RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER, CALIFORNIA, AUTHORIZING THE EXECUTION
OF AN AMENDED SURETY BOND TO MEET THE FINANCIAL
SECURITY REQUIREMENT FOR LANCASTER ENERGY AND
RESCINDING RESOLUTION NO. 23-22
WHEREAS, Community Choice Aggregation, authorized by Assembly Bill 117, is a state law that allows cities, counties and other authorized entities to aggregate electricity demand within their jurisdictions in order to purchase and/or generate alternative energy supplies for residents and businesses within their jurisdiction while maintaining the existing electricity provider for transmission and distribution services; and
WHEREAS, on May 27, 2014, City Council adopted Ordinance 997, establishing a Community Choice Aggregation program, Lancaster Choice Energy; and WHEREAS, the California Public Utilities Code Section 394.25 requires the posting of a bond or insurance sufficient to cover costs of an involuntary return of customers, also known as the Financial Security Requirement; and
WHEREAS, the City of Lancaster, on behalf of Lancaster Energy, previously satisfied the Financial Security Requirement through the issuance of a surety bond, as authorized by City Council on April 11, 2023, by Resolution No. 23-22;
WHEREAS, the City of Lancaster previously approved a not-to-exceed amount of $25,000 for the Surety Bond annual fee;
WHEREAS, effective September 1, 2025, the annual fee associated with servicing Lancaster Energy’s surety bond will increase to approximately $41,037.05; and WHEREAS, the City of Lancaster, on behalf of Lancaster Energy, now seeks to satisfy this revised Financial Security Requirement through the execution of an amended Surety Bond, and WHEREAS, in order to facilitate the execution of the amended Surety Bond and reflect the updated financial security requirements, it is necessary to rescind Resolution No. 23-22;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANCASTER AS FOLLOWS:
SECTION 1. That based upon and in consideration of staff reports, presentations, public testimony and comment, and such other matters presented to the City Council during the public meeting on this matter, the City Council finds and declares the foregoing recitals to be true and correct and incorporates the same as substantive findings herein.
SECTION 2. That the City Manager is authorized annually to execute documents to enable the issuance of, and amendments to, a Surety Bond in satisfaction of Lancaster Energy’s Financial Security Requirement as the same may be revised from time to time, with the annual fee paid for by Lancaster Energy funds in a not-to-exceed amount of $100,000 annually.
Resolution No. ____
SECTION 3. That Resolution No. 23-22, adopted on April 11, 2023, is hereby rescinded in its entirety.
SECTION 4. That the City Clerk shall certify to the adoption of this Resolution, and it shall become effective immediately upon adoption.
PASSED, APPROVED and ADOPTED this 12th day of August 2025 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
Resolution No. ____
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF RESOLUTION
CITY OF LANCASTER
I, , City of Lancaster, CA, do hereby
certify that this is a true and correct copy of the original Resolution No. _____for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF, on this day of , .
(seal)