Resolution No. 72481
RESOLUTION NO. 7248
2
3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING RESOLUTION NO. 7034 WHICH PROVIDED
4 FOR THE ESTABLISHMENT OF ELECTRICAL RATES TO BE
CHARGED FOR ELECTRICAL ENERGY DISTRIBUTED AND
5 SUPPLIED BY SAID CITY WITHIN ITS BOUNDARIES BY
AMENDING RATE SCHEDULE TOU-V AND TOU-G TO PROVIDE
6 FOR DIFFERENT RATES FOR ELECTRICAL SERVICE DURING
THE YEAR
7
8 WHEREAS, the City Council of the City of Vernon adopted
9 Ordinance No. 1030 on May 16, 1995, providing that rates to be charged
10 for electrical energy distributed and supplied by said City within its
11 boundaries shall be set by resolution; and
12 WHEREAS, the City Council of the City of Vernon adopted
13 Resolution No. 7034 on October 7, 1997, amending Resolution Nos. 5111,
14 5466 and 5805 amending Schedules GS-1, GS-2, TOU-V, LS-1, LS-2, OL-1,
15 TC-1, D, PA-1, PA-2, TOU-G and adding new schedule PA-TOU; and
16 WHEREAS, Kenneth J. DeDario, Director of Utilities, is
17 recommending proposed changes in the electric rates for customers
18 receiving service under Schedules TOU-V and TOU-G to be effective on
19 January 1, 1999, in order to provide customers with clear price
20 signals representing the wholesale cost that the City of Vernon incurs
21 in providing service under those rate schedules.
22 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
23 CITY OF VERNON AS FOLLOWS:
24 SECTION 1: The City Council of the City of Vernon does
25 hereby find and determine that the recitals contained hereinabove are
26 true and correct.
27 SECTION 2: The City Council of the City of Vernon hereby
28 adopts the following rate schedules as the City's rates for the
21
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
distribution of electrical energy supplied by the City for TOU-V and
TOU-G classes of service to be effective January 1, 1999, a copy of
which has been presented to the City Council concurrently with this
Resolution, and the City Council hereby orders said rate schedules to
be received and filed by the City Clerk.
SECTION 3: That in all other respects, Resolution Nos. 7034,
5111, 5466 and 5805 shall remain in full force and effect and that the
provisions contained in Resolution Nos. 7034, 5111, 5466 and 5805 not
consistent with or in conflict with this resolution are hereby
repealed.
SECTION 4: 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 December, 1998.
LEONIS C. MA BURG, kayor
ATTEST:
BRUCE V. MALKENHORST, City Clerk
-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
281
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.
7248, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Tuesday, Decamer 15.
1998, and thereafter was duly signed by the Mayor of the City of
Vernon. 11-1
(SEAL)
BRUCE V. MALKENHORST, City Clerk
W=
SUPPORTING
DOCUMENTS
OFFICE OF THE CITY CLERK
INTER -OFFICE MEMORANDUM
Date: January 5, 1999
To: Ken DeDario, Director of Utilities
FROM: Gloria J. Orosco, Chief Deputy City Clerk
RE: Resolution No. 7248
Enclosed for your files is a copy of Resolution No. 7248 which
was approved by City Council on December 15, 1998.
CITY OF VERNON
LIGHT AND POWER DEPARTMENT
Schedule No. TOU-V
This schedule is applicable for all customers with demands of 500 kW or higher for any three months
during the preceding twelve months and for whom time of use meters have been installed.
Within the city limits of the City of Vernon.
Customer Charge ..............................
Demand Charge (to be added to Customer Charge):
All kW of on -peak maximum billing demand, per kW ....
Plus all kW of mid -peak maximum billing demand, per kW
Plus all kW of off-peak billing demand, per kW .......
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 ..................
PER METER PER MONTH
Summer Winter
May. June, Oct July. Au & n Nov. thru Aril
$159.50 $159.50 $159.50
$ 8.427
$ 10.295
$ 6.677
$ 1.597
$ 1.597
$ 1.597
No Charge*
No Charge*
No Charge*
2.611c
3.9100
2.611c
2.2860
3.585c
2.286c
1.799c
2.463c
1.799c
*(Subject to Minimum Demand Charge. See'Special Condition No. 9.)
Authorized by the City of Vernon
Ordinance No. 940 Effective 12/06/83 Resolution No. 7248 Effective 01/01/99
1
Schedule TOU-V (cont.)
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 (January 1), Washington'sBirthday (third
Monday in February), Memorial Day (last Monday in May), Independence Day
(July 4), Labor Day (first Monday in September), Veteran's Day (November 11),
Thanksgiving Day (fourth Thursday in November), and Christmas Day
(December 25).
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: Separate billing demands for the on -peak, mid -peak, and off-peak time
periods shall be established 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.
Authorized by the City of Vernon
Ordinance No. 940 Effective 12/06/83 Resolution No. 7248 Effective OU01/99
2
Schedule TOU-V (cont.)
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. Where the demand is intermittent or subject to violent
fluctuations, a 5-minute interval may be used.
4. Voltage Discount: The charges including adjustment will be reduced by 3 % for service
delivered and metered at voltages of from 2 kV through 10 kV; by 4% for service
delivered and metered at voltages of from 11 kV through 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.
007, M-00MET,
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 Uss than 4 kV: The charges will be adjusted
each month for the power factor 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 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.
Authorized 12y the City of Vernon
Ordinance No. 940 Effective 12/06/83 Resolution No. 7248
Effective Ol/Ol/99
3
Schedule TOU-V (cont.)
6. Temnor= Discontinuance of Service: Where the use of energy is seasonal or intermittent,
no adjustments will be made fora 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. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract
demand 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 $1.03 per kVA per
month.
8. 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 the Light and Power Department Rules for Electric
Service. 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.
9. Mb imum__ Demand Charge: Where a non -time related maximum demand or contract demand
is established, a monthly minimum demand charge shall be $1.03 per kilowatt of contract
demand.
10. In -Lieu of Tax and Franchise Payments: The base rates and charges have been increased by
3 percent to reflect payments in -lieu of tax and franchise payments.
11. Public Benefits Charge: A mandatory Public Benefits Charge will be assessed pursuant to
Assembly Bill 1890 signed into law by the Governor on September 20, 1996. The charge
is 2.85 percent of the total bill before any special fees or charges for, years 1998, 1999 and
2000, and 2.7 percent of the total bill before any special fees or charges for year 2001.
12. Contracts: An additional three-year facilities contract may be required where applicant
requires new or added serving capacity exceeding 2,000 kVA.
13. Voltage_: Service will be supplied at one standard voltage.
Authorized by the Cily of Vernon
Ordinance No. � 940 Effective 12/06/83 Resolution No. 7248 Effective Oi/Ol/99
4
CITY OF VERNON
LIGHT AND POWER DEPARTMENT
Schedule No. TOU-G
GENERAL SERVICE -LARGE
APPLICABILITY
Applicable to single- and three-phase general service including lighting and power. Service under
this schedule is elective for customers served under Schedule No. GS-2 with a monthly maximum
demand that exceeds 200 kW for three months during the preceding twelve months but is less than
500 kW for any nine months during the preceding twelve months. Service under this schedule is
elective for all existing customers with time of use metering who have been taking service under
Schedule TOU-V with a monthly maximum demand that exceeds 200 kW for three months during
the preceding twelve months but is less than 500 kW for any nine months during the preceding 12
months. Service under this schedule is subject to meter availability.
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 maximum billing demand, per kW ....
Plus all kW of mid -peak maximum billing demand, per kW
Plus all kW of off --peak billing demand, per kW ........
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 ..................
*(Subject to Minimum Demand Charge. See Special Condition No. 9.)
PER METER PER MONTH
Summer Winter
May, June. Oct July. August. Sent Nov. thru April
$159.50 $159.50 $159.50
$ 8.999
$ 10.635
$ 8.999
$ 1.650
$ 1.650
$ 1.650
No Charge*
No Charge*
No Charge*
2.769C
4.084C
2.76W
2.4340
3.749C
2.434C
1.932e,
2.615C
1.932C
Authorized by the City of Vernon
Ordinance No. 940 Effective 12/06/83 Resolution No. 7248 Effective 01/01/99
1
s
Schedule TOU-G (cont.)
SPECIAL CONDITIONS
1. Time Period:
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 (January 1), Washington's Birthday (third
Monday in February), Memorial Day (last Monday in May), Independence Day
(July 4), Labor Day (first Monday in September), Veteran's Day (November 11),
Thanksgiving Day (fourth Thursday in November), and Christmas Day
(December 25).
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: Separate billing demands for the on -peak, mid -peak, and off-peak time
periods shall be established 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.
Authorized by the City of Vernon
Ordinance No. 940 Effective 12/06/83 Resolution No. 7248 Effective 01/01/99
F)
"A - Schedule TOU-G (cont.)
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. Where the demand is intermittent or subject to violent fluctuations, a 5-
minute interval may be used.
4. Voltage Discount: The charges including adjustment will be reduced by 3 % for service
delivered and metered at voltages of from 2 kV through 10 kV; by 4% for servicedelivered
and metered at voltages of from 11 kV through 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 M The charges will be adjusted
each month for the power factor 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 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.
Demand in kilowatts and kilovars shall be determined to the nearest unit. A rachet
device will be installed on the kilovar-hour meter to prevent its reverse operation
on leading power factors.
Authorized by the City of Vernon
Ordinance No. 940 Effective 12/06/83 Resolution No. 7248 Effective 01/01/99
3
.. ,
Schedule TOU-G (cont.)
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. Excess Transformer Capacity: A transformer capacity in excess of a customer'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 $1.03 kVA per
month.
8. 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 the Light and Power Department Rules for Electric
Service. 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.
9. Minimum Demand Charge: Where a non -time related maximum demand or contract
demand is established, a monthly minimum demand charge shall be $1.03 per kilowatt of
contract demand.
10. Public Benefits Charge: A mandatory Public Benefits Charge will be assessed pursuant to
Assembly Bill 1890 signed into law by the Governor on September 20, 1996. The charge
is 2.85 percent of the total bill before any special fees or charges for years 1998, 1999 and
2000, and 2.7 percent of the total bill before any special fees for charges for year 2001.
11. In -Lieu of Tax and Franchise Payments: The base rates and charges have been increased
by 3 percent to reflect payments in -lieu of tax and franchise payments.
12. Contracts: An additional three-year facilities contract may be required where applicant
requires new or added serving capacity exceeding 2,000 kVA.
13. Voltage: Service will be supplied at one standard voltage.
Authorized by the City of Vernon
Ordinance No. 940 Effective 12/06/83 Resolution No. 7248 Effective 01/01/99
4
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
December 3, 1998
Finance Committee
City of Vernon
Honorable Members:
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
The Utilities Department is requesting a change in rate to the
retail TOU-V and TOU-G rate schedules. Implementation of the
Independent System Operator and Power Exchange on Marsh 31 1998,
has increased the wholesale cost of energy to the City during the
third quarter, thus potentially causing the City to incur
additional costs when providing electric service during that
quarter. The proposed change to the retail rates would bring the
differencebetweenthe third quarter and the rest of the year in
consistency with the wholesale cost, thus providing a better match
between the department's_ revenue and expenses on a monthly basis.
The existing, proposed, and change in rate schedule is outlined in
the attached Memorandum dated December 3, 1998, from the Director
of Utilities, and it is hereby recommended that the proposed TOU-V
and TOU-G rate schedules be adopted and approved, effective January
1, 1999.
Very truly yours,
Bruce V. Malkenhorst
Director of Finance
BVM/gst
enclosure
December 3, 1998
To: Bruce V. Malkenhorst, City Administrator
From: Kenneth J. DeDario, Director of Utilities `<g"
Subject: Electric Rates
Last year, City Council adopted electric rate changes that,
among other things, more accurately allocated the City's
costs in providing electric utility service to the various
customer classifications. However, since the
implementation of the Independent System Operator and Power
Exchange on March 31st of this year, the wholesale cost of
power to Vernon has changed to a point where the cost of
energy during the third quarter (July, August and
September) is much higher than the remaining months of the
year. But, since our rates to our customers are very much
the same year round, our customers are not receiving the
correct price signals and may cause Vernon to incur
additional costs when providing electric service to them
during some months.
Therefore, I recommend changes to the retail rates so that
the difference between the third quarter and the rest of
the year is consistent with our wholesale cost. The
proposed changes will result in a better match between
Utilities Department revenue and expenses on a monthly
basis. The proposed rate changes should provide the right
price signal to our customers, which will help them with
their maintenance and/or production schedules.
I also recommend that the rate changes only be applied to
the TOU-V and TOU-G rate schedules which customers
represent over 70 percent of our load. The Department can
easily implement the adjustment to these classes of
customers.
The proposed changes are based on historical usage and are
revenue neutral. However, if some customers make an effort
to shift incremental loads from the third quarter to the
other months or make a more concerted effort to conserve
Kenneth J. DeDario
December 3, 1998
Page 2
energy during the third quarter, revenues would decrease
but expenses would also decrease.
The result of these proposed changes are that some of the
customers annual cost will increase while others will
decrease with no change in usage. This is caused by the
fact that this adjustment is being made based on the
average. For example, customers who have a relatively
higher usage of energy during the third quarter compared to
on -peak demand for the other nine months would experience
an increase in cost.
The net effect of the proposed changes are an increase in
the customers cost during the third quarter of
approximately 21% per month and a decrease in their cost of
approximately 8% per month for the remaining nine months.
See attachment for the existing, proposed and net change in
the TOU-V and TOU-G rates. Those changes result in an
increase of --approximately $2.3 million in the third quarter
and a decrease of approximately $2.3 million in the other
nine months with a net result of no change in revenue.
Based on the above, I recommend that the attached TOU-V and
TOU-G rate schedules be adopted effective January 1, 1999.
If you have any questions or comments, please contact me.
Thank you for your consideration.
KJD:dm
Attachments
C
d
s
O 0
W
0 0 0
rn rn v
O 0 0 0
N N t00
000
•-r0
co
O o o
0 0 0
boo
000
O
rti
0
_torn
0
t0
con
to m
N N e-
U
Z
L
0
N
W M
M h 2)
°' to
O M M
0
rn
V
Co co
m M It
M N
C
Z
d
O
O
C.
�
Q M
n� 2
.-torn
1
N n
trnC)
V L V
to
�-'
CO is
N N e-
Z
0
It 0)
O O
coOT
CO
co N t-
N N
f0
U
n
O
Z
y
m M
orn f°
-orn
0
N O L
t0 N n
N N
A
e-
r
K
Z
u
ttt
000
0 0 0
Y Y
fA E9 E9
O
Y
m m
Y 110 Y
cc
m
aaa
N
a. CL
O m O
0 2 0
O
O
O O O
M O
t o 0 0
O O O
� 0 0
0 0 0
G1 000
MOM
000
� O
MMtMO
i
U
0
o (P o o
0 0
�o0
000
_. ___... LO._
rn O
rn It N
0
0rn
co v rn
00 e- N
N N
7
Z
s-
o
W
M
t,Mjo
�rn0
co
d
m
tO m U
v6C-li
o
Z
O
01
W
O
a
rn
M
O O
0) a N
L
o
rntoU
frDaO
CO �
N N
Z
O
.7 � MO CC
MM
rn CO tOL
to
tid.rn
L
N N
O
a-
Z
d
V
Y
s t L
000
0 0 0
Y Y Y
Y Y Y
Y Y Y
N
N
a n (L
a d-
O�O
OHO