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Resolution No. 50761 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • RESOLUTION NO. 5076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON PROVIDING FOR THE ESTABLISHMENT OF ELECTRICAL RATES TO BE CHARGED FOR ELECTRICAL ENERGY DISTRIBUTED AND SUPPLIED BY SAID CITY WITHIN ITS BOUNDARIES WHEREAS, the City Council of the City of Vernon adopted Ordinance No. 940 on December 6, 1983, providing that rates to be charged for electrical energy distributed and supplied by said City within its boundaries shall be set by resolution; and WHEREAS, the Federal Energy Regulatory Commission (hereinafter "FERC ") in Docket No. ER84 -75 permitted Southern California Edison Company (hereinafter "SCE ") to institute new electrical rates applicable to resale purchasers effective June 8, 1984; and WHEREAS, said rates were permitted to become effective subject to refunds in the event the FERC finds said rates to be unreasonable at the conclusion of its consideration of said docket; and WHEREAS, the City of Vernon has intervened in said docket questioning the reasonableness of SCE's wholesale rates; and WHEREAS, the City of Vernon has been currently purchasing electrical energy for resale under a time -of -use rate schedule permitted by the FERC in Docket No. ER82 -427; and WHEREAS, Baker G. Clay & Associates, Inc. 'has prepared a report on rate design containing recommendations on new rates which could be adopted by resolution and said report was submitted to the City Council during a public hearing on December 20, 1983; and WHEREAS, Baker G. Clay & Associates, Inc. has prepared and submitted a supplemental report on rate design to reflect the actions of the FERC on January 5, 1984, and said report was submitted to the City Council on May 15, 1984; and WHEREAS, said reports recommend that rates go into effect on June 8, 1984, such that costs associated with the increased rates provided for in FERC Docket No. ER84 -75 be recovered; and WHEREAS, the City Council of the City of Vernon held a public hearing on December 20, 1983, to consider the recommendations of Baker G. Clay & Associates, Inc. and further considered the supplemental report on May 15, 1984. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained herein- above are true and correct. SECTION 2: In accordance with Section 2 of Ordinance No. 940, the City Council hereby adopts rates, which are set forth in the attached exhibits referenced and identified below, which are hereby incorporated by this reference and made a part hereof as though fully set forth at length and are hereby adopted as the City's rates for the distribution of the electrical energy supplied by the City for certain classes of service to be effective June 8, 1984. -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SCHEDULE NO. VERNON GS -1 VERNON GS -2 VERNON TOU -V VERNON D VERNON LS -1 VERNON LS -2 VERNON OL -1 VERNON TC -1 VERNON S VERNON PA -1 VERNON PA -2 VERNON SE TYPE OF SERVICE General Service General Service General Service -Large Domestic Service Lighting - Street and Highway Utility -Owned System Lighting- Street and Highway Customer Owned Installation Outdoor Area Lighting Service Traffic Control. Service Standby Power - Agricultural and Pumping Connected Load Basis SHEET NO. EXHIBIT "A" EXHIBIT "B" EXHIBIT "C" EXHIBIT "D" EXHIBIT "E" EXHIBIT "F" EXHIBIT "G" EXHIBIT "H" EXHIBIT "I" EXHIBIT "J" Power- Agricultural and Pumping Demand Basis EXHIBIT "K" Service Establishment EXHIBIT "L" SECTION 3: That effective June 8, 1984, Resolution Nos. 5051 and 5061 are hereby repealed and any other resolution not consistent with or in conflict with this Resolution are hereby repealed. SECTION 4: That in all other respects the terms and conditions of service set forth in Ordinance No. 929 are not affected by this Resolution and shall continue to remain in full force and effect. /// /// /// /// -3- SECTION 5: That the City Clerk of the City of Vernon shall certify to the passage of this Resolution and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 15th day of May, 1984. ATTEST: B•UCE V. MALKENHORST, City Clerk LEONIS C. MALB RG, M 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 STATE OF CALIFORNIA ) ss. COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 5076 , was duly adopted by the City Council of the City of Vernon, and was approved by the Mayor of said City /an adjourned atx2 regular meeting of the City Council held on Tuesday, May 15 1984 /9‘"%, BRUCE V. MALKENHORST, City Clerk CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS -1 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 Energy Charge All kWh, per kWh 12.0140 Minimum Charge: The Energy Charge shall be subject to a monthly minimum charge of $5.3:3. Per Meter Per Month SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. 2. X -Ray Installations: Where the Utility installs the standard transformer capacity requested by a customer to serve separately an X -ray installation, the billing 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 »v: been billed if service had not been discontinued. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Exhibits Effective Effective Effective Effective 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. 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. 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 Demand Charge: All kW of billing demand, per kW (Subject to Contract Demand. See Special Condition No. 10) . Energy charge (to be added to Demand Charge): All kWh per kWh Minimum Charge: The Demand Charge plus the energy charge shall be subject to a monthly minimum charge of $195.00. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage. Per Meter Per Month $ 9.75 5.0390 2. Billing Demand: Billing demand shall be the kilowatts of maximum demand, 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 Utility, during any 15- minute metered interval in the month, but shall not be less than the diversified resistance welder load computed in accord - ance with the section designated Welder Service in Rule No. 2. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 3 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 kV; by 4% for service delivered and metered at voltages of from 11 kV to 50 kV; and by 5% for service delivered3 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 a 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 23 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 kilowatt- hours. Demands 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. X -Ray Installations: Were 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 $1.00 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 Ad 2ustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective Statement. 9. Excess Transformer Capacity: The transformer capacity in excess of a cust omer's contract demand which is either required by the Utility 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. 10. Contract Demand: A contract demand will be established by the Utility, 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 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 Utility's serving transformer(s) or the standard transformer size determined by the Utility as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 11. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be $1.03 per kilowatt of contract demand. 12. 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. 13. Recording Meters: A recording -type meter shall be installed for all customers purchasing under this schedule and having peak requirements of 533 kV or more. Customers having recording -type meters are not eligible to purchase under this schedule and must be transferred to Schedule No. TOU -V. Authorized by the City of Vernon Ordinance No. Ordinance No..�_ Resolution No. Resolution N. Effective Effective Effective Effective 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 with demands of 500 kW or higher for whom magnetic tape recording meters have been installed. Any customer whose monthly maximun 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 City of Vernon. RATES 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 (Subject to Minimum Demand Charge. See Special Condition No. 11) Energy Charge (to be added to Demand Charge) All on -peak kWh, per kWh Plus all mid -peak kWh, per kWh . • • • • • Plus all off -peak kWh, per kWh Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective Per meter Per Month $553. ^;; $9.935 $1.55 no charge 5.0350 4.7190 4.247¢ SPECIAL CONDITIONS 1. 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 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 Off -Peak 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:(1 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 Demands: Separate billing demands for the on -peak, mid -peak, and off -peak time periods shall be establisheJ for each monthly billing period. The billing demand for each time period shall be the maximum demand for that time period occurring during the respective monthly billing period. The billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demands shall be established for the on -peak, mid -peak, and off -peak periods. The maximum demand for each period shall be the measured maximum average kilowatt input indicated or recorded by instruments, during any 15- minute metered interval, but (except for new customers or Authorized by the City of Vernon Ordinance No. Ordinance No.�� Resolution No.�� Resolution No.�- Effective Effective Effective Effective 7 1 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 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 a 4% discount. 5. Power Factor Adjustment: a. Service Delivered and Metered at 4 kV or Greater: The charges will be adjusted each month for reactive demand as follows: 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. 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. 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 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 Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 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 determiner] 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 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. 7. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. 8. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Utility becaus:: if 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 Utility, 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 :Jo. 121). 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 determined by the Utility as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 1C. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be $1.0" per kilowatt of contract demand. 11. 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. Authorized by the City of Vernon Ordinance No. Ordinance No.�" Resolution No. Resolution No. "�' Effective Effective Effective Effective' 3 12. Contracts: An additional initial three -year facilities contract may be required where applicant requires new or added serving capacity exceeding 2,033 kVA. 13. Voltage: Service will be supplied at one standard voltage. 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. LS -1 LIGHTING- STREET AND HIGHWAY UTILITY -OWNED SYSTEM APPLICABILITY Applicable to street and highway lighting service supplied from overhead lines where the Utility owns and maintains the street lighting equipment. TERRITORY Within the City limits of the City of Vernon. RATES Lamp Size - Lumens All Night Service Per Lamp Per Month Mercury Vapor Lamps 3,500 Lumens 7,000 Lumens 11,010 Lumens 20,700 Lumens 35,000 Lumens 55030 Lumens 8.04 10.44 13.76 19.86 30.90 44.65 High Pressure Sodium Vapor Lamps 5,800 Lumens 9,500 Lumens 16,000 Lumens 22,011 Lumens 25,500 Lumens 47,000 Lumens 7.78 9.01 11.26 13.19 14.42 20.40 Authorized by the City of Vernon Ordinance No. Ordinance 4o. Resolution No. Resolution No. Energy Curtailment Service Midnight or Equivalent Facilities Service Charge Per Lamp Per Lamp Per Month Per Month 6.81 7.89 9.93 13.11 18.65 25.28 6.96 7.61 8.98 10.09 10.78 13.92 Effective Effective Effective Effective $5.1^ 5.15 5.75 6.05 6.41 6.45 5.35 5.51 6.30 6.35 6.41 6.79 SPECIAL CONDITIONS 1. Standard Equipment Furnished: Bracket or mast arm construction will be furnished. Where feasible with existing facilities, center suspension construction may 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. 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 requested equipment provided the customer agrees to advance the estimated difference in cost installed between such equipment and standard equipment. Advances made in connection with such agreements become and remain the sole property of the Utility; as do the said equipment. 3. Hours of Service: Under the Utility's standard all night operating schedule approximately 4,140 hours of service per year will be furnished. • 4. Removal or Modification of Equipment: Where street lighting service and facilities were ordered removed or modified by a customer 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. Facilities removed or installed remain the sole property of the Utility. 5. Energy Cost Ad Zustment: 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 adjustment billing factors set forth therein will be applied to 29 kWh per month per 1,000 lumens for incandescent lamps, to 10 kWh per month per 1,000 lumens for mercury vapor lamps, and to 4 kWh per month per 1,000 lumens for high pressure sodium vapor lamps. 6. Energy Curtailment Service: Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Effective Effective Effective 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. RATES RATE A- UNMETERED SERVICE: Per Month All Night Service Midnight Service Multiple Series Multiple Series For each kW of lamp load, per kW..$26.19 $34.06 $15.23 $18.51 RATE B- METERED SERVICE: Meter Charge: Multiple Service Series Service Per Meter Per Month $ 4.50 12.00 Energy Charge (to be added to Meter Charge): All kWh, per kWh 7.030 RATE C- MAINTENANCE SERVICE- OPTIONAL: In addition to the Rate A and Rate B charges Lamp Rating Per Lamp Lumens Lamp Type Per Month 1,000 Incandescent Extended Service $ 0.33 2,500 Incandescent Extended Service 0.38 4,000 Incandescent Extended Service 0.40 6,000 Incandescent Extended Service••.••• 0.42 10,000 Incandescent Extended Service 0.45 3,500 Mercury Vapor 0.36 7,000 Mercury Vapor 0.33 11,000 Mercury Vapor 0.40 Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective INCANDESCENT MULTIPLE SERIES GROUP EXT- GROUP EXT- RE- END- RE- END - REGU- PLACE ED REGU- PLACE ED LUMENS LAR MENT SVC. LAR SVC. SVC. Watts Watts Watts Watts 600 55 58 800 -- 1,000 85 92 2,500 175 189 3,500 4,000 268 295 5,800 — — 6,000 370 405 7,000 --- -- 9,500 -- -- 10,000 575 620 11,000 -- -- 15,000 800 860 16,000 -- 20,000 -- -- 22,000 -- -- 25,000 — -- 25,500 -- 35,000 — -- 47,000 -- 55,000 — — 42 -- 57 103 62 202 143 HIGH MERCURY PRESSURE VAPOR SODIUM VAPOR MOLT. SERIES Watts Watts Watts Watts Watts 44 65 73 152 164 327 210 220 448 310 325 690 525 558 — 755 822 — 1,275 Total lamp load shall be determined Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. 251 364 605 125 -- -- 82 208 — 140 121 85 292 447 447 202 174 248 233 -- 320 753 - -- 485 1,058 -- to the nearest 1/10 kW. Effective Effective ^' Effective Effective - 16 - 3. Maintenance Service: Maintenance service furnished by the Utility under Rate C for the lamps specified shall include the following: a. Renewal of lamps after the original installation by the customer. b. Regular inspection. c. Periodic cleaning of globes. d. Labor of replacing lamps and globes. Incandescent lamps furnished under this provision will be extended service lamps only. Mercury vapor lamps and high pressure sodium vapor lamps furnished under this provision will be as specified by ttie Utility. Globes for renewal shall be furnished by the customer. Maintenance service will be furnished only where, in the opinion of the Utility, no undue hazard or expense will result because of location, mounting height, or other reasons. 4. Switching Facilities: For all night or midnight (Pacific Standard Time) service under the Utility's standard operating schedules, the Utility will furnish, maintain, and operate the necessary switching facilities. For other operating schedules, the customer shall furnish, maintain, and operate switching facilities as specified by the Utility and take metered service under Rate B. 5. ,Hours of Service: Under the Utility's standard all night operating schedule, approximately 4,140 hours of service per year will be furnished and under the Utility's standard midnight (Pacific Standard Time) operating schedule approximately 2,090 hours of service per year will be furnished. 6. Removal of Equipment: Where street lighting service and facilities were ordered removed by a customer and such service and facilities, or their equivalent, are ordered reinstalled within 36 months from the date of the order to remove, the customer shall pay to the Utility in advance of reinstallation a nonrefundable amount equal to the cost of removal of the prior Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective facilities and the estimated cost of such reinstallation. Utility owned facilities removed or installed remain the sole property of the Utility. 7. Energy Curtailment Service: Where the customer requests 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 will not be refunded and shall be paid in advance or in installments acceptable to Utility over a period of not to exceed three years. Facilities installed in connection with such requests become and remain 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 All Night Multiple All Night Series Midnight Multiple Midnight Series Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. kWh Per kW Per Month 355 462 180 233 Effective Effective Effective Effective CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule 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 Utility owns and maintains the area lighting equipment. TERRITORY Within the city limits of the City of Vernon. RATES LUMINAIRE CHARGE: LAMP SIZE - LUMENS MERCURY VAPOR LAMPS 7,000 Lumens $10.49 20,000 Lumens $21.08 HIGH PRESSURE SODIUM VAPOR LAMPS • ENERGY CURTAILMENT SERVICE MIDNIGHT OR EQUIVALENT FACILITIES ALL NIGHT SERVICE SERVICE CHARGE PER LAMP PER MONTH PER LAMP PER MONTH $ 8.07 $14.17 PER LAMP PER MONTH $5.15 $6.10 5,800 Lumens $ 7.83 $ 7.06 $5.40 9,500 Lumens $ 9.06 $ 7.72 $5.55 22,000 Lumens $13.24 $10.31 $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. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. • Resolution No. Effective Effective Effective Effective SPECIAL CONDITIONS 1. Hours of Service: Area all night lighting service will be furnished from dusk to dawn, approximately 4,140 hours per year, by Utility -owned luminaires supplied from the Utility's existing 120/240 volt overhead circuits and mounted on existing Utility -owned wood poles as standard equipment. 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 requested equipment provided the customer agrees to advance the estimated difference in installation cost installed between such equipment and standard equipment. Advances made for this purpose will not be refunded. Facilities installed in connection with such agreements become and remain the sole property of the Utility. 3. Service and Facilities Furnished: This service will be in accordance with Utility's specifications as to the equipment, installation, maintenance, and operation. 4. Replacement of Lamps: The Utility will replace lamps on a scheduled basis, and individual lamps will be replaced 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 will be required by the Utility when service is first established under this schedule. 6. Type of Service: This service will be furnished only where the installation is considered by the Utility to be of a permanent and established character. 7. Removal or Modification of Equipment: Where area lighting service and facilities were ordered removed or modified by a customer and such service 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 reinstallation a nonrefundable amount equal to the cost of removal or modification of the prior facilities and the estimated cost of such reinstallation. Facilities removed or installed remain the sole property of the Utility. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 8. 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 adjustment billing factors set forth therein will be applied to 10 kWh per month per 1,000 lumens for mercury vapor lamps and to 4 kWh per month per 1,000 lumens for high pressure sodium vapor lamps. 9. Energy Curtailment Service: a. Where the customer requests the installation and /or removal of equipment in order to obtain Energy Curtailment Service, and such request is acceptable to the Utility, the Utility will comply with such request provided the customer first agrees to advance the estimated installation cost of any additional equipment required and /or the removal cost of any equipment currently installed. Such advances will not be refunded. Facilities installed in connection with such requests become and remain the sole property of the Utility. ' b. Under the Utility's midnight Pacific Standard Time (PST) or equivalent service operating schedule, approximately 2,090 hours of service per year will be furnished. c. Facilities charges shall be applicable under this schedule only when the Utility has been requested to discontinue the existing service by the customer and the customer has stipulated that the facilities are to be left in place for future use. d. The rates above for midnight or equivalent services are subject to adjustment as provided for in Part G of the Preliminary Statement. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 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 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 isolated 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 Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective • CITY OF VERNON LIGHT & PnWER DEPARTMENT Schedule No. TC -1 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 8.6260 Minimum Charge: The monthly minimum charge shall be the monthly Customer charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage not in excess of 240 volts or, at the option of the Utility, 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. 3. 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. 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 -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 Per Meter Demand Charge: Per Month First 75 kW or less of billing demand $ 525.01 All excess kW of billing demand, per kW$ 7.30 Ener3Y Charges (to be added to Demand Charge): All kWh per kWh 7.305¢ 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. Billin i Demand: The billing demand shall be the kilowntts of maximum demand but not less than 50% of the highest maximaa demand established in the preceding eleven months, however, in n) case shall the billing demand be less than 75 kW. Billing deman sh:'1 be determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month shall he the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Utility, during any 15- minute metered interval in the month, but not less than the Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 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 service of the Utility. 4. Maximum Load: The Utility reserves the right to establish the maximum load served under this schedule. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective Schedule No. D DOMESTIC SERVICE APPLICABILITY Applicable to domestic service including lighting, heating, cooking and power or combination thereof in a single - family accommodation. 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): All kWh, per kWh 4.50 Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS 1. Energy Cost Ad Zustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. 2. 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 -1 POWER- AGRICULTURAL AND PUMPING CONNECTED LOAD BASIS APPLICABILITY Applicable to power service for general agricultural purposas or for general water or sewerage pumping. TERRITORY Within the city limits of the City of Vernon. RATES Horsepower of Connected Load Per Meter 2 and over Monthly Service Charge Per Meter Per hp $1.01 Energy Charge to be added to Service Charge -Rate All kWh, per kWh 9.5550 Minimum Charge: The monthly minimum charge shall be the monthly 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 ratal . capacities of all of the customer's equipment that it is possih1 to connect to the Utility's lines at the same time, determines 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 rate] Authorized by the City of Vernon Ordinance No. Ordinance No. No. Resolution No. Effective Effective Effective Effective - 21 . - sr 1 motors, the rated horsepower of welders determined in accordan :e with the section designated Welder Service in Rule No. 2, and t`le 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 Utility, be based on tests or other reliable information. 3. Overloaded Motors: Whenever, upon test, any motor under normal operating conditions is found to be delivering more thin 115 percent of its capacity as indicated by its nameplate rating, the Utility may disregard the nameplate rating and base its charges upon the output as calculated from test. Any motor whic1 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 Utility or upon notification !b,J 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 ma:32 for any temporary reduction of connected load. Any customer, prior to 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 C of the Preliminary Statement. 5. In -Lieu Tax and Franchise Payments: The total charjas 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 1 n 4 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 ba 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, 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 21 cents per kilovar of reactive demand. However, in no case sh111 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 determined to the nearest unit. A ratchet device will be installed on the kilovar -hour ;:peter 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, prior to resuming service within twelv3 :month:.; after such service was discontinued will be required to pay all charges which would have been billed if servic3 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. 7. In -Lieu of Tax and Franchise Payments: The total c:iar;es 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 Authorized by the City of Vernon Ordinance No. Ordinance N3. Resolution No. Resolution No. Effective Effective Effective Effective 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 203 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 21 cents per kilovar of reactive demand. However, in no case sh 11 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 determined to the nearest unit. A ratchet device will be installed on the kilovar -hour ;peter 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, 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. 5. Energy Cost Adjustment: The rates above are subject to adjustment as provided for in Part G of the Preliminary Statement. 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. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either Authorized by the City of Vernon Ordinance No. Ordinance tio. Resolution No. Resolution No. Effective Effective Effective Effective - 29 - c , , required by the 'Utility because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.03 per kVA : r month. 9. Contract Demand: A contract demand will be establisher ay 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 accord.an:e 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 Utility's serving transformer(s) or the standard transformer size determine.? by the Utility as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 11. Minimum Demand Charge: Where a contract deman1 is established, the monthly minimum demand charge shall be $1.03 per kilowatt of contract demand. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 30 - CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. SE SERVICE ESTABLISHMENT CHARGE 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 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 or 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. Authorized by the City of Vernon Ordinance No. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective • required by the 'Utility because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.01 per kVA 7.7:r month. 9. Contract Demand: A contract demand will be establishes oy 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 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 Utility's serving transformer(s) or the standard transformer size determine? by the Utility as required to serve the customer's state-3 measurable kilowatt demand, whichever is less and is expressed in kilowatts. 11. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be $1.03 per kilowatt of contract demand. Authorized by the City of Vernon Ordinance No. Ordinance No._ Resolution No. Resolution No. Effective Effective Effective Effective t CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. C -1 COGENERATION SOURCE 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 a transportation agreement with each individual cogenerator in accordance with recommendations contained in the Rate Design Report approved herein. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. �- Resolution No. � —' Effective Effective Effective Effective BAKER G. CLAY & ASSOCIATES INC. REPORT ON RATE DESIGN CITY OF VERNON, CALIFORNIA Municipal Light Department JULY 1982 REPORT ON RATE DESIGN CITY OF VERNON, CALIFORNIA MUNICIPAL LIGHT DEPARTMENT JULY 1982 Prepared by Baker G. Clay & Associates, Inc. Section I. II. III. IV. V. VI. VII. VIII. IX. X. XI. TABLE OF CONTENTS Description Introduction Adequacy of Revenues Under 5 Existing Rates Revenue Requirements 6 Rates For Special Contract Customers 10 Allocation of Revenue Requirements 14 Proposed Changes in Rate Schedule Structure 17 Edison Rates 22 The Design of Rates 31 The Energy Cost Adjustment Billing Factor (ECABF) 36 PURPA Standards 38 1. Cost of Service 39 2. Declining Block Rates 40 3. Time -of -Day Rates 41 4. Seasonal Rates 42 5. Interruptible Rates 43 6. Load Management Techniques 43 7. Master Metering 45 8. Automatic Adjustment Clauses 46 9. Information to Consumers 47 10. Procedures for Termination 47 of Electric Service 11. Advertising 47 Conclusion 48 I. INTRODUCTION On March 31, 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 revenues above the step one rates of approximately $22 million (7.7 %). Edison requested effective 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, 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. 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 (000's) Step 1 Increased Rates $18,297 Existing Rates , 13,557 Increase $ 4,740 Step 2 $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 b y $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 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 surcharge to recover the increase in the cost of purchases under Step 2 rates, to become effective on September 1, 1982 or when SONGS 2.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 -4- increased rates are to become effective. II. ADEQUACY OF REVENUES UNDER PRESENT RATES Vernon's revenues under its existing rates are approximately equal to its revenue requirements, 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 April 1981 through March 1982. 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 $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 $5.5 million. Vernon's net revenues thus exceed its projected costs by less than $200,000. This comparison is set forth in the following table: Amount (000's) Revenues $71,096 Increase in ECAC Reserve <1,162> Net Revenues $69,934 Cost of Purchases from Edison Difference Vernon's Projected Costs Excess 64,200 $ 5,734 5,546 $ 188 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 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 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 of 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, 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 percent which is the rate of return allowed by the California Public Utilities Commission in Edison'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. 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 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 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 respective rates: Bethlehem Bee Jay Kinetic Steel Casting Demand in kW On -Peak Off -Peak Demand Demand 6,000 850 60,000 8,000 18,000 4,000 The on -peak demands are included in the existing contracts and the off -peak demands have been added to the new contracts. 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: M onthly Charges New Existing Monthly Rates Rates Increase Bethlehem $135,000 $136,000 $ <1,000> Bee Jay 13,680 12,000 1,680 Kinetic 30,780 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. Bethlehem 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 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 u 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 cost of energy and associated losses only. V. ALLOCATION OF REVENUE REQUIREMENTS Exhibit D, 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 $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 -1, LS -2, and OL -1 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 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. 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 -15- demands for Schedule No. PA -1 were imputed on the basis of 50 percent load factor purchases. -16- VI. PROPOSED CHANGES IN RATE SCHEDULE STRUCTURE 1. Char es for the Installation of Excess Ca.acity - 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. 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 customers during the off -peak periods. These contract demands are set forth in the table below: Maximum Demands (kW) Bethlehem 60,000 Kinetic 18,000 Bee Jay 8,000 Steel Casting 4,000 3. Pa ment In -Lieu of Franchise Fees - This report recommends a change in the method of including a payment to the city in lieu 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: -19- a. This provision does not apply to the Special Contract Customers because the in -lieu payment has been built into their rates; and, 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. 4. Deferred Account to Recover Edison's Increases Prior to Vernon's Increases - Edison's 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. 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 subsequently 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. -22- 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 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 B shows 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. -24- (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 -4O 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, other taxes, and operation and maintenance (0 &M) expenses. 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, 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. Column C shows the Energy Cost Adjustment Billing FActor (ECABF) to be 4.2860 /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 April 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 adopt 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 5.3900 /kWh to 4.2864 /kWh) 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 .2366 /kWh which was also reduced (from .4520 /kWh to .236 /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 .0040 /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. 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 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 .0710 /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 .5910 /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- associated with SONGS 2. 2. Pro•osed 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 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 (.0716 /kWh) and the Annual Major Additions Rate (.5914 /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 January 1, 1983, as shown in Column H of Sheet 2 of Exhibit F shows the huge increases in Edison's retail rates that are to occur on January 1, 1983. VIII. THE DESIGN OF RATES 1. To Reflect Edison's Ste • 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 3.60 per kWh. The revenues under these rates are less than allocated costs. Likewise, the lighting rates, Schedule Nos. OL -1, LS -1, 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. Sheet 2 of Exhibit G shows the design of rates for Schedule Nos. A -8, A -7, GS -2, GS -1, PA -1, 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 incremental costs of $9.25 per kW under Edison's Step 1 rates. The energy used 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 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. The surcharge to the Special Contract Customers and to 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 for 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 .6370 /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 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 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 December: 1982. 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 -34- 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 1976. 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 4.4110 /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 5.1850/kWh. The existing base cost of energy from which the ECABF is computed is 1 4.4110 /kWh, resulting in an increase of .7740 /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- 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 - 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. De clining 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 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 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 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. 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 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 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, 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- 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 -45- 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 -- 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. 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- 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. 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- 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 j.ts customers in a fair and equitable manner and complies with the intent of PURPA. City of Vernon Comparison of Costs With Revenues Twelve Months Ending March 31, 1982 (000's) Total Revenues Including ECAC Rev. B 1 April 1981 $ 5,880 2 May 5,369 3 June 5,269 4 July 5,561 5 August 5,662 6 September 5,978 7 October 6,327 8 November 6,327 9 December 10 January 1982 6,235 11 February 6,190 12 March 6,639 13 Total $71,096 14 Increase In ECAC Reserve <1,162> 15 Net $69,934 Cost of Purchases From Edison Including ECAC Charges C $ 5,427 5,114 5,090 6,188 4,560 4,944 7,411 6,368 5,408 4,647 4,469 4,574 $64,200 arorroirmboaramearoo $64,200 Exhibit A Sheet 1 of 1 Remainder D $ 453 255 179 <627> 984 718 <1,433> <41> 1,034 1,588 1,721 2,065 $6,896 <1,162> $5,734 Sources: Column B: Computer printout showing Billing Data by Rate Schedule. Column C: Edison Bills to Vernon. Line 14: W/P A -1. Exhibit B Sheet 1 of 4 City of Vernon Comparison of Revenue Requirements Actual Year vs. Estimated Under Edison's Step 1 Rates (000's) Actual Estimated Expenses Expenses as Adjusted w /Step 1 Rates B C 1 Cost of Power and Energy $65,961 $78,483 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: 1 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. Does not include payment in lieu of franchise fee. City of Vernon Cost of Purchases From Edison Under Existing Rates A Exhibit B Sheet 2 of 4 Existing Units Rates Amount (000's) 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 8 Vernon City Hall <11>� 9 Subtotal $13,557 10 Energy (mWh) 1,213,974.2 4.322E $52,468 1 11 Vernon City Hall <64 >"j 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. J Total City Hall Demand @ 15 % Energy @ 85 % $75 11 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's) 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 >J 8 Subtotal $18,297 9 Energy (mWh) 1,213,974.2 4.963E $60,250 10 Vernon City Hall <64 >� 11 Subtotal $60,186 12 Total $78,483 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 City Hall Demand @ 15 % Energy @ 85 % $75 11 64 City of Vernon Cost of Purchases From Edison Under Step 2 Rates Units B 1 1st 500 kW 6,000 2 Next 1,500 kW 18,000 3 Excess 1,962,096 4 Total Demand 1,986,096 5 Voltage Discount Exhibit B Sheet 4 of 4 Step 2 Rates Amount (000's) C___ $ 6,650 $ 80 12.65 228 12.00 23,545 $23,853 $ .30 <596> 6 Power Factor Adj. 100 7 Vernon City Hall <11 >1 8 Subtotal $23,346 9 Energy (mWh) 1,213,974.2 4.963E $60,250 10 Vernon City Hall <64 >2/ 11 Subtotal $60,186 12 Total Sources: $83,532 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. Total City Hall Demand @ 15 % Energy @ 85 % $75 11 64 0 V) 4r L 4) E 4) O h04) O L VI O N C ,0 U L O (1) 9 >. 0 4...0 L C >+ 0 0 4)X V •r+ U Co.* .-i 0 CO 0o .� 0. VI t/I 0 CO 0 U o o 0 0 o co co .o • 1 1 1 c0r-O 0 0• • M cn 'O M 44 44 tH o 0 0 0 O .- • co CO co .- m 40 tR to 3 . O t-- cn 0 0 cn .0 to to 0 0 •- aoM 0t-QO N 0. •D111 ? '-•O N ▪ +D 49 109• . 0• 0 0 O` co o ul co 0 o co +0 p MM 0 t-.0 0. co M •D 0 cn 69. 89. 419. .030 69. v, In 0 0 N ? t!1 01 0 r- 0 of 0 0.Mt`- 0 t- 0. t0 M 111 .o l+ O ('rl '- 0 cn ON Ul 0. 0 • Cr) 4 tti eA to to tH V) 3 V) x 0- ,`Ca.)4.) v t? C v) 0 3 0 . .o 0 o .) 0 C C E 0 E >+ co (0 <4 c0 'L7 Q r-4 r-4 E E E (1) - N 4) 0 >• ) )4 A 4.) 0 A A .-4 A ••4 1-4 0 0 .0 Lt... .0 0 0 .Y 4) .) .Y 4-) E •' c0 00 C (0 0 0 4) (0 0 4) 0 0 •-• •-( O. LX ct. 0 Z N (0 1 0 1 L 4.) 4.) O > 0(I) 0 0 O .E 0 >. F H •- N M ttl .0 t- co Sources: Exhibit C Sheet 1 of 4 0 0 E from the N CO ON -..-. '- M M ✓ 1 J.0.0 • • N 4) L • VI 4) 4) O. m 3 ..0 d C O c n 1 4.1 r4 . • V) O m() N c0 44 CO U 4) 4•) •' r-i CO .0 .0 4) • + M+ • 4) O .0 .0 � VI 4tsJIA L . 44 0 E ti 0 t.- O 4. 0 rn tom- t[1 0 N cO M VI ,C 0 ▪ ▪ VI co N .0 4) CO •.+ '- C L Ki3 O 4) 4) E C V) O 0 1 .0 4) y '0 'O VI C 0 0o m (v cs •■ • E avr -o L 4) •o C 1 (0 •0 4) 4 E 4 •) 4) n C 1 g • A C y 7 C CO 4) VI (0 .N E A O +) E r▪ + O to VI v C 0 L (0 OA O L 4) 4r 4) M 4) N O0 > b C 130 ro v) CO 0 •r+ CO a-) L r-( CO r-+ L 4) o r+ 4) E .-4 W 41) > •r+ .0 4) •r4 > ,0 <4 .0 H A W 4 cf) N 4) 4) O C -.4 (1) 0 City of Vernon Development of Fixed Costs for Special Contract Customers Amount (0001s) Vernon's Fixed Costs 1 Contracted Services $ 425 2 Miscellaneous 116 3 Operating Agreement 2,500 4 Depreciation 400 5 Return 536 6 In Lieu Payment 2,550 7 Total Costs Exhibit C Sheet 2 of 4 $6,527 Vernon's System Demands 8 Total System Demand 2,878 9 Spec. Cust. Excess over on -peak <57> 10 Additional Firm - Bethlehem 648 11 Bee Jay 96 12 Kinetic 216 13 Steel Casting 30 14 Total (mW) 3,811 15 Unit Cost per kW $ 1.71 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 (82,460,000). 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. 0 1 0 • X VI CO x S- 03 1) 4) r 1 4) r-1 4) x O rn t0 i. L ('1 3 -o 0 E 0» in P 01 4) 0 A 0 M 4) .Y .0 C L 4) O L W 13. al 4) 0 '0 0 0 4) eo >, c0 a) >r .r.• A O •o U 13 W 0) Q it L W 03 4) 0 4)1 • N Loss Percenta L t0 L a • (1) U 0 -►4 Cr) 00 =r=' ?O 0a0 on-a. Wu .-Q.=' ICON Na0 CA 1/40 MO N QO Q\ ? N N '- M VD M Ula0 Ul N P P M.O ? .O M: P aO MQTPCT%M .D OP 4\N P- .0 .0 - PmC Ul O O 00 00 aO .D M QMr - N MN s CNCI N'. Qom'. 1 1 0 .OD 1 1 o 1 MQM MN .O a0 P • on Ul Mt Ul CDon CD `Nt- .0U17'MOt- t3 N tom- .O '.0 N CO N O on Cot- - N C- N QA O '- QA '- mD N 00 .- t0 on U\ N S '- tom- 1/40 O P .O N ptn. -.O( OC- OMO='� [-N P O aD cO N Co O .- P.0 =' of MCO' N Cm Ul .O vD P =t' N t r- t- on Ul r- 00 t- N ' =r O = N .0 N *- 1 1 '- N ? ? .0 *D .0 '- N N 1 1 P P P r- N N '- P •- 0 1 1 1 '- r• r- N N N 1 O a ( 1 1 1 NNN NN 1 1 1 • O 0 2,878,070.9 2,790,061.2 1,162,057.7 ri • 00 - N P P N P P (U P as 6 0 l 1 1 1 1 1 1 1 1 1 0. d 0 0 A.-1 0 GL. H 1- N N M? U1.0 C` a0 QA O '- N M P P P 0 0. Column F: Exhibit C Sheet 3 of 4 W/P C -2, W/P D -2. Column H: L L 0 0 4) 4) U (.1 03 (0 Li. Lr. 13 13 (00 (00 Ul O Ntn OD 'TO '0 -0 4) 4) 4 43 0. 0. E iF H Exhibit C Sheet 4 of 4 City of Vernon Development of Energy Charges For Special Contract Customers Step 1 Rates Delivery Loss Edison Vernon Voltage Factor Rate Rate A B C D E Bethlehem 66 kV 1.01 4.963E 5.0130 Kinetic 66 kV 1.02 4.963E 5.0620 Bee Jay 4 kV 1.06 4.963E 5.261E Steel Casting 66 kV 1.02 4.9630 5.0620 Sources: Column D: W/P D -3. Schedules A City of Vernon Allocation of Cost of Service Vernon's Costs Under Edison's Step 1 Rates Demand Units Amount kW -Mo. B 1 A -8 1,349,269 2 A -7 761,194 3 GS -2 569,142 4 GS -1 43,376 5 D 672 6 PA -1 11,436 7 PA -2 9,154 8 TC -1 2,880 Enerjy Units Amount mWh C D E $ 9,696,755 5,470,452 4,090,238 311,729 4,829 82, 187 65,786 20,698 607,922.5 $31,472,975 244,007.0 12,632,574 131,176.7 6,791,196 7,916.2 409,832 122.7 6,352 4,174.3 216,109 1,818.0 94,120 525.7 27,216 9 Total 2,747,123 $19,742,674 997,663.1 $51,650,376 10 ..,Spec. Cont. 113,521 1V: -LS -1 6,417 12a' LS -2 639 13 OL -1 10,369 $ 2,300,000 165,287.0 92,072 2,612.6 5,045 256.5 109,596 1,892.4 14 Total 2,878,069 $22,249,388 1,167,711.6 Sources: 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. $ 8,290,000 134,657 13,220 97,537 $60,185,790 Exhibit D Sheet 1 of 2 Total Amount F $41,169,730 18,103,026 10,881,434 721,561 11,181 298,296 159,906 47,9143 $71,393,051 $10,590,000 226,729 18,265 207,133 $82,435,178 CD000O0 N 0 0 0 0 0 MOM00 U1 t- Ul•O 0 0 u, U CA N• -00M N • e- Ul ? tf► • CO N 0 ON • N tt-t oD O era n n n n' OD •O N tll.D N M N ? o- •- OOtn N tf1 O• tom- N CT O N v v V N N tR n 00 va .-- M O. 4- O\ ? ttl N . v • N CO O' ,> a C11 G aG U a > Vl +a E a a • f- L > a r0 a L. a G N ri 3 a h 1~ a V) v) H N a ocf) a 000 > a a a • a 0 6 O a O O a 7 • -p a -.+ a a 0 0 0 > cJ 4) -p a 0 00 C a a �a U tO L a +> CO 0 al 1-4 m > > > 0. tt) V) U .--1 -.-+ ..4 R1 .-1 a a a r4 0. (4 to .-1 4.) U C +) ri a CG a 4) t0 t a CO •a L O a N •••-f .- 4 U4-) u t. t• 7 E-• U - N r Z U N r~ tr to a 0. y m 1 1 1 a '' 0 -.+ 0. a a ., c/) t/) - 0. 0 a.UxOAa: ..1.10 V) E-• A n A r` o t- ttt NM .O N tf1 Mt- M r- ON V V V c0 0 0 0 0 0 x-00000 .- OCYl00U1 M 4t ■D 0 0 ttl CQ CD N . - O O M ? .-- tt1 ?tf1 CO a9 A n n O. Ill eel N •O M NN •- .O CO N N v N V v .o 0 .o ti o t- M 0 M O O O CT to O. N o to V tt t +9. er3 A to O •-- 11 M Ut M o • O M 0 M CO t 1 CO Q• • .O 0 • CO V 40 4 4, Allocation A •D N CO O` O r- N M �- Exhibit D Sheet 2 of 2 Sources: • 4) a a .- .c 1 in at a C.1 -- 3 1 -,.4 V • .0 a M .0..4 M 0. 1 .0 1 -,.. 0 x C...) w 0.. 0. •• 3 •• 3 r- 1-- r- 1 1 •• .- ON M CO r' h a.4 a a a C) 0 0 :_ 0 ,, .-4 •.4 ...) ._1 .-.1 •-1 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. 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. 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 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 Docket 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 demands during the months of June, July, and August by $2.35 per kW of billing demand, which is the approximate average increase in the demand charge 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. a > in M V) •r. 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Lfl ••0 C- Q T r T T T T T T 1 1 Schedule A No. Exhibit G Sheet 1 of 3 City of Vernon Revenues @ Existing Rates, Revenues @ the Proposed Rates and the Resulting Increase Revenues @ Revenues @ Existing Rates Proposed Rates Incrrease B C 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 -1 690,785 742,017 51,232 5 PA -1 261,560 306,515 44,955 6 PA -2 120,135 164,449 44,314 7 TC -1 37,875 45,264 7,389 8 D 7,769 7,924 155 9 LS -1 234,072 258,066 23,994 10 LS -2 6,026 7,530 1,504 11 OL -1 677,206 735,667 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 Column 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. N CO 0' 1_ 4) A ▪ E L N 4) m O 4)' O �•4 00 4.) .4 0 V) 4) 4) 4• Co. 4) E 0 olU 4) 0 V) 4) 4.) CO CZ N .a 4) 0 0 4J C O. 7 O E d Lc. O 0' U1 1 - t-NO 0 Ul N N CO N CT On 01 N M M 49 N M N 4A O O N 7 O up VD VD ▪ U1 N O ft VO U1 on :Jr (-Ul Ul N N U1 0 ft N (V MOO T 4f! 14 ii V •-• r0 O ON • 4- CA M U1 �O�O •0 01100 ▪ 44 44 44 O CO Ul .� O 01COCC) • O N ? M 0 U1�. M CO N CO d d Schedule 49. O 0%0 • D O Ul N U1 Q• N O N 00 0. O 0 0 Demand -1st — Excess C- O 10 M 0 0` 0 N `O BCD s0 0\U)M =3. co orlon o =1a o r- C- 10 • r r N M 44 4e 0' 0'. • 10 Ul 4A NA '0 V N N N O 0. r 03 cr. CT CO Ul Ul =r 00 44 44 44 '.O0' -•0 :3'Nln in O. Ul O N M U1 W•- NM C000es" C- U1 V0 0' N s0 0s C-�0 N%0 -'- N ON k0 4:0 VD C- •- ti O 44 44 4f? 44 V OD V `0 O O O •0 O r 00 Ul N='Ul ?CO OD 149. *9 44 N O C- 01 M ttl •- N ? OD Mr100 UlN 01 l•-zr. U1 N OO co O03:3• M s= 01 0' M 0' N 1D 10 qp O" 44 4A 4A N O0' VD M.- 0? t..10M 1000 10 01 00 N r O 1D U1 C. •O ..... 01 r •.' N CO r t- a1 r- M O .- (n Ul M 10 10 CO Z. N N r- 3 ,x x 4) O 00 O vI 0 h L. N V1 N v) CO N 4) r .0 1 4 0 1 U 07 v) x t/) r4 C7 '- W .-4 C9 L. • 4 CO 1 1 00 a) 01 >s 4.) 4) b >s 43 E >. +> 00 0■-• C o0 0 0 CIO O L. . O CO L. (-4 0 +) L. (-. 4) ID E 4) -0 v) 4) C 4) Cl) C 4) ? C (z1 .0 A W U La 0 0 VI V) S N r-c 6 03 1 >s Y) 4) •0 00 0 r♦ 0 L H 0 c0 v -0 E C 4) 4) W . A u Exce r N M? U110 t- CO 01 0 N Mme' Ul r r r 4A a% M C- 0' N 4f! 4i! 44 44 44 00 0` N 0' N M N LC L1 0' to r 4A • U1 10 Ul ▪ t D N U• C- 00 = m r NCO M O N 4A VD N 03 0. co - N r• N N N Exhibit G Sheet 2 of 3 Sources: 4) .0 -4 • ▪ x M W +) E 4) 0 4) L. N . L. U 4) .0 1) 43 •.-r 0 A •a • x r W 1 C7 E 0a 4. 4+ 3 • m 4) Lc. Franchise 44 U • 0 43 C O •.4 • 4) .0 O -4� U h x 0 W A •.-4 v) E C L. O 4) 43 0 4) L. 00 C .0 4. 00 4) .4) 4.1 E 0 OD 1 0 0 •C > 0. N r • -0 1 0 0 0 L CD C0 4. l0 O. r4 0 0 L. 3 7 4) 4) 4) p u E E E 4) 00 4) 0 0 . 14. L. f U (.4 41) 4.V) L. C 4) •.-4 U CO L. 1 O O +) 4. 1. C U 4) t0 • j.) 4. U 1- 0 0 O 1. .�.) 4) C O 0. O E • .0 U CU r- C M n� ri E 4) 4-) 11 h � u • .--c 4. •n u 0. •t7 C� d ..4 L. O .J 0 4-) 0 4• C L 4)) O to 4) 4) 4.) L. 0 CO Schedule ri 43 01 4) 4-) 4) O .0 H V) O 0 411. 10 W 0 E E r1 r4 O 0 U U o. A a .- N r1 Exhibit G Sheet 3 of 3 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 -1 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. Cont., A -8 14 A -7 and GS -2 2,774,422 15 Net for Energy Surcharge 16 kWh for Remaining Sch. Sources: 4,899,981 $ 149,019 18,651 $1.766 .799+ Column B: Exhibit C, Sheet 3. Column C, Line 13: Difference Between Exhibit B, Sheets 3 & 4. Line 16: Exhibit C, Sheet 3. Line 14, Column B: Exhibit C, Sheet 3. Exhibit H Sheet 1 of 4 City of Vernon Base Rate For Energy Cost Adjusstment A B 1 Energy Purchases from Edison 1,213,974,200 kWh 2 Edison Energy Rate .04963 $ /kWh 3 Cost of Energy Purchase $60,249,540 4 Vernon Sales 1,162,058,349 kWh 5 Base Cost of Energy 5.1854/kWh 6 Existing Base Cost 4.4110/kWh 7 Increase in Base Cost .774E /kWh Sources: Line 1: Exhibit B, Sheet 3. Line 2: Step 1 Rates in Docket No. ER82 -47. Line 4: Exhibit C, Sheet 3. 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: Ell EC + C ECABF = e S e Where, ECABF = Energy Cost Adjustment Billing Factor per Kilowatt Hour Sold ECe = Estimated Fuel and Energy Costs for the Current Period C = Correctiin for Previous Period's Over- or Under— recovery S e Estimated Kilowatt hours to be Sold in Current II7e Period B = Energy Cost per Kilowatt Hour included in Base Rates = 5.1850/kWh 1 If the previous period average costs were less than 5.1850 per kWh, C is negative. If such average costs were greater than 5.1850 per kWh, C is positive. 111 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 (ECe) 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 1(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 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 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. w City of Vernon Energy Cost Adjustment Computation Sheet For Three Months Ending 19 .� Estimated Energy Costs 1. Purchased Power from SCE (a) Energy Charge (b) Energy Cost Adjustment Exhibit H Sheet 4 of 4 $ 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 (8T9) $ 12. Less: Amount in Base Rates $ .05185 13. Energy Cost Adjustment Factor (10 -11) $ Schedule No. GS -1 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): All kWh, per kWh 8.8921 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. Energ�t 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. 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): 5.920 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) Schedule No. GS -2 GENERAL SERVICE (Continued) 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. 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 Demand Charge: First 200 kW of less of billing demand All excess kW of billing demand, per kW Energy Charge (to be added to Demand Charge)* Per Meter Per Month $1,200.00 $ 6.00 5.60e' 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, a 5- minute interval may be used. 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 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 a 4% discount. (Continued) Schedule No. A -7 GENERAL SERVICE (Cont, SPECIAL CONDITIONS (Continued) 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 rbe requested by the customer. Excess transformer capacity shall 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 issbasidg upon the nominal kilovolt- ampere rating of the Company's 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 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. a 1 r 1 1 1 1 1 1 1 1 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 Per Meter Demand Charge: Per Month First 1000 KW or less of billing demand $5,418.00 All excess KW of billing demand, per KW $5.418 Energy Charge (to be added to Demand Charge):5.580 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 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) Schedule No. A -8 GENERAL SERVICE (Continued) 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 accordancewithueulefNo.a12D. A contract demand arrangement is available upon 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 Char e: 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: in the billing a. The charge as computed by multiplying demand by the demand charge per kilowatt; or b. A facilities charge of $1.00 per kilowatt of contract demand. 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): 3.600 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. Schedule No. LS -1 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 Lamp Size- Lumens All Night Service Per Lamp Per Month MERCURY VAPOR LAMPS 3,500 Lumens $ 7.91 7,000 Lumens 10.18 11,000 Lumens 13.35 20,000 Lumens 19.12 35,000 Lumens 29.60 55,000 Lumens 42.62 HIGH PRESSURE SODIUM VAPOR LAMPS 5,800 Lumens $ 7.69 9,500 Lumens 8.87 16,000 Lumens 11.02 22,000 Lumens 12.86 25,500 Lumens 14.04 47,000 Lumens 19.70 (Continued) Energy Curtailment Service Midnight or Equivalent Facilities Service C e Per Lamp Per Month $ 6.73 7.76 9.70 12.74 18.00 24.26 $ 6.92 7.54 8.86 9.93 10.59 13.57 Per Lamp Per Month $ 5.10 5.10 5.75 6.05 6.40 6.45 $ 5.35 5.50 6.00 6.35 6.40 6.70 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. RATES RATE A- UNMETERED SERVICE: Per Month All Night Service Midnight Service Multiple Series Multiple Series For each kW of lamp load, per kW..$26.19 $34.06 $15.23 $18.51 RATE B- UNMETERED SERVICE: Meter Charge: Multiple Service Series Service Per Meter Per Month $ 4.50 12.00 Energy Charge (to be added to Meter Charge): All kWh, per kWh 7.030 RATE C- UNMETERED SERVICE - OPTIONAL: In addition to the Rate A and Rate B charges Lamp Rating Lumens Lamp Type 1,000 Incandescent Extended Service 2,500 Incandescent Extended Service 4,000 Incandescent Extended Service 6,000 Incandescent Extended Service 10,000 Incandescent Extended Service 3,500 Mercury Vapor 7,000 Mercury Vapor 11,000 Mercury Vapor 20,000 Mercury Vapor 35,000 Mercury Vapor 55,000 Mercury Vapor 5,800 High Pressure Sodium Vapor 9,500 High Pressure Sodium Vapor 16,000 High Pressure Sodium Vapor 22,000 High Pressure Sodium Vapor 25,500 High Pressure Sodium Vapor 47,000 High Pressure Sodium Vapor (Continued) Per Lamp Per Month $ 0.33 0.38 0.40 0.42 0.45 0.36 0.33 0.40 0.36 0.54 0.49 0.80 0.80 0.78 0.79 0.79 0.81 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. Schedule No. OL -1 OUTDOOR AREA LIGHTING SERVICE 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 LAMP PER LAMP LAMP SIZE - LUMENS PER MONTH PER MONTH PERK H MERCURY VAPOR LAMPS 7,000 Lumens $10.23 $ 7.81 $5.15 20,000 Lumens $20.26 $13.35 $6.10 HIGH PRESSURE SODIUM VAPOR LAMPS 5,800 Lumens $ 7.74 $ 6.97 9,500 Lumens $ 8.92 $ 7.58 22,000 Lumens $12.91 $ 9.98 POLE CHARGE (to be added to Luminaire Charge): $5.40 $5.55 $6.40 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) Schedule No. PA -1 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. RATES Monthl y Service Charge Per Meter Horsepower of Connected Load Per Meter Per h 2 and over $1.00 Energy Charge to be added to Service Charge -Rate Per KWH' 6.7290 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. (Continued) Schedule go. 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 Per Meter Demand Charge: Per Month First 75 KW or less of billing demand $ 420.00 All excess KW of billing demand, per KW$ 5.60 Energy Charges (to be added to Demand Charge): 6.130 1 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) Schedule No. S STANDBY 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 $2000 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 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. (Continued) Schedule No. TC -1 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 Customer Charge: Energy Charge (to be added to Customer Charge): All kWh, per kWh Minimum Charge: The monthly minimum charge shall be the monthly Customer charge. PER METER PER MONTH $4.32 6.7051 SPECIAL CONDITIONS 1. Voltage: Service willbe 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 schedule. Vernon 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: Demand Charge: All kWs, per kW PER METER PER MONTH $ 10.00 Energy Charge (to be added to Demand Charge): 5.185E 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 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 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: Billing Demand. The billing demand shall be the kilowatts of maximum "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. 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 #9522005) PER METER PER MONTH Customer Charge: $ 30,780.00 Demand Charge: All KWS of billing demand, per KW Energy Charge (to be added to demand charge): All KWH, per KWH Added Facilities Charge: Added facilities charge pursuant to Ordinance No. 911 shall continue to be applicable -3- $ 8.00 5.0620 Minimum Charge: The 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 (200) 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 Energy Charge (to be added to demand charge): All KWH, per KWH Added Facilities Charge: Added facilities charge pursuant to Ordinance No. 911 shall continue to be applicable -4- $ 8.00 5.2610 apply a rate for services which will not reimburse the City for all of its costs associated with providing said service to Byron Jackson. SECTION 12: Off -Peak Demand. Byron Jackson's maximum demand during the off -peak periods shall be 18,000 kW at its Kinetic meter facility and 8,000 kW at its Bee Jay meter facility. 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. ATTEST: By Bruce V. Malkenhorst, City Clerk APPROVED AS TO FORM: City Attorney By By CITY t0F VERNON By David B. Brearley Leonis C. Malburg, Mayor BYRON JACKSON PUMP DIVISION Borg - Warner Corporation -7- during the City's "on- peak" time periods. SECTION 2: "On- Peak" Periods Defined. The "on- peak" period is defined as weekdays from 1:00 p.m. to 7:00 p.m. commencing at 12:01 a.m. May 1 and continuing through October 31 of each year and weekdays from 5:00 p.m. to 10:00 p.m. 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: Billing Demand. The billing demand shall be the kilowatts of maximum "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. Steel Casting agrees to pay the following rates during the term of this Agreement and City agrees to make the following charges during the term of this Agreement. PER METER PER MONTH Demand Charge: First 850 KWS or less of billing demand $12,240.00 All excess KWS of billing demand, per KW $ 8.00 -3- ■ Energy Charge (to be added to demand charge): All KWH, per KWH 5.0621 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 (20¢') 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 Di scontinuance 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- 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. CITY OF VERNON 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 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 maximum "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 First 6,000 KWS or less of billing demand All excess KWS of billing demand, per KW PER METER PER MONTH $135,000.00 $ 8.00 5.013,E Energy Charge (to be added to Demand Charge): All KWH, per KWH 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- 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. -5- BAKER G. CLAY & ASSOCIATES, 1NC. 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. Table of Contents Section Description Page I. Introduction 1 II. Adequacy of Revenues Under Existing Rates 5 III. Revenue Requirements 7 IV. Allocation of Revenue Requirements 10 V. Proposed Changes in Rate Schedule Structure 12 VI. Edison Rates 17 VII. The Design of Rates 21 VIII. The Energy Cost Adjustment Billing Factor (ECABF) 27 IX. PURPA Standards 28 X. Conclusion 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 (4.0 %), 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 which, 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- // 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 $72,983 $75,297 Existing rates 65,694 65,694 Increase $ 7,289 $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- 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: Docket Amount of Percent of No. Increase Increase (Millions) ER79 -150 $5.5 4.0% ER81 -177 $28.6 7.4% ER82 -427 $34.4 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 (TOIJ) 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. 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, 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: Amount (000's) Revenues $60,988 Refund Flow thru 1,985 Increase in ECAC Reserve <1,102> Net Revenues $61,871 Cost of Purchases from Edison 56,268 Other Purchases 1,154 Difference $4,449 Vernon's Non - purchase Costs 5,878 Deficiency $1,429 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 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 $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: (1) 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 77- 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, and legal counsel of $585,000. Line 3 shows miscellaneous costs of $152,000 for services of City personnel and supplies and expenses. Line 4 shows the projected cost of $2,161,000 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 $400,000. Line 6 shows an allowance for return on net investment in electric plant of $750,000. 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 return 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 30, 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 $77.0 million under Edison's Step 1 rates. // IV. ALLOCATION OF REVENUE REQUIREMENTS Exhibit D, 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 $77,031,000 as set forth on Exhibit B, Sheet 1 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 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 -1, LS -2, and OL -1 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 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 -10- 11 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. 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 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 demands for Schedule No. PA -1 were imputed on the basis of 60 percent load factor purchases. 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 -150 by providing that a demand charge be applied to peak requirements occuring during the on peak period. A higher requirement during other times of the day would not result in higher demand charges. The of F peak period occurs during the afternoon hours in the winter and during Docket No. rates, level, the evening hours in the summer. This filing ER79 -150 partially tracked the retail time of which was based on 3 time periods. At the retail the peak period was generally the same as that filed for resale customers in Docket No. ER79 -150. 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 -75, proposes to levy a demand charge for the peak requirements during its mid peak period equal to 10 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. in use 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: Per Meter Per Month $490.00 Demand Charge (to be added to Customer Charge): All kW of on -peak billing demand, per kW $15.63 Plus all kW of mid -peak billing demand, per kW 1.56 Plus all kW of off -peak billing demand, per kW No Charge Energy Charge (to be added to Customer and Demand Charges): All on -peak kWh, per kWh 4.795¢ Plus all mid -peak kWh, per kWh 4.495¢ Plus all off -peak kWh, per kWh 4.045¢ 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 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 and 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 500 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 provision 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 -1 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 1/10 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 in 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. 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 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 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 -1, 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, income 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 2.145¢ /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 .3900 /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 .0270 /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 .0311¢ /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 MARC 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 .071it/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. 12/6/83 VII. THE DESIGN OF RATES 1. To Reflect Edison's Ste 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 4.50¢ per kWh. The revenues under these rates are less than allocated costs. Likewise, the lighting rates, Schedule Nos. OL -1, LS -1, 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 -1, LS -1 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 -1, LS -1 and LS -2. Sheet 2 of Exhibit G shows the design of rates for Schedule Nos. A -7, GS -2, GS -1, PA -1, 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. Rates for Schedule TOU -V were likewise designed to recover the costs allocated 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. S have 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. 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 (.0240 /kWh) adjusted to .025 to reflect the losses. The .384¢ /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 .0250 /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- 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 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. 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 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 cogeneratoos 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 developing 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 sales 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 that Edison of an order in an Edison customers approximately $5 million refunded to Vernon under the terms Docket No. 76 -205 with respect to 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 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 January 7, 1984. Both of these rate increases will be subject to refund. d. Edison has filed 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 included in the rates only during major rate increase filings. 12/6/83 IX. THE ENERGY COST ADJUSTMENT BILLING FACTOR Vernon's existing rates include a component of 5.185¢ /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 4.3630 /kWh. The existing base cost of energy from which the ECABF is computed is 5.1850 /kWh, resulting in a decrease of .822¢ /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. 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 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 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 "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 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 115(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 Rates 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 rate 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- 12/6/83 Standard provides that an automatic adjustment clause meets the requirements of the standard if -- 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. 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. 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. 1 4 5 6 7 8 9 10 11 12 City of Vernon Comparison of Purchase Costs With Revenues Twelve Months Ending September 30, 1983 (000's) Total Revenues Including ECAC Rev. October 1982 November December January 1983 February March April May June July August September 13 Total 14 Increase In ECAC Reserve 15 Off System Purchases 16 Refund Flow Through 17 Net Cost Of Purchases From Edison Including Exhibit A Sheet 1 of 1 Remainder for Non - Purchase * ECAC Charges Costs $5,87,858 5,350,186 5,387,574 5,080,596 4,78=,799 4,617,623 4,957,185 4,619,222 4,574,704 4,994,522 5,123,904 5,670,714 C D $5,225,326 5,395,157 3,902,485 4,767,835 3,846,206 5,574,774 7,100,076 4,242,310 4,358,121 4,420,068 5,549,588 5,8°0,795 $60,987,885 $56,268,297 (1,101,748) 1.985,65 $61,871,402 $57,421,805 1, 153,508 $602,532 (44,967) 1,485,08? 316,761 937,593 (957,151) 1,857,149 376.912 216,583 574,454 (425, 684) (219,681) $4,719,588 (1,101,748) (1,153,508) 1,985,265 $4,449,597 Sources . Column B : Computer print out showing Billing Data by Rate schedule. Column C : Edison Bills to Vernon. Line 14 & 15 : W/P A -1 Line 16 : W/P A- - Deductions made to customers bills to reflect flow through. * On a billing month basis which, for some customers is not a calander month. Exhibit B City of Vernon Sheet 1 of 4 Comparison of Revenue Requirements Actual Year v.s. Estimated Under Edison's Step 1 Rates (thousands) Actual Estimated Expenses Expenses as Adjusted W /Step 1 Rates 1 Cost of Power °< Energy $65,694 $72,983 2 Contracted Service 636 585 3 Miscellaneous 113 152 4 Operating Agreement 2,092 - 2,161 5 Depreciation 399 400 6 Return 725 750 7 Total- Revenue Requirement * $69,659 $77,031 Sources : Col B. Line 1 : Cost of Purchases for year ending October 31, 1983 from Sheet 2, Reflects Step 2 rates in Docket No ER82-42 7 . Col B. Lines - -5: City of Vernon Statement of Revenue and Expenses for year ending October 31, 1983. Col 8. Line '6 : Average Rate base @ 12.65 Col C, Line 1 : Power and enerxgy purchased during year ended October 31, 1983 , priced at Step 1 rates . Col C. Lines City of Vernon proposed budget for 1983 -1984. (W;P 8-4) Col C. Line 6 : Average Rate Base @ 12.65 Rate of Return. * Does not include payment in lieu of taxes and franchise fee. 4 tes City of Vernon Costs of Purchases from Edison Under EXISTING Rates Billing Units (thousands) Exhibit B Sheet 2 of 4 Amount (thousands) A _____C ____ B D 1 1 st 500 kW x 12 months 6 2 Next 1,500 kW 18 312111 Excess 1,837 4 Total 1,861 5 Voltage Discount $6,650 12.65 12.00 $0.30 $80 228 22,044 22,352 ($558) 6 Power Factor Adj. $24 7 Vernon City Hall (11)* 8 Subtotal 21,806 9 Energy 1,028,621 $0.04963 51,050 10 FCA ($7,097)** 11 Vernon City Hall (65)* 888 43 12 Subtotal $43,888 694 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 : W/P B-2. * Total City Hall $76 Demand @ 15 % $11 Energy @ 85 % $65 ** Based on negative .69c/kWh from Statement BH in Docket No' ER84-75. City of Vernon Costs of Purchases from Edison Under Step 1 Rates (Schedule R--_) A 1 Customer Charge Exhibit B Sheet 3 of 4 Billing Units Step 1 Amount (thousands) Rates (thousands) B C D 1 $_75.00 $4.50 Demand Charge 2 On Peak 1,861 $14.64 27,245 Mid Peak 2.042 1.46 2, 981 4 Subtotal $7w),226 5 Voltage Adjustment 1,861 $0.55 ($1,024) 6 Power Factor Adjustment $24 7 Vernon City Hall * 8 Total Demand (11)* 29,220 Energy Charge 9 On Peak 196,894 $0.04771 9,394 10 Mid Peak: 77.2,998 0.04471 14,441 11 Off F'eak: 508.729 0.04021 21 20, 456 12 Subtotal 1,028,621 44,291 13 F C N (46_) ** 14 Vernon City Hall * (65)* 15 Subtotal Energy $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 $76 Demand @ 15:'. 11 Energy @ 85 7. 65 Based on negative .045c/kWh from Statement BC in Docket No. ER84- -75. City of Vernon Costs of Purchases from Edison Under Step 2 Rates (Schedule R -3) 1 Customer Charge Exhibit B Sheet 4 of 4 Billing Units Step 2 Amount (thousands) Rates (thousands) Er C D $490.00 $5.88 Demand Charge 2q, i >8 2 On Peak 1,861 X1.,.6. 3 Mid 2,042 1.56 =,186 i d Peak -,-,� 4 Subtotal �, 5 Voltage Adjustment 1,861 $0.55 ($1,024) 6 Power Factor Adjustment 7 Vernon City Hall 8 Total Demand $24 (11)* =1,268 Energy Charge 9 441 9 On Peak: 196,894 0.04795 _ 7.'2-2,998 14, 51` 1�; Mid Peak tr. i�4495 20,578 20 11 Off Peak 508. 7�9 0.04045 , 44,538 1,028,621 12 Subtotal (46_)x# 13 FCF; (65) 14 Vernon City Hall X44. f710 15 Subtotal Energy 279 16 Total 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, r & 12. W/P B -2 Total City Hall $76 Demand +d 15% 11 Energy @ 85 7. 65 *4 Based on negative .045c/kWh from Statement BCC in Docket No. ER84 -75. City of Vernon Billing Demands for Transportation for Cogeneration A 1 Customer 1 2 customer 2 3 Customer 3 4 Total Exhibit C Sheet 1 of 3 Billing Demand D 1 City of Vernon Development of Fixed Costs for Transportation for Cogeneration Customers Vernon's Fixed Costs 1 Contracted Services 2 Miscellaneous 3 Operating Agreement 4 Depreciation 5 Return 6 In Lieu Payment 7 Total Costs Vernon's System Demands B Total system Demand 9 Transportation for Cogeneration 10 Additional Firm 11 Exhibit C Sheet 2 of 3 Amount (000`s) $585 152 2,161 400 750 7'�00 $6,348 2,778 778 Adjusted System Demands (Temporary) 2,778 $2.29 12 Unit Cost per kW Sources Lines 1-5 : Exhibit B, Sheet 1. Line 6 : Payments to General Fund In-Lieu of Taxes and Franchise Payments Line 9 : Exhibit C, Sheet 1 Billing Demand (kW -Mo.1 loss Percentages 0 0 r- * ,0 * * I/1 N 0 CO r. Ia7 r O N .0 -a ■.. N .A CO N r O^ CO CO co N .O In In O e . CO N r r O` CO .G _ M um .D r CO CO N n es .M, awn r O O 1 -- O U M .'. O r .p M .p Y"1_ in O_ M O .p -0 r r m m .oy S ^+ r r Ts ^ I n .-. N O 40 .p N m f. M In .D -0 M Cd 0. p- O• .O .- r .M. .o O O N f+ 61 1-. u r Co- m e+ Q' e•. c. u7 to .... -.. 0 r -D rD Cr. In es .. •-. fT CJ f•+ -0 m I l u7 .O In O ■.. — f/1 .. r ^+ N ^' .O N ■.. 0. O .r -0 C4 r CO rV 0 0 In 4 C .D ■ u] C4 r r CO es co In ... CO -D n^ O .0 C1 M O. M rt r .D In e+ — N Cr .O .p r- CO r- .C.,- tel CJ .0 in r- LL .o M CJ t� CO Cd •O .D h In O -" CJ .O CJ -. W U CO I.! : r.r. ar4 ]- p4 JS Tt ?- iT O ^ C4 4' V' 40 .0 `O ... CJ CJ 1.4 y x-. re ai re t! i-f . .4 •■• r Cd Cd O O CJ CJ N O O O O CV N N C.1 Cd O O O 1,003,155,021 1,008,463,651 in O m Lr L. CO .-. rV ^s r u a e s jv 1 1 N i 1 1 1 O O 1 1 Cn Cn U] rl1 J¢ 6 U ..5 ¢ CO L7 co J J O d O. r- 1-- U7 -, C4 NY 4 1.7 41 1- CO 0- O r4 • .-• Exhibit C Sheet 3 of 3 * Imputed B 25X load factor +* Imputed B 601 load factor 1 2 3 4 5 6 7 8 9 10 Schedules A TOU -V A -8 A -7 65 -2 65 -1 D PA-1 PA -2 TC-1 City of Vernon Allocation of Cost of Service Vernon's Costs Under Edison's Step 1 Rates Demand Total 8 Peak Mid Peak C D $12,967,043 $11,736,928 3,979,787 3,602,246 8,655,444 7,834,348 6,501,284 6,015,734 656,340 607,321 8,504 7,869 99,242 91,830 99,262 91,848 34,005 31,466 Subtotal $33,000,910 $30,019,590 11 T0U-V 12 A -8 13 A -7 14 66-2 15 66 -1 16 17 PA -1 18 PA -2 19 TC-1 Subtotal 20 21 LS -1 LS -2 OL-1 4,845 594 0 1,083,936 332,677 723,522 555,569 56,088 727 8,481 8,482 2,906 2,772,388 (127) (6) (109) $1,230,115 377,541 821,096 485,549 49,019 635 1,412 7,413 2,540 $2,981,320 Total E $23,703,031 4,209,267 9,355,705 5,610,990 453,605 5,877 164,610 80,980 23,502 $43,607,567 1,407,506 548,554,744 431,985 97,414,216 939,504 216,517,296 555,569 125,749,796 56,088 10,165,892 727 131,718 8,481 3,689,136 8,482 1,814,866 2,906 - 526,703 3,411,248 1,004,564,426 142,078,110 0 1,945,861 0 241,413 0 1,711,945 Exhibit D Sheet 1 of 2 Energy Peak Mid Peak F 6 Off Peak H $4,402,942 $7,255,713 $12,044,376 781,890 1,288,495 2,138,883 1,737,863 2,863,866 4,753,975 1,684,863 2,670,419 1,255,708 136,208 215,883 101,514 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 95,921,845 158,664,314 293,968,585 17,034,138 28,176,166 52,203,973 37,860,831 62,625,597 116,030,868 36,706,175 58,395,398 30,648,224 2,967,408 4,120,813 2,477,670 38,448 61,167 32,103 1,076,853 1,713,152 899,130 529,757 842,783 442,326 153,744 244,589 128,370 192,289,199 315,443,978 496,831,249 41,472,385 65,977,902 34,627,823 (20) (2) (18) (8) (1) (7) (50) (6) (44) Total 2,777,826 2,772,146 3,411,248 1,008,463,651 192,289,159 315,443,962 496,831,149 Sources : Line 10 : Exhibit D, Sheet 2. Line 11 : NIP D -2 Columns C & E : Exhibit C, Sheet 3 (Note: line 12 is total (1-8 less TOU-V). Columns D,F,6 & H Lines 12-13 : Same ratio as TOU -V . Columns F,6 & H Lines 14 -19 : , Ratio based on total system less lines 11 -13. Lines 20 -22 , Columns B & E : Exhibit C, Sheet 3 of 4 . Lines 20-22 , Column C,D,F,6 & H : Exhibit D, Sheet 2 of 2 . Particulars A City of Vernon Classification of Revenue Requirements Purchases from Edison 8 Step 1 Rates Amount Exhibit D Sheet 2 of 2 Total Demand Energy Peak Mid-Peak Peak Mid-Peak Off -Peak B C D E f 6 1 Purchased Power $72,983 $26,239 $2,981 $8,866 $14,441 $20,456 2 Contracted Service 585 585 3 Miscellaneous 152 152 4 Operating Agreement 2,161 2,161 5 Depreciation 400 400 6 Return 750 750 7 Total Revenue Req $71,031 $30,287 $2,981 $8,866 $14,441 $20,456 8 Miscellaneous Rev. ($25) ($25) 9 LS-1 Revenues ($205) (11271 ($20) ($8) ($50) 10 LS-2 Revenues (15) (6) (2) (1) (6) 11 OL-1 Revenues (178) (109) (18) (7) (44) 12 Total for Allocation $76,608 $30,020 $2,981 $8,826 $14,425 $20,356 Sources : Lire 1 : Exhibit 8, Sheet 3. Lines 2 -? : Exhibit 8, Sheet 1. Line 8 : M.•'P C -3. Lines 9 -11 : M/P 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 -1 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 50% 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. 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. 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 $1.00 per kilowatt of contract demand. Rates to be Effective in November Exhibit F Sheet 1 of 1 W C] J V s U C] W •-a M O -a CO N N co 1A O O W r 0 r • u -o • we, •a v-. . -o rya -a 1-- n r` G p Cs p p O O O O O O O O CC 1 1. �.. n ^ O r co-- co = 1 = O O O 6 O roe Q / O O co O O O 1.1- 1 .... •r .... .-. .�.. .,. ...1 0 1 .... 1h M M M 0 1 tp M M M Z1 O 1 O O O O O O c U O O C) 0 ca rt e C C O O . co co C • • ; 0 O O r n N n N N N N N N O O O O O O O • • 0 0 O O O CO- 00-• 0- Cr- . 0-- CO. Or 1,3 M M M M M M O O O O O O O -C 0- O M M M M c . •d- .-. N C N ter 04 N O` Cr- -- Cr P M- • 04 CJ CJ N N O y„a O '- ow- O r` fr- ill .7 O CO r-- C-1 co G O ^ N Ya O O N N N M N 11-a ... Na M N -0 1fa ■ ■ C ■ 0 _ _ 0 _ — 3IC 31C _ _-- .F _ . ■ _ 1 i _ i Z 1 � w -ae N .a[ Y ,�L ... .a6 Y N .ac - Q = 1 04 v 1 Y Y • 1\ 1 1 1 1 1 1 1 1 G M- 01 U .ac A A Cfl M •a Ua 1.1 Q M kJ . M 1-1 1— 1O Or 1` N O+ Lg. CO -- -� 0) -.- 0- --- = .-- y -co 0- 1 i 133 T d d G Oa -o T as T Oa -a >" d 'O T • . C 1 .0 0 Cr 1 D ..- 0 Cr Cr c v. C 0' 1a1 �. 0 0 01 ►. 7 h. 7 .e 1- 7 nt 1` OI O! 0 al 11, 0 • O . N 'O = 41 .0 d u 0 y O1 0 O1 0 a O/ 0 Oa O/ 0 U 7 ...1 u u u u co N va era va CO ... !4 M Y7 -O r, m ? O M v'a .a Filings in Advice No. 630 -E of September 19, 1983 and September 27, 1983. Applicable to customers having demands in excess of 500 kW. 4 5 6 7 8 9 10 11 City of Vernon Revenues @ Existing Rtes Revenues @ the Proposed Rates and the Resulting Increase Revenues L Schedule No. Existing Rates A TOU -V A -7 GS -2 GS -1 PA -1 PA -2 TC -1 D LS -1 L6 -2 OL --1 $34,598,316 16, 080, 720 11,418,981 995,384 297.,922 169,856 38,870 5,571 205 15 178 12 Total $63,602,017 Sources Lines 1 -6 : Revenues @ Proposed Rates G $37,804,279 18,568,2_- 12,486,906 1,144,275 013 185,816 42,754 5,699 205 15 178 Exhibit G, Sheet 2 Line=_ 7 -8 : W /F' G - -2. Lines 9 - -11 . Exhibit D, Sheet Exhibit G Sheet 1 Of 4 Increase D $3,205,963 2,487,513 1,067,926 146,892 (21, -908) 15,960 3,884 128 0 0 0 $70,510,374 $6,908,357 12- May -83 ;Al City of Vernon Design of Rates To Become Effective January 1983 Exhibit 6 Sheet 2 of 4 Existing Proposed Billing Units Amount Rates Amount Rates 1B1 (C1 (D1 1E) (F) SCHEDULE A -7 1 Demand -1st 200 kW 1,656 $2,568,456 $1,551.00 $2,898,000 11,150.00 2 -Excess 385,159 2,986,522 7.754 3,370,140 8.75000 3 Energy 214,373,560 10,525,142 0.049 * 11,743,008 0.05478 4 Total $16,080,720 118,011,148 SCHEDULE 6S -2 5 Demand -1st 20 kW 10,020 $1,513,020 $151.00 $1,803,600 $180.00 6 - Excess 344,275 2,607,541 7.574 3,098,478 9.00000 7 Energy 123,284,114 7,298,420 0.059 7,210,196 0.05848 8 Total $11,418.981 112,112,274 SCHEDULE 6S -1 9 Customer Charge 9,816 148,098 $4.90 158,896 16.00 10 Energy 9,774,896 947,285 0.097 1,051,049 0.10753 11 Total 1995,384 11,109,945 SCHEDULE PA -1 12 Horsepower Charge 18,953 $18,953 $1.00 $18,953 $1.00 13 Energy 3,652,610 274,968 0.075 244,899 0.06705 14 Total $293,922 1263,853 SCHEDULE PA -2 15 Demand-lst 75 kW 48 $20,160 $420.00 125,200 $525.00 16 -Excess 4,716 26,410 5.600 33,013 7.00000 17 Energy 1,779,280 123,286 0.069 122,029 0.06858 18 Total 1169,856 $180.241 Sources : Column B : From Exhibit C, Sheet 3. Column E : Exhibit D, Sheet 1. ' Reflects a negative .69c /kWh FCA. (A) City of Vernon Design of Rates for Schedule TOU-V To Become Effective January 8, 1984 Exhibit 6 Sheet 3 of 4 Existing Proposed Billing Units Amount Rates Amount Rates (8) (C) (D) (E) (F) Existing Fora 1 Demand -1st 1000 kW 348 $2,495,856 $7,172.00 2 - Excess 735,936 5,278,133 1.1720 3 Energy 548,554,744 26,824,327 0.0489 f 4 Total $34,598,316 Proposed Form 5 Customer Charge - 348 $191,400 $550.00 6 Demand-Peak 1,083,936 $9,758,974 $9.00 7 -Mid Peak 1,407,506 2,054,959 1.46000 8 Energy -Peak 95,921,845 $4,805,684 $0.05010 9 -Mid Peak 158,664,314 7,447,703 0.04694 10 -0f4 Peak 293,968,585 12,411,354 0.04222 11 Total Amount $36,610,074 Sources : Lines 1 -4 Column B : Line 1 from monthly distribution report X 12; Line 2 from Exhibit D, Page 1 less 348,000. Column D : Existing Vernon tariff. Lines 6 -11 Column B : Exhibit D, Page 1. Column E : Exhibit D, Page 1. x Reflects a negative .69c /kith FCA City of Vernon Development of Surcharge for Step 2 Rate Increase Schedule (A) 1 TOU-V 2 A-8 3 A-7 4 GS-2 5 GS-1 6 D 7 LS-1 8 LS-2 9 OL-1 10 PA-1 11 PA-2 12 TC-1 13 Total Demands _______ (B) 1,083,936 332,677 723,522 555,569 56,088 727 4,845 594 0 8,481 8,482 2,906 2,777,826 Demand Surcharge 14 A-7 and GS-2 2,695,704 15 Net for Energy Surcharge 16 kWh for Remaining Sch. Demand Amount (C) $895,651 274,889 597,843 459,064 46,345 600 4,007; 490 0 7,008 7,009 2,401 $2,295,305 2,227,448 $67,857 19,528,327 Exhibit G Sheet 4 of 4 Peak Demand (D) $0.751 0.751 0.751 0.751 Energy * (F) $0.00025 0.00025 0.00025 0.00025 0.00372 0.00372 0.00372 0.00372 0.00372 0.00372 8.00372 0.00372 Sources : Column B : Exhibit C, Sheet 3. 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 . City of Vernon Base Rate for Energy Cost Adjustment Exhibit H Sheet 1 of 4 B A 1 Cost of Energy Purchase $43,764,000 2 Vernon Sales 1,003,155,021 04363 3 Base Cost of Energy $0.04363 0�185 4 Existing Base Cost $0.05185 00822) 5 Increase in Base Cost ($0.00822) Sources : Line 1 : Exhibit B, Sheet 3. Line 2 : Exhibit C, Sheet 3. 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: EC + C ECABF = e 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 = 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 cents /kWh * If the previous period average costs were less than 4.363 cents /kWh, C is negative. If such average costs were greater than 4.363 cents /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 (ECe) 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 1(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 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 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. Exhibit H Sheet 4 of 4 City of Vernon Energy Cost Adjustment Computation Sheet For Three Months Ending , 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 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) $ .04363 CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS -1 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): 10.753¢ All kWh, per kWh 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. 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 $1.00 per KVA per month. Authorized by the City of Vernon: Ordinance No. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective cg 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. +e 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.. $ 5.848 Energy charge (to be added to Demand Charge): 6.027¢ 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 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. Authorized by City of Vernon: Ordinance No. Effective Ordinance No. Effective Resolution No. Effective Resolution No. 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. 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. Authorized By City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 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. _ 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 Demand Charge: First 200 kW or less of billing demand All excess kW of billing demand, per kW Energy Charge (to be added to Demand Charge) Per Meter Per Month $1,750.00 $ 8.750 5.47816 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, a 5- minute interval may be used. Authorized by City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. 1 Effective Effective Effective Effective 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 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 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective 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. 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. Ordinance No. Resolution No. Resolution, No. 3 Effective Effective Effective Effective 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. 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. RATES 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 Plus all off peak billing demand, per kWh (Subject to Minimum Demand Charge. Per Meter Per Month $550.00 $9.00 kW $1.46 no charge See Special Condition Energy Charge (to be added to Demand Charge) All on peak kWh, per kWh Plus all mid peak kWh, per kWh Plus all off peak kWh, per kWh 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 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 Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. 1 Effective Effective Effective Effective No.6) 5 0100 4.6940 4.2220 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 12:01 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 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. 4. Voltage Discount: The demand charges before adjustment will be reduced by 3% for service delivered and metered at voltages of from 2kV to 10kV; by 4% for service delivered and metered at voltages of from 11kV 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. 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 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 2,000kVA. 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. Effective. Ordinance No. Effective Resolution No. Effective Resolution No. Effective - 3 12. 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 Char e: 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective - 4 - 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 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective 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) : 4.50¢ 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 -1 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. RATES Horsepower of Connected Load Per Meter 2 and over Monthly Service Charge Per Meter Per hp $1.00 Energy (Charge to be added to Service Charge) Rate Per kWh 6.7050 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 vo tage . 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. I no case will charges be based on less than 2 hp tor 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. Resolution No. _ Resolution No. 1 Effective Effective Effective Effective 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 Per Meter Demand Charge: Per Month First 75 KW or less of billing demand $ 525.00 All excess KW of billing demand, per KW$ 7.00 Energy Charges (to be added to Demand Charge): 6.8580 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. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. -1- Effective Effective Effective Effective 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. Effective Ordinance No. Effective Resolution No. - - -- Effective Resolution No. 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. 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 $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 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 Per Meter Standby Charge: Per Month First 20 kW of contract demand, per kW... $ 4.50 All excess kW of demand, per kW. $ 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 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. 1 Effective Effective Effective Effective re t h. :y 1 of 9 9 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 service 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. Effective Ordinance No. Resolution No. Resolution No. Effective Effective Effective CITY OF VERNON LIGHT & POWER DEPARTMENT Schedule No. TC -1 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 8.254¢ Minimum Charge: The monthly minimum charge shall be the monthly Customer charge. SPECIAL CONDITIONS 1. 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 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS -1 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 11.125¢ 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. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. 1 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 $1.00 per KVA per month. Authorized by the City of Vernon: Ordinance No. Effective Ordinance No. Resolution No. Resolution No. 2 Effective Effective Effective 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): 5.8730 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 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. 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 $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. 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. Authorized By City of Vernon: Ordinance No. Ordinance No. Resolution 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. Resolution 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)- 5.5030 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, a 5- 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 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 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. 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 maximum 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. 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 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. 4 Effective Effective Effective Effective 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 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. Per Meter RATES Per Month Customer Charge- $550.00 Demand Charge(to be added to Customer Charge): All kW of on peak billing demand, per kW $9.751 Plus all kW of mid peak billing demand, per kW $1.46 Plus all off peak billing demand, per kWh no charge (Subject to Minimum Demand Charge. See Special Condition No.6) Energy Charge (to be added to Demand Charge) All on peak kWh, per kWh 5.0350 Plus all mid peak kWh, per kWh 4.7190 Plus all off peak kWh, per kWh 4.247¢ 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 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 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 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. 4. Voltage Discount: The demand charges before adjustment will be reduced by 3% for service delivered and metered at voltages of from 2kV to 10kV; by 4% for service delivered and metered at voltages of from 11kV 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 2,000kVA. 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 12. 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective STEP 2 RATES CITY OF VERNON LIGHT. AND POWER DEPARTMENT Schedule No. LS -1 LIGHTING- STREET AND HIGHWAY UTILIITY -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 Rates Lamp Size- Lumens All Night Service Per Lamp Per Month Mercury Vapor Lamps 3,500 Lumens 8.04 7,000 Lumens 10.44 11,000 Lumens 13.76 20,000 Lumens 19.86 35,000 Lumens 30.90 55,000 Lumens 44.65 High Pressure Sodium Vapor Lamps 5,800 Lumens 7.78 9,500 Lumens 9.01 16,000 Lumens 11.26 22,000 Lumens 13.19 25,500 Lumens 14.42 47,000 Lumens 20.40 Energy Curtailment Service Midnight or Equivalent Facilities Service Charge Per Lamp Per Lamp Per Month Per Month 6.80 7.89 9.90 13.11 18.65 25.28 6.96 7.61 8.98 10.09 10.78 13.92 $5.10 5.10 5.75 6.05 6.40 6.45 5.35 5.50 6.00 6.40 6.40 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. RATE A- UNMETERED SERVICE: Per Month All Night Service Multiple Series For each kW of lamp load, per kW.. $26.19 $34.06 RATE B- UNMETERED SERVICE: Meter Charge: Multiple Service Series Service Energy Charge (to be added to Meter Charge): All kWh, per kWh RATE C- UNMETERED SERVICE - OPTIONAL: In addition to the Rate A and Rate B charges Lamp Rating Lumens Lamp Type 1,000 Incandescent Extended Service 2,500 Incandescent Extended Service 4,000 Incandescent Extended Service 6,000 Incandescent Extended Service 10,000 Incandescent Extended Service 3,500 Mercury Vapor 7,000 Mercury Vapor 11,000 Mercury Vapor 20,000 Mercury Vapor 35,000 Mercury Vapor 55,000 Mercury Vapor 5,800 High Pressure Sodium Vapor 9,500 High Pressure Sodium Vapor Midnight Service Multiple Series $15.23 $18.51 Per Meter Per Month $ 4.50 12.00 7.377¢ Per Lamp Per Month $ 0.33 0.38 0.40 0.42 0.45 0.36 0.33 0.40 0.36 0.54 0.49 0.80 0.80 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 -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 RATES Within the City limits of the City of Vernon. LUMINAIRE CHARGE: ENERGY CURTAILMENT SERVICE MIDNIGHT OR EQUIVALENT FACILITIES ALL NIGHT SERVICE SERVICE CHARGE PER LAMP PER LAMP PER LAMP LAMP SIZE - LUMENS PER MONTH PER MONTH PER MONTH * MERCURY VAPOR LAMPS 7,000 Lumens $10.49 $ 8.07 $5.15 20,000 Lumens $21.08 $14.17 $6.10 HIGH PRESSURE SODIUM VAPOR LAMPS 5,800 Lumens $ 7.83 $ 7.06 $5.40 9,500 Lumens $ 9.06 $ 7.72 $5.55 22,000 Lumens $13.24 $10.31 $6.40 POLE CHARGE (to be added to PER POLE Luminaire Charge): 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 requested (Cont by the Company and such nued) 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 RATES Domestic Service Customer Charge $1.50 Energy Charge (to be added to Customer Charge): 4.500 Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS 1. Seasonal Service: For suramer 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 -1 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. RATES Horsepower of Connected Load Per Meter 2 and over Monthly Service Charge Per Meter Per hp $1.00 Energy (Charge to be added to Service Charge) Rate Per kWh 7.0770 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. 1 Effective Effective Resolution No. Resolution No. Effective Effective 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 alter 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. 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 Per Meter Demand Charge: Per Month First 75 KW or less of billing demand $ 525.00 All excess KW of billing demand, per KW$ 7.00 Energy Charges (to be added to Demand Charge): 7.2300 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. Authorized by the City of Vernon: Ordinance No. Ordinance No. Resolution No. Resolution No. -1- Effective Effective Effective Effective 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. -2- Effective Effective Effective Effective 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 $1.00 per kilowatt of contract demand. Authorized by the City of Vernon: Ordinance No. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective STEP 2 RATES CITY OF VERNON LIGHT AND POWER DEPARTMENT` Schedule No. S STANDBY APPLICABILITY Applicable to standby or breakdown service where the entire electrical requirements on the customer's premises are not regularly supplied by the utility. TERRITORY Within the city limits of the City of Vernon. RATES Per Meter Standby Charge: Per Month First 20 kW of contract demand, per kW$ 4.56 All excess kW of demand, per kW $ 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 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 service 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. Effective Ordinance No. Effective Resolution No. Effective Resolution No. Effective 2 STEP 2 RATES CITY OF VERNON LIGHT & POWER DEPARTMENT Schedule No. TC -1 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 8.626¢ Minimum Charge: The monthly minimum charge shall be the monthly Customer charge. SPECIAL CONDITIONS 1. 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 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 BAKER G. CLAY ut ASSOCIATES. INC REPORT ON RATE DESIGN CITY OF VERNON, CALIFORNIA Municipal 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 two -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 disposition on certain issues, which 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: Customer Charge: Demand Charge On -Peak Mid -Peak Energy Charge On -Peak Mid -Peak Off -Peak Original Filing Compliance Filing $ 490.00 $600.00 $ 15.63 $ 1.56 4.7950 4.4950 4.0450 $ 15.54 $ 1.55 4.7930 4.4930 4.0430 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. 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 $75,279,000 to $75,071,000. 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. 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 58,000 kilowatts per hour for Sunlaw at a rate of $1.006 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 58,000 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 58,000 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- 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. 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 -1 The applicability section of Schedule No. GS -1 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 -1 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. D. Schedule No. A -7 All customers having/monthly 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 500 kW would purchase under Schedule No. GS -2. 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 -8, 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 -8 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 component. 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. 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 4.3850/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 30. A provision for these adjustments has been set forth in Exhibit H, Sheet 4 of 4. VII. ADJUSTMENTS TO VERNON COSTS Subsequent to the submission of our December Report, Vernon has prioisedirev(isuibs ,66' uts budget expenditures for the fiscal year -July 1, 1984 through June 30, 1985, as follows: 000's December Report Contracted Services $ 585 Operating Expenses 2,161 Miscellaneous Expenses 152 Current Estimate $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 $2,300,000 to $2,400,000, and included 15 percent of the larger amount. Exhibit ter City of Vernon Sheet 1 of 4 Comparison of Revenue Requirements (Revised) Actual `rear v.s. Estimated Under Edison's Step 1 Rates (thousands) (Actual Estimated Expenses Expenses as Adjusted wtStep 1 Rates 1 Cost of Power & Energy $65,694 $75,071 2 Contracted Service 636 1,275 3 Miscellaneous 113 316 4 Operating Agreement 2,092 2,640 5 Depreciation 399 - 4( ) 6 Return 725 7Ci0 7 Total Revenue Requirement * $69.659 $80,45 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 2 -5: City of Vernon Statement of Revenue and Expenses for year ending October 31, 1983. Col 8, 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 f Rate of Return. * Does not include payment in lieu of taxes and franchise fee. City of Vernon, Costs of Purchases from Edison Under Step 1 Rates (Schedule Ft -3) - A 1 Customer Charge Demand Charge 2 On Peak Mid Peal: 4 Subtotal 5 Voltage Adjustment Exhibit Ei Sheet 3 of 4 (Revised) EBi11ir ►q Units Step 1 Amount (thousands) Rates (thousands) Fr 1 1,861 2,042 1,861 C $600.00 $15.54 1.55 $0.55 28,920 3,165 $32,085 ($1,024) 6 Power Factor Adjustment $24 7 Vernon City Hall (11) 8 lotal Demand 31,081 Energy Charge 9 On Peak 196,894 $0.04793 9,437 to Mid Peal-: 322,998 0.0449= 14,512 11 Off Peak 508,729 0.04047; 20,568 12 Subtotal 1.028, 6'21 44,517 13 FCA (467;)** 14 Vernon City Hall * (65)* 15 Subtotal Energy $47.,9V0 16 lotal $75,071 Sources : Col. 8 : W/P D--2 . 12 months ending October 31, 1983. Col. C : Step 1 rates from filing in Docket No. ERE14- /5 Col. D. Lines 6, 7 & 14 : W/P E+- Total City Hall $76 Demand @ 157 11 Energy @ 85 7. 65 *A Erased on negative . 045c /kWh from Statement Lb in Docket No. ER84-75. City of Vernon Costs of Purchases from Edison Under Step 2 Rates (Schedule R -`) Exhibit E3 Sheet 4 of 4 (Revised) Billing Units Step 2 Amount (thousands) Rates (thousands) 1 Customer Charge 1 $600.0') $7. 20 Demand Charge i On Peak 1,861 $ 15.54 28.920 i Mid Peak 2,042 X42 1.55 3,166 4 Subtotal $32,086 5 Voltage Adjustment 1,861 $0.55 ($1,024) 6 Power Factor Adjustment $24 7 Vernon City Hall (11)* 8 total Demand 31,082 Energy Charge 9 On Peat; 196,894 $0.04793 4793 9. 47.7 1.0 Mid Peak 322,998 0.04493 14,512 11 Off Peak 508.729 0.0404= 20,568 12 Subtotal 1,028621 44,517 13 FCA (463)** 14 Vernon City Hall (65)* 15 Subtotal Energy $43.990 16 Total $75,072 Sources Lol . B : W; P B -2 , 12 months ending October 3 1, Col. C : Step 1 rates from filing in Docket No. ER84 75 Col. D. Lines 6. 7 & 1.3 : W/P B -2 * * total City t-lall $76 Demand @ 15% 11 Energy (d 85 "i. 65 Based on negative .o45cik:Wh from Statement 1') in Docket No. ER84 -7 5. Lity of Vernon Billing Demands for Transportation +or Cogeneration Exhibit C Sheet 1 of 3 (Revised) Billing_ Demand (mW- Months) H �r 1 Sunlaw (124(5S) 696 2 Customer 2 3 Customer 3 4 iota' 696 City of Vernon Development of Fixed Costs tor Transportation for Cogeneration Customers Exhibit L Sheet 2 of __ (Revised) Amount (000 s Vernon's Fixed Costs 1 Contracted Services SO 2 Miscellaneous 152 Operating Agreement 2.640 4 Depreciation 400 5 Return 750 6 In Lieu Payment (.15 *2400) ?60 7 Total Costs Vernon's System Demands -B total system Demand 9 Transportation for Cogeneration 10 Additional Firm 11 Adjusted System Demands *Temporary) 12 Unit Cost per kW 2,785 696 1 A-8 2 N-7 3 65- 4 65- 50 615- / 15- 0 05- ._ . 4 S 1 9 PH- 10 PA- $1.24 11 TC- 12Tct Sources : Sou Lines 1 -5 : Exhibit B. Sheet 1. Line 6 : Payments to General Fund In-Lieu of faxes and Franchise Favments Line 9 : Exhibit C. Sheet 1 481 . 24 Schedule A Exhibit t City of Vernon Sheet 3 of 3 Energy and peak deaand tkevised} Adjusted for Losses tear Ending March 31, 1983 Loss Percentages Energy tIMhi tilling Demand tkW -No.) Sec. Primary Dist. Total Meter trans. Meter trans. Line D E F 6 H 1 1 H-8 01 01 01 01 645,969,020 645,969,020 1,416,613 1,416,613 2 A -7 01 01 11 11 214,373,560 216,517,296 716,359 723,522 3 65-2 0% 11 11 21 123,284,114 125,749,796 544,675 555,569 4 65 -1 21 11 11 41 9,774,896 10,165,892 0 56,088 + 5 8 21 11 11 41 126,652 131,718 0 727 + 6 15-1 21 21 21 61 1,835,724 1,945,867 4,571 4,845 1 LS-2 21 21 21 61 227,748 241,413 560 594 8 01-1 21 21 21 61 1,615,042 1,711,945 0 0 9 PA -1 21 21 21 61 3,652,610 3,871,167 18,953 15,258 ++ 14 PA -2 01 01 11 11 1,779,280 1,797,073 8,316 8,399 11 TC -1 01 11 11 21 516,375 526,703 0 2,906 * 12 Total Sources : Colon F : WIP C -1 Column H : Y ;P C-2, YJP D -2. * Isputed @ 251 load factor ++ Imputed @ 351 load factor 1,003,155,021 1,008,628,489 2,716,047 2,764,521 Schedules it of Vernon Exhibit D Allocation of Cost of Service Sheet 1 of 1 Vernon's Costs Under Edison's Step 1 Rates 'Revised) Demand Energy Total Total Peak hid Total Peak Mid Off Amount Peak Peak Peak 8 C 8 E F 6 H 1 TOU-V $14,186,278 $12,882,892 $1,303,386 823,822,694 $4,423,824 $7,290,259 $12,108,611 $38,008,97$ 2 A -8 4,353,989 3,953,960 400,029 4,230,518 785,598 1,294,630 2,150,290 8,584,507 3 A -7 9,469,278 8,599,273 870,004 9,402,936 1,746,105 2,877,501 4,179,329 18,872,214 4 65-2 7,117,566 6,603,096 514,471 5,638,216 1,692,119 2,682,127 1,263,911 12,755,782 5 65-1 718,557 666,618 51,939 455,806 136,799 216,829 102,177 1,174,363 6 0 9,310 8,637 673 5,906 1,772 2,809 1,324 15,216 7 PA -1 195,478 181,348 14,129 173,598 52,101 82,581 38,915 369,075 8 PH -2 107,606 99,828 7,178 80,575 24,183 38,330 18,062 188,181 9 TC-1 37,229 34.538 2,691 23,616 7,088 11,234 5,294 60,845 10 Subtotal 136,195,290 $33,030,190 $3,165,100 $43,833,864 $8,869,650 $14,496,300 $20,467,913 $80,029,154 11 10U-V 1,083,936 1,407,506 548,554,744 95,921,845 158,664,314 293,968,585 12 A -8 332,677 431,985 97,414,276 17,034,138 28,176,166 52,203,973 13 A-7 723,522 939,504 216,517,296 37,860,831 62,625,597 116,030,868 14 65-2 555,569 555,569 125,749,796 36,691,532 58,373,485 30,684.779 15 65 -1 56,088 56,088 10,165,892 2,966,225 4,719,042 2,480,625 16 D 727 727 131,718 38,433 61,144 32,141 17 PA -1 15,258 15,258 3,871,767 1,129,712 1,797,287 944,767 18 PA -2 8,399 8,399 1,797,073 524,354 834,207 438,512 19 1C-1 2,906 2,906 526,703 153,682 244,491 128,523 Subtotal 2,779,082 3,417,942 1,004,729,264 192,320,751 315,495,739 496,912,773 142,242,948 41,503,938 66,029,663 34,109,348 20 LS -1 4,845 (127) 0 1,945,867 4201 (81 150) 1.950,565 21 LS -2 594 (61 0 241,413 (2) (11 (6) 241.998 22 01-1 0 1109) 0 1,711,945 (18) (7) (44) 1,711,818 Total 2,784,521 2,778,840 3,417,942 1,008,628,489 192,320,711 315,495,723 496,912,673 83,933,535 Sources : Line 10 : Exhibit D, Sheet 2. Line 11 : N.P D -2 Columns C & E : 'Exhibit C, Sheet 3 (Note: sine 12 is total A -8 less TOU-V). Columns D,F,6 & H Lines 12 -13 : Same ratio as TOU-V Columns F,6 & H Lines 14 -19 : Ratio based on total system less lines 11 -13. Lines 20 -22 , Columns 8 & E : Exhibit C, Sheet 3 of 4 . Lines 20 -22 , Columns C,D,F,6 & H : Exhibit 8, Sheet 2 of 2 . Total mount 8,97` 4,507 2,214 5,782 4,363 5,216 ,9, 075 8,181 '0,845 9,154 City of Vernon Exhibit b Classification of Revenue Requirements Sheet 2 of 2 Purchases From Edison @ Step 1 Rates (Revised) Amount Total Demand Energy Particulars Peak Mid-Peak Peak Mid -Peak Off -Peak A 8 C D E F 6 1 Purchased Porter 475,071 527,916 43,165 $8,910 $14,512 424+,568 2 Contracted Service 1,275 1,275 3 Miscellaneous 316 316 4 Operating Agreement 2,640 2,640 5 Depreciation 400 400 6 Return 750 750 7 Total Revenue Reg $80,452 $33,297 43,165 48,910 414,512 $20,568 8 Miscellaneous Rev. 4825) (425) 9 LS-1 Revenues 44205) 44127) 4420) 448) (4501 10 L5 -2 Revenues 415) to) (2) t1) (6) 11 OL-1 Revenues 4178) 1109) 418) 47) 444) 12 Total for Allocation 480,029 433,030 43,165 48,870 414,496 420.468 Sources : Line 1 : Exhibit 8, Sheet 3. 50.565 41,998 Lines 2 -7 : Exhibit 8, Sheet 1. 11,81E Line 8 : W/P C-3. 33,535 Lines 9 -11 : M/P C-4 0 yA .0 • as W2 z CA Rates to be Effective in November w 0 0 0 t� O p 0. O` o M O-0 in U') O CO 'K' O O N N O-0 1A O-0 O .0. N N CO to O O CO 1- O U9 O O -0 h H -0 0- .r -0 M -0 U7 t. �. n n p O O O 0 O O O O I' , f+ 0 0 0 0 0 0 n C. O O O O O 0 Pr c o 0 • • • ¢Q CO M M M H S O 0 . O O W 0 U O? Schedule 1011 -8 CA - 0 O O O t +• O O O O 0 O O 0 0 0 O O O O r— N ry N N No c 0 c o a o O • • 0 0 O O O Cr- 0` O • • 0 O O -0 O N N NN O. O. Ott 0-• •ii- M N N CV N N in IA = K aF ._ O -0 -O =4 O` V. O-0 O O A N O O t- N • • to O O N H N M N H O = 0 M . V Y - \ .0 Y 4 r X iO l. Y N r0 Cf Al Si L. as a• cu CO v o. n CO o n la a+ c 1 O a• 1 4O c ...... V L c Os 2 2 OA a V W V CA Demand l$/kW /Mo) 0 O 3.. Z\ = Z = .ic _ N .iL Y \ \ ■ \ 1 \ U (1f 1J S .5 40L. •4 6 CD a O- at >ata > my > c Q c a• c a` m d- al 0 ES as v o a. c al c aJ al c a1 no c Loa .,c w t co tY L O W U y CO CO CO OA 5 September 19, 1983 and September 27, 1993. * Applicable to customers having demands in excess of 50v kW. 1 2 3 4 5 6 7 8 9 10 11 City of Vernon Revenues @ Existing Rates Revenues @ the Proposed Rates and the Resulting Increase Schedule No. Revenues @ Revenues @ Existing Rates Proposed Rates TQU-V A-7 GS-2 GS-1 PA-1 PA-2 TC-1 D LS-1 LS-2 OL-1 *34v598,316 16,080,720 81,418,981 947,285 293,922 169,856 38,870 5,571 205 15 178 12 Total $63,553,919 C $39,184,589 89,455,932 13,150,319 1°21A,686 380,491 194,001 42,754 5,699 205 15 178 Exhibit 6 Sheet 1 of 4 Increase ________ D $4,586,273 3,375,212 1,731,338 263,401 86,569 24,144 3,884 128 0 0 ` 0 $73,624,868 $10,070,949 Sources : Lines 1-8 : Exhibit G, Sheet 2 Lines 7-8 : W/P 6_2. Lines 9-11 : Exhibit D. Sheet 2 Vti 0 .0 y � .. a L a ve L W (A Rates to be Effective in November m CC p O a on rf O co 'we O O r`) Cr. V O "0 u. K' o -o o 181.. ('.t C4 CO Ifs a o® h o • o a -.0 rs ri -0 •0; -o • . -, -0 In h h h h h p O O O O • O O O O Q I = h ••• s. o GO 0 0 0 0 0 Q • C. • o a o IL 1 ... CD Q CO N M H _ O O O .- Cs U CO Schedule 10U-8 f Demand IUkW /Mol M • O O O Co O O P O O 0 0 0 O [Ns p N N gLO O p 0 0 O O • o O *ef M M H M 0 0 O -.0 O- O H M p. se- — N N .0. N N D O` .P H N N N O O •.t 'T O O O r-. r-. fJ N O O O N Invatea o0 0 0� r^- r.• .4.. �.. �.. m h N O O !` N N N M N h ... H M N - C 7C a fC Z 2 ' 213 0 ^ \ - a O o 1 i sa • ' N _ Y er tig Y A a e( V3 oe M U 0 N 7 a L a y A 1 a 0 1 a a a d . C 0 i .n a 0 a 0 a a a 41 G a a a c a L. o a ., 0 1- c 3 0 L a C a (. � W s t W L W 1 (!7 (1) LI Li (1) Cif ..-• c-4 H In O h m �H.. �s . ' : Rates to be Effective in Noveaber V W O 00 1� o oP P OM O -o 1, in O m O tl N c. O-0 Y'7 '14" O -0 O v 04 CV m Y'3 O O m 1� 0 117 ▪ • .O 10 H —0 P • .4 O O 1. -0 M -0 -0 14-4 O . O O • O O O O O O 1.. 1+ O O • O •••• o o •••• 0- O o o o a,o c 0 44: • W 1 Q CD M ▪ M M Z / O O *4. W CO Schedule 1011 -B + 1,4 1, 4 M ▪ ▪ M O O O O O ▪ • O O O • O • • 0 O O O n N N N N c 0 0 O O p O O O O M • H M M • M • ▪ O O O O .p P O M M ▪ a! N N • N N D• P Y • M H H N n 1--. a o • O o M M at O M M O• • O• H N O G O an In $f) O O O O .. 0 0- w 149 .O fi mfr. p N 4 P -l+ O .O O .r . OD - 0 1.. N 1fJ O • . 9 N N N M H I ▪ • .. M P N • -0 n 0 0 0 0 _ = s a e s X s, = a =• _ .at N ... X -LC N .14 Y 41* ••• Y V a � L L ▪ L R W L A W W CO . . CD ... as d Q • ' c e . 1.. i . •a c 2 n. ` 7 L. 01 in i 0 i m d 0. 0 f d .2 W v W W v ! W L W 0 0 W W G W G W W 0 W W G I- ,.0 uD V iJ y • W ? W 0 U7 [J▪ ] ▪ US V7 *41 • N M of fn -0 ■ti CO Cr- O 1•.} rt if) -0 Filinos in Advice No. 630 -E of September 19, 1983 and September 27, 1983. * Applicable to customers having demands in excess of 500 k$. 1 2 3 4 5 6 7 8 9 10 11 City of Vernon Revenues @ Existing Rates Revenues @ the Proposed Rates and the Resulting Increase Schedule No. Revenues @ Revenues @ Existing Rates Proposed Rates A TOU-V 68-2 68-1 PA-1 PA-2 TC-1 D LS-1 L'S-2 OL-1 $34,598,316 16°080,720 11,418,981 947,285 293,922 169,856 38,870 5,571 205 15 178 12 Total $63,553,919 C $39,184,589 &9,455,932 13,150,319 1,210,686 390,491 194,001 42,754 5,699 205 15 178 Exhibit 6 Sheet 1 of 4 (Revised) Increase D $4,586,273 3,375,212 1,731,338 263,401 86,569 24,144 3,884 128 0 0 $73,624,868 $10,070,949 Sources : Lines 1-o : Exhibit @~ Sheet 2 Lines 7-8 : Lines 9-11 : Exhibit D. Sheet 2 n ID i Ul • -r4 UI z Oi US lb I x .0 IX 1I W W-- 0 F'+ r. ;r. w C J > 4) Ui u C Oi 13 O 4'4 - C }ii 4- • '1" EIi > 4- W O C Q al > -.c C i 4j Hl -I-4 'S i 0 ,. ON • -4 -0 e 0 47 41 -0 v4}.. 0 N. 0 LL .4 • • v �r. O' 0 * Cr' 0 .-4 CL L i r= !2OD •-+ 0ODON00 -0.0 if C4 V. L i 1 N. t''0i`J ON '0. -iN 1-)t) 0--40 i1 I C i � i 1. r. r. e. r. r. r. r. •. w. r. e i J 1 - -0 ON -0 "y ) JD 41 sdl I. t CO 0 ON I 0 i31 tt 41 -0 N 41 U) I. Ifl l■ N .-t 47 -0 I E .. .4 .0 0 00 ON t -+ 1- N . :• .-t f 0 0 I C •. w s a • r r. •- . '.{' 1ft?N73 .4t)N-iJ .-F .-4 * 4.4 444 * 4-4 * ' Or 0I. v , 41 1 N 41 . N. 0 • h'l 0 1 41 4'4 • ^! .-4 • ^• i 41 u7 N. 0 41 N. Existing 0 E z 1 0- • ,O C4 C4 C) 0 .4 0 -4 0 ii? Itllr,!. CA ) WI 1' ON 4 OD f. r. i• . . - 03 -0 In t 73 'ST N L3 j0 03 CJ OD wq 0 0- -f 1" I. 31 Ors i i _ ui -.0 ct 0- 0-�y R •. 1. 0. -J - -4 0 '0 .4 ^J r, .-F ' 4 4-4 * 4-4 0 41 °J ,F OD 0 .4 .0 Ctrl 0 ON CV) O•' J t-'.+ N ifi - 4 .4 CO .4 1 0) OD Cl 0 0-0 -0 0- 3+3 -0 03 03 6 •, r. . ▪ N. Cr* '.'J C-! -J 0 C4 774 tR. -0▪ � ii .. -J.4 a' -0 74 ,. f •. . C ill r • r 1 _ J O" -.-t 4j I ^+ sF i P'F L> v d' -4 C r ' '2.1 . -! 7-4 N -43 .,4 - . . r. r. . i s r 0. . O V) -s as i r .4 J .4 3 W j 3 Q° L 0 IV +01 t in In 0 � iil EA }t} U r. u1 Oi -4 L-.4 it} .-+ .4 .4 v4 - 4 0 ,4 t` ++ iJ 'G I +1 i! 1 } it 1 L ife I .V }J !G Ui x 0=l U x ,J :s'l Q 0 4-' a Ul X „ I'4 W 0 0)'-. ill 0 CO 0 CC 30 0 i.. -4 €.Li 0 1 i-- 1 1 1 - -1 C Q J C CT _I r'- ...I W CT -I C C 't '6 L L LEI L It L s'3 E ili a E w Di a L fii E s y} C i1.i 0 C 1 Lii tJJ dS w 2 :Li J ' W .3 Ii! J 0 W (1) U1 W .-+ -J t:'t .�. l -0 N. W 0 .4 -1 i='t _i� - .4 -! .-f ...4 .4 .4 .4 Z. L4 or u 0 C 0 =I ▪ 44 • in 0 4 11, AN. ni 33 4-1 0 E I .11 3 0 41 0 ta.1, 2". 1'4 0 0-0 • 0-0 6 t" CA 0 . 111 !I? st er 41 0" 41 41 0. • • • tR ...4 000 0- OD eV 41 0' 40 0 41 0 40 NO et et 0 43 NO V) 03 et et 0- OD C4 OD OD —4 OD .4 OD et et 1. 1- ON t, CA • .4 OD NO NO 41 et 41 et t,0 et .4 OD t) 0" cr CO OD 0 CA .4D NO 0 et ON 4D 0" • S. r rd.! 0- 41 'N $38,00B,972 W 24 43 0. 4 tE rU C 0111 L W W OJ rj... 6 E I- II —, E .0 • .1: ▪ ze. E L .4-, LI it L1..3 rE "0 It "0 Z O VI x 4-I 0 ai -,-, 0.1 -,-, 4.- 1 . 1 . . •"I iii 0 ii. L. a. E fi.. E r-i ....i W 1 I i ! rO Cf, '0 > - '0 E '0 >- C C Cr W0 C Cr 0 44 1.5 L ID 4-1 it L. !— 4-, E a1 0 151 E 111 8103 c a :5 to :- -.-I a : i t 0 u ....i LU L ILI in 4) P., M ia. ,0 --, • Sources iN gr. —4 4-1 L 0 a • al 0 • •-• O 03 .0 la -1-1 if! L W 43-4 81 • > ▪ L - a. 33 43 C 7. C r! E - 11! O > L 0- x ,4 44 •1- fliE 1J1 C L LU • 030 C *It Column D I a3 3 cr.-,, ...• IT ri; -. .-, L,.. 0 • ,4 • • • • • Lolumn E City of Vernon Development of Surcharge for Step 2 hate increase Exhibit 6 Sheet 4 of 4 (Revised) Demand Peak Schedule Demands Amount Demand (A) (B) (C) (D) 1 TOU -V 1,083,936 $180 $.000 2 A --8 332,677 55 .000 3 A-7 723,522 120 .000 4 GS-2 555,569 92 .000 5 GS -1 56,088 9 6 D 727 0 7 LS-1 4,845 1 8 LS-2 594 0 9 tJL -1 0 0 10 PA -1 15,258 3 11 PA -2 8,399 1 12 TC- 1 2,906 )6 i 13 Total 2,784,521 $463 Demand Surcharge TOU -V, A -8 14 A -7 and GS-2 2, 695, 704 448 $0.00017 15 Net for Energy Surcharge $15 16 kWh for Remaining Sch. Sources : 19. 528, 32'7 $.00000 Energ, (F) - Column N : Exhibit C. Sheet 3. Column C, Line 13: Difference Between Exhibit B. Sheets 3 & 4. Column D : .85468/1.1 Line 14, Column 13 : Exhibit C, Sheet 3. Line 16 : Exhibit C, Sheet 3. * Includes .025 c/kWh for energy component of Step 2 increase . of Vernon Kate for i..erov Cost t Adjustment A ; Cost of Energy Purchase ' Vernon Sales �e,se Cost of Energy A L,isting Base Cost : Increase in Base Cost Sources : Line 1 : Exhibit B, Sheet 3. Line 2 : Exhibit C, Sheet 3. Exhibit H Sheet 1 of 4 (Revised) B $43,989,864 10003,155,021 $0.04385 $0.05185 k$0.0080V) Exhibit H Sheet 2 of 4 (Revised) shedu: City of Vernon for el' Procedures for Calculating the Energy Cost Adjustment Billing Factor ie .em! The rate schedules contained herein are to contain, in sro to addition to the base rates included in the current tariff, t_ _ estiae Energy Cost Adjustment Billing Factor (ECABF) to reflect c *.,g =,. three in the cost of fuel and purchased energy. roipri The ECABF is to be calculated pursuant to the followini steads equation: stands :a■ei! EC e + C To es) ECABF = B estial S sold ' in of Oat Where, line ECABF = Energy Cost Adjustment Billing Factor per to op Kilowatt -hour Sold be de chorg EC = Estimated Fuel and Energy Costs for the Current probe e Period it wi once = Correction for Previous Period's Ov-r or Under-recovery* Line eneri = Estimated Kilowatt-hours to be sold in Current effel Period Corr B = Energy Cost per Kilowatt -hour included in Base Rates = 4.385 cents /kWh Line talc reco repr * If the previous period average costs were less than 4.335 finer cents /kWh, C is negative. If such average costs from were greater than 4.385 cents /kWh, C is positive• fuel pert 8eei relit core eon' 4 in ff, a. t chit W 11 rent rnt se 345 )sts .ive. i i,nedule V -1 is attached to provide the computation sheet tr all periods once implementation is completed. y istirated Energy Costs Ce) !ttes 1 through 3 represent the estimated energy costs which sr• to be used in computing the period's ECA. This is an •atimate of the costs the City expects to incur for the ttree 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 1(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 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. Exhibit H Sheet 3 of 4 Energy Clause Adjustment Billing Factor (Revised) utation Sheet (Continued) 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 calcullte 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 Eonth , CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. GS -1 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 Per Mont'.. Energy Charge All kWh, per kWh 12.014t Minimum Charge: The Energy Charge shall be subject to a monthly in charge of $5.30. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one stanaarl voltage. 2. X -Ray Installations: Where the Utility installs : "7 standard transformer capacity requested by a customer to Scr•= separately an X -ray installation, the billing will be in:7,;, by $1.03 per kVA of transformer capacity requested. 3. Temporary Discontinuance of Service: Where the use 'f energy is seasonal or intermittent, no adjustments will be for a temporary discontinuance of service. Any customer rr° to resuming service within twelve months after such servic* discontinued will be required to pay all charges which wO— 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 - 1 - Schedule No. SE SERVICE ESTABLISHMENT CHARGE 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. Authorized by the City of Vernon Effective Ordinance tio. Effective Ordinance No . Effective Resolution No. Effective Resolution No. 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. 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 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 Demand Charge: All kW of billing demand, per kW (Subject to Contract Demand. See Special Condition No. 10). Per • +eter Per ''tort: $ 9.7 Energy charge (to be added to Demand Charge): All kWh per kWh 5.033t Minimum Charge: The Demand Charge plus the energy charge shall be a monthly minimum charge of $195.00. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standar3 voltage. 2. Billing Demand: Billing demand shall be the kilo..:1t'= maximum demand, determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month 5hl:: the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the Utility, dur. 15- minute metered interval in the month, but shall not be 1• than the diversified resistance welder load computed in 3 7.=j' ance with the section designated Welder Service in Rule y .D• Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 3 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 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 a 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 23 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 kilowatt- hours. Demands 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. 5. 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 $1.00 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. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective Statement. 9. Excess Transformer Capacity: The transformer caoa.:i.{ excess of a customer's contract demand which is either reIJ1 by the Utility because of the nature of the customer's loan+ requested by the customer. Excess transformer capacity s`a*: billed at $1.00 per kVA per month. 10. Contract Demand: A contract demand will be establisnt7 the Utility, based upon applicant's demand requirements for customer newly requesting service on this schedule and for a., customer of record on this schedule who requests an increase decrease in transformer capacity in accordance with Rule ao. A contract demand arrangement is available upon request for 3.. customers of record on this schedule. Contract demand is ba;_7 ! upon the nominal kilovolt- ampere rating of the Utility's sir :; 1 transformer(s) or the standard transformer size determined bj Utility as required to serve the customer's stated measurzble kilowatt demand, whichever is less and is expressed in kiloli: 11. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be S1.'.' kilowatt of contract demand. 12. In -Lieu of Tax and Franchise Payment: The total chin.. computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax a.t franchise payments. 13. Recording Meters: A recording -type meter shall be installed for all customers purchasing under this schedule .'A! having peak requirements of 500 kV or more. Customers haw.; recording -type meters are not eligible to purchase under t::1 schedule and must be transferred to Schedule No. TOU -V. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 5 - she r a t se e, o. r a :. tasp. eT�« 51e 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 with demands of 500 kW or higher for whom magnetic tape recording meters have been installed. Any customer whose monthly maximul 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 City of Vernon. RATES Per Meter Per Month Customer Charge- $550. Demand Charge (to be added to Customer Charge): All kW of on -peak billing demand, per kW $9.935 Plus all kW of mid -peak billing demand, per kW $1.55 Plus all kW of off -peak billing demand, per kW no (Subject to Minimum Demand Charge. See Special charge Condition No. 11) i'. his Energy Charge (to be added to Demand Charge) All on -peak kWh, per kWh Plus all mid -peak kWh, per kWh Plus all off -peak kWh, per kWh Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 5.0350 4.719¢ 4.2470 SPECIAL CONDITIONS 1. 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 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 Off -Peak Holidays are: New Year's Day, Washinvt3n01 Birthday, Memorial Day, Independence Day, Labor Daf, Veteran's Day, Thanksgiving Day and Christmas. When any holiday listed above falls on Sunday, the, following Monday will be recognized as an off -pea( period. No change in off -peak will be made for h)`.: falling on Saturday. The summer season time periods shall commence at .: a.m. May 1 and continue through October 31 of ea: and the winter season time periods shall commence 12 :01 a.m. November 1 and continue through April 3' the following year. 2. Billing Demands: Separate billing demands for the on -peak, mid -peak, and off -peak time periods shall be estat. for each monthly billing period. The billing demand for e; time period shall be the maximum demand for that time peri), occurring during the respective monthly billing period. in'! billing demand shall be determined to the nearest kW. 3. Maximum Demand: The maximum demands shall be estab:i for the on -peak, mid -peak, and off -peak periods. The maxia' demand for each period shall be the measured maximum avera;e kilowatt input indicated or recorded by instruments, durin7 15- minute metered interval, but (except for new customers ar Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 7 - 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 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 a 4% discount. 5. Power Factor Adjustment: a. Service Delivered and Metered at 4 kV or Greater: The charges will be adjusted each month for reactive demand as follows: 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. The maximum reactive demand shall be the highest measured maximum average kilovar demand indicated or recorded by :petering 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. 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. The kilovars of reactive demand shall be calculated by Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 8 - multiplying the kilowatts of measured maximum the ratio of the kilovar - hours to the kilowatt -;- Demands in kilowatts and kilovars shall be to the nearest unit. A ratchet device will be installed on the kilovar -hour meter to prevent i•s reverse operation on leading power factors. 6. Temporary Discontinuance of Service: Where the use energy is seasonal or intermittent, no adjustments will be for a temporary discontinuance of service. Any customer L:r'. resuming service within twelve months after such service 3S-. discontinued will be required to pay all charges which wos;Y 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 Statement. 8. Excess Transformer Capacity: The transformer capa:i', excess of a customer's contract demand which is either re ;.;ir by the Utility because if the nature of the customer's 1011 requested by the customer. Excess transformer capacity sha:; billed at $1.00 per kVA per month. 9. Contract Demand: A contract demand will be establis - the Utility, based upon applicant's demand requirements for customer newly requesting service on this schedule and for customer of record on this schedule who requests an incre3st decrease in transformer capacity in accordance with Rule N3. A contract demand arrangement is available upon request for : customers of record on this schedule. Contract demand is upon the nominal kilovolt- ampere rating of the Utility's seri. transformer(s) or the standard transformer size determine! Utility as required to serve the customer's stated measurat kilowatt demand, whichever is less and is expressed in kil: »; 11. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be kilowatt of contract demand. 11.-V In -Lieu of Tax and Franchise Payment: The total car' computed pursuant to the above rates and charges are to be increased by 3 percent to reflect payments in lieu of tax franchise payments. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No, Effective Effective Effective Effective 9 i 12. Contracts: An additional initial three -year facilities contract may be required where applicant requires new or added serving capacity exceeding 2,303 kVA. 13. Voltage: Service will be supplied at one standard voltage. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. __ Resolution No. Effective Effective Effective Effective - 10 - CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. LS -1 LIGHTING- STREET AND HIGHWAY UTILITY -OWNED SYSTEM APPLICABILITY Applicable to street and highway lighting service su;l± from overhead lines where the Utility owns and maintains tha. street lighting equipment. TERRITORY Within the City limits of the City of Vernon. RATES Lamp Size - Lumens Energy Curtailment Seri.= Midnight or Equivalent Faciliti:s All Night Service Service Charge Per Lamp Per Lamp Per L3.17 Per Month Per Month Per Mont': Mercury Vapor Lamps 3,507 Lumens 7,000 Lumens 11,000 Lumens 20,:700 Lumens 35,000 Lumens 55,000 Lumens 8.04 10.44 13.76 19.86 30.90 44.65 High Pressure Sodium Vapor Lamps 5,800 Lumens 7.78 9,500 Lumens 9.01 16,000 Lumens 11.25 22,010 L:.•mens 13.19 25,500 Lumens 14.42 47,000 Lumens 20.40 Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. 6.80 7.89 9.93 13.11 18.65 25.28 6.96 7.61 8.98 10.09 10.78 13.92 Effective Effective Effective Effective $5.1" 5.15 5.75 6.35 6.:5 5.35 5.5' 5.3: y G ' ° . SPECIAL CONDITIONS 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. 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 requeste-? equipment provided the customer agrees to advance the estimates difference in cost installed between such equipment and standard equipment. Advances made in connection with such agreements become and remain the sole property of the Utility; as do the said equipment. 3. Hours of Service: Under the Utility's standard all night operating schedule approximately 4,140 hours of service per year will be furnished. 4. Removal or Modification of Equipment: Where street lighting service and facilities were ordered removed or modified by a customer 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. Facilities 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 adjustment billing factors set forth therein will be applied to 29 kWh per month per 1,000 lumens for incandescent lamps, to 10 kWh per month per 1,000 lumens for mercury vapor lamps, and to 4 kWh per month per 1,000 lumens for high pressure sodium vapor lamps. 6. Energy Curtailment Service: Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 12 - a. Where the Customer requests the installation any; /Dr removal of equipment in order to obtain Energy Curtailment Service, and such request is acceo *a51. the Utility, the Utility will comply with such provided the customer first agrees to pay to the Jt the estimated installation cost for any additional equipment required and /or the removal cost of any equipment currently installed. Such payments will n be refunded and shall be paid in advance or in instil ments acceptable, to Utility over a period of not to exceed three years. Facilities installed in cone with such request become and remain the sole proper:, the Utility. b. Under the Utility's midnight (PST) or equivalent operating schedule, approximately 2,090 hours of ser.: per year will be furnished. c. Facilities charges shall be applicable under this schedule only when the Utility has been requestei to discontinue the existing service by the customer s:'. customer has stipulated that the facilities are to %. left in place for future use. d. The rates above for midnight or equivalent servic, =r 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 1,003 1i for mercury vapor lamps, and to 2 kWh per month ?Ir 1,000 lumens for high pressure sodium vapor lamps. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 13 - 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 - operate: automobile parking lots which are open to the general public, w ?per:: the customer owns the street lighting equipment. TERRITORY Within the city limits of the City of Vernon. RATES RATE A- UNAETERED SERVICE: Per Month All Night Service Midnight Servi" Multiple Series Multiple Seri. For each kW of lamp load, per kW..$26.19 $34.06 $15.23 $13.= RATE B- METERED SERVICE: Per Meter Meter Charge: Per Month Multiple Service $ 4.50 Series Service 12.00 Ai\ Energy Charge (to be added to Meter Charge) : All kWh, per kWh 7.03¢ RATE C- MAINTENANCE SERVICE - OPTIONAL: In addition to the Rate A and Rate B charges Lamp Rating Per Lamp Lumens Lamp Type Per Month 1,000 Incandescent Extended Service $ 0.33 2,500 Incandescent Extended Service 0.33 4,000 Incandescent Extended Service 0.43 6,000 Incandescent Extended Service 0.42 Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 10,000 3,500 7,030 11,000 20,000 35,000 55,000 5,800 9,503 16,000 22,000 25,500 47,000 Incandescent Extended Service....., Mercury Vapor Mercury Vapor 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 0.45 0.35 0.33 0.40 0.35 0.54 0.49 0.33 0.83 0.78 0.79 0.79 0.81 SPECIAL CONDITIONS 1. Ownership of Facilities: a. For multiple systems the Utility will deliver service at 120, 120/240 volts, or, at the option the 'Utility, at 240/280 volts, three -wire, sinj- phase. For series systems the Utility will furs :. - and maintain constant current regulating transformers and deliver service at the secondar,= side of such transformers. b. The customer will furnish and maintain all utilization equipment beyond the point of deliver/ except for maintenance service provided by the Utility in accordance with Special Condition 3. c. Meter locations for multiple systems shall be at points mutually agreed upon. Meter locations for series systems shall be on the primary supply circuit to the constant current regulating transformer at a point acceptable to the litiliti. 2. Lamp Load: The lamp load for regular (general pure':;- multiple incandescent lamps shall be the manufacturers' lap rating in watts. The lamp load in watts for lumen rated street lightin7 1 shall be as follows: Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 15 - INCANDESCENT MULTIPLE SERIES GROUP EXT- GROUP EXT- RE- END- RE- END - REGU- PLACE ED REGU- PLACE ED LUMENS LAR MENT SVC. LAR SVC. SVC. HIG1 MERCURY PRESSURE VAPOR SODIUM V ° MULT. Watts Watts Watts Watts Watts Watts Watts Watts Watts 600 55 58 42 44 300 57 1,030 85 92 103 52 65 73 2,500 175 139 202 143 152 164 3,501 -- -- -- 125 4,000 268 295 327 210 220 251 -- 5,811 -- -- 32 15 6,000 370 405 443 319 325 364 -- 7,030 238 -- 9,500 -- 140 121 10,010 575 620 593 525 558 515 11,000 -- -- -- -- 292 15,011 831 350 755 822 447 16,330 __ -- 232 17-; 20,030 447 -- 22,010 -- 243 233 25,001 -- 1,275 25,500 -- 323 35,000 753 -- 47,030 -- 485 55,000 1,058 . Total lamp load shall be determined to the nearest 1 /11 k. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 3. Maintenance Service: Maintenance service furnished the Utility under Rate C for the lamps specified shall inci;; the following: a. Renewal of lamps after the original installation the customer. b. Regular inspection. c. Periodic cleaning of globes. d. Labor of replacing lamps and globes. Incandescent lamps furnished under this provision will be extended service lamps only. Mercury vapor lamps and high pressure sodium vapor lamps furnished under this provision will be as specified by the Utility. Globes for renewal shall be furnished by the customer. Maintenance service will be furni;: only where, in the opinion of the Utility, no undue hazard Dr expense will result because of location, mounting height, or other reasons. 4. Switching Facilities: For all night or midnight (cal..' Standard Tirne) service under the Utility's standard operatic.; schedules, the Utility will furnish, maintain, and operate t necessary switching facilities. For other operating scheJul =, the customer shall furnish, maintain, and operate switching facilities as specified by the Utility and take :petered serv. under Rate B. S. Hours of Service: Under the 'Utility's standard all "• ; operating schedule, approximately 4,140 hours of service pr r= will be furnished and under the Utility's standard midnight (Pacific Standard Time) operating schedule approximately 2,,3 hours of service per year will be furnished. 6. Removal of Equipment: Where street lighting servic' facilities were ordered removed by a customer and such servi�2 and facilities, or their equivalent, are ordered reinstall-% within 36 months from the date of the order to remove, the customer shall pay to the Utility in advance of reinstallation nonrefundable amount equal to the cost of removal of the Pr"( Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 17 - facilities and the estimated cost of such reinstallation. Utility owned facilities removed or installed remain the sole property of the Utility. 7. Energy Curtailment Service: Where the customer requests 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 will not be refunded and shall be paid in advance or in installments acceptable to Utility over a period of not to exceed three ye=irs. Facilities installed in connection with such requests become an:' remain 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 forte: therein will be applied to the kWh shown below: kWh Per kW - Type of Service Per Month All Night Multiple All Night Series Midnight Multiple Midnight Series Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No.` Resolution No. Effective Effective Effective Effective 355 462 131 233 "ITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. OL -1 OUTDOOR AREA LIGHTING SERVICE APPLICABILITY Applicable to outdoor area lighting service, other than street and highway lighting service, supplied from overhead lip.:. where the Utility owns and maintains the area lighting egJi3 -:.._, TERRITORY RATES Within the city limits of the City of Vernon. LUMINAIRE CHARGE: ENERGY CURTAILMENT MIDNIGFIT OR EQUIVALENT ALL NIGHT SERVICE SERVICE CA'sz- PER LAMP PER LAMP PE:-1 Ls' LAMP SIZE- LJMENS PER MONTH PER MONTH PER * MERCURY VAPOR LAMPS 7,001 Lumens $10.49 $ 3.07 $5.1r) 20,000 Lumens $21.03 $14.17 $ 1.1 ' HIGH PRESSURE SODIUM VAPOR LAMPS 5,330 Lumens $ 7.83 $ 7.05 $5.4' 9,509 Lumens $ 9.05 $ 7.72 $5.55 22,300 Lumens $13.24 $10.31 S 3.- PER P'- PER '' POLE CHARGE (to be added to Luminaire Charge): For each additional new wood pole installed *Closed to new installations as of February 1, 1930. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 19 - SPECIAL CONDITIONS 1. Hours of Service: Area all night lighting service will b= furnished from dusk to dawn, approximately 4,140 hours per year, by Utility -owned luminaires supplied from the Utility's existinj 120/243 volt overhead circuits and mounted on existing Utility -owned wood poles as standard equipment. 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 request equipment provided the customer agrees to advance the estimated difference in installation cost installed between such equipment and standard equipment. Advances made for this purpose will not be refunded. Facilities installed in connection with such agreements become and remain the sole property of the Utility. 3. Service and Facilities Furnished: This service will be in accordance with Utility's specifications as to the equipment, installation, maintenance, and operation. 4. Replacement of Lamps: The Utility will replace lamps an =_ scheduled basis, and individual lamps will be replaced 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 will be required by the Utility when service is first establis'ie'. under this schedule. S. Type of Service: This service will be furnished only where the installation is considered by the Utility to be of a permanent and established character. 7. Removal or Modification of Equipment: Where area li3htinj service and facilities were ordered removed or modified by a customer and such service and facilities, or their equivalent, are ordered reinstalled within 35 months from the date of th? order to remove or to modify, the customer shall pay to the . Utility in advance of reinstallation a nonrefundable amount to the cost of removal or modification of the prior facilities and the estimated cost of such reinstallation. Facilities removed or installed remain the sole property of the Utility. Authorize:3 by the City of Vernon Ordinance No. Ordinance No. Resolution No. •Resolution No. Effective Effective Effective Effective 8. Energy Cost Adjustment: The rates above for all- nil service are subject to adjustment as provided for in Part c D_ the Preliminary Statement. The applicable energy cost adju3-_e_., billing factors set forth therein will be applied to 13 k:;h month per 1,003 lumens for mercury vapor lamps and to 4 iWh month per 1,030 lumens for high pressure sodium vapor lamps_ 9. Energy Curtailment Service: a. Where the customer requests the installation anti /or removal of equipment in order to obtain Energy Curtailment Service, and such request is acceptabl.• the Utility, the Utility will comply with such rei.,;: provided the customer first agrees to advance the estimated installation cost of any additional equi ; -: required and /or the removal cost of any equipment currently installed. Such advances will not be refunded. Facilities installed in connection witl requests become and remain the sole property of Utility. b. Under the Utility's midnight Pacific Standard Time (PST) or equivalent service operating schedule, approximately 2,1790 hours of service per year will furnished. c. Facilities charges shall be applicable under this schedule only when the Utility has been requested t' discontinue the existing service by the customer n.! the customer has stipulated that the facilities are be left in place for future use. d. The rates above for midnight or equivalent services subject to adjustment as provided for in Part 7, 3`- Preliminary Statement. X, -- — �—& A-, trGei 1 zap___„7" sw G Authorized by the City of Vernon Ordinance No. Ordinance N3. Resolution No. Resolution No. Effective Effective Effective Effective 21 CITY OF VERNON LIGHT & POWER DEPARTMENT Schedule No. TC -1 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. T RRI T ORY Within the city limits of the City of Vernon. RATES PER ,)E•TEZ PER MO4TA Customer Charge: $4.75 Energy Charge (to be added to Customer Charge): 1 All kWh, per kWh `''r2`'0 Minimum Charge: The ;monthly minimum charge shall be the monthly Customer charge. SPECIAL CONDITIONS 1. Voltage: Service will be supplied at one standard voltage not in excess of 243 volts or, at the option of the Utility, at 243/430 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. 3. 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. 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. S STANDBY APPLICABILITY Applicable to standby or breakdown service where the entir: 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 Per Meter Standby Charge: Per Mont:, First 21 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 nort.:. 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 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 the Jti.. to stand ready to supply the entire connected load of the customer's plant, or an isolated part thereof, then such ;taxi: load will be estimated by the Utility, based on tests and ot`t:r information available. In case the customer desires the Jti =:`: to stand ready to supply a number of kilowatts less than tha maximum demand of the entire customer's plant, or an isolate: part thereof, then the customer and the Utility shall agree the number of kilowatts the Utility will stand ready to s:.1p2;; and the customer shall, at his own expense, furnish and inst3= Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective - 23 - 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 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 service of the Utility. 4. Maximum Load: The Utility reserves the right to establisi the maximum load served under this schedule. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective 24 - CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. D DOMESTIC SERVICE APPLICABILITY Applicable to domestic service including lighting, heating, and power or combination thereof in a single- family accommodati,; TERRITORY Within the city limits of the City of Vernon. RNTES Per Meter Per moot. Domestic Service Customer Charge $1.5;' Energy Charge (to be added to Customer Charge): All kWh, per kWh 4.5¢ Minimum Charge: The monthly minimum charge shall be the monthly Customer Charge. SPECIAL CONDITIONS 1. Energy Cost Adjustment: The rates above are subject t' adjustment as provided for in Part G of the Preliminary Stata1 . 2. In -Lieu of Tax and Franchise Payments: The total c:1ar2, computed pursuant to the above rates and charges are to be in.r-• by 3 percent to reflect payments in -lieu of tax and franchise payments. Authorize) 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 -1 POWER - AGRICULTURAL AND PUMPING CONNECTED LOAD BASIS APPLICABILITY Applicable to power service for general agricultural purposes or for general water or sewerage pumping. i3%. TERRITORY Within the city limits of the City of Vernon. RATES Horsepower of Connected Load Per Meter 2 and over Monthly Service Charge Per Meter Per hp $1.00 Energy Charge to be added to Service Charge -Rate All kwh, per kwh 9.585¢ Minimum Charge: The monthly minimum charge shall be the monthly 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 rate.' capacities of all of the customer's equipment that it is possih1 to connect to the Utility's lines at the same time, determnine:1 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 rate-3 Authorize; by the City of Vernon Ordinance No. Ordinance No. Resolution NO. Resolution No. Effective Effective Effective Effective motors, the rated horsepower of welders determined in accorlal —, with the section designated Welder Service in Rule No. 2, and . rated kilovolt - ampere input capacity of other equipment, with each kilovolt - ampere of input considered equal to one hors ..po,;:, Normally such ratings will be based on the manufacturer's ra *i ^:. as shown on the nameplate or elsewhere but may, at the option D the Utility, be based on tests or other reliable information. 3. Overloaded Motors: Whenever, upon test, any motor un�• normal operating conditions is found to be delivering more thl-, 115 percent of its capacity as indicated by its nameplate rati:,;, the Utility may disregard the nameplate rating and base its charges upon the output as calculated from test. Any motor 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 Utility or upon notification the customer of a permanent change in operating conditions. 4. Temporary Reduction of Connected Load: Where the use >_ energy is seasonable or intermittent, no adjustment will be 13' for any temporary reduction of connected load. Any customer, prior to resuming service on such connected load within 12 mo ,t -: 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 S of the Preliminary Statement. 5. In -Lieu Tax and Franchise Payments: The total chargsas co.nputed 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 - 27 - 1F 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: Per Meter Per Month First 75 kW or less of billing demand $ 525.01 - All excess kW of billing demand, per kW$ 7.30 Energy Charges (to be added to Demand Charge): All kWh per kWh 7.3050 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 maxima::3 demand established in the preceding eleven months, however, in np case shall the billing demand be less than 75 kW. Billing deman:: s•='l be determined to the nearest kW. 3. Maximum Demand: The maximum demand in any month shall he the measured maximum average kilowatt input, indicated or recorded by instruments to be supplied by the 'Utility, during .=)riy 15- minute metered interval in the month, but not less than the Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective diversified resistance welder load computed in accord3n17_ ,i. the section designated Welder Service in Rule No. 2. When` demand is intermittent or subject to violent fluctuations, 5- minute interval may be used. 4. Power Factor Adjustment: When the billing demand -;3s exceeded 200 kW for three consecutive months, a kilovar -h3Jr meter will be installed as soon as practical, and, thereat..,,, until the billing demand has been less than 150 kW for tae3._= consecutive months, the charges will be adjusted each mon`n power factor, as follows: The Charges will be decreased by 20 cents per kilo43 measured maximum demand and will be increased by 21 �> per kilovar of reactive demand. However, in no Casa the number of kilovars used for the adjustment be 1=s than one - fifth the number of kilowatts. The Kilovars of reactive demand shall be calculated of multiplying the kilowatts of measured maximum deman the ratio of the kilovar -hours to the kilowatt - hours. Demands in kilowatts and kilovars shall be deter:lin ! t3 the nearest unit. A ratchet device will be install_: the kilovar -hour meter to prevent its reverse operatic leading power factors. 5. Temporary Discontinuance of Service: Where the use )f energy is seasonable or intermittent, no adjust:ent; ?:`• be made for a temporary discontinuance of service. customer, prior to resuming service within twelve 713At•l= after such service was discontinued will be regiir,'. :3 pay all charges which would have been billed if servi: had not been discontinued. 6. Energy Cost Adjustment: The rates above are subj : :t adjustment as provided for in Part G of the Preii:1.:1 Statement. 7. In -Lieu of Tax and Franchise Payments: The total = lr' computed pursuant to the above rates and charges are increased by 3 percent to reflect payments in -lieu l- and franchise payments. 8. Excess Transformer Capacity: The transformer cap3=2_i excess of a customer's contract demand which is ei`- Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective` Effective Effective^ - 29 - required by the Utility because of the nature of the customer's load or requested by the customer. Excess transformer capacity shall be billed at $1.03 per kVA per month. 9. Contract Demand: A contract demand will be establisher by 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 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 Utility's serving transformer(s) or the standard transformer size determinel by the Utility as required to serve the customer's state_ measurable kilowatt demand, whichever is less and is expressed in kilowatts. 19. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be $1.03 per kilowatt of contract demand. 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-.. C -1 COGENERATION SOURCE APPLICABILITY Applicability - applicable to transportation for cogene•rators. TERRITORY Within the city limits of the._City of Vernon. RATES Transportation demand rates will be provided for in a transportation agreement with each individual cogenerator in accordance with recommendations contained in the Rate Design Report approved herein. Authorized by the City of Vernon Ordinance No. Ordinance No. Resolution No. Resolution No. Effective Effective Effective Effective