201 S. Anaheim Blvd.
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Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: MARCH 28, 2023
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: PROPOSED MODIFICATIONS TO THE ELECTRIC AND
WATER RATES, RULES AND REGULATIONS
ATTACHMENT (Y/N): YES ITEM # 20
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Resolutions:
1) Determine that the modifications to the Electric and Water Rates, Rules and Regulations are exempt under the California Environmental Quality Act pursuant to Public Resources Code section 21080(b)(8) and sections 15061(b)(3) and 15273(a) of Title 14 of the California Code of Regulations;
2) Adopt the modified Electric Rates, Rules and Regulations as reflected in the attached Resolution, which do not materially increase rate-related revenues, effective April 3, 2023; and
3) Adopt the modified Water Rates, Rules and Regulations as reflected in the attached Resolution, which do not materially increase rate-related revenues, effective April 3, 2023.
DISCUSSION:
At their meeting on February 22, 2023, the Public Utilities Board (Board) conducted public hearings and recommended that the City Council approve these actions.
Anaheim Public Utilities’ (APU) primary objectives include providing safe, reliable, high-quality electric and water service to customers while maintaining affordable rates. APU regularly reviews its Electric and Water Rates, Rules and Regulations to align service offerings to meet customers’ current needs, provide customers with service flexibility and options, and to ensure appropriate cost recovery. The following modifications are intended to achieve these goals and do not increase customer rates.
The proposed modifications are outlined as follows:
Close Developmental Electric Vehicle Rate Schedule
Proposed Modifications to the Electric and Water Rates, Rules and Regulations March 28, 2023
APU proposes to close the residential electric vehicle (EV) developmental rate schedule to additional customer participants and evaluate new sub-metering options.
To date, customers have been required to install electrical sub-panels for the purpose of sub-metering just the portion of energy used by the EV, which has hindered customer adoption of available EV rates. A whole house time-based rate remains available to customers seeking to adjust their energy usage away from periods of peak demand. APU may return at a later date to propose reopening this developmental rate schedule to additional customer participants based on technological advances such as virtual sub-metering, with modifications that reduce costs and allow for ease of EV adoption.
Update Existing Time-of-Use Rate Schedule
APU also proposes to update the existing commercial/industrial Time-of-Use rate schedule to allow eligible customers with multiple meters and properties spanning multiple adjacent parcels the simplicity to pay one utility bill. This option is available based on criteria such as higher demand above 4 Megawatts (MW) to allow APU to recover its cost to serve these customers. APU also proposes to shift the 6 a.m. - 8 a.m. winter weekday time period from mid-peak to off-peak to make this rate simpler for businesses to implement and reduce impacts to their operations. In addition, outdated language will be eliminated. These updates are intended to encourage adoption of time-based rates that reduce the need to procure expensive power during peak hours.
Rule No. 23 - Update Customer Service Fee and Credit Structure Another proposal entails updating a rule allowing APU to bill for actual labor and materials charges related to investigating and repairing equipment damage (typically caused by meter tampering and resulting theft of utility service) versus applying an outdated fixed charge that does not recover the associated costs and places additional financial burdens on the balance of customers. APU also proposes to consolidate the listed credit amounts (up to $50) for missed appointments and billing errors for consistency and to reflect more current cost impacts.
Public Hearings
On February 22, 2023, the Board conducted public hearings, in accordance with Section 909 of the City Charter, regarding the proposed modifications to the Electric and Water Rates, Rules and Regulations. APU published notices of public hearing including the electric rate proposals on four occasions between February 2, 2023, and February 13, 2023, in the Anaheim Bulletin and Orange County Register. APU published notices of the public hearings regarding the proposed modifications to fees and credits contained in Electric and Water Rules No. 23 in the Anaheim Bulletin on February 2, 2023, and February 9, 2023. The public hearing notices included the hearing time, date, and location. All public hearing documentation was made available for public review at all City libraries, the City Clerk’s Office, and on the City’s website on or about February 10, 2023.
Proposed Modifications to the Electric and Water Rates, Rules and Regulations March 28, 2023
At each of the two public hearings, no members of the community spoke in opposition to these proposed modifications. At the conclusion of each of the two public hearings, the Board recommended that the City Council, by Resolution, approve the proposed modifications to the Electric Rates, Rules and Regulations and Water Rates, Rules and Regulations.
IMPACT ON BUDGET:
The proposed electric rate modifications and electric and water rule modifications do not increase customer rates and have no material impact on utility revenue.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. Resolution No. 2023-____ which includes:
Attachment A - Electric Rates, Rules and Regulations Rate Schedules effective April 3, 2023
Attachment B - Electric Rates, Rules and Regulations Rule No. 23 effective April 3, 2023
2. Current Electric Rates, Rules and Regulations Rule No. 23
3. Resolution No. 2023-___ which includes:
Attachment A - Water Rates, Rules and Regulations Rule No. 23 effective April 3, 2023
4. Current Water Rates, Rules and Regulations Rule No. 23