Resolution No. 90701
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RESOLUTION NO. 9070
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON PROVIDING FOR THE CREATION OF A ONE-TIME
CREDIT TO VERNON UTILITY CUSTOMERS AS A RESULT OF A
SETTLEMENT REACHED WITH EL PASO CORPORATION, EL
PASO NATURAL GAS COMPANY AND EL PASO MERCHANT
ENERGY, L.P.
WHEREAS, Section 30.2 of the Vernon City Code states that
any change in the rates to be charged and collected for energy
supplied by the Vernon Electric System shall be set by resolution; and
WHEREAS, the City Council of the City of Vernon has adopted
and amended various rate schedules establishing electrical rates to be
charged for electrical energy distributed and supplied by the City of
Vernon within its boundaries, the most recent rate schedules were
amended by Resolution No. 9054 on May 24, 2006; and
WHEREAS, the City of Vernon and various other agencies filed
a lawsuit against Southern California Gas Company, E1 Paso
Corporation, El Paso Natural Gas Company and El Paso Merchant Energy,
L.P., for claims arising out of the California Energy Crisis of 2000
and 2001, Case No. BC 265905 (the "El Paso Lawsuit"); and
WHEREAS, a settlement was reached in the E1 Paso Lawsuit
providing for the disbursement of funds to California Municipal
Utilities to be used for the benefit of their respective ratepayers;
and
and
WHEREAS, Vernon's allocation is approximately $464,419.75;
WHEREAS, the City of Vernon desires to create a one-time
credit to Vernon utility customers as a result of the El Paso Lawsuit;
and
1 WHEREAS, the Director of Light & Power has recommended a
2 one-time credit of 0.433 cent per kilowatt-hour be applied to all
3 energy sold through the retail rate schedules for August 2006 and that
4 such credit be clearly identified on each bill as the "El Paso
5 Settlement Distribution: Resolution No. 9070;" and
6 WHEREAS, a Notice of Public Hearing was posted on June 8,
7 2006, notifying all interested parties that a hearing to consider the
8 one-time credit to Vernon utility customers as a result of the
9 settlement reached in the El Paso Lawsuit was scheduled for June 21,
10 2006, at approximately 5 p.m.; and
11 WHEREAS, the City Council has heard and considered all
12 evidence, both written and oral, presented in consideration of the
13 creation of the one-time credit to Vernon utility customers.
14 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
15 CITY OF VERNON AS FOLLOWS:
16 SECTION 1: The City Council of the City of Vernon hereby
17 finds and determines that the recitals contained hereinabove are true
18 and correct.
19 SECTION 2: The City Council of the City of Vernon further
20 finds that all persons have had the opportunity to be heard or to file
21 written comments to the proposed creation of the one-time credit to
22 Vernon utility customers, and after due consideration of any and all
23 evidence submitted at the public hearing determines that there are
24 compelling reasons to justify the creation of the one-time credit.
25 SECTION 3: The City Council of the City of Vernon hereby
26 approves and authorizes the creation of a one-time credit for each
27 kilowatt-hour for August 2006 of 0.433 cents. Said credit shall be
28 applied to all energy sold to electric customers through the retail
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rate schedules for August 2006, and will appear as a separate line item
on the bill clearly identified as "El Paso Settlement Distribution:
Resolution No. 9070."
SECTION 4: The City Council of the City of Vernon hereby
directs the Director of Light & Power to inform utility customers of
the one-time credit for the August 2006 sales period.
SECTION 5: The Acting 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 21st day of June, 2006.
ATTEST:
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BRUCE V.QOLKENHORST, JR.
Acting City Clerk
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THOMAS A. YBARRA, Mayor Pro Tem
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 9070, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, June 21, 2006, and thereafter was duly signed by the Mayor
Pro Tem of the City of Vernon.
I (S EAL )
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BRUC V. MALKENHORST, JR.
Acting City Clerk