The master Metering Standard provides that to the extent determined appropriate, master metering of electric service in the case of new buildings shall be prohibited or restricted. Separate metering shall be determined appropriate for any new building if-- 1. There is more than one unit in such building. 2. The occupant of each such unit has control over a portion of the electric energy used in such unit, and 3. With respect to such portion of electric energy used in such unit, the long-run benefits to the electric consumers in such building exceed the costs of purchasing and installing separate meters in such building. Because of the nature of Vernon's service area it is unlikely that this provision will apply in the foreseeable future, and Vernon has therefore not adopted a policy in regard to buildings where Master Metering mmight be an option. 8. Automatic Adjustment Clauses The provisions of the Automatixc Adjustment Clause -33- I ~ l2/6/83 Standard provides that an automatic adjustment clause meets the requirements of the standard if -- l. The clause is reviewed at least every four years by the State regulatory authority at an evidentiary hearing to insure the clause provides incentives for efficient use of resources by the utility, and 2. The clause is reviewed at least every two years by the State regulatory authority at an evidentiary hearing to insure the maximum economics in those operations and purchases that affect the rates of the utility. This review shall include an examination of the practices of the utility which relate to the costs included in the clause. In appropriate cases, an audit of such costs may be required. Vernon's rates contain an automatic adjustment clause which adjusts customer's bills up or down to reflect the actual costs of fuel and purchased energy. Vernon is not subject to the jurisdiction of a State regulatory authority and, consequently, its clause has not received such state regulatory approval. Vernon's automatic adjustment clause is, however, similar to clauses of investor-owned systems that have been approved by state and federal regulatory agencies. Vernon's automatic adjustment clause is thus consistent with the intent of the legislation. 9. Information to Consumers The Information to Consumers Standard provides that each electric utility shall transmit to each of its electric consumers certain information regarding rate schedules. Vernon's program of providing information to its customers includes all of the necessary rate schedule information. -34- 12/6/83 10. Procedures for Termination of Electric Service This Standard provides that no electric utility may terminate electric service to any electric consumer except pursuant to procedures prescribed by the State regulatory authority. Vernon has adopted procedures similiar to those utilized by privately owned systems, including Edison, that have been approved by state regulatory agencies. 11. Advertising The Advertising Standard provides that no electric utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditures by such utility for promotional or political advertising. Vernon does not advertise its electric service. X CONCLUSION In our opinion, the rates proposed herein will allow Vernon to recover its cost-of-service from its customers in a fair and equitable manner and complies with the intent of PURPA. -35- City of Vernon Comparison of Purchase Costs With Revenues Twelve Months Ending September 30~ 198:::: (OOO's) E:-:hi bi t A Sheet 1 of 1 Total Re.'y'enues Including ECAC Rev. Cost of Purchases From Edison Remainder Including for Non-Purchase * ECAC Charges Costs ------------------------ --------- A B C D 1 October 1982 $5,827,858 $5~225,326 $602,532 2 November 5, 35(J!I 186 5!,395, 153 (44,967) ..,. December 5,387,574 3,902,485 1,485,089 .~. 4 January 198::; 5,080,596 4,763,835 :;:;16,761 0::- February 4, 78:-., 799 3,846~206 937,593 .J 6 March 4,617,623 5,574,774 (957,151) 7 Apl- i I 4,957, 185 ~ 100,036 1,857, 149 "-', 8 1'1e<.Y 4,619,222 4,242,310 376,912 9 June 4,574,704 4,358, 121 216,583 10 July 4,994,522 4,420,068 574,454 1 1 August a=- 123,904 5,549,588 (425,684) .J. 12 SE?ptember- 5,67'0,714 5.890,395 (219,681) 13 Total $60,987~885 $56,268,297 $4,719,588 1,15::::,508 (1,101~748) (1,15::.,508) 1,985,265 $4,449,597 14 15 16 17 Increase In ECAC Reserve Off System Purchases Refund Flow Through Net (1.101,748> 1,985~265 $61,871,402 $57,421,805 Sources Column B : Computer print out showing Billing Data by Rate schedule. Column C : Edison Bills to Vernon. Line 14 & 15 : W/P A-l Line 16 : W/P A-2 - Deductions made to customers bills to reflect flow through. * On a billing month basis which, for some customers is not a calander month. E:>:hi bi t B City of Vernon Sheet 1 of 4 Comparison of Revenue Requirements Actual Yearv.s. Estimated Under Edison's Step 1 Rates (thousands) Actual E:-:penses as Adjusted Estimated E;.:penses w/Step 1 Rates A B C -----------------------..-- 399 $72~983 585 152 2,161 400 750 $77,031 1 Cost of Power & Energy 2 Contracted Service 3 Miscellaneous 4 Operating Agreement 5 Depreciation 6 Return 7 Total Revenue Requirement * $65~694 636 113 2, ()92 725 $69,659 Sources : Col B. Line 1 : Cost of Purchases for year ending October 31, 1983 from Sheet 2, Reflects Step 2 rates in Docket No ER82-427. Col B. Lines '-, C". .iI... .-. ..J . City of Vernon Statement of Revenue and Expenses for year ending October 31, 1983. Col D~ Line 6 Average Rate base @ 12.65 % Col C~ Line 1 Power- and energy purchased dur i ng year- ended October 31~ 1983 ~ priced at Step 1 rates. Col C~ Lines """, 1::' . ..::.. "-..;,..'. City of Vernon proposed budget for 1983-1984. (~J/P B-4) Col C, Line 6 Average Rate Base @ 12.65 % Rate of Return. * Does not include payment in lieu of taxes and franchise fee. ~ E}:hi bi t B Sheet 2 of 4 City of Vernon Costs of Purchases from Edison Under EXISTING Rates tes Billing Units (thousands) Amount (thousands) ------------------------ --------- A B C D list 500 kW x 12 months 2 Ne:-:t 1 ~ 500 klotJ 3 All E::.:cess 4 Tot a I 6 18 1,837 1 , 861 $6,650 12.65 12.00 $80 228 22,044 22,352 5 Voltage Discount $0.30 ($558) \...' Power- Factor Adj. 7 Vernon City Hall 8 Subtotal $24 (11)* 21,806 9 Energ.y' 10 FCA 11 Vernon City Hall 12 Subtotal 1,028~621 $0.04963 51 , 050 ($7,097)** (65)* $43,888 13 Total $65~694 Sources : Col B, Line 4 W/F' B-2. Col B, Line 9: Exhibit B, Sheet 3. Col C: Step 2 Rates from filing in Docket No. ER82-427. Col D, Lines 6,7 & 11 \I.J/P B-2. ~ Total City Hall Demi::\nd IE! 15 i: EnEon:!":.' l~ 85 % $76 $11 $65 *~ Based on negative .69c/kWh from Statement BH in Docket No. ER84-75. Citv of Vernon Costs of Purchases from Edison Under Step 1 Rates (Schedul e R--3) E>: h i bit B Sheet 3 of 4 Billing Units (thousands) step 1 Rates Amount <thoLlsands) -----------.------------- --------- --------- --------- ABC D 1 Customer Charge 1 $375.00 $4.50 Demand Charge 2 On Peak 3 I'li d Peak 4 Subtotal 1,861 2,042 $14.64 1.46 27,245 2,981 $30,226 5 Voltage Adjustment 1 , 861 $0.55 ($1,024) 6 Power Factor Adjustment $24 7 Vernon City Hall * 8 Total Demand (11)* 29!1 22() Energy Charge 9 On Peak 10 I'h d Peak 11 Off Peak 12 Subtotal 13 FCA 14 Vernon City Hall * 15 Subtotal Enet-gy 196,8'=74 322 !,9f)i8 508,729 1,028,621 $0.04771 0.04471 0.04021 9,394 14,441 2(),456 44,291 (463) *-If (65)* $43,764 16 Total $72,983 Sources : Col. B W/P B-2, 12 months ending October 31, 1983. Col. C Step 1 rates from filing in Docket No. ER84-75 Col. D, Lines 6, 7 & 14: W/P B-2 .. Total City Hall Demand 1~ 15~~ Energy @ 85 I. $76 11 65 *-If Based on negative .045c/kWh from Statement BG in Docket No. ER84-75. Ci ty 0+ 'v'ernon Costs of Purchases from Edison Under step 2 Rates (SchedL\le R-3) E;.:hi bi t B Sheet 4 of 4 Billing Units (thousands) Step 2 Rates Amount (thousands) A B C D -----------------------. 1 Customer Charge 1 $490.00 $5.88 Demand Charge 2 On Peak . , Mi d Peak 4 Subtotal 1,861 2,042 $15.63 1.56 29,087 3,186 $32,273 5 Voltage Adjustment 1 , 861 $0.55 ($1,024> 6 Power Factor Adjustmen~ $24 * 7 Vernon City Hall 8 Total Demand <11>* 31,268 ** * Enet-gy Charge 9 Un Peak 1 (I t'li d Peak 11 0++ Peak 12 Subtotal 1~. FUi 14 Vernon City Hall 15 Subtotal Energy 196,8(:14 1;0.04795 0.04495 0.04045 9,441 14,519 20,578 44,538 (463)** (65)* $44,010 322, ~/98 508,729 1,028,621 16 Total $.75,279 Sources Col. B W/P B-2, 12 months ending October 31, 1983. '5 Col. C Step 1 rates from filing in Docket No. ER84-75 Col. D, Lines 6, 7 & 13: W/P B-2 * Total City Hall Demand l~ 15/~ Energy @ 85 /. $76 11 65 ** Based on negative .045c/kWh from statement BG in Docket No. ER84-75. City of Vernon Billing Demands for Transportation for Cogeneration E:.:hi bi t C Sheet 1 of 3 Bi 11 ing Demand A D 1 Customer 1 .-:> customer ..., .... .... Customer ..,. .-' ..:" 4 Total '. '-' Ci t.y, of. Vernon Development of Fixed Costs for Transportation for Cogeneration Customers E;.:hi bi t C Sheet 2 of 3 AmoLlnt (OOO's) Vernon' 5 Fixed Costs 1 Contracted Services 2 I'H scell aneous ~ Operating Agreement 4 Depreciation 5 Return 6 In Lieu Payment 7 Total Costs $58~j 152 2~161 400 750 2, ~'::.OO $6~348 Vernon's System Demands 8 Total system Demand 9 Transportdtion for Cogeneration 10 Additional Firm 2~778 11 Adjusted System Demands (Temporary) 2~778 12 Unit Cost per kW $2.29 Sour-ce,,; Lines 1--5 Exhibit B~ Sheet 1. Line 6 : Payments to General Fund In-Lieu of Taxes and Franchise Payments L.i ne S} Exhibit C, Sheet 1 ""CJ c: c: .. o . c: 41 ..... ""CJ III :> ,..., 0:> 0- "'- III '" '" o -J -"'" .... .... -- III 0 o CL..... >- ""CJ .... c: .... ""CJ ... CI' -' c: '" .- :::J "CI .-' c: ~u.l w >-- cr- .... ... r: u.l ci :II: I :a ...., on c .. '..... ...... , I I I I , .... '41 ..... '''' :II: ""CJ C .. . 41 CO Cf< c: .- - .- "'" .s= :a . '" c . .. '''' '..... , , , I >- Cf< .... 41 c .... , . ..... '... '.... '41 , :II: , - ....... - , .... ..... '0 ...... I I , . , , , , '.... on I", AI; .._ cr I Ct .. , .... \ r: \ ... \ U , .... , ... '>- a.. '''' '.... U1 I. "" 1.- a I.... -' I a.. , \ , , , : ~ ~ , CU ..... ,U) -' .s= u ... .... E: .... .. ... >- 41 - :::J ""CJ 41 .s: U U) ... ... ... ... \ . \ . .- . . . , ,....,N.,...c:a,......U"J..O___N...o ~C""-4..QCD""""..o- CDCDO ~&f")&nOr-CO~ ..~o- ~~~~..... g:)CI:IN ..,. " In . . . , , :x: , , . 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("'.., <:> <:> <:> "'" <%: , , , , , , , I I , N- - co r- I I I I I t.n tn U'2 ,<< C%: to c=t r::::a -I 1:"'''' I'-"') ...r u"'l ...0 N N_ I I t t I t.n-'c:J:<%:U -J c::a 0... 0... .... r-COQ-oO::: ... -0 N CD " ,.... ,.... N ..... ... <:> <:> - ..... N - an -0 ,...., -0 ... a:> <:> o - N o It., It'> - ,...., <:> <0 - .... .... o ..... N - on ... .... ... :::J o U) Exhibit C Sheet 3 of 3 - . <-1 a.. -- :a U- C . :::J "0 <-1 ...... I co a.. -- :a ..... , .... a.. ...... :lit :x: c . :::J - Ct <-1 ... o .... u .... - ..... o .... U fit - ""CJ .. o - ""CJ .... o - ~ -:::> -0 ... "CO III .... :::J a.. . - ..... It") ..... 4IIt ". ... .... :::J 0.. . - ... ... ... City of Vernon Allocation of Cost of Service Vernon's Costs Under Edison's Step 1 Rates Deaand Schedules Total A B 1 2 3 4 5 b 7 8 9 10 TOU-Y $12,9b7,043$11,736,928 A-8 3,979,787 3,1102,246 A-7 8,655,444 7,834,348 65-2 6,501,284 6,015,734 65-1 656,340 607,321 D 8,504 7,869 PiH 99,242 91,830 PA-2 99,262 91,848 T[-1 34,005 31,466 Subtotal $33,OOO,910$30,~19,590 11 12 13 14 15 It; 17 18 19 2(; 21 ..." J.L Peak "id Peak Exhibit D Sheet 1 of 2 Energy Total ------- -------------------------------- Peak "id Peak Off Peak $23,103,031 4,209,267 9,355,105 5,610,990 453,605 5,871 164,610 80,980 23,502 $43,607,567 E F 6 H TOU-Y 1,083,936 1,407,506 548,554,744 95,921,845 158,664,314 293,968,585 A-8 332,677 431,985 97,414,276 17,034,138 28,176,166 52,203,973 A-7 723,522 939,504 216,517,296 37,860,831 62,625,597 116,030,868 65-2 555,5bQ 555,5b9 125,749,790 36,706,175 58,395,398 30,648,224 65-1 56,082 56,088 10,165,892 2,967,408 4,720,813 2,477,670 D ]"I' 127 131,718 38,448 61,167 32,103 .., PA-l 8,481 8,481 3,689,136 1,076,853 1,713,152 899,130 P{.j-2 8.482 8,482 1,814,866 529,757 842,783 442~326 Tt-l 2,906 2,906 526,703 153,744 244,589 128.370 Subtotal 2,7i2,38B 3,411,248 1,004,564,426 192,289,199 315,443,978 49b,831,249 142,078,110 41,472,385 65,977,902 34,627,823 lS-1 4,845 (1271 0 1,945,867 120) (81 ISO) lS-2 594 161 () 241.413 m (1) (6) Ol-I 0 11091 0 1,711.945 UBi (7) 144} c D $4,402,942 $7,255,713 $12,044,376 781,890 1,288,495 2,138,8B3 1,737,863 2,863,866 4,753,975 1,084,863 2,670,419 1,255,70B 136,208 215,883 101,514 1,765 2,797 1,315 49,429 78,342 36,839 24,317 38,540 18,123 7,057 11,185 5,260 $8,826,333 $14,425,241 $20,355,993 Total 2,777,826 2,772,146 3,411,24B 1,00B,463,051 192,289,159 315,443,962496,831,149 Soure es : line 10: fxhibit D, Sheet 2. line 11: ~/P D-2 $1,230,115 377,541 821,096 485,549 49,019 635 7,412 7,413 2,540 $2,981,320 Colulns C , E: Exhibit C, Sheet 3 (Note: line 12 is total A-B less TOU-V). Colutns D,F,G , H lines 12-13: Sale ratio as TOU-V . Coluens F,G ~ H lines 14-19 : . Ratio based on total systel less lines 11-13. llnes 20-22 , Colulns B l E: Exhibit [, Sheet 3 of 4 . lines 20-22 I [olUlns [,D,F,6 t H: Exhibit D, Sheet 2 of 2 . City of Vernon Exhibit D Classification of Revenue Requirelents Sheet 2 of 2 Purchases Frol Edison @ Step 1 Rates Alount --------- ----------- ---------- --------- ----------- ---------- Total Deland Energy Particulars Peak "id-Peak Peak "id-Peak Off-Peak -------------------- -------- -------- -------- -------- -------- -------- A B C D E F 6 1 Purchased Power 572,983 526,239 52,991 58,866 $1-4,441 520,456 2 Contracted Service 595 585 3 IIi sce 11 aneous 152 152 4 Operating Agreelent 2,161 2,IM 5 Depreci at i on 400 400 6 Return 750 750 7 Total Revenue Req 571,031 530,287 52,961 5S,S66 514,441 S20,456 8 lIiscellaneous Rev. 1$25) (5251 9 LS-l Re't'enues (S205) (S127) (520) (S8) (S501 10 L5-2 Revenues tIS) (6) (21 01 (61 11 OL-l Revenues 1118) 11091 USl (]) (44) 12 Total for Allocation 576. bOB 510,020 $2,981 $8,826 $14,425 $20,356 Sources : Line 1: Exhibit B, Sheet 3. Line~ 2-]: Exhibit B, Sheet I. Line B: NIP C-3. Lines 9-11: NIP C-4 Exhibit E Sheet 1 of 5 City of Vernon Special conditions to add to Schedule Nos. A-7 and GS-2 Recording Meters: A recording type meter shall be installed for all customers purchasing under this schedule and having peak requirements of 500 kW or more. Customers having recording type meters are not eligible to purchase under this schedule and must be transferred to Schedule No. TOU-V. Exhibit E Sheet 2 of 5 City of Vernon Special Conditions to add to all Rate Schedules In-Lieu Tax and Franchise Payment: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Exhibit E Sheet 3 of 5 City of Vernon Special Conditions to add to Schedule No. GS-l Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customers's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. Exhibit E Sheet 4 of 5 City of Vernon Special conditions to add to Rate Schedule No. GS-2 Billing Demand: Billing demand shall be the kilowatts of maximum demand but not less than Sa% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demands be less than 20 kW. Billing demand shall be determined to the nearest kW. Exhibit E Sheet 5 of 5 city of Vernon Special Conditions to Add to Schedule No. PA-2 8. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. 9. Contract Demand: A contract demand will be established by the Company, based on applicant'S demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. l2D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s} or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. l0. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. ~ Exhibit F Sheet 1 of 1 .. .. <::> <:> <::> ..... <::> .... <::> 0- 0- <::> ....... <::> ..0 ..c. on on <:> CD .. <:> <> "" IN <:> ..0 on ...- > .;. 0 ..0 <:> ...- "" ...... CD l/":I <::> <::> ClO ..... <> 0 .- It'i <> <> ...0 It'i ..; ...0 0: ...: ..0 ..; ...0 ~ ... ., ..... ... :z: - ..0 VI Go on AI - C ~ - .- .. LU IX ... c ..... ..... ..... ..... ..... ..... ..... .. <> <> <::> <> <> <> <::> . <:> <> <> <::> <> <> <::> .. <> Q <> <-2 '" AI <::> <::> <> <::> :::l .. Go Q.. => u... .1:1 . .4: IX I IX .... - .... .... .... .... .... I c:r :c ..... ..... ..... ..... ..... ..... ..... 1 x: <> <> 0 <:> 0 <:> <::> 1 <I: Q Q Q Q 1 <::> <::> 0:> 1 1 1 I I 1 I I~ .... - .... .... .... .... .... 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City of Vernon Revenues @ Existing Rates Revenues @ the Proposed Rates and the Resulting Increase E:.:hi bi t 8 Sheet 1 of 4 Revenues @ Schedule No. Existing Rates Revenues @ Proposed Rates Increase ------......-----.-- --------.------ -------------- A B c D 1 TDU-.V $34,598,316 $37,804,279 $3,205,963 2 A-7 16,080,720 18,568,233 2,487,513 3 Gc_r) 11,418,981 12,486,906 1,067,926 --' ..... 4 85-1 995,384 1,144,275 148,892 5 PA-1 293,922 272,013 <71,9(8) 6 PA--2 169,856 185,816 15,960 7 1C-1 38,870 42,754 3,884 8 D 5,571 5,699 128 9 LS-l 205 205 0 10 LS-2 15 15 0 11 OL--1 178 178 (I 12 Tota.l $63,602,017 $70,510,374 $6,908,357 Sources : Lines 1-6 Exhibit G, Sheet 2 Lines 7-8 W/P 6-2. Lines 9-11: Exhibit D, Sheet 2 12-1lay-83 Ci ty of Vernon Design of Rates To BeeDle Effective January 1983 Exhi bit 6 Sheet 2 of 4 tAl Existing Proposed Billing -------------------- -------------------- Un its Alount Rates A.aunt Rates --------- ---.---.--- --------- --------.- --------- IBI IC) lD) IE) IF) SCHElIULE A-7 1 Deland-1st 200 kN 1,656 $2,568,456 $1,551.00 $2,898,000 51,750.00 2 -Excess 385,159 2,986,522 7.754 3,370,140 8.75000 3 Energy 214,373,560 10,525,742 0.049 f 11,743,0(~ 0.05478 4 Total $16,080,720 $18,011,148 SCHEDULE 69-2 5 Deland-1st 20 kN 10,020 $1,513,020 $151.00 51,803,600 $180.00 6 -Excess 344,275 2,607,541 7.574 3,098,478 '1.00000 7 Energy 123,284,114 7,298,420 0.05'1 7,210,196 0.05848 8 Total $11,418,981 $12,112,274 SCHEDULE 65-1 9 Cusioler Charge 9,816 $48,098 $4.90 $58,896 $6.00 lQ Energy 9,774,896 947,285 0.097 1,051,049 0.10753 11 Tot al $995,384 $1,109,945 SCHEDULE PA-l 12 Horsepower Charge 18,953 $18,953 51. ()Q tl8,953 $1.00 13 Energy 3,652,610 274,968 0.075 244,899 0.06705 14 lotal $293,922 $263,853 SCHEDULE PA-2 15 Deland-1st 75 kN 48 $20,160 5420.00 $25,2(1(1 5525.00 16 -Excess 4,716 26,410 5.600 33,013 7.00000 17 Energy 1,779,280 123,286 0.Ob9 122,02'1 0.06858 18 lotal tlb9,856 $180,241 Sources : Coluln B: Fro. Exhibit C, Sheet 3. Coluln E: Exhibit D, Sheet 1. f Reflects a negative .69c/kNh FCA. tit Y of Vernon Design of Rates for Schedule TOU-V To Becole Effective January 8, 1984 Exhibi t 6 Sheet 3 of 4 tAl Exi sting Proposed Oi lling -------------------- -------------------- Units haunt Rates haunt Rates --------- --------- --------- --------- --------- ISI It) ID) IE) IF) Exi sting Fori 1 Deland-1st 10{lO iN 2 -Excess 3 Energy 4 Total 348 $2,495,856 735,936 5,278,133 548,554,144 26,824,327 $34,598,316 $7,172.00 7.1720 0.0489 I Proposed Fori 5 Custoler Charge 348 $191,400 $550.00 6 Deaand-Peak 1,083,936 $9,758,974 $9.00 7 -ftid Pl!a~ 1,407,506 2,054,959 1.46000 8 Energy-Peak 95,921,845 $4,805,684 $0.05010 9 -fti d Peak 158,664,314 7,447,703 0.04694 , 10 -Off Peak 293,968,585 12,411,354 0.04222 11 Tlltal haunt $36,610,074 Sources : lines 1-4 ColUln B: line 1 frot lonthly distribution report X 12; line 2 frat Exhibit D, Page 1 less 348,000. Coluln D: Existing Vernon tariff. lines 6-11 Coluln B: Exhibit D! Page 1. Coluln E: Exhibit D, Page 1. f Reflects a negati ve. 69c/ilfh FCA City of Vernon Development of Surcharge for Step 2 Rate Increase Demand Schedule Demands Amount -------- -------- -------- (A) (B) (C) 1 lOU-V 1~083~936 $895~651 2 A-8 332~677 274~889 A-7 7'")c <='":,., 597~843 - ......_., ..J..... 4 85-2 555,569 459~O64 5 65-1 56~088 46~345 6 D 727 600 7 LS-1 4~845 4~OO3 8 LS-2 594 490 '1 OL-1 0 (I 10 PA-.1 8,481 7,008 1 1 PA--2 8~482 7~OO9 12 TC.-1 2,906 2~401 1.::. Total 2,777,826 $2~295~305 Demand Surcharge TOU--V, A-8 14 A-7 and 6S-2 2~695,704 2,227~448 15 Net for Energy Surcharge $67~857 16 kWh for Remaining Sch. 19, 528, ~327 SOUI-ces : Column D . J.:.' . Exhibit C~ Sheet 3. E:.:hibit G Sheet 4 of 4 Peak Demand (D) $0.751 0.751 0.751 0.751 $0.82630 $0.00347 Energy * (F) $0.00025 0.00025 0.00025 0.00025 0.00372 0.00372 0.00372 0.00372 0.00372 0.00372 0.00372 0.00372 Column C~ Line 13: Difference Between Exhibit B~ Sheets 3 ~< 4. Column D .85468/1.1 Line 14~ Column B: Exhibit C, Sheet ~. Line 16 : Exhibit C~ Sheet 3. * Includes .025 c/kWh for energy component of Step 2 increase. City of Vernon Base Rate for Energy Cost Adjustment A 1 Cost of Energy Purchase ..:;. Vernon Sales ~ Base Cost of Energy 4 Existing Base Cost 5 Increase in Base Cost Sources : Line 1: Exhibit B, Sheet 3. Line 2 Exhibit C~ Sheet 3. E>: h i bit H Sheet 1 of 4 B $43,764,000 1,003,155,021 $0.04363 $0.05185 ($0.00822) Exhibit H Sheet 2 of 4 City of Vernon Procedures for Calculating the Energy Clause Adjustment Billing Factor The rate schedules contained herein are to contain, in addition to the base rates included in the current tariff, an Energy Clause Adjustment Billing Factor (ECABF) to reflect changes in the cost of fuel and purchased energy. The ECABF is to be calculated pursuant to the following equation: ECABF = EC + C e - B Se Where, ECABF = Energy Cost Adjustment Billing Factor per Kilowatt Hour Sold EC e = Estimated Fuel and Energy Costs for the Current Period C = Correction for Previous period's Over or Under-recovery* Se = Estimated Kilowatt hours to be sold in Curent Period B = Energy Cost per Kilowatt Hour included in Base Rates = 4.363 centslkWh * If the previous period average costs were less than 4.363 cents IkWh, C is negative. If such average costs were greater than 4.363 cents/kWh, C i~ positive. Exhibit H Sheet 3 of 4 Energy Clause Adjustment Billing Factor (Continued) ECA Computation Sheet Schedule V-1 is attached to provide the computation sheet for all periods once implementation is completed. Estimated Energy Costs (ECel Items 1 through 3 represent the estimated energy costs which are to be used iin computing the period's ECA. This is an estimate of the costs the City expects to incur for the three month period to which this ECA will apply. It is comprised only of commodity or energy costs in keeping with standards only of commodity or energy costs in keeping with standards established by the Federal Energy Regulatory Commission and various state regulatory bodies. To calculate items l(a) and l(b). the City must obtain estimates from Edison of the kilowatt hours expected to be sold to the City of Vernon during the period the ECA will be in effect. Edison must also provide an estimate of the ECA that they will be charging the City during that period. Line 2 would be comprised of estimated fuel costs required to operate the City's generating units. This charge would be designated on the billing for operating expenses as being charged to FERC account 547. Fuel. At the outset there will probably be no cost associated with this line item. However it will become a factor when the units become operational once again. Line 3 represents an estimate of the cost of interruptible energy to be purchased during the period the ECA will be in effect. Correction Factor Lines ~ through 7 of the computation sheet are used to calcualte the amount needed to correct for over- or under- recovery of energy costs in previous periods. Line 4 represents a true-up of the previouS period'S estimate of energy costs on Lines 1 and 2. These amounts can be taken from the billings of Edison both for purchased power and for fuel used by the Vernon generating units for the appropriate periods being corrected. Because there is a delay in the availability of expense and revenue data for individual months. the period for which a correction factor is calculated will lag behind by one month. City of Vernon Energy Cost Adjustment Computation.Sheet For Three Months Ending Estimated Energy Costs 1. purchased power from SCE (a) Energy Charge (b) Energy Cost Adjustment 2. Generation Fuel Costs (Account 547) 3. Costs of Interruptible Purchases 4. Total Energy Costs (1+2+3) Correction Factor 5. Actual Energy Expenses for Previous Period $ 6. Unrecovered Energy Expenses from Previous Periods $ 7. Less: Billed Base Rate and ECA Revenues from Previous Period $ 8. Unrecovered (Over-recovered) Energy Expenses (4+5-6) 9. Total Costs to be Recovered (3+7) Calculation of Factor 10. Estimated Kwhr Sales 11. Total Energy Cost per Kwhr (8~9) 12. Less: Amount in Base Rates 13. Energy Cost Adjustment Factor (10-11) Exhibit H Sheet 4 of 4 , 19 $ $ $ $ $ $ $ $~4363 $ t CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS-l GENERAL SERVICE APPLICABILITY Applicable to single- and three-phase general service including lighting and power. This schedule is not applicable when, in the opinion of the Company, the customer's load and use characteristics indicate that the maximum demand may exceed 20 kW. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Per Month Customer Charge..............................$ 6.00 Energy Charge (to be added to Customer Charge): All kWh, per kWh........................... le.753t Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS l. Voltage: Service will be supplied at one standard voltage. 2. X-Ray Installations: Where the Company installs the standard transformer capacity requested by a customer to serve separately an X-ray installation, the customer charge will be increased by $1.00 per kVA of transformer capacity requested. 3. Temporary Discontinuance of Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No.---- Resolution No. Effective Effective Effective Effective 4. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 5. In-Lieu of Tax and Franchise Payments: the total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. 6. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformater capaciaty shall be billed at $l.e0 per KVA per month. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS-2 19 GENERAL SERVICE APPLICABILITY Applicable to single and three-phase general service including lighting and power. Ie TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Demand Cha rge: Per Month First 20 kW or less of billing demand.... $180.00 All excess kW of billing demand, per kW.. $ 5.848 Energy charge (to be added to Demand Charge): 6.027j!! Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: Billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demand be less than 20 kW. Billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any IS-minute metered interval in the month, but shall not be less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. 4. X-Ray Installations: Where the Company installs the standard transformer capacity requested by a customer to serve separately an X-Ray installation, the minimum charge will be increased by $1.00 per kVA of transformer capacity requested. Authorized by City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 5. Temporary Discontinuance Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. 6. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 7. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. 8. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. 120. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 9. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. Authorized By City of Vernon: Ordinance No. Ordinance No. Resolutio1'"\ No. Resolution No. Effective Effective Effective Effective l0. In-Lieu Tax and Franchise Payment: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized By City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. A-7 GENERAL SERVICE APPLICABILITY Applicable to single and three-phase general service including lighting and power. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Demand Charge: Per Month First 200 kW or less of billing demand.... $1,750.00 All excess kW of billing demand, per kW........$ 8.750 Energy Charge (to be added to Demand Charge):.... 5.478t Minimum Charge: The monthly minimum charge shall be the monthly Demand Cha rge . J': ~. SPECIAL CONDITIONS l. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demand be less than 200 kW. Billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any 15 minute metered interval in the month, but shall not be less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where the demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. Authorized by City of Vernon: Ordinance No. Ordinance No. Resol ut ion No. Resolutiol) No. Effective Effective Effective Effective - 1 - 4. Voltage Discount: The charges before adjustments will be reduced by 3% for service delivered and metered at voltages of from 2 kV to 10 kV; and by 5% for service delivered and metered at voltages over SO kV; except that when only one transformation .from a transmission voltage level is involved, a customer normally entitled to a 3% discount will be entitl~d to a 4% discount. 5. Power Factor Adjustment: The charges will be adjusted each month for powe~ factor as follows: The charges wil!l be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 20 cents per kilovar of reactive demand. However, in no case shall the kilovars u~ed for the adjustment be less than one-fifth the number of kilowatts. The kilovars of reactive demand shall be calculated by multiplying th~ kilowatts of measured maximum demand by the ratio of the ktlovar-hours to the kilowatt hours. Demands in kilowatts a~d kilovars shall be determined to the nearest unit. 'Aa rachet device will be installed on the kilovar-hour m~ter to prevent its reverse operation on leading power ~actors. 6. Temporary Discontinuance of Service: Where the use of energy is seasonable or intermittent, no adjustment will be made for a temporary discontinuance of service. Any customer prior 'to resuming service within twelve months after such service was discontinued will be required to pay all charges Wh1Ch would have been billed if service had not been discontinqed. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resol utiQn No. Effective Effective Effective Effective - 2 - 7. Adjustment for Off-Peak Demand: Upon application by the customer in any month where the maxium demand exceeds 500kW, and kilowatts of maxim,um demand in excess of the on peak demand will not be considered in establishing the billing demand for computing the energy charge, but will be considered in establishing the billing demand for computing the demand charge, by adding one half of the amount that the maximyum demand exceeds the on peak demand, to the on peak demand. The on peak demand will be the maximum demand occurring between the hours of 6:30 A.M. and 10:30 P.M., Pacific Standard Time, of any day except Sundays and the following holidays: New Years Day, Washington's Birthday, Memorial Day. Independence Day, Labor Day, Thanksgiving Day and Christmas. 8. Contracts: An initial three year contract may be required where applicant requires new or added serving capacity exceeding 2,000 KVA. 9. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therin will be applied to kWh billed under this Schedule. 10. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. . ll. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. 120. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. Authorized by the City of Vernon: Ordinance No. Effective Ordinance No. Effective Resolution No:--- Effective Resolution No. Effective - 3 - 12. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. 13. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No.- Resolution No. Effective Effective Effective Effective - 4 - CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. TOU-V GENERAL SERVICE-LARGE APPLICABILITY Applicable to general service, including lighting and power. This schedule is applicable for all customers of record on April 3, 1980 and thereafter to all customers for whom magnetic tape recording meters have been installed. Any customer whose monthly maximum demand has fallen below 500 KW for 12 consecutive months may elect to take service on any other applicable schedule. TERRITORY Within the city limits of the City of Vernon. Customer Charge:........... Per Meter Per Month $550.00 RATES Demand Charge(to be added to Customer Charge): All kW of on peak billing demand, per kW Plus all kW of mid peak billing demand, per Plus all off peak billing demand, per kWh $9.00 kW $1.46 no charge (Subject to Minimum Demand Charge. See Special Condition No.6) Energy Charge (to be added to All on peak kWh, per kWh Plus all mid peak kWh, per Plus all off peak kWh, per Demand Cha rg e) kWh kWh . . . . . 5.010$t 4.694t 4.222t . . . . . . . . . . . . . . Time Periods: Time Periods are defined as follows: On peak: 1:00 p.m. to 7:00 p.m. summer weekdays except holidays 5:00 p.m. to 10:00 p.m. winter weekdays except holidays Mid Peak: 9:00 a.m. to l:00 p.m. and 7:00 p.m. to 11:"0 p.m. summer weekdays except holidays 8:00 a.m. to 5:00 p.m. winter weekdays except holidays Off Peak: all other hours Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 1 - Holidays are: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day and Christmas. When any holiday listed above falls on Sunday, the following Monday will be recognized as an off peak period. No change in off peak will be made for holidays falling on Saturday. The summer season time periods shall commence at 12:0l a.m. May 1 and continue through October 31 of each year and the winter season time periods shall commence at 12:01 a.m. November 1 and continue through April 30 of the following year. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding 11 months, however, in no case shall the on peak billing demand be less than lOOO KW. Billing demand shall be determined to the nearest KW. 3. Maximum Demand: The maximum demand in any month shall be measured maximum average kilowatt input indicated or recorded by instruments to be supplied by the Company, during any l5-minute metered interval in the month, but not less than the diversified resistance welder load ~omputed in accordance with the section designated Welder Service in Rule No.2. Where the monthly demand exceeds 5000 KW per month, the maximum demand shall be based on a 30-minute interval. Where the demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. 4. Voltage Discount: The demand charges before adjustment will be reduced by 3% for service delivered and metered at voltages of from 2kV to l0kV; by 4% for service delivered and metered at voltages of from llkV to 50kV; and by 5% for service delivered and metered at voltages over 50kV; except that when only one transformation from a transmission voltage level is involved, a customer normally entitled to a 3% discount will be entitled to a 4% discount. 5. Power Factor Adjustment: The charges will be adjusted each month for the power factor as follows: The charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 20 cents per kilovar of reactive demand. However, in no case shall the kilovars used for the adjustment be less than one fifth of the number of kilowatts. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 2 - The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatt hours. Demands in kilowatts and kilovars to the kilowatt hours. Demand in kilowatts and kilovars shall be determined to the nearest unit. A ratchet device will be installed on the ki1ovar-hour meter to prevent its reverse operation on leading power factors. 6. Temporary Discontinuance of Service: Where the use of energy is seasonal or intermittent, no adjustment will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if the service had not been discontinued. 7. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. 8. Contracts: An additional initial three year facilities contract may be required where applicant requires new or added serving capacity exceeding 2,0~0kVA. 9. Customer's Right to Terminate: In the event the net bill for electric service to the customer is increased during the term of the requirements contract, provided for herein, as a result of changes in this schedule, the customer shall have the right to terminate the requirements contract on not less than 30 months notice to the utility. Such notice shall be given within 180 days after the effective date of such change. 10. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 11. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective ---= 3 - l2. Contract Demand: A contract demand will be established by the Company, based upon applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 13. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a) The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b) A facilities charge of $1.09 per kilowatt of contract demand. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective ---= 4 - 3. Overloaded Motors: Whenever, upon test, any motor under normal operating conditions is found to be delivering more than lIS percent of its capacity as indicated by its nameplate rating, the Company may disregard the nameplate rating and base its charges upon the output as calculated from test. Any motor which is billed on a basis in excess of its nameplate rating in accordance with this special condition shall be tested at intervals to be determined by the Company or upon notification by the customer of a permanent change in operating conditions. 4. Temporary Reduction of Connected Load: Where the use of energy is seasonable or intermittent, no adjustment will be made for any temporary reduction of connected load. Any customer resuming service on such connected load within 12 months after it was disconnected, will be required to pay all charges which would have been billed if the temporary reduction of connected load had not been made. 5. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 6. In-Lieu Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by The City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 2 - - CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. D DOMESTIC SERVICE APPLICABILITY Applicable to domestic service including lighting, heating, cooking and power or combination thereof in a single-family accommodation; also to domestic farm service when supplied through the farm operator's domestic meter. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Per Month Domestic Service Customer Charge............................$ $1. 50 Energy Charge (to be added to Customer Charge): ........................... ... . . . . . . 4.5QJt Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS 1. Seasonal Service: For summer cottage customers and others who normally require service for only part of the year, the schedule is applicable only on annual contract. 2. Energy Cost Adjustment: The rates above include the ad- justment as provided for in Part G of the Preliminary Statement. 3. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution no. Effective Effective Effective Effective CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. PA-l POWER-AGRICULTURAL AND PUMPING CONNECTED LOAD BASIS , APPLICABILITY Applicable to power service for general agricultural purposes or for general water or sewerage pumping. y TERRITORY Within the city limits of the City of Vernon. :h Horsepower of Connected Load Per Meter 2 and over Monthly Service Charge Per Meter RATES Per hE $1. 00 Energy (Charge to be added to Service Charge) Rate Per kWh ................... 6.705t Minimum Charge: The annual minimum charge shall be the annual Service Charge. SPECIAL CONDITIONS l. Voltage: Service will be supplied at one standard power vol tage. Ie 2. Connected Load: Connected load is the sum of the rated capacities of all of the customer's equipment that it is P?ssible to connect to the Company's lines at the same tlme, determined to the nearest 1/10 hp.. Ip no case will charges be based on ess than 2 hp for slng e-phase service or no less than 3 hp for three-phase service. The rated capacity of the customer's equipment will be the rated horsepower output of standard rated motors, the rated horsepower of welders determined in accordance with the section designated Welder Service in Rule No.2, and the rated kilovolt-ampere input capacity of other equipment, with each kilovolt-ampere of input considered equal to one horsepower. Normally such ratings will be based on the manufacturer's rating as shown on the nameplate or elsewhere but may, at the option of the Company, be based on tests or other reliable information. Authorized by City of Vernon: Ordinance No. Ordinance No. ---- Resolution No. Resolution No. Effective Effective Effective Effective - 1 - CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. PA-2 POWER-AGRICULTURAL AND PUMPING DEMAND BASIS APPLICABILITY Applicable to power service for general agricultural purposes or for general water or sewerage pumping. TERRITORY Within the city limits of the City of Vernon. RATES Demand Charge: First 75 KW or less of billing demand..... All excess KW of billing demand, per KW... Per Meter Per Month $ 525.00 $ 7.00 Energy Charges {to be added to Demand Charge): 6.S58t Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. SPECIAL CONDITIONS l. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demand be less than 75 KW. Billing demand shall be determined to the nearest 1/10 KW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any l5-minute metered interval in the month, but not less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective -1- 4. Power Factor Adjustment: When the billing demand has exceeded 200 KW for three consecutive months, a kilovar-hour meter will be installed as soon as practical, and, therefore, until the billing demand has been less than 150 KW for twelve consecutive months, the charges will be adjusted each month for power factor, as follows: The Charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 20 cents per kilovar of reactive demand. However, in no case shall the number of kilovars used for the adjustment be less than one-fifth the number of kilowatts. The Kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatthours. Demands in kilowatts and kilovars shall be determined to the nearest one-tenth (0.1) unit. A ratchet device will be installed on the kilovar-hour meter to prevent its reverse operation on leading power factors. 5. Tempora~y Discontinuance of Service: Where the use of energy IS seasonable or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer resuming service within twelve months after such service was discontinues will be required to pay all charges which would have been billed if service had not been discontinued. 6. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 7. In-Lieu Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. 8. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No.---- Resolution No. Effective Effective Effective Effective -2- 9. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. l0. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $l.00 per kilowatt of contract demand. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective -3- CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. S STANDBY APPLICABILITY Applicable to standby or breakdown service where the entire electrical requirements on the customer's premises are not regularly supplied by the utility. TERRITORY Within the city limits of the City of Vernon. RATES Standby Charge: First 20 kW of contract demand, per kW... All excess kW of demand, per kW.......... Per Meter Per Month $ 4.5~ $ 2.30 The standby charge shall not be less than $20.00 per month. Regular Schedule Charges (to be added to Standby Charge) : All energy charges of the applicable regular service schedule designated in the service contract plus a charge of $14.64 per kW of on-peak demand in any month. Minimum Charge: The monthly minimum charge shall be the standby charge plus the regular schedule minimum charge. SPECIAL CONDITIONS l. Contract Demand: In case the customer desires the utility to stand ready to supply the entire connected load of the customer's plant, or an issolated part thereof, then such maximum load will be estimated by the utility, based on tests and other information available. In case the customer desires the utility to stand ready to supply a number of kilowatts less than the maximum demand of the entire cus~omer's plant, or an isolated part thereof, then the customer and the utility shall agree upon the number of kilowatts the utility will stand ready to supply; and the customer shall, at his own expense, furnish and install a suitable circuit breaker enclosed in a steel box equipped with a lock, all to be approved by and under the sole Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Re sol ut ion No. Effective Effective Effective Effective - 1 - SPECIAL CONDITIONS 1. (continued) control of the utility, and adjustment and operation of said circuit breaker to be in no way interfered with by the customer. This circuit breaker shall be set to break the connection with the utility's service when the customer's maximum demand exceeds the number of kilowatts which the re utility stands ready to supply, in which case the utility t will renew the connections upon due notice. 2. Contract: This schedule will apply only where the customer will sign a service contract for at least one year. 3. Parallel Operation: This schedule is not applicable for parallel operation of the customer's plant with the service of the utility. .h. 4. Maximum Load: The utility reserves the right to establish the maximum load served under this schedule. 5. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective :y 1 ~n of 3 I - 2 - CITY OF VERNON LIGHT & POWER DEPARTMENT Schedule No. TC-l TRAFFIC CONTROL SERVICE APPLICABILITY Applicable to single-phase service for traffic directional signs or traffic signal systems located on streets, highways and other public thoroughfares and to railway crossing and track signals. TERRITORY Within the City limits of the City of Vernon. RATES PER METER PER MONTH Customer Charge: $4.750 Energy Charge (to be added to Customer Charge): All kWh, per kWh 8.254t Minimum Charge: The monthly minimum charge shall be the monthly Customer charge. SPECIAL CONDITIONS l. Voltage: Service will be supplied at one standard voltage not in excess of 240 volts or, at the option of the Company, at 240/480 volts, three wire, single phase. 2. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this scnedule. 3. In-Lieu Tax and Franchise Payment: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No.---- Resolution No. Effective Effective Effective Effective STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS-l GENERAL SERVICE APPLICABILITY Applicable to single and three-phase general service including lighting and power. This schedule is not applicable when, in the opinion of the Company, the customer's load and use characteristics indicate that the maximum demand may exceed 20 kW. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Per Month Customer Charge..............................S 6.90 Energy Charge (to be added to Customer Charge): All kWh, per kWh........................... 11.l25t Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. X-Ray Installations: Where the Company installs the standard transformer capacity requested by a customer to serve separately an X-ray installation, the customer charge will be increased by Sl.OO per kVA of transformer capacity requested. 3. Temporary Discontinuance of Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. Authorized by the City of Vernon: Ordinance No. Ord inance No. Resolution No. Resolution No. Effective Effective Effective Effective - 1 - 4. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 5. In-Lieu of Tax and Franchise Payments: the total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. 6. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the custome,'s load or requested by the customer. Excess transformater capaciaty shall be billed at $l.00 per KVA per month. Authorized by the City of Vernon: Ord inance No. Ordinance No. Resolution No.---- Resolution No. Effective Effective Effective Effective - 2 - STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS-2 GENERAL SERVICE APPLICABILITY Applicable to single and three-phase general service including lighting and power. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Demand Charge: Per Month First 20 kW or less of billing demand.... $180.00 All excess kW of billing demand, per kW.. $ 9.75 Energy charge (to be added to Demand Charge): 5.873t Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: Billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demand be less than 20 kW. Billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any l5-minute metered interval in the month, but shall not be less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. 4. X-Ray Installations: Where the Company installs the standard transformer capacity requested by a customer to serve separately an X-Ray installation, the minimum charge will be increased by $1.00 per kVA of transformer capacity requested. Authorized by City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 1 - 5. Temporary Discontinuance Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. 6. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 7. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $l.0~ per kVA per month. 8. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 9. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the great.er of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. Author\zed By City of Vernon: Ordinance No. Ordinance No. Resol ut ion No. Resolution No. Effective Effective Effective Effective - 2 - 10. In-Lieu Tax and Franchise Payment: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized By City of Vernon: Ordinance No. Ordinance No. Resolution No. Resol ution No. Effective Effective Effective Effective - 3 - STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. A-7 GENERAL SERVICE APPLICABILITY Applicable to single and three-phase general service including lighting and power. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Demand Charge: Per Month First 200 kW or less of billing demand.... $1,750.00 All excess kW of billing demand, per kW........$ 9.501 Energy Charge (to be added to Demand Charge) :.... 5.503t Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demand be less than 200 kW. Billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any 15 minute metered interval in the month, but shall not be less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where the demand is intermittent or subject to violent fluctuations, as-minute interval may be used. Authorized by City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution, No. Effective Effective Effective Effective - 1 - 4. Voltage Discount: The charges before adjustments will be reduced by 3% for service delivered and metered at voltages of from 2 kV to 10 kV; and by 5% for service delivered and metered at voltages over 50 kVi except that when only one transformation from a transmission voltage level is involved, a customer normally entitled to a 3% discount will be entitled to a 4% discount. 5. Power Factor Adjustment: The charges will be adjusted each month for power factor as follows: The charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 20 cents per kilovar of reactive demand. However, in no case shall the kilovars used for the adjustment be less than one-fifth the number of kilowatts. The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatt hours. Demands in kilowatts and kilovars shall be determined to the nearest unit. Aa rachet device will be installed on the kilovar-hour meter to prevent its reverse operation on leading power factors. 6. Temporary Discontinuance of Service: Where the use of energy is seasonable or intermittent, no adjustment will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 2 - 7. Adjustment for Off-Peak Demand: Upon application by the customer in any month where the maxium demand exceeds 500kW, and kilowatts of maxim,um demand in excess of the on peak demand will not be considered in establishing the billing demand for computing the energy charge, but will be considered in establishing the billing demand for computing the demand charge, by adding one half of the amount that the maximyum demand exceeds the on peak demand, to the on peak demand. The on peak demand will be the maximum demand occurring between the hours of 6:30 A.M. and l~:30 P.M., Pacific Standard Time, of any day except Sundays and the following holidays: New Years Day, Washington's Birthday, Memorial Day. Independence Day, Labor Day, Thanksgiving Day and Christmas. 8. Contracts: An initial three year contract may be required where applicant requires new or added serving capacity exceeding 2,000 KVA. 9. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therin will be applied to kWh billed under this Schedule. l0. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. 11. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No.12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. Authorized by the City of Vernon: Ordinance No. Effective Ordinance No. Effective Resolution No:--- Effective Resolutiort No. Effective - 3 - 12. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $l.00 per kilowatt of contract demand. 13. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resol ution No. Effective Effective Effective Effective - 4 - STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. TOU-V GENERAL SERVICE-LARGE APPLICABILITY Applicable to general service, including lighting and power. This schedule is applicable for all customers of record on April 3, 1980 and thereafter to all customers for whom magnetic tape recording meters have been ~nstalled. Any customer whose monthly maximum demand has fallen below 500 KW for 12 consecutive months may elect to take service on any other applicable schedule. TERRITORY Within the city limits of the City of Vernon. Customer Charge:........... Per Meter Per Month $550.00 RATES Demand Charge(to be added to Customer Charge): All kW of on peak billing demand, per kW Plus all kW of mid peak billing demand, per Plus all off peak billing demand, per kWh $9.751 kW $1.46 no charge (Subject to Minimum Demand Charge. See Special Condition No.6) Energy Charge (to be added to All on peak kWh, per kWh Plus all mid peak kWh, per Plus all off peak kWh, per Demand Charge) kWh kWh . . . . . . . 5.035~ 4.119t 4.247t . . . . . . . . . . Time periods: Time Periods are defined as follows: On peak: l:00 p.m. to 1:00 p.m. summer weekdays except holidays 5:00 p.m. to l0:00 p.m. winter weekdays except holidays Mid Peak: 9:00 a.m. to 1:00 p.m. and 7:00 p.m. to 11:00 p.m. summer weekdays except holidays 8:00 a.m. to 5:00 p.m. winter weekdays except holidays Off Peak: all other hours Holidays are: New Year's Day, WaShington's Birthday, Authorized by the City of Vernon: Ordinance No. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day and Christmas. When any holiday listed above falls on Sunday, the following Monday will be recognized as an off peak period. No change in off peak will be made for holidays falling on Saturday. The summer season time periods shall commence at 12:01 a.m. May 1 and continue through October 31 of each year and the winter season time periods shall commence at l2:01 a.m. November 1 and continue through April 30 of the following year. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding 11 months, however, in no case shall the on peak billing demand be less than lOOO KW. Billing demand shall be determined to the nearest KW. 3. Maximum Demand: The maximum demand in any month shall be measured maximum average kilowatt input indicated or recorded by instruments to be supplied by the Company, during any l5-minute metered interval in the month, but not less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where the monthly demand exceeds 5000 KW per month, the maximum demand shall be based on a 30-minute interval. Where the demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. 4. Voltage Discount: The demand charges before adjustment will be reduced by 3% for service delivered and metered at voltages of from 2kV to l0kV; by 4% for service delivered and metered at voltages of from llkV to 50kV; and by 5% for service delivered and metered at voltages over 50kV; except that when only one transformation from a transmission voltage level is involved, a customer normally entitled to a 3% discount will be entitled to a 4% discount. 5. Power Factor Adjustment: The charges will be adjusted each month for the power factor as follows: The charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 20 cents per kilovar of reactive demand. However, in no case shall the kilovars used for the adjustment be less than one fifth of the number of kilowatts. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatt hours. Demands in kilowatts and kilovars to the 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 reverse operation on leading power factors. 6. Temporary Discontinuance of Service: Where the use of energy is seasonal or intermittent, no adjustment will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if the service had not been discontinued. 7. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. 8. Contracts: An additional initial three year facilities contract may be required where applicant requires new or added serving capacity exceeding 2,00ekVA. l ~. 9. Customer's Right to Terminate: In the event the net bill for electric service to the customer is increased during the term of the requirements contract, provided for herein, as a result of changes in this schedule, the customer shall have the right to terminate the requirements contract on not less than 30 months notice to the utility. Such notice shall be given within 18e days after the effective date of such change. 10. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. ll. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.0e per kVA per month. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective l2. Contract Demand: A contract demand will be established by the Company, based upon applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 13. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a) The charge as computed by multiplying the billing demand by the demand charge per kilowatt: or b) A facilities charge of $1.00 per kilowatt of contract demand. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. LS-l LIGHTING-STREET AND HIGHWAY UTILIITY-OWNED SYSTEM Appl icabil i ty Applicable to street and highway lighting service supplied from overhead lines where the Company owns and maintains the street lighting equipment. Terri tory Within the City limits Rates Energy Curtailment Service Midnight or Equivalent Service Per Lamp Per Month Facilities Charge Per Lamp Per Month All Night Service Per Lamp Lamp Size-Lumens Per Month Mercury Vapo r Lamps 3,500 Lumens 8.04 6.80 $5.l0 7,000 Lumens 10.44 7.89 5.10 11,000 Lumens l3.76 9.90 5.75 20,000 Lumens 19.86 13.11 6.05 35,000 Lumens 30.90 18.65 6.40 55,000 Lumens 44.65 25.28 6.45 High Pressure Sod i um Vapor Lamps 5,800 Lumens 7.78 6.96 5.35 9,500 Lumens 9.01 7.61 5.50 l6,00eJ Lumens 11. 26 8.98 6.00 22,000 Lumens 13.19 l0.09 6.40 25,500 Lumens l4.42 10.78 6.40 47,000 Lumens 20.40 13.92 6.70 STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. LS-2 LIGHTING-STREET AND HIGHWAY CUSTOMER-OWNED INSTALLATION APPLICABILITY Applicable to service for the lighting of streets, highways, other public thoroughfares, and publicly-owned and publicly- operated automobile parking lots which are open to the general public, where the customer owns the street lighting equipment. TERRITORY Within the city limits of the City of Vernon. Per Month All Niiht Service Midnight Service Multip e Series Multiple Series RATE A-UNMETERED SERVICE: For each kW of lamp load, per kW.. $26.l9 $34.06 $l5.23 RATE B-UNMETERED SERVICE: Per Meter Meter Charge: Per Month Multiple Service.............................$ 4.50 Series Service............................... 12.1210 Energy Charge (to be added to Meter Charge): All kWh, pe r kWh............................. 7.377t RATE C-UNMETERED SERVICE-OPTIONAL: In addition to the Rate A and Rate B charges $18.5l Per Lamp Per Month Lamp Rating Lumens 1,0121121 2,500 4,121121121 6,00121 10,00121 3,50121 7,1210121 ll,000 20,01210 35,1211210 5 5, 121 0 0 5,81210 9,5121121 Lamp Type Incandescent Extended Incandescent Extended Incandescent Extended Incandescent Extended Incandescent Extended Service......$ Service...... Service...... Service...... Service...... Mercury Vapor...................... Mercury Vapor...................... Mercury Vapor...................... Mercury Vapor...................... Mercury Vapor...................... Mercury Vapor...................... High Pressure Sodium Vapor......... High Pressure Sodium Vapor......... 121.33 0.38 0.40 121.42 0.45 121.36 121.33 0.40 121.36 0.54 121.49 121.8121 121.80 16,000 High Pressure Sodium Vapor......... 0.78 22,000 High Pressure Sodium Vapor......... 0.79 25,500 High Pressure Sodium Vapor......... 0.79 47,000 High Pressure Sodium Vapor......... 0.81 STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. OL-l OUTDOOR AREA LIGHTING SERVICE APPLICABILITY Applicable to outdoor area lighting service, other than street and highway lighting service, supplied from overhead lines where the Company owns and maintains the area lighting equipment. TERRITORY Within the City limits of the City of Vernon. RATES LUMINAIRE CHARGE: ENERGY CURTAILMENT SERVICE MIDNIGHT OR EQUIVALENT FACILITIES ALL NIGHT SERVICE SERVICE CHARGE PER LAMP PER MONTH PER LAMP PER MONTH PER LAMP PER MONTH LAMP SIZE-LUMENS * MERCURY VAPOR LAMPS 7,000 Lumens. . . . . 20,000 Lumens. . . . . . . $l0.49 . . $21.08 $ 8.07 $14.17 $5.1S $6.10 HIGH PRESSURE SODIUM VAPOR LAMPS 5,800 Lumens. 9,500 Lumens. 22,000 Lumens. . . . $ 7.83 $ 9.06 $13.24 $ 7.06 $ 7.72 $10.31 $5.40 $5.55 $6.40 . . . . . . . . . . . . POLE CHARGE (to be added to Luminaire Charge): PER POLE PER MONTH For each additional new wood pole installed. . . . . $ 2.59 *Closed to new installations as of February l, 1980. SPECIAL CONDITIONS 1. Area all night lighting service waill be furnished from dusk to dawn, approximately 4,140 hours per year, by Company- owned luminaries supplied from the Company'sexisting 120/240 volt overhead circuits and mounted on exis'ting Company-owned wood poles as standard equipment. 2. Where the customer requests the installation of other than STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. D DOMESTIC SERVICE APPLICABILITY Applicable to domestic service including lighting, heating, cooking and power or combination thereof in a single-family accommodation; also to domestic farm service when supplied through the farm operator's domestic meter. TERRITORY Within the city limits of the City of Vernon. Per Meter Per Month Domestic Service RATES Customer Charge.......................... $l.50 Energy Charge (to be added to Customer Charge): .................................. 4.50t Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS l. Seasonal Service: For summer cottage customers and others who normally require service for only part of the year, the schedule is applicable only on annual contract. 2. Energy Cost Adjustment: The rates above include the ad- justment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 3. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. ---- Resolution No.---- Resolution' no. Effective Effective Effective Effective STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. PA-l POWER-AGRICULTURAL AND PUMPING CONNECTED LOAD BASIS APPLICABILITY Applicable to power service for general agricultural purposes or for general water or sewerage pumping. TERRITORY Within the city limits of the City of Vernon. Horsepower of Connected Load Per Meter 2 and over Monthly Service Charge Per Meter RATES Per hp $1. 00 Energy (Charge to be added to Service Charge) Rate Per kWh ................... 7.077t ~:, ;~- Minimum Charge: The annual minimum charge shall be the annual Service Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard power voltage. 2. Connected Load: Connected load is the sum of the rated capacities of all of the customer's equipment that it is possible to connect to the Company's lines at the same time, determined to the nearest 1/10 hp. In no case will charges be based on less than 2 hp for single-phase service or no less than 3 hp for three-phase service. The rated capacity of the customer's equipment will be the rated horsepower output of standard rated motors, the rated horsepower of welders determined in accordance with the section designated Welder Service in Rule No.2, and the rated kilovolt-ampere input capacity of other equipment, with each kilovolt-ampere of input considered equal to one horsepower. Normally such ratings will be based on the manufacturer's rating as shown on the nameplate or elsewhere but may, at the option of the Company, be based on tests or other reliable information. Authorized by City of Vernon: Ordinance No. Ordinance ,No. Effective Effective - 1 - . 3. Overloaded Motors: Whenever, upon test, any motor under normal operating conditions is found to be delivering more than 115 percent of its capacity as indicated by its nameplate rating, the Company may disregard the nameplate rating and base its charges upon the output as calculated from test. Any motor which is billed on a basis in excess of its nameplate rating in accordance with this special condition shall be tested at intervals to be determined by the Company or upon notification by the customer of a permanent change in operating conditions. 4. Temporary Reduction of Connected Load: Where the use of energy is seasonable or intermittent, no adjustment will be made for any temporary reduction of connected load. Any customer resuming service on such connected load within 12 months aEter it was disconnected, will be required to pay all charges which would have been billed if the temporary reduction of connected load had not been made. 5. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 6. In-Lieu Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by The City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 3 - STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. PA-2 POWER-AGRICULTURAL AND PUMPING DEMAND BASIS APPLICABILITY Applicable to power service for general agricultural purposes or for general water or sewerage pumping. TERRITORY Within the city limits of the City of Vernon. RATES Demand Charge: First 75 KW or less of billing demand..... All excess KW of billing demand, per KW... Per Meter Per Month $ 525.013 $ 7.00 Energy Charges (to be added to Demand Charge): 7.2313t Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 513% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demand be less than 75 KW. Billing demand shall be determined to the nearest 1/113 KW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any lS-minute metered interval in the month, but not less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. Authorized by the City of Vernon: Ordinance No. Ordinance No. ---- Resolution No.---- Resolution No. Effective Effective Effective Effective -1- 4. Power Factor Adjustment: When the billing demand has exceeded 200 KW for three consecutive months, a kilovar-hour meter will be installed as soon as practical, and, therefore, until the billing demand has been less than 150 KW for twelve consecutive months, the charges will be adjusted each month for power factor, as follows: The Charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 20 cents per kilovar of reactive demand. However, in no case shall the number of kilovars used for the adjustment be less than one-fifth the number of kilowatts. The Kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatthours. Demands in kilowatts and kilovars shall be determined to the nearest one-tenth (0.1) unit. A ratchet device will be installed on the kilovar-hour meter to prevent its reverse operation on leading power factors. 5. Temporary Discontinuance of Service: Where the use of energy is seasonable or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer resuming service within twelve months after such service was discontinues will be required to pay all charges which would have been billed if service had not been discontinued. 6. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 7. In-Lieu Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. 8. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No.---- Resolution No. Effective Effective Effective Effective -2- 9. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Companyy as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 10. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $l.00 per kilowatt of contract demand. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective -3- STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. S STANDBY APPLICABILITY Applicable to standby or breakdown service where the entire electrical requirements on the customer's premises are not regularly supplied by the utility. TERRITORY Within the city limits of the City of Vernon. RATES Standby Charge: First 20 kW of contract demand, per kW... All excess kW of demand, per kW.......... Per Meter Per Month $ 4.50 $ 2.30 The standby charge shall not be less than $20.00 per month. Regular Schedule Charges (to be added to Standby Charge): All energy charges of the applicable regular service schedule designated in the service contract plus a charge of $15.63 per kW of on-peak demand in any month. Minimum Charge: The monthly minimum charge shall be the standby charge plus the regular schedule minimum charge. SPECIAL CONDITIONS 1. Contract Demand: In case the customer desires the utility to stand ready to supply the entire connected load of the customer's plant, or an issolated part thereof, then such maximum load will be estimated by the utility, based on tests and other information available. In case the customer desires the utility to stand ready to supply a number of kilowatts less than the maximum demand of the entire customer's plant, or an isolated part thereof, then the customer and the utility shall agree upon the number of kilowatts the utility will stand ready to supply; and the customer shall, at his own expense, furnish and install a suitable circuit breaker enclosed in a steel box equipped with a lOCk, all to be approved by and under the sole Authorized by the City of Vernon: Ordinance No. Ordinance No. ---- Resolution No.---- Resolution No. Effective Effective Effective Effective - 1 - SPECIAL CONDITIONS 1. (continued) control of the utility, and adjustment and operation of said circuit breaker to be in no way interfered with by the customer. This circuit breaker shall be set to break the connection with the utility's service when the customer's maximum demand exceeds the number of kilowatts which the utility stands ready to supply, in which case the utility will renew the connections upon due notice. 2. Contract: This schedule will apply only where the customer will sign a service contract for at least one year. 3. Parallel Operation: This schedule is not applicable for parallel operation of the customer's plant with the servic~ of the utility. 4. Maximum Load: The utility reserves the right to establish the maximum load served under this schedule. 5. In-Lieu of Tax and Franchise Payments: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 2 - STEP 2 RATES CITY OF VERNON LIGHT & POWER DEPARTMENT Schedule No. TC-l TRAFFIC CONTROL SERVICE APPLICABILITY Applicable to single-phase service for traffic directional signs or traffic signal systems located on streets, highways and other public thoroughfares and to railway crossing and track signals. TERRITORY Within the City limits of the City of Vernon. RATES PER METER PER MONTH Customer Charge: $4.750 Energy Charge (to be added to Customer Charge): All kWh, per kWh 8.626t Minimum Charge: The monthly minimum charge shall be the monthly Customer charge. SPECIAL CONDITIONS l. Voltage: Service will be supplied at one standard voltage not in excess of 24~ volts or, at the option of the Company, at 240/480 volts, three wire, single phase. 2. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors' and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 3. In-Lieu Tax and Franchise Payment: The total charges computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax and franchise payments. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No.---- Resolution No. Effective Effective Effective Effective I I I I I D I I I I...... I I I II I I U I I . 1-; // -, .!: Gr. j '- 0' v--; ..(-(,) l...J."I ..... / /__ BAKER G. CLAY & ASSOCIATES. INC. REPORT ON RATE DESIGN CITY OF VERNON, CALIFORNIA Municipal Light Department JULY 1982 I I I I I I I I I I I I I . . . . . . REPORT ON RATE DESIGN CITY OF VERNON, CALIFORNIA MUNICIPAL LIGHT DEPARTMENT JULY 1982 prepared by Baker G. Clay & Associates, Inc. I I I I I o I I . I . . . . . . . ." . TABLE OF CONTENTS Section Description Introduction Adequacy of Revenues Under Existing Rates Revenue Requirements Rates For Special Contract Customers Allocation of Revenue Requirements Proposed Changes in Rate Schedule Structure Edison Rates The Design of Rates The Energy Cost Adjustment Billing Factor (ECABF) PURPA Standards 1. Cost of Service 2. Declining Block Rates 3. Time-of-Day Rates ~. Seasonal Rates 5. Interruptible Rates 6. Load Management Techniques 7. Master Metering 8. Automatic Adjustment Clauses 9. Information to Consumers 10. Procedures for Termination of Electric Service 11. Advertising Conclusion I. II. III. IV. V. VI. VII. VIII. IX. X. XI. Page 1 5 6 10 1~ 17 22 31 36 38 39 ~o ~1 ~2 ~3 ~3 ~5 ~6 ~7 47 47 48 I I I I I I I I I t ..- I I I I I I I I'~ .1 I. INTRODUCTION On March 3', 1982, Southern California Edison Company (Edison) tendered for filing with the Federal Energy Regulatory Commission (FERC) in Docket No. ER82-427 a proposed two-step increase in its wholesale rates for service to Vernon and seven other wholesale customers. The step one rates provide for an increase in jurisdictional revenues of approximately $38.5 million (15.8%) for the twelve month test period ending August 31, 1983. The step two rates would result in an additional increase in rev~nues above the step one rates of approximately $22 million (7.7%). Edison requested effectiv~ dates for the step one and step two rates of June 1, 1982, and June 2, 1982, respectively. Edison stated that while it believed no suspension of its step two rates is warranted, Edison would not object to an effective date of the earlier of the in-service date of its San Onofre Nuclear Generating Station Unit No.2 (SONGS 2) (anticipated to be August 15, 1982) or five months after the June 2 proposed effective date, i.e., November 2, 1982. By its order issued May 28, 1982 the FERC suspended the Step 1 increase for one day and allowed it to become effective, subject to refund, on June 2, 1982. The FERC suspended the Step 2 increase to the earlier of November 2, -1- ~ 1982 or the in-service date of SONGS 2. Both Step 1 and Step 2 rates are subject to ultimate refund pending FERC action on the merits of the proposed increases. While Vernon and the other wholesale customers have vigorously protested the proposed increase, and while such rates may ultimately be reduced and some refunds required, Vernon's cost of purchases have increased dramatically with the Step 1 increase effective June 2. and will increase again when Edison's Step 2 increase becomes effective. These rate increases result in increases in both the demand and energy components of Edison's rates under which Vernon is billed. -2- I I I I I I I I I ~~. I I I I I - Q -' - Sheets 2, 3, and 4 of Exhibit B show the calculation of Vernon's cost of purchases from Edison under existing rates, Step 1 rates and Step 2 rates, respectively. The following table shows the increases in demand costs to Vernon under the Step 1 and Step 2 increases: Demand Cost to Vernon (ODD's) Step 1 Step 2 Increased Rates Existing Rates Increase $18.297 13.557 $ 4.740 $23,346 13,557 $ 9,789 The proposed Step 1 and Step 2 rate increases will thus almost double the demand cost component of Vernon's purchases from Edison. In addition, the cost of energy will increase by $7.8 million. or by almost as much as the demand cost. The Step 1 increase in the demand component of Vernon's purchases from Edison will amount to approximately $4.7 million per year. assuming the same billing demands experienced during the year ending March 31. 1982. while the Step 2 increase will amount -3- -4- to another $5.1 million per year for a total increase in the demand component of Vernon's purchases from Edison of $9.8 million per year. The increases in the energy component of the rates are routinely reflected in Vernon's Energy Clause Adjustment Billing Factor (ECABF) which is changed every three months. The increases in Edison's demand charges. however. are not reflected in the ECABF. and Vernon must therefore increase its base rates to recover these increased costs. This report contains the following recommendations for the adjustments of Vernon's rates to allow Vernon to recover its cost of service. including the increased cost of purchases from Edison. in a fair and equitable manner: (1) design rates to become effective September 1. 1982 to recover Vernon's costs. including the cost of purchased power and energy under Edison's Step 1 rates. as allocated among the various classes of service; (2) provide for a surch~rge to recover the . increase in the cost of purchases under Step 2 rates. to become effective on September 1. 1982 or when SONGS ~ is placed in service. whichever is later; and. (3) provide for a method of reimbursing Vernon for the increases in the demand costs of its purchases from Edison prior to September 1. 1982. when Vernon's I I increased rates are to become effective. I I II. ADEQUACY OF REVENUES UNDER PRESENT RATES I I Vernon's revenues under its existing rates are I approximately equal to its revenue requirements, including its operating costs and cost of purchases from Edison, as I shown in Exhibit A. Column B of Exhibit A shows Vernon's monthly revenues for the twelve month period April 1981 I through March 1982. Column C shows Vernon's cost of .>".. ~,"1~ '<.; , . purchases from Edison during this period, and Column D shows the excess of Vernon's revenues over its cost of purchases from Edison. As shown on Line 13, Column D, Vernon's . revenues for the year exceeded its cost of purchases from Edison by approximately $6.9 million. During this period, . however, Vernon over-collected under its Energy Cost Adjustment Clause by $1.2 million which will result in . decreased revenues to Vernon in subsequent months. The net excess of Vernon's revenues over its cost for this period . was thus $5.7. Vernon's annual costs in excess of the cost . of purchases from Edison, projected in the May 28, 1981 report, including the in-lieu payment of $2.16 million, was II $5.5 million. Vernon's net revenues thus exceed its .' '-c. projected costs by less than $200,000. This comparison is set forth in the following table: . -5- Vernon's Projected Costs Excess 5,546 $ 188 Amount (OOO's) Revenues Increase in ECAe Reserve Net Revenues $71,096 _<1,162> $69,934 Cost of Purchases from Edison Difference 64,200 $ 5,734 The rates which Vernon has had in effect for the year ending March 31, 1982 have thus been properlY designed to allow Vernon to recover its cost of rendering electric service. III. REVENUE REQUIREMENTS The City of Vernon has certain revenue requirements (cost of service) associated with the rendering of electrical service to its customers. These revenue requirements are made up of the cost of purchases from Edison, the cost of operations under the operating agreement _f.._ I I I I I I . . I f . . . I . . U .~ . with Edison, other miscellaneous costs, depreciation of the electrical facilities used to provide the service, and return (or interest) on the investment in the electrical facilities owned by Vernon. A breakdown of Vernon's annual revenue requirements including the cost of purchases from Edison under the filed rates (without giving effect to the fuel clause adjustment) is shown on Sheet 1 of Exhibit B for the year ended January 31, 1982. Vernon's annual revenue requirements as estimated for the future with Edison's Step 1 rate increase in effect is shown in Column C of this schedule. The cost of purchases from Edison are projected to increase from $66.0 million per year to $78.5 million per year assuming the Step 1 rates are to remain in effect for the entire year. Under the Step 1 rates, the cost of purchases from Edison of $78.5 million will thus amount to approximately 95 percent of Vernon's total revenue requirements of $82.5 million. When the additional Step 2 increase of $5 million becomes effective, on or before November 2, 1982 to partially reflect SONGS 2, the cost of purchases from Edison will amount to 95.4 percent of Vernon's total revenue requirements. The projected costs of power and energy (purchases from Edison) under the Step 1 rates are set forth on Line 1, Column C of Exhibit B, Sheet 1. This projection is based upon the assumptions: (1) that purchases from Edison during the year ending March 31, 1983 will be the same as the -7- actual purchases during the projected year, as adjusted to reflect the projected on-peak demand of the Special Contract Customers; and, (2) the Step 1 rates will be in effect throughout the projected year. The calculation of the cost of purchases from Edison under these assumptions is set forth on Sheet 3 of Exhibit B. The computations of the cost of purchases from Edison under eXisting rates, under Step 1 rates and under Step 2 rates are set forth in Sheets 2, 3, and 4, respectively of Exhibit B. The purchases from Edison are set equal to actual purchases during the year ending March 31, 1982. as . adjusted downward to reflect reductions in the on-peak {r t demands of the Special Contract Customers. Line 2, Column C of Exhibit B, Sheet 1 shows the projected cost of contractual services including consulting engineering, special accounting, engineering, and legal counsel of $425,000. Line 3 shows miscellaneous costs of $116,000 for services of City personnel and supplies and expenses. Line 4 shows the projected cost of $2,500,000 payable to Edison for operating Vernon's system pursuant ot its Operating Agreement. Line 5 shows a projection of depreciation of City's electrical facilities of $400,000. Line 6 shows an allowance for return on net investment in electric plant of $536,000. This allowance for return was computed by applying a rate of return of 11.20 percent, -8- ~ I I I I . I . . I . . . . I I - q I I based upon Edison's cost of capital, to Vernon's gross plant less accumulated depreciation. Edison's cost of capital was used because Vernon's experience with financing is too limited to use as a measure of the cost of capital. A more appropriate measure of the cost of capital is the requirements of a private utility that makes frequent transactions in the bond and stock markets. Edison is, in this instance, an appropriate model upon which to base Vernon's cost of capital. The return component was thus computed at a rate of 11.20 percen~.which is the rate of return allowed by the California Public Utilities Commission in Edi~on's retail case by Decision No. 92549 issued December 30, 1980 in Edison's Application No. 59351. As shown on Line 7 of this Exhibit the annual revenue requirements of the City of Vernon from its electrical system are approximately $82.5 million under Edison's Step 1 rates. The revenues at existing rates (including the ECABF charges) as shown on Exhibit A amount to approximately $69.9 million resulting in a revenue deficiency of approximately $12.6 million, or 15.3 percent. This deficiency, of course, is based upon a projection of future increases in costs. The existing rates, including the Energy Cost Adjustment Clause, are adequate to recover existing costs. -9- ~ IV. RATES FOR SPECIAL CONTRACT CUSTOMERS Because of the nature of their requirements, Bethlehem Steel Corporation (Bethlehem), Byron Jackson Pump Division, Borg-Warner Corporation (Byron Jackson), and Steel Casting Company (Steel Casting) have entered into special contracts with Vernon. Byron Jackson has two accounts with Vernon; Kinetic and Bee Jay. These special contracts arise from the nature of Schedule TOU-R under which Vernon purchases from Edison. Under the terms of this rate schedule, Vernon pays s { a demand charge based upon the maximum level of its purchases during a designated "on-peak" period of time. By arranging their operations so as to minimize their takes during Edison's pre-designated "on-peak" period, while operating freely during the pre-designated "off-peak" period, these customers enable Vernon to realize significant savings in the demand component of the cost of purchased -10- I I I I I I I I I r I . I I II II q I' II power. The rates included in these special contracts are designed to pass along to the customers the savings to Vernon resulting from their revised operations. The following table shows the "on-peak" and "off-peak" demands assumed for these customers in the design of their r~spective rates: Demand in kW On-Peak Off-Peak Demand Demand 850 60,000 8,000 18,000 4,000 Bethlehem Bee Jay Kinetic Steel Casting 6,000 The on-peak demands are included in the existing contracts and the off-peak demands have been added to the new contracts. -11- Monthly Charges New Existing Rates Rates Monthly Increase Exhibit C, Sheet 1 shows the design of the monthly charges for these Special Contract Customers. The table below shows a comparison of the new rates with the existing rates for these customers: Bethlehem $135,000 $136,000 $<1,000> Bee Jay 13,680 12,000 1,680 Kinetic 30,180 28,000 2,780 Steel Casting 12,240 12,222 18 >;: As shown on Sheet 1 of Exhibit C, Bethlehem and Steel Casting have retained the right to take a small amount of power during the on-peak period, while Bee Jay and Kinetic are operating entirely off-peak. 8ethlehem gets a decrease in the new rates because we have reflected their actual demands on Vernon during the on-peak period rather than the contract amount. The cost of this on-peak power to Bethlehem and Bee Jay has been computed, not on the basis of Edison on-peak demand rates, but on the basis of Vernon's demand costs divided by the total billing demands of Vernon's customers. Because of diversity the sum of the billing demands of Vernon's customers is greater than the billing demands that Vernon establishes with Edison. The -12- I I I I I I I I I ~ I I I I I - . . . average on-peak demand cost assessed against Bethlehem and Steel Casting is thus only $6.357 per kW per month, which is considerably less than Edison's demand rate, of approximately $9.20 per month. This practice can be justified, however, only if these customers contribute diversity to the system (by taking less than their contract demands at the time Vernon establishes its billing demand with Edison. In the future, only the customers who actually contribute diversity to the system will receive the benefit of this"diversified (lower) on-peak'demand charge. The on- peak demand charge of the other Special Contract Customers will be based upon Edison's demand rates, because these rates reflect the cost to Vernon of serving these customers. As shown on Exhibit C, Sheet 1, Line 1, Column C, Bethlehem's demands during the on-peak period has been averaging 5,095 kW. We have used this value to compute Bethlehem's monthly charge rather than the contract amount of 6,000 kW. We have used Steel Casting's on-peak contract amount in computing the monthly charge because we have no reason to believe that they will not establish billing demands at this level. The energy cost to be included in the special contracts is computed on Sheet 4 of Exhibit C. The monthly charges to these Special Contract Customers have been designed to recover all of the fixed costs allocable to such customers because the energy charge has been designed to recover the -13- V. ALLOCATION OF REVENUE REQUIREMENTS cost of energy and associated losses only. Exhibit D, Sheet 1 shows an allocation of the demand and en~rgy components of the system's rev~nue requirements among the various classes of service. This allocation of system revenue requirements among the various customer classes was made in the following manner. The total revenue requirements of $82,460,000 as set forth on Exhibit B, Sheet 1 were classified as demand or energy. As shown on Sheet 2 of Exhibit D, the energy cost of purchases from Edison were classified to the energy component. All other costs were classified to the demand component. Miscellaneous revenues ($25,000), demand costs associated with service to the Special Contract Customers and revenues from service to LS-l, LS-2, and OL-l customers were then deducted from the classified cost of service. Revenues from the lighting class of customers were deducted from the cost of service, rather than allocating costs to such customers because, as explained in the Rate Design Section, we have determined that it is appropriate to base the rates for these Schedules upon Edison's retail rates rather than upon allocated costs. The remaining classified costs were then allocated as set forth on Sheet 1 of Exhibit D. The cost of energy purchased -14- I I I I I I from Edison as shown in Column C was allocated between classes of service on the basis of kWh sales to each class, respectively, as adjusted for losses. The development of the allocation factors including the adjustment for losses is shown on Sheet 3 of Exhibit C. For purposes of this adjustment, it was assumed that some of the customers purchase from secondary lines, some purchase from primary lines, some purchase from distribution lines, and some purchase from transmission lines. Inasmuch as there are losses at each step along the way, the percent loss responsibility varies depending upon the voltage level of service. Therefore, Sheet 3 of Exhibit C shows an estimate of the total kWh responSibility of each class of service assuming losses to a common point; the transmission system. I I I .~ :::'~,. . . The other costs, including demand costs associated with purchases from Edison, Power Factor Adjustments and Voltage Discounts, were allocated on the basis of the billing demands of the respective classes, again at the transmission level voltage. Billing demands were used for this purpose because this is the best information available for this purpose. It would be preferable to allocate such costs on the basis of coincident peak demands, but such data is not available. In some instances, billing demands were not recorded, but were imputed. Billing demands for Schedule No. D and Schedule Nos. GS-1 and TC-1 were imputed on the basis of 25 percent load factor purchases while billing . . I . . . . -15- demands for Schedule No. PA-l were imputed on the basis of 50 percent load factor purchases. -16- I I I I - VI. PROPOSED CHANGES IN RATE SCHEDULE STRUCTURE I - I - ,~.~ ~. . . . . . . I ..... ., . 1. Charges for the Installation of Excess Capacity- - Provisions have been added to Schedule Nos. A-8, A-7, and GS-2 to require that customers purchasing under such schedules who ask for service facilities having capacities in excess of their billing demands pay an additional charge to cover the cost of these facilities. Examples of these provisions are set forth in Exhibit E. Sheet 1. They are to be contained in Special Conditions 11, 12, and 13 of Schedule No. A-8. Special Conditions 10. 11. and 12 of Schedule No. A-7 and Special Conditions 7, 8. and 9 of Schedule No. GS-2. and are entitled "Contract Demand", "Minimum Demand Charge", and "Excess Transformer Capacity", respectively. These provisions are identical to provisions contained in the existing Edison Tariff for comparable service. -17- (kW) 2. The Inclusion of Contract Demands in Rate Schedules - Consistent with the above provisions, contract demands have been included in the Special Contracts to establish the maximum kW of entitlements by these ctlstomers during the off-peak periods. These contract demands are set forth in the table below: Maximum Demands Bethlehem Kinetic Bee Jay Steel Casting 60,000 18,000 8,000 4.000 -18- I I I . . . . . . p- 3. Payment In-Lieu of Franchise Fees - This report recommends a change in the method of including a payment to the city in lietl of a franchise fee. Edison has traditionally made franchise fee payments to the cities in which they render service at retail. and has included these payments in their retail rates. In similar fashion, Vernon has traditionally made payments from its electric utility operations to its general fund as an in-lieu franchise fee. This payment has been set at 3 percent and has been built into Vernon's rates and charges. . . . . This report proposes, however, that, rather than build the in-lieu payment into the rate, an increment be added to revenues otherwise payable under the rates filed to provide for the in-lieu franchise fee. The increment to be added to the revenues under the filed rate to allow for the in-lieu payment is .03 x revenues at the filed rate. We recognize that the use of a 3 percent surcharge on the filed rates will not allow the city to realize a 3 percent tax on total revenues. To collect 3 percent on total revenues, a tax-on-tax factor would have to be added to the 3 percent surcharge. . . . The provision to be included in all of the filed rate schedules to provide for the in-lieu payment is included in Exhibit E, Sheet 2. Note the following: .c - . -19- b. Because the tax factor is to be applied to the actual revenues under the filed rates, it is no longer necessary to adjust the ECABF to reflect the in-lieu payments. The ECABF has been adjusted accordingly. a. This provision does not apply to the Special Contract Customers because the in-lieu payment has been built into their rates; and, _?A_ I I I I I I I I I r I I I I I I I I . 4. Deferred Account to Recover Edison's Increases Prior to Vernon's Increases - Edisonfs Step 1 rate increase became effective on June 2, 1982 and Edison's Step 2 rates may become effective prior to the September 1, 1982 effective date of Vernon's increased rates. Vernon will thus begin paying Edison the increased rates prior to the time it can recover the increased costs from its customers. In order to make Vernon whole without imposing a burden on its customers, it is proposed that such undercollections, along with associated interest, be deducted from any refunds received from Edison arising from such Step 1 and Step 2 increases. The procedure for retaining such refunds is set forth in Exhibit E, Sheet 3. -21- -22- VII. EDISON RATES The regulatory methodology of the FERC, which establishes the rates under which Vernon purchases from Edison, differs markedly froom the regulatory methodology of the CPUC, which establishes the rates which Edison's retail customers purchase under. The FERC, for instance, will allow rate increases to become effective without serious examination soon after they are filed but will subsequently require the refunding of the portion of the proposed increase that is subsequently found to be excessive. The CPUC, however, must investigate the rates prior to their effectiveness. If a comparison were made of Edison's retail rates with Vernon's rates, one must take into consideration that Vernon may receive refunds that will be flowed-through to its customers. Other major differences exist with . respect to the form of Edison's wholesale and retail rates, both of which are now undergoing major changes in form. The uncertainity as to the level and form of rates that will stlbsequently be allowed makes it difficult, and in some instances impossible, for Vernon to design rates for its customers that are comparable to Edison's rates. These problems are discussed below. I I I I . . . . I r . . . I . . I . . 1. Edison's Existing Retail Rates - The rates at which Edison bills its retail customers are composites of several components. The first is the base rate under which Edison recovers its projected fixed costs. These base rates are established in general rate cases which Edison may file only once every two years. Edison recovers its projected fixed costs associated with return on investment, depreciation, income taxes, other taxes, and operating expenses under its base rates. Next is the Energy Cost Adjustment Clause (ECAC) under which Edison may file three times a year; January 1, May 1, and September 1. Edison recovers 98 percent of its cost of energy under the ECAC. The other 2 percent of the cost of energy, along with miscellaneous costs associated mostly with fuel oil inventory, is recovered under the annual energy rate (AER). The other component presently included in Edison's rates is the Conservation Load Management Adjustment Clause (CLMAC). When SONGS 2 is placed into service, now projected to be August 15, 1982, Edison will include two additional components in its rates: (a) The Major Additions Adjustment Billing Factor (MAABF) under the Major Additions Adjustment Clause (MAAC) to recover the costs of SONGS 2 that cannot be projected with reasonable accuracy; and, (b) an Annual Major Additions Rate (AMAR) designed to recover the SONGS 2 costs that can be projected with reasonable accuracy. These various components of Edison's rates are discussed more -23- -24- fully below, with reference to Exhibit F. Sheet 1 of Exhibit F shows the composite Edison retail rates for Schedule Nos. TOU-8, A-7, GS-2. GS-1, PA-1, and PA-2 that were effective as of May 4, 1982 and as requested to become effective on or after August 15. 1982 to reflect the costs of SONGS 2. Column A shows the rate schedules and the functional components of the rates (demand. energy, and customer components). Columns B-I show the levels of the various increments of the functional components of the rates. Column Bshows the base rates that became effective on January 1, 1981 pursuant to the CPUC Decision No. 92549 issued December 30, 1980 in Edison's Application No. 59351. In this application Edison had requested increased rates amounting to $340 million, excluding the costs of SONGS 2, which was then projected to be placed in service by July 1, 1981. The costs associated with SONGS 2 were to be recovered by another filing. The Commission's Decision No. 92549 allowed Edison an increase of $294.2 million effective January 1, 1981 and a further increase of $91.9 million to be effective January 1, 1982, to offset the affects of attrition. As will be explained in more detail later, these base rates will be superseded on January 1, 1983 by rates to be established in a Commission order in Edison's Application No. 61138 for a $1.25 billion increase in its retail rates. I I a I I I I I I ,~ (Note that the rates to be established in this proceeding will not reflect the costs of SONGS 2 and 3. These costs are to be established in Application No. 82-02-40 and will be additive to the base rates). The rate levels set forth in Column B are designed to recover Edison's fixed costs associated with generation, transmission, and distribution. These costs include return on investment, depreciation, income taxes, othe~ taxes, and operation and maintenance (O&M) expenses. I The levels of the functional components of Schedule TOU-8 are shown on Lines 1 - 8. Edison has established a base rate demand charge of $5.05 per kW per month for the kW of demand purchased under this schedule during the on-peak period. In addition, Edison has established a base rate demand charge for the mid-peak period of $.65. The customer charge of $560 per month has been established on the basis that customers taking as little as 500 kW per month must purchase under Schedule No. TOU-8. Edison has established energy charges for the on-peak period, the mid-peak period, and the off-peak period. The differences in the cents per kWh charges for energy purchased in these periods are based , upon the differences in the incremental costs of generation and transmission during such periods. In its most recent retail filing, Edison has made a change from its existing retail rate design that apparently has no practical effect, I I I I I I I I -25- Column C shows the Energy Cost Adjustment Billing FActor (ECABF) to be 4.286~/kWh to be added to the base energy rate of all rate schedules. This ECABF was established by the CPUC's interim opinion issued as Decision No. 82-04-119 on Apri1 28, 1982 in Application No. 82-03-04. Edison had proposed a rate stabilization plan in that application under which the large savings resulting from purchases of large amounts of hydro-power during the early part of 1982 be used to offset the increased costs associated with SONGS 2 through 1983. This rate stabilization proposal was to be in-lieu of immediate flow-through of these savings through the ECABF and subsequent rate increases to reflect SONGS 2 costs. The Commission declined to adGpt Edison's Rate Stabilization Plan in total, but did not require the immediate large reductions in the ECABF. Instead, it provided for somewhat smaller ECABF reductions (from 5.390~/kWh to 4.286c/kWh) but better reflects the theoretical support for differentials between the on-peak, mid-peak, and off-peak energy charges. Edison has proposed a uniform level for the base rate energy component in its Schedule No. TOU-8 but has provided, instead, that the ECABF reflect differences in costs between the on-peak, mid-peak, and off-peak energy. These rates are to be effective on January 1, 1983 pursuant to Edison's filing in Application No. 61138, as discussed below. -26- I I I I . I . . . r . . . I . . q . . that would remain in effect throughout the remainder of 1982. (ECABF filings are normally to be made so as to become effective three times a year; January 1, May 1, and September 1). Column D shows the Annual Energy Rate (AER) of .236t/kWh which was also reduced (from .452t/kWh to .236t/kWh) by Decision No. 82-04-119. The Annual Energy Rate is designed so as to recover 2 percent of the annual energy costs plus miscellaneous costs, mostly associated with fuel oil inventory.. Column F shows the Conservation Load Management Adjustment Clause (CLMAC) of .004t/kWh to be added to the energy component of the rates for each rate schedule. Column F shows the composite rates in effect as of May 4, 198~ for each of these Edison rate schedules. As noted above the composite rates now in effect do not include the cost associated with SONGS 2 which Edison now projects to place in service on August 15.1982. Edison has thus filed a proposal in Application No. 82-02-40 to establish a Major Additions Adjustments Clause (MAAC) to implement a Major Additions Adjustment Billing Factor (MAABF) and an Annual Major Additions Rate (AMAR) to recover the costs of owning, operating, and maintaining SONGS 2. The surcharges proposed in this filing are to become -27- effective on the in-service date of SONGS 2 (now projected to be August 15, 1982) and are to be added to the composite rates shown in Column F. Column G shows the surcharge associated with the MAABF to be .071c/kWh. The MAABF is to be based upon an estimate of SONGS 2 operation and maintenance expenses and associated payroll tax and employee's pension and benefits, which cannot be reasonably estimated. Any variation between the estimated level of these expenses and the recorded expenses will be placed in the MAAC balancing account and adjusted periodically to reflect any over-collection or under-collection. The AMAR is designed to recover costs of SONGS 2 that are fixed or can be reasonably estimated. Such SONGS 2 expenditures to be recovered through the AMAR are depreciation, property taxes. income taxes, the administrative and general expenses associated with injuries, damages, and property insurance, and return on rate base. ,The initial AMAR is to be .591c/kWh. Column I shows the composite rates to be effective August 15, 1982 to reflect the base rates, the ECAC and the various surcharges inclUding the surcharges to recover the cost of SONGS 2. It is expected that these rates will remain in effect until January 1, 1982 at which time the rates contained in Columns B - F will be replaced by rates subject to the filing in Application No. 61138. The MAABF and the AMAR, shown in Columns G and H, respectively, will remain in effect until December 31, 1985 because Application No. 61138 did not reflect the costs -28- I I I I I I I I I . . . . I . . . . . associated with SONGS 2. 2. Proposed January 1, 1983 Increase in Base Rates - Edison proposes in Application No. 61138 to increase its base rates by $1.25 billion per year to be effective for the two year periOd January 1, 1983 - December 31, 1985. Hearings on this application are now being held before the CPUC and a decision on this filing will be issued in time for the rates to become effective January 1, 1983. The proposed increases in base rates are to occur in two steps; the first increase is to take effect on January 1, 1983 and the second is to take effect on January 1, 1984. Sheet 2 of Exhibit F sets forth the level of Edison's Schedule TOU-8, Schedule No. GS, Schedule No. PA-1, and Schedule No. PA-2 rates as Edison proposes that become effective on January 1, 1983. Schedule No. GS contains two parts; Part A and Part B. This rate schedule replaces Schedule No. A-7, Schedule No. GS-2 and Schedule No. GS-1. Column A sets forth the rate schedule and the functional components of the rate schedules. Column B sets forth for these rate schedules the base rates proposed in Application No. 61138. Column C sets forth the Energy Cost Adjustment Billing Factor, as proposed in Application No. 61138. Column D sets forth the Annual Energy Rate, also as proposed in Application No. 61138 and Column E sets forth the Conservation Load Management Billing Factor as proposed by -29- to occur on January 1, 1983. Edison in Application No. 61138. Column F shows the composite rate filed in such application. Column G shows the sum of the Major Additions Adjustment Billing Factor (.071~/kWh) and the Annual Major Additions Rate (.591~/kWh). The total rate which Edison proposes to be effective on January 1, 1983 is thus shown in Column H. A comparison of the rates effective May 4, 1982, as shown on Sheet 1 of Exhibit F. with the rates proposed to be effective on Jan uary 1 , 1983, as shown in Column H of Sheet 2 of Exhibit F shows the huge increases in Ed i son's retail rates that are ~ -30- I I I I I I I . . r . . . . . . . . . VIII. THE DESIGN OF RATES 1. To Reflect Edison's Step 1 Increase in Rates - Exhibit G, Sheet 1 shows the revenues at existing rates, the proposed revenue increase and the resulting revenues at the proposed rates. The proposed revenue increase is shown in Column E. With minor exceptions, the proposed rates are designed to recover the allocated costs to each customer class, as set forth in Exhibit D, Sheet 1. Two exceptions are with respect to Schedule No. D and the lighting schedules. The customer charge in Schedule No. D has been decreased from $1.62 per month to $1.50 per month, and the energy charge has been reduced to 3.6~ per kWh. The revenues under these rates are less than allocated costs. Likewise, the lighting rates, Schedule Nos. OL-l, LS-l, and LS-2, have not been based upon allocated costs. Instead they have been based upon the rates that Edison charges for similiar service. Edison's rates are based upon studies of the unique character of the service rendered by these types of schedules, and thus probably result in a better measure of the cost to serve under these schedules than an allocation of costs. The resulting rates are higher than would result from an allocation of costs. -31- Sheet 2 of Exhibit G shows the design of rates for Schedule Nos. A-8, A-7, GS-2, GS-1, PA-l, and-PA-2. As noted above, these rates have been designed to recover the costs allocated to these classes of service on Sheet 1, Schedule D. The rates for Standby Service under Schedule No. S have been designed to recover Vernon's cost of rendering this service. The rate for the first 20 kW has been increased from $2.16 per kW to $4.00 per kW to contribute more toward the customer costs associated with this service. The rate for all excess standby demand has been set at $1.71 per kW, which represents Vernon's unit fixed costs, as set-forth on Sheet 2 of Schedule C. The rates for demands actually used has been set at Vernon's f ~, incremental costs of $9.25 per kW under Edison's Step 1 rates. The energy tlsed is to be billed at the energy rates under the applicable rate schedule. 2. To Reflect Edison's Step 2 Increase in Rates - As pointed out above, Edison's Step 2 rate increase to Vernon will occur on the earlier of November 2, 1982 or the date SONGS 2 becomes effective. To enable Vernon to reflect The surcharge to the Special Contract Customers and to this increase in its rates, we have designed surcharges to become effective on September 1, 1982 if SONGS 2 is operational at that time, or such later date as the STEP 2 rates become effective. -32- . . . . . . . . . . . . . . . . . . . Schedule Nos. A-8, A-7, and GS-2 to reflect the additional cost of their on-peak demands is set forth on Sheet 3 of Exhibit G. The surcharge of $1.754 per kW of on-peak demand was calculated by dividing Vernon's increase in demand costs of $5,049,000 by the sum of the 12 monthly system demands. This unit surcharge was applied to the on-peak demands of Bethlehem and Steel Casting to arrive at monthly surcharges of $8,937 for Bethlehem and $1,491 fQr Steel Casting. Bee Jay and Kinetic have no on-peak billing demands and therefore receive no increase in their monthly charges under the Step 2 increase, which is entirely in the demand component. The .637~/kWh unit surcharge applicable to the energy purchased by customers in other classes, most of whom do not have billing demands, was arriv~d at by subtracting the annual demand surcharges to the Special Contract Customers, Schedule Nos. A-8, A-7, and GS-2 customers from the Step 2 increase in demand cost and dividing by system annual kWh sales, less sales to such customers. This calculation is shown on Sheet 4 of Schedule No.1. 3. Comparison of the Level of Vernon Rates With the Level of Edison's Rates - It is not feasible to make a meaningful comparison between the level of Vernon's rates with the level of Edison's rates at this time. While such comparisons can be -33- b. There is a fundamental difference between the methodologies used by the FERC and the CPUC in the processing of general rate increases. The CPUC will analyze a rate proposal in detail prior to allowing it to become effective. The rate that does become effective is final and there will be no refunds. The FERC, on the other hand, will allow an increased rate to become effective, without much analysis, but may require substantial refunds made for any point-in-time during the period January 1, 1982 - January 2, 1983 such comparisons are meaningless because of the various changes that are occuring, at different times, in these rates. Some of these differences are as follows: a. Edison has realized substantial savings in the cost of energy by purchasing energy from the Northwest that was produced by hydro-plants. Edison reduced its rates to Vernon, by reducing the charges under its fuel clause adjustment, as these savings were realized in the winter and spring of 1982. Edison did not reduce its retail rates to reflect these savings, however. Instead, the CPUC has allowed Edison to "husband" these savings and use them to allow for lower rates for the period of May 1982 through Decembe~ 1982. -34- I I . . . I . . . r- later. It is thus misleading to compare Edison's retail rates with Vernon's rates because Vernon will probably receive refunds that will flow back to its customers. Vernon is now in the process of refunding to its customers approximately $5 million that Edison refunded to Vernon under the terms of an order in Docket No. 76-205 with respect to an Edison wholesale increase in 1916. . . . . c. Other differences exist with respect to the timing of general rate increases, at the retail level, one huge rate increase is to become effective on January 1, 1983 and another is to follow on January 1, 1984. At the wholesale level one rate increase became effective June 2, 1982 and another is to become effective on or shortly after November 1, 1982. Another wholesale filing is to be made in November. All of these rate increases will be subject to refund. . . .'" ~. . d. Edison will file surcharges to its retail rates to reflect the cost of SONGS 2 and 3 and Palo Verde. The surcharges (MAABF and AMAR) are to become effective on in-service Date of SONGS 2 (August 15, 1982) to reflect this unit. Surcharges for the other units will follow. With respect to the wholesale rates, however, portions of the costs of . -35- all three units were included in the Step 1 rates becoming effective June 2, 1982. All of the SONGS 2 costs and increased portions of the other two units will be included in the rates to be filed in November. IX. THE ENERGY COST ADJUSTMENT BILLING FACTOR Vernon's existing rates include a component of 4.411~/kWh to recover the cost of Energy purchased from Edison. These rates also contain an Energy Cost Adjustment Clause under which Vernon tracks increase and decrease in the energy component of the cost of its purchases from Edison by applying an Energy Clause Adjustment Billing Factor (ECABF) to its kWh sales of energy. Vernon presently makes changes in its ECABF on a quarterly basis to reflect the estimated cost of energy for the current period, adjusted to reflect any over or under collections during the prior period. This method is working very well and there appears to be no reason to make substantive changess in such methodology. All that is necessary is to set forth the Energy Cost per kWh that is included in Base Rates. As shown in Exhibit H, the cost of the energy Component of purchases from Edison amounts to 5.185~/kWh. The existing base cost of energy from which the ECABF is computed is -36- ~ I I I . . . . . . . . . . . . . . . . 4.411~/kWh, resulting in an increase of .774~/kWh in the base cost. The change in the base energy rate does not really change the cost of energy to the customer, of course. It merely means that more of the cost of energy is to be collected in the base energy rate and less is to be collected in the ECABF. Vernon has made arrangements to purchase interruptible energy from Nevada Power Company, which may result in substantial savings in the cost of energy purchases. Any such savings realized will be flowed-through to the customers in the ECABF. -37- x. PURPA STANDARDS While Vernon is not subject to the Public Utility Regulatory Policies Act of 1978 (PURPA), this report nevertheless addresses the various concerns of this legistation. Sections 111 and 113 of PURPA provide for the following standards: 1. Cost of Service 2. Declining Block Rates 3. Time-of-Day Rates 4. Seasonal Rates 5. Interruptible Rates 6. Load Management Techniques 7. Master Metering 8. Automatic Adjustment Clauses 9. Information to Consumers 10. Procedures for Termination of Electric Service 11. Advertising This report has examined all of these standards to determine what if any action Vernon should take so as to meet its public service obligations. In some cases we determined that no action was required because of the nature -38- I I I I I- I . . . 1..,...-......-......-..... .~..:~.~.:-:. '.- 0" . . . I . of the service area. In the remaining instances we have concluded that steps taken by Vernon fully meet the objectives and standards of the legislation. 1. Cost of Service The Cost of Service Standard provides that the cost of providing electric service to each class of electric consumers shall to the maximum exten~ practicable - 1. Permit identification of differences in cost-incurrence for each such class of electric consumers, attributable to daily and seasonal time of use of service; and 2. Permit identification of differences in cost-incurrence attributable to differences in customer, demand, and energy components of cost. In prescribing such methods, such State regulatory authority or nonregulated electric utility shall take into account the extent to which total costs to an electric utility are likely to change if-- . . . a. Additional capacity is added to meet peak demand relative to base demand; and b. Additional kilowatt-hours of electric energy are delivered to electric . -39- consumers. As discussed above, a cost allocation was made to develop a cost of service for each customer class, using the best information and techniques available. The rates proposed herein are based upon the results of this allocation. The schedules under which service is rendered to the larger customers do reflect time of use considerations. Schedule Nos. A-8 and A-7 provide for an adjustment for off-peak demand and special contracts have been negotiated with some customers having the flexibility of operation that make load management techniques workable. 2. Declining Block Rates The PURPA Declining Block Rates Standard provides that: "The energy component of a rate, or the amount attributable to the energy component of a rate, charged by any electric utility for providing electric service during any period to any class of electric consumers may not decrease as kilo-watt-hour consumption by such class increases during such period except to the extent that such utility demonstrates that the costs to such utility of providing electric service to such class -40- I I I I which costs are attributable to such energy component decrease as such consumption increases during such period." I The rates proposed in this report do not contain declining block~ in the energy component. I I 3. Time-of-Day Rates . The Time-of-Day Rates Standard provides: "The rates charged by an electric utility for providing electric service to each class of electric consumers shall be on a I I............'... '--. ...;-, ~ - -.. ,; time-of-day basis which reflects the costs of providing electric service to such class of electric consumers at different times of the day unless such rates are not cost-effective with respect to such class, as determined under Section 115(b)". . . . As pointed out above, the existing schedules A-8 and A-7 provide for an adjustment in billing demands for maximum demands taken during the off peak periods. In addition, Vernon has exhibited a willingness to enter into special contracts with customers who desire to institute load management techniques. Upon installation of additional, more sophisticated, metering equipment at the point of delivery of more of its customers, Vernon will be able to extend its efforts at load management. As pointed out in I . . . . . -41- ~ more detail at a later point, Vernon's sales to smaller customers amount to a relatively small amount, making it not cost effective to institute time-of-date rates for these customers. 4. Seasonal Rates The Seasonal Rates Standard provides: "The rates charged by an electric utility for providing electric service to each class of electric consumers shall be on a seasonal basis which reflects the costs of providing service to such class of consumers at different seasons of the year to the extent that such costs vary seasonally for such utility." This report concludes that because of the relatively small difference between the winter and summer monthly peaks and the relatively small difference between costs during the winter and summer periods, that there is little reason to differentiate costs by season. This is particularly true because of the rate structure of Vernon's sole supplier, Edison. Vernon's billing demands upon which demand charges payable to Edison are based, are set at the level of Vernon's highest takes during the on-peak period of the day, each month. There is no ratchet in these billing demands. Thus, there is no basis for a seasonal demand charge. -42- I I I I I I I I . Ii ~ . . . . . . 5. Interruptible Rates The Interruptible Rates Standard provides that: "Each electric utility shall offer each industrial and commercial electric consumer an interruptible rate which reflects the cost of providing interruptible service to the class of which such consumer is a member." The cost savings resulting from interruptible 3ervice has been examined and discussed with potential customers from time to time in the past, and there is customer interest in this concept. However~ because Vernon purchases its power and energy from Edison, this concept is feasible only if Edison makes energy available to Vernon on an interruptible basis. Vernon has proposed in its testimony in Edison's FERC rate proceeding, Docket No. ER81-177, that Edison be required to institute an interruptible rate for its wholesale customers. If this effort is successful, Vernon will make such rate available to its customers where feasible. 6. Load Management Techni~ues The Load Management Technique Standard provides that: Each electric utility shall offer to its electric consumers such load management techniques as the State regulatory authority has determined will-- -43- " 1. be practicable and cost-effective, 2. be reliable, and 3. provide to the electric utility some enhancement in its ability to manage energy or capacity. It also provides that: a load management technique shall be determined, by the State regulatory authority to be cost-effective if-- a. such technique is likely to reduce maximum kilowatt demand on the electric utility, and b. the long-run cost-savings to the utility of such reductions are likely to exceed the long-run costs to the utility associated with implementation of such technique. As discussed above, Vernon has investigated Time-of-Day Rates, Interruptible Rates and Special Contracts as a way to control maximum demands. These methods are considered to be the most effective means available of achieving meaningful load management, because of the nature of Vernon's loads. Vernon, being an industrial City, has a relatively small number of customers, most of which. however, are relatively large. Consequently, it is feasible to deal with load management on an individualized basis in areas where there is a potential for -44- I I I I I I . . I r . . . I . . . . . load management. Because of the relative small number of customers, however, and the limited amount of sales to smaller customers, it is not economically nor adminis- tratively feasible to experiment with stlch techniques as time-of- use rates for water heating as load management techniques. 7. Master Meterina The master Metering Standard provides that to the extent determined appropriate, master metering of electric service in the case of new buildings shall be prohibited or restricted. Separate metering shall be determined appropriate for any new building if-- 1. There is more than one unit in such building. 2. The occupant of each such unit has control over a portion of the electric energy used in such unit, and 3. With respect to such portion of electric energy used in such unit, the long-run benefits to the electric consumers in such building exceed the costs of purchasing and installing separate meters in such building. Because of the nature of Vernon's service area it is unlikely that this provision will apply in the foreseeable -45- 1. The clause is reviewed at least every four years by the State regulatory authority at an evidentiary hearing to insure the clause provides incentives for efficient use of resources by the utility, and 2. The clause is reviewed at least every two years by the State regulatory authority at an evidentiary hearing to insure the maximum economics in those operations and purchases that affect the rates of the utility. This review shall include an examination of the practices of the utility which relate to the costs included in the clause. In appropriate cases, an audit of such costs may be required. future, and Vernon has therefore not adopted a policy in regard to buildings where Master Metering might be an option. 8. Automatic Adjustment Clauses The provisions of the Automatic Adjustment Clause Standard provides that an automatic adjustment clause meets the requirements of the standard if-- Vernon's rates contain an automatic adjustment clause which adjusts customer's bills up or down to reflect the actual costs of fuel and purchased energy. Vernon is not -46- . . . . . . . . . r . . subject to the jurisdiction of a State regulatory authority and, consequently, its clause has not received such state regulatory approval. Vernon's automatic adjustment clause is, however, similar to clauses of investor-owned systems that have been approved by state and federal regulatory agencies. Vernon's automatic adjustment clause is thus ~onsistent with the intent of the legislation. 9. Information to Consumers The Information to Consumers Standard provides that each electric utility shall transmit to each of its electric consumers certain information regarding rate schedules. Vernon's program of providing information to its customers includes all of the necessary rate schedule information. 10. Procedures for Termination of Electric Service . . . . . This Standard provides that no electric utility may terminate electric service to any electric consumer except pursuant to procedures prescribed by the State regulatory authority. Vernon has adopted procedures similiar to those utilized by privately owned systems, including Edison, that have been approved by state regulatory agencies. 11. Advertising .' . - . -47- -48- The Advertising Standard provides that no electric utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditures by such utility for promotional or political advertising. Vernon does not advertise its electric service. XI. CONCLUSION In our opinion, the rates proposed herein will allow Vernon to recover its cost-of-service from its customers in a fair and equitable manner and complies with the intent of PURPA. I I I I I I . . I . . . . I . . II . . Exhibit A Sheet 1 of 1 City of Vernon Comparison of Costs With Revenues Twelve Months Ending March 31, 1982 (OOO's) Cost of Total Purchases Revenues From Edison Remainder Including Including ECAC Rev. ECAC Charges A B C D 1 April 1981 $ 5,880 $ 5,427 $ 453 2 May 5,369 5,114 255 3 June 5,269 5,090 179 4 July 5,561 6,188 <627> 5 August 5,544 4,560 984 6 September 5,662 4,944 718 7 October 5,978 7,411 <1,433> 8 November 6,327 6,368 <41> 9 December 6,442 5,408 1,034 10 January 1982 6,235 4,647 1,588 1 1 February 6,190 4,469 1,721 12 March 6,639 4,574 2,065 13 Total $71,096 $64,200 $6,896 14 Increase In ECAC Reserve <1,162> <1,162> 15 Net $69,934 $64,200 $5,734 Sources: Column B: Computer printout showing Billing Data by Rate Schedule. Column C: Edison Bills to Vernon. Line 14: W/P A-l. Exhibit B Sheet 1 of 4 City of Vernon Comparison of Revenue Requirements Actual Year vs. Estimated Under Edison's Step 1 Rates (OOO's) Ac t ua 1 Estimated Expenses Expenses as Adjusted w/Ste~ 1 Rates A B C Cost of Power and Ene.rgy $65,961 $18,483 2 Contracted Service 302 425 3 Miscellaneous 65 116 4 Operating Agreement 1,494 2,500 5 Depreciation 398 400 6 Return 527 536 7 Total Revenue Requirements 1 $68,747 $82,460 Sources: Col. B, Line 1: Cost of Purchases for year ending March 31, 1982 from Sheet 2. Col. B, Lines 2-5: Cityof Vernon Statement of Revenue and Expenses for year ending January 31, 1982. Col. B, Line 6: Average Rate Base @ 11.2$. Col. C, Line 1: Power and energy purchased during year ended March 31, 1982 priced at Step 1 rates to be effective June 2, 1982. Col. C, Lines 2-5: City of Vernon proposed budget for 1982-1983. (W/P B-4). Col. C, Line 6: Average Rate Base @ 11.2$ Rate of Return. 1 Does not include payment in lieu of franchise fee. I I I I I I I I I r I I I I I I I I I Exhibit B Sheet 2 of 4 City of Vernon Cost of Purchases From Edison Under Existing Rates Existing Units Rates Amount (OOO's) A B C D 1 1st 500 kW 6,000 $3,950 $ 47 2 Next 1,500 kW 18,000 7.50 135 3 Next 8,000 kW 96,000 7.40 710 4 All Excess 1,866,096 7.08 13,212 5 Total 1,986,096 $14,104 6 Voltage Discount $ .32 <636> 7 Power Factor Adj. 100 11 8 Vernon City Hall <11>1 _ 9 Subtotal $13.557 10 Energy (mWh) 1,213.974.2 4.3229! $52,468 2.J 1 1 Vernon City Hall <64> 12 Subtotal $52,404 13 Total $65,961 Sources: Col. A, Line 5: W/P B-1. Billing Demands include the projected on-peak demands only of the special contract customers. Col. A, Line 9: W/P B-2. Col. C: Rates from filing in Docket No. ER81-177. Col. D, Lines 6, 7 & 10: W/P B-2. Jl Total City Hall Demand @ 15 ~ Energy @ 85 ~ $75 1 1 64 Exhibit B Sheet 3 of 4 City of Vernon Cost of Purchases From Edison Under Step 1 Rates Step 1 Units Rates Amount (000'5) A B C D 1 1st 500 kW 6,000 $ 5,650 $ 68 2 Next 1.500 kW 18,000 10.80 194 3 Excess 1,962,096 9.45 18,542 4 Total Demand 1,986,096 $18,804 5 Voltage Discount $ .30 <596> 6 Power Factor Adj. 100 7 Vernon City Hall < 11 >11 8 Subtotal $18,297 9 Energy (mWh) 1,213,974.2 4.963~ $60,250 11 10 Vernon City Hall <64> 11 Subtotal $60,186 12 Total $78,483 CO t ~ Sources: Col. A, Line 5: W/P B-1. Billing Demands include the projected on-peak demands only of the special contract customers. Col. A, Line 9: W/P B-2. Col. C: Step 1 rates from filing in Docket No. ER82-47. Col. D, Lines 6, 7 & 10: W/P B-2. j/ Total Ci ty Hall Demand @ 15 S Energy @ 85 S $15 1 1 64 I I . . . . . . . r'"" . . . . . . . . . Exhibit B Sheet 4 of 4 City of Vernon Cost of Purchases From Edison Under Step 2 Rates Step 2 Units Rates Amount (OOO's) A B C D 1 1st 500 kW 6,000 $ 6,650 $ 80 2 Next 1,500 kW 18,000 12.65 228 3 Excess 1,962,096 12.00 23,545 4 Total Demand 1,986,096 $23,853 5 Voltage Di scoun t $ .30 <596> 6 Power Factor Adj. 100 JJ 7 Vernon City Hall < 11> 8 Subtotal $23,346 9 Energy (mWh) 1,213,974.2 4.963t $60,250y 10 Vernon City Hall <64> 1 1 Subtotal $60,186 12 Total $83,532 Sources: Col. A, Line 5: W/P B-1/ Billing Demands include the projected on-peak demands only of the special contract customers. Col. A, Line 9: W/P B-2. Col. C: Step 1 rates from filing in Docket No ER82-47. Col. D, Lines 6, 7 & "10: W/P B-2. 11 Total City Hall Demand @ 15 ~ Energy @ 85 ~ $75 1 1 64 Exhibit C Sheet 1 of 4 >> .-I a a a a ..c 0 0 .... co co \0 -4-> ..... a I:- l:- I:- cY1 C -4-> 0 Gl tr.. I I co.... a a 0'\ 5 C .... cY1 cY1 \0 ..... cY1 Gl ~ ~~ ~ ~ ..c -4-> 5 0 0 0 a 0 >> 0 .... co co \0 L.. l\J a 1:-\0 \0 .... t..,. ~ ts.1 I I co .... cY1 cY1 :::r C\J Gl .... \0 co Gl .... 0'\ ~- en ~~ ~ ~ cY1 cY1 ..... -4->-4-> ..... .. Gl Gl ~ al:-cY1 0 0 M \0 L.. . rIl Gl V U'\U'\O o....::r :::r .... a.tlO 3..c..c ..... C co M.::r Ol:-CO C\J 0'\ <C oCllen v..... ..... ..... Gl-4->O \0 U'\ .::r .... \0 C\J \0 I~ ..... L.. ~ rIl .- :::r rIl oenu 0 rIl en ro .- C\J<<J t..,. <,.., L.. U ~~ ~~ ~ ~ co u ~~ v 0'\ rIl .......... rIl 5 .- ..... ro.Q.Q v 0 v ..... ..... tlO~ U'\ I:- 0'\ 0 0 0'\ co >>v "O..c..c C L.. rIl 5 0'\ U'\ co 0....0 co \0 .....~ V >< >< 0 ro ::s Gl OMM 01:-\0 0'\ co ::sen ~ts.1ts.1 c..cu ..c ..... ~ ::s-- L..U v V U'\\OC\J 0.... C\J :::r 0'\ L.. a. v ~ ..... vu M \0 0 cY"'l t..,.o 5 I:- co I:- > >-0 ..c ~ .- .- '" 0<"" OO'\I:-U'\ ..... <<J ~ CIl OC\JCOM <,..,..c L.. v .- rIl ~ O~-4-> co ~~ ~~ ~ ~ ..c 0 rIlCOC\J\O r;: r;: ~ ro ..... .... >>0 0 C .... ~ ~ ~xu O~ ~ ..... U'\I:-C\J 0 0 C\J :::r 5 r;: rIl U <,.., ..... :::r U'\ 0'\ 0.-0 0'\ 0 0 0 0 <<J 0'\ cY"'l I:- 01:-0'\ \0 cY"'l V U 0 ..... ..... ..c ~ r;: 0 l\J U'\ '" I:- 0'- M .- a ~ "0 "0 111 tlOV ~ en M 0'\ U'\ 0'\ 0 r;: C 0 ..... a. 0 .- M tlO <<J <<J U rile/) f-o C a v C\J ..... a v "0 0 ~* *~ ~ ~ L.. V "0 r;: ::s ..c l\J "0 V ~ 5 ..... ..... rIl V "0 ..c C "0 0 r;: ~ ::s r;: <<J V rIl <0 ~ 5 en v~a ..... -~ ~ V tlOrIlV r;: ~rIl ~ rIl "0 .... <0 00 ::;) ~ O~ ~~ ~ 0 ....u _u r;: -rIl C Glt..,. V tlO V C\J ::s 0 ::s tlO > "C tlO "0" 0 "U 0 l\J rIl <0 c..... <0 ~ r;: r;: 5 C 5 >> L.. ..... <0..... L.. Gl < <0 l\J< co "0 < ..... ..... Gl ..... V a...... Gl Gl a 5 a v ..c <0 > .... ..c v..... > ..c v Gl >> V >< >> ~ ::s < .a f-o 0 en < en OQ...... 0.......... C r;: ..c tr....c 0 C ~ Gl~ ~ -4-> ::i: < <0 tlOC <0 C c: C\J U'\ V co 0 v 0 0 r-i ..-I a.. L..X a.. C X co co rIl Gl Gl Gl I Gl I L.. ~ -4-> V c: C C r;: > c Gl 0 0 0 ..... ..... ..... 0< 0> f-o f-o L.. .-J .-J .-J ::s 0 .....C\J M .::r U'\ '" I:- co en . . . . . . . . . 1" . . . . . . II . . Exhibit C Sheet 2 of 4 City of Vernon Development of Fixed Costs for Special Contract Customers Amount (OOO's) Vernon's Fixed Costs 1 Contracted Services 2 Miscellaneous 3 Operating Agreement 4 Depreciation 5 Return 6 In Lieu Payment 7 Total Costs $ 425 116 2,500 400 536 2,550 $6,527 2,818 <57> 648 96 216 30 3,811 $ 1. 71 Vernon's System Demands 8 Total System Demand 9 Spec. Cust. Excess over on-peak 10 Additional Firm - Bethlehem 11 Bee Jay 12 Kinetic 13 Steel Casting 14 To~al (mW) 15 Unit Cost per kW Sources: Lines 1-5: Exhibit B, Sheet 1. Line 6: Total costs less In-Lieu Payment equals $82,460,000 (Exhibit B, Sheet 1). In-Lieu Payment = .03 x (82,460,OOO). Line 8: Sheet 3. Line 9: Excess of peaks of Special Contract Customers over on-peak demands included in Line 8 demands. (W/P B-1). Lines 10, 11 & 12: Excess of Special Customer off-peak demands over on-peak demands x 12. IV) co "0 <l' Clll.... <U a> e 111 g~~~ C ...J s.-.:ll: .c a><Us.-O > a> 0 s.- t:l.. 4.. <U 4.. ::I: 0"0'0 Ca>tlO :>.<U..,:IC ..,:I 111.... ....:>.:::1"0 U tlO"t"") C s.- "0 bl a>< C s.- bl <U a> >0 o :::E III I C 3:<U ..::.:s.- ........E-- "0 C <U e a> o C s.- ..... a> r-l ..,:I r-l a> ....::1: In 111 C C) <U ..-..s.- .cE-< :3 e ...., s.- a> C s.- bl a> ..,:I tz.. a> ::I: ~ \.. 111 a> ..,:I <U 111 ..,:I.... cO a> o r.. a> :>. t:l.. &.. <U 111 e 111.... o s.- ...Jt:l.. . a>1 o C a> .... In fI)...J a> r-l :::I "0 a> < .c o fI) ~~ 4~ ~ o 0 .::r ::r ::r 0 0 CO IV)::r CO t.C\ <l' . .. . .... <l' ::r (\J \0 (\J t- CO <l' \0 cY\ 0 (\J \0 <l'::r t- t- .- IV) \0 cY\ l.CI CO l.CI (\J .... .- cY\ \0 ::r \0 cY\::r .... CO H cY\ <l' .... <l' IV) .... ::r \0 \0 ::r .... IV) t- t.C\ \0 o .... 0'\ (\J .- .... OOCOCO CO \0 cY\ ::r t- 0'\ CO . . . . .-<l't-(\J (\J\Ot.C\CO l.CI(\J\O<l' . . IV)(\J t.C\O 0\0 \0 :I: .. .. .. .. cY\ <l' IV) t- .- ::r t.C\ t.C\ .... cY\ t- t.C\ .. .... Ot.C\Ot-(\Jt-\Ot.C\::rcY\Ot- ............ t-(\Jt-\O\O(\J(\J\O(\J::rcol.Cl COC\lOt-....(\J....t.C\<l't-....C\1 (\J<l'O....<l'....\OC\lCO....COl.Cl t.C\t-::r....t- \OO::r1V) ....\O(\J.... .. N .... ::r .... Ot.C\....\Ot-Ot-OcY\O::r::r ............ t-N.....::r....CO.::r(\Jt.C\cY\(\Jt.C\ CON<l'O........\O::rCOcY\CO.... (\J<l't.C\\O\O.....::r(\Jt-....t-l.CI .. .. .. .. .. .. (\J .... ::r .... t.C\t-....COt- \OO::rC\l ....\OC\I.... ,....C\I:::r.::r\O\O\O....(\JN o '................NNN............ u '............(\J(\JNI........ IC\lN(\JC\lNI ~ C o u . CO t- N.... .... N .... .... (\J .... o I I I' I I I I I I d><<CIlCllOfl)CIl...J<<U 0. C)C) ...J...JOt:l..t:l..f-4 (/) ....NIV)::rt.C\\Ot-COo,\O....N .... .... o t- O CO t- CO N N .... \0 o o <l' t- .. N \0 .... .... t- t- \0 t- t- t.C\ o .. N \0 .... r-l <U ..,:I o f-4 cY\ .... N I o t:l.. ....... 3: Exhibit C Sheet 3 of 4 111 d> o s.- :::I ~ I U 0.. ....... 3: l.r.. C e :::I r-l o U .. (\J , U t:l.. ....... 3: s.- s.- o 0 ..,:1..,:1 o 0 <U <U l.r..l.r.. "0"0 <U <U o 0 ...J...J '" '" t.C\O Nl.CI ~~ "0"0 a> d> ~..,:I :::I :::I 0.0. ~~ ::t: C e :::I r-I o U ~~ . . . . . . . . . -'0\ -':~F-1~ . . . . . . I I, --~((.- . Exhibit C Sheet 4 of 4 City of Vernon Development of Energy Charges For Special Contract Customers Step 1 Rates De 1 i v e r y Loss Edison Vernon Voltage Factor Rate Rate A B C D E Bethlehem 66 kV 1.01 4.963tt 5.013t Kinetic 66 kV 1. 02 4.963t 5.062t Bee Jay 4 kV 1.06 4.96315 5.261t Steel Casting 66 kV 1. 02 4.963t 5.062t Sources: Column D: W/P D-3. Exhibit D Sheet 1 of 2 ~ City of Vernon Allocation of Cost of Service Vernon's Costs Under Edison's Step 1 Rates Demand Energy Total Schedules Units Amount Units Amount Amount kW-Mo. mWh A B C D E F 1 A-8 1,349,269 $ 9,696,755 607,922.5 $31,472,975 $41,169,730 2 A-7 761,194 5,470,452 244,007.0 12,632,574 18, 103,026 3 GS-2 569,142 4,090,238 131,176.7 6,791,196 10,881,434 4 GS-1 43,376 311,729 7,916.2 409,832 721,561 5 D 672 4,829 122.7 6,352 11,181 6 PA-1 11,436 82, 187 4,174.3 216,109 298,296 7 PA-2 9.154 65,786 1.818.0 94,120 159,906 8 TC-1 2,880 20,698 525.7 27,216 47,9143 9 Total 2,747,123 $19,742,674 997.663.1 $51,650,376 $71,393.051 10.._"., Spec. Con t . 113 . 521 $ 2, 300, 000 165.287.0 $ 8,290,000 $10,590,000 J~. .'LS-1 6,417 92,072 2,612.6 134,657 226.729 12' LS-2 639 5,045 256.5 13,220 18,265 13 OL-1 10,369 109,596 1,892.4 97,537 207,133 14 Total 2,878,069 $22,249,388 1, 167.711.6 $60,185,790 $82,435,178 )ources: Column B: Exhibit C, Sheet 3. Column C, Line 9-13: Exhibit D, Sheet 2. Column D: Exhibit C, Sheet 3. Column E, Line 9-13: Exhibit D, Sheet 2. . Exhibit D Sheet 2 of 2 . . ^ ^^ ^ 0 0 t- o t- \0 0 \0 . a- a- I.l'\ C\J l""I t- o t- t- t- \OC\J1.l'\ l""I 0 l""I .. .. I.l'\ I.l'\ :::r M t- o 0 0 s- o eo co M .... (]'\ :::r a- I.l'\ . OJ .... .... v v (]'\ N \0 s::: v t.rJ 0 0 (]'\ eo \0 \0 I.l'\ V I.l'\ .". ... .". .". .". . ^ ^^^ ^ <:000000 eo \0 C\JI.l'\\O a- :::r I.l'\ C\Jooooo C\J l""I t-:::r a- t- 0 t- . "0 l""IOl""lOOI.l'\ .... :::r 001.l'\ a- l""I \0 ~ s::: .. .. .. s::: <<l t- It'I \0 OOlt'l :::r :::r C\J I.l'\ a- C\J 0 C\J II) :3 e u (]'\C\J.... OOM t- C\J (]'\vo :::r 0 :::r ~ II) 0 OJ C\J :::r It'I:::rlt'l C\J v v 0 l""I t- s::: OJ eo v . 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I . > OJ 0 c,.. <<l <<l OJ s- OJ s::: lU <<l 0 .c I ....... 0 ..... .c r-l ): OJ II) s- lU lI) lI) lI) II) ex: s- r-l )( U ;3: II) 0 :3 OCll :3 bOS::: > :3 lU lU lU ~ r-l W 0. ~ II) s- o < 0. 0< 0 lU 0 :3 :3 :3 s::: < 0. ....... m :3 ..... "0 lU .... ex: lU s::: s::: s::: > 0 ....... ;3: r-l 0. ~ "0 lU s::: bO~ s::: lU lU lU lU U s- ;3: u s- lU~ m s::: m r-l m > > > ex: 0 t- m II) 0 r-4 .... ..-4 m r-l lU lU lU r-4 I.&.. I I I 0. <<l m r-l~ 0 s::: .;.:> r-l ex: ex: ex: .;.:> m a- M .c s- lU m lU s- o lU lU ..... r-l eo II o~ 0 s- s- ::l E-< 0 .... N .... :z: 0 m II) II) L. s::: lI) lU 0.';':> II) I I I lU ~ III (!) (!) lU (!) :3 0 .... o.lU(!) .... tl)tI)..J 0. 0 (!) s::: s::: s::: s::: o.u ~ooex: ~ ..J..JO en E-< 0 .... .... .... .... I s- ..J ..J ..J ..J ::l N M:::r It'I \0 t- eo 0-0 C\J l""I :::r 0 CIl ,. Exhibit E Sheet 1 of 3 City of Vernon Special Conditions to Add to Schedule Nos. A-8. A-7. and GS-2 Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. 120. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s} or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved. the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. I I I I . . . . . ." Exhibit E Sheet 2 of 3 City of Vernon Special Condition to Add to All Rate Schedules Other than Special Contracts In-Lieu Payments: The amount payable under the rates filed herin shall be multiplied by 1.03 to reflect payments in-lieu of a franchise fee. . . . . . . . . . Exhibit E Sheet 3 of 3 City of Vernon Procedures for Calculating the Amount of Refunds to be Retained A deferred account shall be established in which to accumulate Vernon's additional costs and associated interest resulting from Southern California Edison's increased rates in ~ocket No. ER82-427 becoming effective prior to the increase in Vernon's rates. The deferred amount is to be computed by multiplying Vernon's billing demandsiduring the months of June, July, and August by $2.35 per kW of billing demand, which is the approximate average increase in the demand ~harge resulting from the Step 1 increase. Interest on this amount shall be computed at the interest rate which the FERC requires Edison to pay on its refunds to Vernon. The amount accumulated in this deferred account is to be deducted from any refunds which Vernon receives from Edison in Docket No. ER82-427 prior to flowing such refunds through to Vernon's customers. Exhibit F Sheet 2 of 2 v :> ~'1iol"tol ~ "tol"tol '1iol '1iol ..-i CV"l 0 \,() \0 \,() CV"l CV"l C\J 0\ N V ~CX) 00\0 o \,() CV"l ~ \,() ~ t- o t- \,() t- ~ ()'- 0\ (Y') \,() 0(Y')CX) (Y') 0\ (Y') \0 ~~ 0\ \0 lI:J v.....:c . . . . . . . 0:: c- '- 0\ ..... o 0\ 0:::> t- \,() t-O\ .- ..... \,() 0\ c- ..... ..... I.lrJ -fi7 -fi7 ~ -fi7 -fi7 -fi7 ~ "0 V CI) L.. ~"tol~ ~ ~"tol 'E.l 'E.l m 0 lI:J C\JC\JC\J C\J C\JC\J C\J C\J oz..s::o \0 \0 \0 \0 \0 \0 \0 \0 0.0 () \0\0\0 \0 \0 \0 \0 \0 o ("/) L.. 6: ~ v +) ~~~ ~ ~~ ~ ~ ..... "0 0 (Y') ~ (Y') ..... .-0 t- o m Q) Q) 00\0 .::T 0'\ t- o:::> \,() 0:::> ..... 0.... l.C'\ .... &......~tL. 0'\ (Y') \,() (Y') \0 .... \0 0\ \0 0 ~ 0:::> 0'\ 0 ..... ns . . . . . . . . . . . . . StL.Q:: 0\ .... 0'\ 0:::> 0:::> \0 l.C'\ \0 0\ ....0 l.C'\ 0\ Q) 0 .... .- .a U -fi7 -fi7 ~ -fi7 -fi7 -fi7 0 +) (Y') tL. "00:::> lXl ~ 'E.l ~ ~ ~'E.l 'E.l 'E.l Q)O'\ < t- t- t- t- t- t- t- t- m.... %: tz.J \,() l.C'\ l.C'\ \,() \,() \,() l.C'\ l.C'\ 0 ..J 000 0 00 0 0 0. . 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I . . . . . . If."' .;' . . . . . . . . . Exhibit G Sheet 1 of 3 City of Vernon Revenues @ Existing Rates, Revenues @ the Proposed Rates and the Resulting Increase Revenues @ Revenues @ Schedule No. Existing Rates Froposed Rates Increase A B C D 1 A-8 $36,004,623 $42.469,386 $ 6,464,763 2 A-7 15,617,899 18,617,479 2.999,580 3 GS-2 9,235,079 11,195,385 1,960,306 4 GS-l 690,785 742,017 51,232 5 PA-1 261,560 306,515 44.955 6 PA-2 120,135 164,449 44,314 7 TC-l 37,875 45,264 7,389 8 D 7,769 7,924 155 9 LS-l 234,012 258,066 23,994 10 LS-2 6,026 7,530 1,504 1 1 OL-1 611,206 735,667 58,461 12 Total $62,893,029 $74,481,493 $11.588,464 Sources: Lines 1 _ 6: Exhibit G, Sheet 2 (Column C has been adjusted to include in-lieu payment by multiplying Colum E, Sheet 2 totals by 1.03093). Lines 7 - 8: W/P G-2. Line 9: W/P G-12. Line 10: W/P G-13. Line 11: W/P G-11. II) Q) ~(.r.. co c:c: C\J '0 Q) II) o O~ e.. c o..::sUl o S < C\J CO 0\ II) Q) ~O <U c:c: c.. Q) .0 1l S V (II ~~ CO q., C; t." ,. c ..... +J II) -' ><+J Ula :3U o S < ... o (II > a..... bO~ ..... 0 I/) (II (lie... oe... Ul bO C II) .....~ .-4 ..... co .-4 a ..-4;:) co (II S o o Q) co o f-4 "101 co co 0 .-.- co .:::r.::T I,{\ If' I,{\ I,{\ -6I't-6l't o 0\ Li\ (\J.... t- ... t--oo.:::r . .. .. ,. I,{\.::r C\J C\J (\JCOC\J(V"l 0\(V"l0\C\J - .. .. .. (\J .::r (V"l.... (V"l ::r -6I't ~ "li.l ........0 .,... .-0'\ -0 -0 -0 If'1,{\::r ~~ OCOI,{\M .::rot-C\J 0\ co co -0 .. .. .. .. 0\0(V"l.::r C\J.::r(V"l0 o It\.::r 0 .. .. .. .. (V"l .::r co -0 NM ~ ~ 00\0 .::r-oo It\ C\J l.C\ 0\ N OC\J co 0\ ~ .:.:: o o o < . III .... III Q) o >< Ul I co ~ I III << I Q)'O .-4 a :3 <U '0 6 Q) (II ,roO o CI) .-C\JM.::T o "101 000 NO-o .- -0 Li\ ~~ OOC\J.::T 0-0-0-0 .::rlf'C\J0 .. . .. .. -oI.ClM.... .::rt-I,{\I.CI NNlt\O .. .. .. .. NNMCO ~ ~ "'101 o 0\ M If' .... 0\-00 .::r If' ~-6I't 00\00\ -0 I.CI co 0\ 0\ l.C\ M co .. .. .. .. o M M t- .::r -0.... .... t-t-....-o .. .. .. .. .....-C\Jlf' -6I't ~ C\JOO\ t--oM co N .- 0\.... t-O\ MI.CI t- o -0 ~ .:.:: o o II) C\J I/) Q) o >< Ul I t- ~ I III .-4< <u I >>+J (II '0 bOO.-4a c.. E-< :3 <u Q) '06 a Q) Q) t.U ,roO U CI) If'-ot-CO .... .... .::r N -0 "101 C\J C\J .- co 0\ l.C\ I,{\ -6I't -6I't -0 0\ - It\0\1,{\0 CO....C\JM .. .. .. .. t-I.CI-oO\ t--oC\J-O C\JO\\OCO .. .. .. .. ........t-O - .. ~ co "'101 000 o.....::r C\J.::rl.C\ co *~ C\J0t-0\ - C\J .::r t- M _ -0 0 .. .. .. .. (V"lt-.::rlt\ OCO.::rM 0\(V"l0\C\J '--00\ * ~ -0 M.- - -0 co O-olt\ ... t- .::r (V"l0 M -0 ~ .:.:: 011) C\J III C\J Q) I +J 0 Cl)1Il>< .-4c.,:)-Ul <U I I >>+J Q) 'lj bOO.-4a c..E-<:3CO Q) 'lj 6 C Q)Q) t.U ,ro 0 u CI) 0\ 0 "'Eol. C\J 00\ 0\ co .:::r co -6I't .:::rC\Jlt\ NMI.CI 0\ co t- C\J -0 0\ .::rt-.... -0 t- .... ~ "'101 -0 -0 .... co It\ ::r co .. M C\J If' t-.-ro If'C\Jt- C\Jcoo .::T ::r 0\ -0 \D ~ O::r -00\ t- -0 co .... \D co C\J - Q) 00 c.. (1J ,ro IU CI) .-4 c.,:) c.. <U Q) >>+J Q) 6 000.-40 c..E-<:3~ Q) 'lj I/) a Q):3 t.U ,rou o CI) C\J (V"l .::T If' .- - .- ~ 0\ ON o t- .- -0 -6I't 00\0\ .-.o~ C\J....M 0\ co to- ....t-O\ C\JN ~ ~ "li.l t-ro to- C\J o co .- I,{\ .. 0\....0 ro t--O -0 co l.C\ 00.... (\J ::r C\JN ~ ~ 00 .... 0\ N 0\ 0\ C\J .... M t- Q) bO c.. <U ..c U o "101 C\J0(V"l .::T \0 I,{\ \0 -61't* O.::r- -00\\0.... ....OC\JI.CI .. .. .. .. 000\0\ C\JMOI.CI .... .... .. .. .. "li.l M M 0lt\0 MOt- .::r ::r ~~ .:::r If' \0 If' ::r-oC\JM I,{\t-CO.... .. .. .. .. ::r.-(V"l0 ....C\JCON ~ ~ CO.::rO ::r t- 0 M.:::r I,{\ C\J co t- ::r .- ~ .:.:: If'1I) t-1Il Q) ~ 0 III >< .-Ul I I < .-40.. IIJ >>~ Q) bOO.-4 c.. E-< :3 Q) '0 a Q) t.U ,ro o CI) C\J e.. I Q) < ~ .-40.. o IIJ I 0. >>~ Q) 'lj Q) bOO.-4 a II) c.. E-< ::l IIJ c.. Q) 'lj 6 o a Q) Q) ::CUl ,roO o CI) \D t- co .-4 <U >> +J bOO c..E-< Q) a t.U .- .- 0\ 0'- C\J .- C\J C\J C\J ~ Exhibit G Sheet 2 of 3 o ~ .... .0 .... ,ro . >< M t.U ~ e Q) 0 Q) c.. ..c<.., CI) I/) . c.. U Q) ..c ~~ -,0 .0 ..... ..c ><- UlI c.,:) S 00.. c........ <..,~ III 6 c.. 0 Q) c.. ,ro<.., ~ OCO I < .- I 0 c.,:);2: 0..Q) ...... .-4 ~::3 'lj 6 Q) O..c c.. 0 <..,CI) COc.. I 0 <e... . ~ o a ;2:::3 o Q) e .-411J- ::3 'O.-4~ Q) <U Q) ..c~Q) oo..c Cl)E-<CI) COUl III Q) o c.. ::l o CI) c a 6 6 ::3 ::l .-t .-t o 0 uU Q) Q) l.r.. Q) I/) .... ,ro+J o Q) a Q) 1IJ..c c..CI) (.r.. <..,U . 0 ~ ~ a ::3 ..... ::lQ).o 0..... ..... O.-4.c I/) >< .....aUl 0-' a Q) ~ 0 ooa IIJ Q) a ~ e ~ .-4 >> 0 o<u..c > 0. I/) '0 ... Q) C 0 c.. IIJ c... IIJ ... ~ f/) oae.. ~Q)Q) o e e IIJ Q) 0 l.L....~ o I/) c.. C ::3 Q) ..... U ~ o~~ o..ao Q) III c.. 0 c.. oc..~ (.r..Q)a 0.0 ~ U aM Q) .-t 6 Q) <U +J'O-' I/) ::3 0 ::3 .-4 Q) ..-, 0 0. 'OaCl) <-' c.. O+JO +J 0 <.., a c.. II) o I/) Q) .... Q) ~ c.. 0 co 0.. CIa::; .-C\J(V"l . Exhibit G Sheet 3 of 3 I City of Vernon Development of Surcharge for Step 2 Rate Increase Schedule Demands Amount Surcharge A B C D 1 Spec. Cont. 113.521 $ 199,150 2 A-8 1,349,269 2,367,023 3 A-7 761,194 1,335,363 4 GS-2 569,142 998,446 5 GS-1 43,376 76,094 6 D 672 1,179 7 LS-1 6,417 11,257 8 LS-2 639 1,129 9 OL-l 10,369 18,190 10 PA-1 11,436 20,062 11 PA-2 9,154 16,059 12 TC-1 2,880 5,052 13 Total 2.878,071 $5,049,000 Demand Surcharge Spec. Con t . , A-8 14 A-7 and GS-2 2,774,422 4,899.981 $1.766 15 Net for Energy Surcharge $ 149,019 16 kWh for Remaining Sch. 18,651 .799~ Sources: Line 16: Line 14, Exhibit C, Sheet 3. Line 13: Di fference Sheets 3 & Exhibit C, Sheet 3. Column B: Exhibit C, Between Exhibit B, 4. Column B: Column C, Sheet 3. City of Vernon Base Rate For Energy Cost Adjusstment A 1 Energy Purchases from Edison 2 Edison Energy Rate 3 Cost of Energy Purchase 4 Vernon Sales 5 Base Cost of Energy 6 Existing Base Cost 7 Increase in Base Cost Sources: ~.. ; " Li ne 1: Line 2: Line 4: Exhibit H Sheet 1 of 4 B 1,21],974,200 kWh .04963 $/kWh $60,249,540 1,162,058,349 kWh 5. 185tlkWh 4.41 h! /kWh .774t!/kWh Exhibit B, Sheet 3. Step 1 Rates in Docket No. ER82-47. Exhibit C, Sheet 3. . . . . . . . . . W"\ . . . . Exhibit H Sheet 2 of 4 City of Vernon Procedures for Calculating the Energy Clause Adjustment Billing Factor The rate schedules contained herein are to contain, in addition to the base rates included in the current tariff, an Energy Clause Adjustment Billing Factor (ECABF) to reflect changes in the cost of fuel and purchased energy. The ECABF is to be calculated pursuant to the following equation: ECABF = EC + C e - B S e Where, ECABF = Energy Cost Adjustment Billing Factor per Kilowatt Hour Sold EC e = Estimated Fuel and Energy Costs for the Current Period C = Correcti~n for Previous Period's Over- or Under- recovery = Estimated Kilowatt hours to be Sold in Current Period Se B = Energy Cost per Kilowatt Hour included in Base Rates =5.185~/kWh 1 If the previous period average costs were less than 5.185~ per kWh, C is negative. If such average ~osts were greater than 5.185~ per kWh, C is positive. . . . . . Exhibit H Sheet 3 of 4 Energy Clause Adjustment Billing Factor (Continued) ECA Computation Sheet Schedule V-1 is attached to provide the computation sheet for all periods once implementation is completed. Estimated Energy Costs (ECel Items 1 through 3 represent the estimated energy costs which are to be used iin computing the period's ECA. This is an estimate of the costs the City expects to incur for the three month period to which this ECA will apply. It is comprised only of commodity or energy costs in keeping with standards only of commodity or energy costs in keeping with standards established by the Federal Energy Regulatory Commission and various state regulatory bodies. To calculate items l(a) and 1(b), the City must obtain estimates from Edison of the kilowatt hours expected to be sold to the City of Vernon during the period the ECA will be in effect. Edison must also provide an estimate of the ECA that they will be charging the City during that period. Line 2 would be comprised of estimated fuel costs required to operate t~e City's generating units. This charge would be designated on the billing for operating expenses as being charged to FERC account 547, Fuel. At the outset there will probably be no cost associated with this line item. However it will become a factor when the units become operational once again. Line 3 represents an estimate of the cost of interruptible energy to be purchased during the period the ECA will be in effect. Correction Factor Lines 4 through 7 of the computation sheet are used to calcualte the amount needed to correct for over- or under- recovery of energy costs in previous periodS. Line 4 represents a true-up of the previous period'S estimate of energy costs on Lines 1 and 2. These amounts can be taken from the billings of Edison both for purchased power and for fuel used by the Vernon generating units for the appropriate periods being corrected. Because there is a delay in the availability of expense and revenue data for individual months, the period for which a correction factor is calculated will lag behind by one month. I I I I I II . . I ...'....,...<...'. .:'}i . . . I . . . ." . City of Vernon Energy Cost Adjustment Computation Sheet For Three Months Ending Exhibit H Sheet 4 of 4 19 Estimated Energy Costs 1. Purchased Power from SCE (a) Energy Charge (b) Energy Cost Adjustment 2. Generation Fuel Costs (Account 547) 3. Costs of In terr upt i b 1 e Purchases 4. Total Energy Costs (1 +2+3) Correction Factor 5. Actual Energy Expenses for Previous Period 6. Unrecovered Energy Ex penses from Previous Periods 7. Less: Billed Base Rate and ECA Revenues from Previous Period 8. Unrecovered (Over-recovered) Energy Expenses {4+5-6} 9. Total Costs to be Recovered (3+7) Calculation ~f Factor 10. Estimated Kwhr Sales 11. Total Energy Cost per Kwhr (8+9) 12. Less: Amount in Base Rates 13. Energy Cost Adjustment Factor ( 10-11 ) $ $ $ $ $ $ $ $ $ $ $ .05185 $ All kWh t . per kWh........... .. . . . . . . . . . . . . . . . . 8.892~ .- Schedule No. GS-l GENERAL SERVICE APPLICABILITY Applicable to single- and three-phase general service including lighting and power. This schedule is not applicable when, in the opinion of the Company, the customer's load and use characteristics indicate that-the maximum demand may exceed 20 kW. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Per Month Customer Charge..............................$ 4.90 Energy Charge (to be added to Customer Charge): Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. X-Ray Installations: Where the Company installs the standard transformer capacity requested by a customer to serve separately an X-ray installation, the customer charge will be increased by $1.00 per kVA of transformer capacity requested. 3. Temporary Discontinuance of Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. 4. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. I ,- I I I . I . . . r . . . . . . . . . Schedule No. GS-2 GENERAL SERVICE APPLICABILITY Applicable to single- and three-phase general service including lighting and power. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Demand Charge: Per Month First 20 kW or less of billing demand.... $116.00 All excess kW of billing demand, per kW.. $ 5.82 Energy charge (to be added to Demand Charge): 5.92c Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: Billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding elevent months, however, in no case shall the billing demand be less than 20 kW. Billing demand shall be determined to the nearest 1/10 kW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any 15-minute metered interval in the month, but shall not be less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. 4. X-Ray Installations: Where the Company installs the standard transformer capacity requested by a customer to serve separately an X-Ray installation, the minimum charge will be increased by $1.00 per kVA of transformer capacity requested. 5. Temporary Discontinuance Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance cf service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. (Continued) (Cont inued) Schedule No. GS-2 GENERAL SERVICE 6. Energy Cost Adjustment: The rates above are subject to ad- justment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel col- lection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. 7. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. 8. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase of decrease in transformer capacity in accordance with Rule No. 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s} or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 9. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. I I I . . Sched <lIe No. A-7 GENE HAL SERVICE APPLICABILITY Applicable to single- and three-phase general service including lighting and power. TERRITORY Within the city limits of the City of Vernon. I . RATES Per Meter Demand Charge: Per Month First 200 kWof less of billing demand.........$1,200.00 All excess kW of billing demand, per kW........$ 6.00 Energy Charge (to be added to Demand Charge):.... 5.6095 . I IP-, Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. . . . . SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 501 of the highest maximum demand established in the preceding eleven monthS, however, in no case shall the billing demand be less than 200 kW. Billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any 15- minute metered interval in the month, but shall not be less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where the demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. . 4. Voltage Discount: The charges before adjustments will be reduced by 31 for service delivered and metered at voltages of from 2 kV to 10 kV; and by 5% for service delivered and metered at voltages over 50 kV; except that when only one transformation from a transmission voltage level is involved, a customer normally entitled to a 31 discount will be entitled to a 4~ discount. . . (Cont inued ) ..,. . ~. . (Cont, Schedule No. A-7 GENERAL SERVICE SPECIAL CONDITIONS (Continued) 10. Excess Transformer Capacitx: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacitY shall be billed at $1.00 per kVA pel. month. 11. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand. whichever is less and is expressed in kilowatts. 12. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimUM demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. . I Schedule No. A-8 GENERAL SERVICE-LARGE . . . . . . . . APPLICABILITY Applicable to general service, including lighting and power. This schedule is applicable for all customers of record on April 3, 1980 and thereafter to all customers whose monthly maximum demand exceeds 1,000 KW for all three months during the preceding 12 months. Any customer whose monthly maximum demand has fallen below 900 KW for 12 consecutive months may elect to take service on any other applicable schedule. TERRITORY Within the city limits of the City of Vernon. RATES Demand Charge: First 1000 KW or less of billing All excess KW of billing demand, Per Meter Per Month demand.......$5,418.00 per KW.......$5.418 Energy Charge (to be added to Demand Charge):... 5.580t Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. . . . I i I SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard vol tage . 2. Billin~ Demand: The billing demand shall be the kilo watts of maximum demand but not less than 50~ of the highest maximum demand established in the preceding 11 months, however, in no case shall the billing demand be less than 1000 KW. Billing demand shall be determined to the nearest KW. 3. Maximum Demand: The maximum demand in any month shall be measured maximum average kilowatt input indicated or recorded by instruments to be supplied by the Company, during any 15-minute metered interval in the month, but not less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where the monthly demand exceeds 5000 KW per month, the maximum demand shall be based on a 30-minute interval. Where the demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. (Continued) (Cont inued) Schedule No. A-8 GENERAL SERVICE SPECIAL CONDITIONS (Continued) . 8. Contracts: An additional initial three-year facilities contract may be required where Applicant requires new or added serving capacity exceeding 2,000 KVA. 9. Customer's Right to Terminate: In the event the net bill for electric service to the customer is increased during the term of the requirements contract, provided for herein, 'as a result of changes in this schedule, the customer shall have the right to terminate the requirements contract on not less than 30-months notice to the utility. Ssuch notice shall be given within 180 days after the effective date of such change. 10. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors andd fuel collection balance adjustment billing factor set forth therein will be applied to KWHR billing under this schedule. 11. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.00 per kVA per month. 12. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rtlle No. 12D. A contract demand arrangement is available upon request for all customers of record on this schedule. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving transformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 13. Minimum Demand Charge: Where no contract demand is involved, the monthly minimum demand charge shall be computed by multiplying the billing demand by the demand charge per kilowatt. Where a contract demand is involved, the monthly minimum demand charge shall be the greater of: a. The charge as computed by multiplying the billing demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. I I . . . . . . . ...-"~. .:.-.~:> Schedule No. D DOMESTIC SERVICE APPLICABILITY Applicable to domestic service including lighting, heating, cooking and power or combination thereof in a single-family accommodation; also to domestic farm service when supplied through the farm operat6r's domestic meter. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Per Month Domestic Service Customer Charge............................$ $ 1 . 50 Energy Charge (to be added to Customer 3.60t Charge): .................................. Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. . . SPECIAL CONDITIONS 1. Seasonal Service: For summer cottage customers and others who normally require service for only part of the year, the schedule is applicable only on annual contract. 2. Energy Cost Adjustment: The rates above include the adjustment as provided for in Part G of the Preliminary Statement. . . . . II . . Schedule No. LS-1 Energy Curtailment Service Midnight or Equivalent Facili ties Service Charge Per Lamp Per Lamp Per Month Per Month $ 6.73 $ 5.10 7.76 5.10 9.70 5.75 12.74 6.05 18.00 6.40 24.26 6.45 $ 6.92 $ 5.35 7.54 5.50 8.86 6.00 9.93 6.35 10.59 6.40 13.57 6.70 LIGHTING-STREET AND HIGHWAY UTILITY-OWNED SYSTEM APPLICABILITY Applicable to street and highway lighting service supplied from overhead lines where the Company owns and maintains the street lighting equipment. TERRITORY Within the city limits of the City of Vernon. RATES All Night Service Lamp Size-Lumens Per Lamp Per Month MERCURY VAPOR LAMPS 3,500 Lumens..............$ 7,000 Lumens.............. 11,000 Lumens.............. 20,000 Lumens.............. 35,000 Lumens.............. 55,000 L~ens.............. 7.91 10.18 13.35 19.12 29.60 42.62 HIGH PRESSURE SODIUM VApOR LAMPS 5,800 Lumens..............$ 7.69 9,500 L~ens.............. 8.87 16,000 Lumens.............. 11.02 22,000 Lumens.............. 12.86 25,500 Lumens.............. 14.04 47,000 Lumens.............. 19.70 (Continued) . I - . . . ! Schedule No. LS-2 LIGHTING-STREET AND HIGHWAY CUSTOMER-OWNED INSTALLATION APPLICABILITY Applicable to service for the lighting of streets, highways, other public thoroughfares, and publicly-owned and publicly- operated automobile parking lots which are open to the general .public, where the customer owns the street lighting equipment. TERRITORY Within the city limits of the City of Vernon. RATE A-UNMETERED SERVICE: All Night Multiple For each kW of lamp load, per kW..$26.19 RATES Per Service Series $34.06 Month Midnight Multiple $15.23 Service Series $18.51 RATE B-UNMETERED SERVICE: Per Meter Meter Charge: Per Month Multiple Service.............................$ 4.50 Series Service............................... 12.00 Energy Charge (to be added to Meter Charge): All kWh', per kWh............................. 7.03t RATE C-UNMETERED SERVICE-OPTIONAL: In addition to the Rate A and Rate B charges Lamp Rating Lumens 1 , 000 2,500 4,000 6,000 10,000 3,500 7,000 11,000 20,000 35,000 55,000 5,800 9,500 16,000 22,000 25,500 47,000 I . I I -. . I Per Lamp Lam~ Type Per Month Incandescent Extended Service......$ 0.33 Incandescent Extended Service...... 0.38 Incandescent Extended Service...... 0.40 Incandescent Extended Service...... 0.42 Incandescent Extended Service...... 0.45 Mercury Vapor...................... 0.36 Mercury Vapor...................... 0.33 Mercury Vapor...................... 0.40 Mercury Vapor...................... 0.36 Mercury Vapor...................... 0.54 Mercury Vapor...................... 0.49 High Pressure Sodium Vapor......... 0.80 High Pressure Sodium Vapor......... 0.80 High Pressure Sodium Vapor......... 0.78 High Pressure Sodium Vapor......... 0.79 High Pressure Sodium Vapor......... 0.79 High Pressure Sodium Vapor......... 0.81 (Continued) 7,000 Lumens. . . . . . . 20,000 Lumens. . . $10.23 $20.26 $ 7.81 $1 3. 35 $5. 15 $6.10 Sched ule No. OL-1 OUTDOOR AREA LIGHTING SERVICE APPLICABILITY Applicable to outdoor area lighting service, other than street and highway lighting service, supplied from overhead lines where the Company owns and maintains the area lighting equipment. TERRItORY Within the City limits of the City of Vernon. RATES LUMINAIRE CHARGE: ENERGY CURTAILMENT SERVICE MIDNIGHT OR EQUIVALENT FACILITIES ALL NIGHT SERVICE SERVICE CHARGE LAMP SIZE-LUMENS PER LAM P PER MONTH PER LAt4P PER MONTH PER LAM P PER MONTH * MERCURY VAPOR LAMPS HIGH PRESSURE SODIUM VAPOR LAMPS 5,800 Lumens. . 9, 500 Lumens. . 22,000 Lumens. . . . . $ 7.74 $ 8.92 . $12.91 $ 6.97 $ 7.58 $ 9.98 $5.40 $5.55 $6.40 POLE CHARGE (to be added to Luminaire Charge): PER POLE PER MONTH For each additional new wood pole installed. . $ 2.59 .Closed to new installations as of February 1, 1980. SPECIAL CONDITIONS 1. Area all night lighting service waill be furnished from dusk to dawn, approximately 4,140 hours per year, by Company- owned luminaries supplied from the Company'sexisting 120/240 volt overhead circuits and mounted on existing Company-owned wood poles as standard equipment. 2. Where the customer requests the installation of other than the standard equipment furnished by the Company and such requested (Continued) . I Schedule No. PA-l POWER-AGRICULTURAL AND PUMPING . . i ! . I '* i . I CONNECTED LOAD BASIS APPLICABILITY Applicable to power service for general agricultural purposes or for general water or sewerage pumping. TERRITORY Within the city limits of the City of Vernon. RATES Monthly Service Charge Per Meter Horsepowe!~ of Connected Load Per Meter Per hE 2 and over $1.00 Energy Charge to be added to Service Charge-Rate PerKW"H: . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . 6.729t - Minimum Charge: The annual minimum charge shall be the annual Service Charge. SPECIAL CONDITIONS 1. Volta~e: Service will be supplied at one standard power voltage. 2. Connected Load: Connected load is the sum of the rated capacities of all of the customer's equipment that it is possible to connect to the Company's lines at the same time, determined to the nearest 1/10 hp. In no case will charges be based on less than 2 hp for single-phase service or no less than 3 hp for three-phase service. The rated capacity of the customer's equipment will be the rated horsepower output of standard rated motors, the rated horsepower of welders determined in accordance with the section designated Welder Service in Rule No.2, and the rated kilovolt-ampere input capacity of other equipment, with each kilovolt-ampere of input considered equal to one horsepower. Normally such ratings will be based on the manufacturer's rating as shown on the nameplate or elsewhere but may, at the option of the Company, be based on tests or other reliable information. (Continued) Sched ule No. PA-2 POWER-AGRICULTURAL AND PUMPING DEMAND BASIS APPLICABILITY Applicable to power service for general agric~ltural purposes or for general water or sewerage pumping. TERRITORY Within the city limits of the City of Vernon. RATES Demand Char'ge: First 75 KW or less of billing demand..... All excess KW of billing demand, per KW... Per Meter Per Month $ 420.00 $ 5.60 Energy Charges (to be added to Demand Charge): 6.13t Minimum Charge: The monthly minimum charge shall be the monthly Demand Charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. {. 2. Billing Demand: The billing demand shall be the kilowatts of maximum demand but not less than 50% of the highest maximum demand established in the preceding eleven months, however, in no case shall the billing demand be less than 75 KW. Billing demand shall be determined to the nearest 1/10 KW. 3. Maximum Demand: The maximum demand in any month shall be the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Company, during any 15-minute metered interval in the month. but not less than the diversified resistance welder load computed in accordance with the section designated Welder Service in Rule No.2. Where demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. 4. Power Factor Adjustment: When the billing demand has exceeded 200 KW for three consecutive months, a kilovar-hour meter will be installed as soon as practical, and, therefore, until the billing demand has been less than 150 KW for twelve consecutive months, the charges will be adjusted each month for power factor, as follows: (Contined) I I I Schedule No. S STANDBY I APPLICABILITY Applicable to standby or breakdown service where the entire elec- trical requirements on the customer's premises are not regularly supplied by the utility. . . TERRITORY Within the city limits of the City of Vernon. . RATES Per Meter Standby Charge: Per Month First 20 kW of contract demand, per kW........$ 4.00 All excess kW of demand, per kW...............$ 1.71 . . The standby charge shall not be less than $20.00 per month. . Regular Schedule Charges (to be added to Standby Charge): All energy charges of the applicable regular service schedule designated in the service contract plus a charge of $9.25 per kW of on-peak demand in any month. .,.. Minimum Charge: The monthly minimum charge shall be the standby charge plus the regular schedule minimum charge. SPECIAL CONDITIONS 1. Contract Demand: In case the customer desires the utility to stand ready to supply the entire connected load of the customer's plant, or an issolated part thereof, then such maximum load will be estimated by the utility, based on tests and other information available. In case the customer desires the utility to stand ready to supply a number of kilowatts less than the maximum demand of the entire customer's plant, or an isolated part thereof, then the customer and the utility shall agree upon the number of kilowatts the utility will stand ready to supply; and the customer shall, at his own expense, furnish and install a suitable circuit breaker enclosed in a steel box equipped with a lock, all to be approved by and under the sole control of the utility, and adjustment and operation of said circuit breaker to be in no way interfered with by the customer. This circuit breaker shall be set to break the connection with the utility's service when the customer's maximum demand exceeds the ntlmber of kilowatts which the utility stands ready to supply, in which case the utility will renew the connections upon due notice. . . . . 2. Contract: This schedule will apply only where the customer will sign a service contract for at least one year. (Continued) Energy Charge (to be added to Customer Charge): All kWh, per kWh 6.705t Schedule No. TC-l TRAFFIC CONTROL SERVICE APPLICABILITY Applicable to single-phase service for traffic directional signs or traffic signal systems located on streets, highways and other public thoroughfares and to railway crossing and track signals. TERRITORY Within the City limits of the City of Vernon. RATES PER METER PER MONTH Customer Charge: $ 4. 32 Minimum Charge: The monthly mInImum charge shall be the monthly Customer charge. SPECIAL CONDITIONS 1. Voltage: Service willbe supplied at one standard voltage not t in excess of 240 volts or, at the option of the Company, at 240/480 volts, three wire, single phase. 2. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factors and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. Vel'non Schedule No. SC SPECIAL CONTRACT APPLICABILITY This schedule is applicable when (1) any customer's maximum demand exceeds 10,000 kW for any month during the preceding 12 months; or (2) in the opinion of the City, the customer offers to enter into a contract wherein the customer's load and use characteristics are altered during peak demand periods and said alterations provide cost reductions to the City of Vernon. . TERRITORY Within the city limits of the City of Vernon. RATES Rates are to be established pursuant to contract and shall recover all cost incurred in the delivery of said service. SPECIAL CONDITIONS 1. Conditions: Conditions are to be established pursuant to contract, however, in the event said contract is not complied with then all electrical services supplied during the contract period shall be rebilled at the following rates with a credit allowed for payments received pursuant to the contract. RATES: PER METER PER MONTH Demand Charge: All kWs, per kW $ 10.00 Energy Charge (to be added to Demand Charge): 5.185t 2. Energy Cost Adjustment: The rates above are subject to adjust- ment as provided for in Part G of the Preliminary Statement. The applicable energy cost adjustment billing factor and fuel collection balance adjustment billing factor set forth therein will be applied to kWh billed under this schedule. Schedule No. SE SERVICE ESTABLISHMENT CHARGE APPLICABILITY Applicable to General Set"vice and Domestic Service customers. TERRITORY Within the city limits of the City of Vernon. RATE For each establishment of electric service..............$5.00 SPECIAL CONDITIONS 1. The service establishment charge provided for herein is in addition to the charges calculated in accordance with the applicable schedule and may be made each time an account is established. As used herein, establishment means each time an account is opened, including a turn on of electric service or a change of name which requires a meter reading. 2. In case the customer requests that electric service be established on the day of his request or outside of regular business hours, an additional charge of $5.00 may be made. 3. The service establishment charge is not applicable by customers of the Company to service rendered through submeters to tenants. -j- SERVICE ESTABLISHMENT CHARGE Schedule No. SE APPLICABILITY Applicable to General Se,'vice and Domestic Service customers. TERRITORY Within the city limits of the City of Vernon. RATE, For each establishment of electric service..............$5.00 SPECIAL CONDITIONS 1. The service establishment charge provided for herein is in addition to the charges calculated in accordance with the applicable schedule and may be made each time an account is established. As used herein, establishment" means each time an account is opened, including a turn on of electric service or a change of name which requires a meter reading. 2. In case the customer requests that electric service be established on the day of his request or outside of regular business hours, an additional charge of $5.00 may be made. 3. The service establishment charge is not applicable by customers of the Company to service rendered through submeters to tenants. . . . . Commencing at 12:01 a.m. November 1 and continuing through April 30 of the following year, each exclusive of holidays. Holidays include New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, and Christmas. SECTION 3: Billin~ Demand. . The billing demand shall be the kilowatts of maximum "on-peak" demand established during the time this contract is in effect. fI I SECTION 4: Maximum Demand. The maximum demand in any month shall be measured maximum average kilowatt imput, indicated or recorded by instruments to be supplied by City, during any 30-minute metered interval in the month. Where demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. SECTION 5: Rates. Byron Jackson agrees to pay the following rates during the terms of this Agreement and City agrees to make the following charges during the term of this Agreement. A. KINETIC METER FACILITY (ACCOUNT 19522005) PER METER PER MONTH Customer Charge: $ 30,780.00 Demand Charge: All KWS of billing demand, per KW $ 8.00 Energy Charge (to be added to demand charge) : All KWH, per KWH 5.06215 Added Facilities Charge: Added facilities charge pursuant to Ordinance No. 911 shall continue to be applicable -3- Energy Charge (to be added to demand charge): All KWH, per KWH 5.261t! Minimum Charge: Tne monthly minimum charge shall be the monthly customer charge Energy Cost Adjustment Billing Factor: All energy used shall be charged the then current energy adjustment billing demand factor adopted by resolution of the City Council. Said energy adjustment billing demand factor shall be applied to the energy consumed by Byron Jackson (kinetic Meter Facility) in the same fashion as if Byron Jackson (Kinetic Meter Facility) were still part of the A-8 classification. Power Factor Adjustment: The charges will be adjusted each month for reactive demand. The charges will be increased by twenty cents (20t!) per kilovar of maximum reactive demand imposed on the utility in excess of twenty percent (20~) of the number of kilowatts of billing demand. The maximum reactive demand shall be the highest co-incident measured maximum average kilovar demand, indicated or recorded by metering to be supplied by the utility during any 30-minute metered interval in the month. The kilovars shall be determined to the nearest unit. A device will be installed on each kilovar meter to prevent reverse operation of the meter. B. BYRON JACKSON ("BEE JAY") METER FACILITY (Account #9523015) ) PER METER PER MONTH Customer Charge: $13,680.00 Demand Charge: All KWS of billing demand, per KW $ 8.00 Added Facilities Charge: Added facilities charge pursuant to Ordinance No. 911 shall continue to be applicable -4- -7- r- CITY OF VERNON for service which will not reimburse the City for all of its costs associated with providing said service to Steel Casting. SECTION 12: Off-Peak Demand. Steel Casting's maximum demand during the off-peak periods shall be 4,000 kW. IN WITNESS WHEREOF the parties hereto have executed this Contract, or caused it to be executed as of the day, month and year first above written. ~ Leonis C. Malburg, Mayor ATTEST: By Bruce V. Malkenhorst, City Clerk . STEEL CASTING COMPANY By APPROVED AS TO FORM: By David B. Brearley, City Attorney -6- , . . . . . . . . . .~_..~. ,;., "". < " Energy Charge (to be added to demand charge): All KWH, per KWH 5.062c Added Facilities Charge: Added facilities charge pursuant to Ordinance No. 911 shall continue to be applicable. Minimum Charge: The monthly minimum charge shall be the monthly demand. Energy Cost Adjustment Billing Factor: All energy used shall be charged the then current energy adjustment billing demand factor adopted by resolution of the City Council. Said energy adjustment billing demand factor shall be applied to the energy consumed by Steel Casting in the same fashion as if Steel Casting were still part of the A-8 classification. Power Factor Adjustment: The charge will be adjusted each month for reactive demand. The charges will be increased by twenty cents (20i) per kilovar of maximum 'reactive demand imposed on the utility in excess of twenty percent (20%) of the number of kilowatts of billing demand. . . The maximum reactive demand shall be the highest co-incident measured maximum average kilovar demand, indicated or recorded by metering to be supplied by the utility during any 30-minute metered interval in the month. The kilovars shall be determined to the nearest unit. A device will be installed on each kilovar meter to prevent reverse operation of the meter. SECTION 6: Voltage Service. Service will be supplied only at 66,000 volts of service. SECTION 7: Temporatry Discontinuance of Service. Where the use of energy is seasonable or intermittent, no adjustments will be made for a temporary discontinuance of service. The customer prior to resuming service, after such service was discontinued, shall be required to pay all charges which would have been billed if the service -4- the following year, each exclusive of holidays. Holidays include New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, and Christmas. SECTION 3: Billing Demand. The billing demand shall be the kilowatts of max imum "on-peak" demand established during the time this contract is in effect. SECTION 4: Maximum Demand. The maximum demand in any month shall be measured maximum average kilowatt imput, indicated or recorded by instruments to be supplied by City, during any 30-minute metered interval in the month. Where demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. SECTION 5: Rates. Bethlehem Steel agrees to pay the following rates during the terms of this Agreement and City agrees to make the following Charges during the term of this Agreement. Demand Charge PER METER PER MONTH First 6,000 KWS or less of billing demand All excess KWS of billing demand, per KW $135,000.00 $ 8.00 Energy Charge (to be added to Demand Charge): All KWH, per KWH 5. OBi Minimum Charge: The monthly minimum charge shall be the monthly demand Energy Cost Adjustment Billing Factor: All energy used shall be charged the then current energy adjustment billing demand factor adopted by resolution of the City Council. Said energy adjustment billing demand factor shall be applied to the energy consumed by Bethlehem Steel in the -3- -5- this Contract. SECTION 10: Term of Contract. This Contract shall be effective on January 15, 1982 and shall continue through December 31, 1982. However, in the event that the Federal Energy Regulatory Commission or Southern California Edison Company takes any action which would increase the cost of providing said services to the City, then the City shall be permitted to adjust the rates provided for above in order to recover any such additional increases in costs. Bethlehem Steel shall have the right to reopen negotiations on the rate structure should its business picture change. SECTION 11: Special Conditions. All conditions of the Vernon A-8 Schedule as authorized by City Ordinance Nos. 895, 898, 905 and 911 except where inconsistent with any of the conditions provided for herein, shall be in effect. In the event there is a dispute shall be resolved by agreement of the parties under no circumstances shall the City be obligated to apply a rate for services which will not reimburse the City for all of its costs associated with providing said service to Bethlehem Steel. SECTION 12: Off-Peak Demand. Bethlehem's maximum demand during the off-peak periods shall be 60,000 kW. CITY OF VERNON for service which will not reimburse the City for all of its costs associated with providing said service to Steel Casting. SECTION 12: Off-Peak Demand. Steel Casting's maximum demand during the off-peak periods shall be 4,000 kW. IN WITNESS WHEREOF the parties hereto have executed this Contract, or caused it to be executed as of the day, month and year first above written. By Leonis C. Malburg, Mayor ATTEST: By Bruce V. Malkenhorst, City Clerk . STEEL CASTING COMPANY By APPROVED AS TO FORM: By David B. Brearley, City Attorney -6- '-