Agenda, regular meeting — Moreno Valley City Council, December 16, 2025 (part 2 of 3)

If a landowner elects to annex their property into the Districts and the City Council approves the annexation(s), the City is authorized to levy special taxes onto the annual property tax bill to fund the services related to or impacted by their development.

The following property owners have elected to annex into the Districts to satisfy their condition(s) of approval:

Property Owner(s)
Project
ACP Record No(s).

District Amendment
No. APN(s) Location
SAFStor Moreno Beach, LLC
SAFStor Moreno Beach
Self-Storage Facility
SCP25-0153/PEN24-0064/
BFC25-0108
CFD 2014-01 93 478-070-026
478-070-027
14080 Moreno Beach
Dr.

Juan Gomez Gutierrez and
Araceli Garcia Rodriguez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0110/BFR25-0022
CFD 2023-01 94 481-063-023 24712 Singer St.

Maria Orozco
Accessory Dwelling Unit (ADU)
SCP25-0045/BFR24-0089
CFD 2023-01 101 487-022-014 12397 Grenville Ave.

Vilma A. Munoz
Accessory Dwelling Unit (ADU)
SCP25-0160/BFR25-0139
CFD 2023-01 120 475-100-029 24081 Roseleaf Pl.

SAFStor Moreno Beach, LLC
SAFStor Moreno Beach
Self-Storage Facility
SCP25-0155/PEN24-0064/
BFC25-0108
CFD 2023-01 125 478-070-026
478-070-027
14080 Moreno Beach
Dr.

Javier Gomez Perez and
Denise Valencia
Accessory Dwelling Unit (ADU)
SCP25-0168/BFR25-0065
CFD 2023-01 126 256-182-031 21177 Martynia Ct.

Juana Lara
Jr. Accessory Dwelling Unit (ADU)
SCP25-0183/BFR25-0116
CFD 2023-01 129 296-213-017 13882 Caspian Way
Nest Legacy
2 Accessory Dwelling Units (ADUs)
SCP25-0119/ BFR24-0164/
BFR24-0178
CFD 2023-01 130 474-272-032 26970 & 26968
Ironwood Ave.
409
ID: 25-0511 Page 4
Property Owner(s)
Project
ACP Record No(s).

District Amendment
No. APN(s) Location
Dorla Ruby Young Avilez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0185/BFR25-0151
CFD 2023-01 131 482-600-044 13274 Luton Ct.

Luis Alfonso Serrano
Jr. Accessory Dwelling Unit (ADU) &
Accessory Dwelling Unit (ADU)
SCP25-098/BFR25-0048/BFR25-0057
CFD 2023-01 132 486-093-024 25090 & 25094
Gentian Ave.

The Office of the Riverside County Registrar of Voters confirmed there were less than 12 registered voters residing at each property, allowing a special election of the landowner.

Adoption of the attached resolutions (Attachments 1 and 2) amend each District and adds the property/properties, with a special tax rate based on property type, in the Fiscal Impact section of this report and directs the recordation of the boundary maps and amended notices of special tax lien for the amendments. The City Clerk received and reviewed the Landowner Petitions and confirmed the Property Owners unanimously approved the annexations of their property into the Districts (Attachment 3).

Successful completion of the annexation process satisfies the project’s conditions of approval requirements to provide a funding source for the operation and maintenance of public services including street lighting, landscaping, streets and drainage and public safety services.

ALTERNATIVES

1. Adopt the resolutions. Staff recommends this alternative as it will annex the property/properties into CFD No. 2014-01 and CFD 2023-01 at the request of the Property Owners and satisfy the conditions of approval for the proposed developments.

2. Do not adopt the resolutions. Staff does not recommend this alternative as it is contrary to the request of the Property Owners, will not satisfy the conditions of approval and may delay development of the projects.

3. Do not adopt the resolutions but rather continue the item to a future regularly scheduled City Council meeting. Staff does not recommend this alternative as it will delay the Property Owners from satisfying the condition of approval and may delay development of the projects.

FISCAL IMPACT
Revenue received from the special taxes are restricted and can only be used to fund services within each District. The special tax can only be applied to a property tax bill of 410
ID: 25-0511 Page 5
a parcel wherein the qualified electors (i.e., landowners or registered voters, depending upon the number of registered voters) have previously provided approval. The maximum special tax rate is detailed below. If the projected revenue from the maximum special tax exceeds what is necessary to fund the services, a lower amount will be applied to the property tax bill.

Property Owner(s)
Project
ACP Record No(s).

District Amendment
No.

Property
Type
FY 2025/26 Maximum
Special Tax Rate1
SAFStor Moreno Beach, LLC
SAFStor Moreno Beach
Self-Storage Facility
SCP25-0153/PEN24-0064/
BFC25-0108
CFD 2014-01 93 NonResidential SL-02
$5.57/
Proportional
Front Footage
Juan Gomez Gutierrez and
Araceli Garcia Rodriguez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0110/BFR25-0022
CFD 2023-01 94
Accessory
Dwelling
Unit
$216.30/Unit
Maria Orozco
Accessory Dwelling Unit (ADU)
SCP25-0045/BFR24-0089
CFD 2023-01 101
Accessory
Dwelling
Unit
$216.30/Unit
Vilma A. Munoz
Accessory Dwelling Unit (ADU)
SCP25-0160/BFR25-0139
CFD 2023-01 120
Accessory
Dwelling
Unit
$216.30/Unit
SAFStor Moreno Beach, LLC
SAFStor Moreno Beach
Self-Storage Facility
SCP25-0155/PEN24-0064/
BFC25-0108
CFD 2023-01 125 Commercial
$58.80/1,000 Feet of
Building Square
Footage
Javier Gomez Perez and
Denise Valencia
Accessory Dwelling Unit (ADU)
SCP25-0168/BFR25-0065
CFD 2023-01 126
Accessory
Dwelling
Unit
$216.30/Unit
Juana Lara
Jr. Accessory Dwelling Unit (ADU)
SCP25-0183/BFR25-0116
CFD 2023-01 129
Accessory
Dwelling
Unit
$216.30/Unit
Nest Legacy
2 Accessory Dwelling Units (ADUs)
SCP25-0119/ BFR24-0164/
BFR24-0178
CFD 2023-01 130
Accessory
Dwelling
Unit
$216.30/Unit
Dorla Ruby Young Avilez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0185/BFR25-0151
CFD 2023-01 131
Accessory
Dwelling
Unit
$216.30/Unit
411
ID: 25-0511 Page 6
Property Owner(s)
Project
ACP Record No(s).

District Amendment
No.

Property
Type
FY 2025/26 Maximum
Special Tax Rate1
Luis Alfonso Serrano
Jr. Accessory Dwelling Unit (ADU) &
Accessory Dwelling Unit (ADU)
SCP25-098/BFR25-0048/BFR25-0057
CFD 2023-01 132
Accessory
Dwelling
Unit
$216.30/Unit
1The special tax applied to the property tax bill will be based on the needs of the District. The applied special tax rate cannot exceed the maximum special tax rate.

The maximum special tax rates are subject to an annual inflation adjustment based on the change in the Consumer Price Index (CPI) or five percent (5%), whichever is greater.

However, the annual adjustment cannot be applied unless the City Council annually authorizes such adjustment. The increase to the maximum special tax rates cannot exceed the annual inflationary adjustment without a two-thirds approval of the qualified electors.

NOTIFICATION
The Landowner Petitions were provided to the Property Owners on November 7, 12, 14, 18, and December 2, 2025.

PREPARATION OF STAFF REPORT
Prepared by: Department Head Approval:

Kaitlyn Choma Launa Jimenez
Management Assistant Assistant City Manager (Administration) Concurred by: Concurred by:

Isa Rojas Shanna Palau
Interim Special Districts Manager Public Safety Contracts Administrator

CITY COUNCIL GOALS
Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.

Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure
412
ID: 25-0511 Page 7

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
Objective 2.5: Develop partnerships with local businesses and warehouse operators to reduce traffic related issues.

Objective 2.6: Enhance operational excellence and efficiency in delivery of Police services.

Objective 2.7: Fully integrate Fire Prevention activities into the City’s Development Services processes to provide swift, seamless service.

Objective 4.2: Develop and maintain a comprehensive Infrastructure Plan to invest in and deliver City infrastructure.

Objective 5.2: Promote the installation and maintenance of cost effective, low maintenance landscape, hardscape and other improvements which create a clean, inviting community.
413
ID: 25-0511 Page 8
Report Approval Details
Document Title: STAFFREPORT_FMS_SD_ANNEXATIONS INTO CFD 2014- 01_AND_CFD 2023-01_12.16.25.docx
Attachments: - RESOLUTION ORDERING ANNEXATION_CFD 2014- 01_12.16.25.docx
- RESOLUTION ORDERING ANNEXATION_CFD 2023-
01_12.16.25.docx
- CERTIFICATES OF ELECTION OFFICIAL_12.16.25.docx
Final Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

No Signature found
Kaitlyn Choma
No Signature - Task assigned to Isa Rojas was completed by workflow administrator Patty Rodriguez
Isa Rojas
No Signature found
Shanna Palau
Natalia Lopez
Launa Jimenez
Brian Mohan
Patty Rodriguez
414
1 Resolution No. 2025-___
Date Adopted: December 16, 2025
RESOLUTION NO. 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, ORDERING THE

ANNEXATION OF TERRITORY TO CITY OF MORENO
VALLEY COMMUNITY FACILITIES DISTRICT NO. 2014-01
(MAINTENANCE SERVICES) AND APPROVING THE

AMENDED MAP FOR SAID DISTRICT
WHEREAS, by its Resolution No. 2014-25, the City Council established the City of Moreno Valley Community Facilities District No. 2014-01 (Maintenance Services) (the “CFD”), a citywide district, pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”); and WHEREAS, by its Ordinance No. 874, the City Council authorized an annual special tax to be levied against all non-exempt parcels of real property within the CFD (the “Special Tax”) to fund street lighting services and landscape maintenance services; and
WHEREAS, by its Ordinance No. 980, the City Council authorized an annual special tax to be levied against all non-exempt parcels of real property within the CFD to fund Drainage and Street Maintenance Services; and
WHEREAS, in order to permit landowners to efficiently annex developing parcels to the CFD, the City Council, by its Ordinance No. 980 designated the entire territory of the City as a future annexation area for the CFD and approved the third amended and restated rate and method of apportionment for the Special Tax; and WHEREAS, the landowner of the parcel listed on Exhibit A to this Resolution, which is attached hereto and incorporated herein by reference, has submitted to the City a petition requesting and approving annexation of the listed parcel (the “Annexation Parcel”) to the CFD; and
WHEREAS, the Annexation Parcel is comprised of the territory shown on the boundary map (the “Boundary Map”) “Amendment No. 93 to Boundaries of City of Moreno Valley Community Facilities District No. 2014-01 (Maintenance Services), City of Moreno Valley, County of Riverside, State of California” which is included as Exhibit B to this Resolution, and incorporated herein by this reference; and WHEREAS, the City Council desires to annex the Annexation Parcel to the CFD.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Recitals. The above recitals are all true and correct and are herein incorporated.

2. Annexation Approved. The Annexation Parcel is hereby added to and part of the CFD with full legal effect. The Annexation Parcel is subject to the Special Tax associated with the Tax Rate Areas indicated on Exhibit A to this Resolution. 415
2 Resolution No. 2025-___
Date Adopted: December 16, 2025

3. Description of Services. The following is a general description of all services (the “Services”) provided in the CFD:

A. Landscape Maintenance Services: Maintaining, servicing, and operating landscape improvements and associated appurtenances located within the public rightof-way and within dedicated landscape easements for the CFD. These improvements may include but are not limited to parkways, medians, open space landscaping, fencing, monuments, ornamental lighting, drainage, turf, ground cover, shrubs, vines and trees, irrigation systems, and appurtenant facilities and structures. Fundable costs may include, but are not limited to: (i) contracting costs for landscape maintenance services, including litter removal, (ii) salaries and benefits of City staff, (iii) expenses related to equipment, apparatus, and supplies related to these services, (iv) City administrative and overhead costs associated with providing such services within the CFD, and (v) lifecycle costs associated with the repair and replacement of facilities.

B. Street Lighting Services: Maintaining, servicing, and operating street lights and appurtenant improvements. Fundable costs may include, but are not limited to: (i) contracting costs for street light maintenance, (ii) salaries and benefits of City staff, if the City directly provides street light maintenance services, (iii) utility expenses and the expense related to equipment, apparatus, and supplies related to these services and authorized by the Act, (iv) City administrative and overhead costs associated with providing such services for the CFD, and (v) lifecycle costs associated with the repair and replacement of facilities.

C. Drainage and Street Maintenance Services: Maintaining, servicing, and operating drainage improvements and maintaining streets. Drainage improvements include public improvements and appurtenance (and associated easements) that are designed or used to capture, retain, detain, remove, transport, or treat surface water and storm water runoff. Fundable costs may include, but are not limited to: (i) contracting costs for street and drainage maintenance services, including litter removal, (ii) salaries and benefits of City staff if the City directly provides these services, (iii) expenses related to equipment, apparatus, and supplies related to these services, (iv) City administrative and overhead costs associated with providing such services within the CFD, and (v) lifecycle costs associated with the repair and replacement of streets and drainage improvements.

The Annexation Parcel will only be provided with the services indicated on Exhibit A.

4. Amended Boundary Map. The Boundary Map attached hereto as Exhibit B is hereby approved. This map amends, and does not supersede, the existing maps of the CFD. The City Council directs that said map be filed with the Riverside County Recorder pursuant to Section 3113 of the Streets and Highways Code.

5. Notice of Special Tax Lien. The City Council directs that an amended notice of special tax lien be recorded pursuant to Section 3117.5 of the Streets and Highways Code 416
3 Resolution No. 2025-___
Date Adopted: December 16, 2025
with respect to the Annexation Parcel associated with the Boundary Map.

6. This Resolution shall be effective immediately upon adoption.

7. The City Clerk shall certify to the adoption of this Resolution, and shall maintain on file as a public record this Resolution.

8. Severability. That the City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

9. Repeal of Conflicting Provisions. That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

APPROVED AND ADOPTED this 16
th day of December 2025.
____________________________
Mayor of the City of Moreno Valley
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
City Attorney
417
4 Resolution No. 2025-___
Date Adopted: December 16, 2025

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, M. Patricia Rodriguez, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 2025-___ was duly and regularly adopted by the City Council of the City of Moreno Valley at a regular meeting thereof held on the 16 th day of
December 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor Pro Tem and Mayor)
___________________________________

CITY CLERK
(SEAL)
418
5 Resolution No. 2025-___
Date Adopted: December 16, 2025

EXHIBIT A
Boundary Map
Amendment No.

Assessor's
Parcel Numbers Services
List of Annexation Parcel(s)
Tax Rate Area &
Maintenance
Category
SL-02
The parcels associated with a given development constitute a separate Annexation Group for purpose of calculating the applicable Maintenance Category (where applicable) for each Tax Rate Area. The anticipated Maintenance Category (where applicable) is shown in parenthesis following the Tax Rate Area. All capitalized terms in this paragraph have the meanings set forth in the Rate and Method of Apportionment.

Based on current development plans, however all taxes will be calculated as set forth in the Rate and Method of Apportionment.
478070026
478070027 Amendment No. 93 Street Lighting
419
6 Resolution No. 2025-___
Date Adopted: December 16, 2025

EXHIBIT B
Boundary Map Amendment
420
7 Resolution No. 2025-___
Date Adopted: December 16, 2025
421
1 Resolution No. 2025-___
Date Adopted: December 16, 2025
RESOLUTION NO. 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, ORDERING THE

ANNEXATION OF TERRITORY TO CITY OF MORENO
VALLEY COMMUNITY FACILITIES DISTRICT NO. 2023-01
(PUBLIC SAFETY SERVICES) AND APPROVING

AMENDED MAPS FOR SAID DISTRICT
WHEREAS, by its Resolution No. 2023-82, the City Council established the City of Moreno Valley Community Facilities District No. 2023-01 (Public Safety Services) (the “CFD”), a citywide district, pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”); and WHEREAS, by its Ordinance No. 1004, the City Council authorized an annual special tax to be levied against all non-exempt parcels of real property within the CFD (the “Special Tax”) to fund public safety services; and WHEREAS, in order to permit landowners to efficiently annex developing parcels to the CFD, the City Council, by its Ordinance No. 1007 designated the entire territory of the City as a future annexation area for the CFD and approved the rate and method of apportionment for the Special Tax; and
WHEREAS, the landowner of the parcels listed in Exhibit A to this Resolution, which is attached hereto and incorporated herein by reference, has submitted to the City a petition requesting and approving annexation to the CFD of said parcels; and WHEREAS, territory proposed for annexation to the CFD Parcels are shown on the boundary maps titled “Amendment Nos. 94, 101, 120, 125, 126, and 129-132 to Boundaries of City of Moreno Valley Community Facilities District No. 2023-01 (Public Safety Services), City of Moreno Valley, County of Riverside, State of California” (the “Boundary Maps”), which are attached hereto as Exhibit B, and incorporated herein by this reference; and
WHEREAS, the City Council desires to annex the territory shown on the Boundary Maps (the Annexation Parcels) to the CFD.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Recitals. The above recitals are all true and correct and are herein incorporated.

2. Annexations Approved. The Annexation Parcels are hereby added to and made part of the CFD with full legal effect. The Annexation Parcels are subject to the Special Tax as indicated on Exhibit A to this Resolution.

3. Description of Services. The following is a general description of all services (the “Services”) provided in the CFD:
422
2 Resolution No. 2025-___
Date Adopted: December 16, 2025
Police protection services; fire protection and suppression services; and paramedic services, to the extent such services are in addition to services already provided at the time CFD No. 2023-01 is created and do not supplant existing services.

Fundable costs include, but are not limited to: (i) direct costs for such services, (ii) salaries and benefits of staff providing such services, (iii) expenses related to equipment, apparatus, and supplies related to these services, (iv) administrative and overhead costs, including staff time, associated with providing such services, and (v) lifecycle costs associated with the repair and replacement of facilities and improvements used to provide such services. Fundable costs also include the incidental expenses of the administration of CFD No. 2023-01.

4. Amended Boundary Maps. The Boundary Maps are hereby approved. These maps amend, and does not supersede, the existing maps of the CFD. The City Council directs that said maps be filed with the Riverside County Recorder pursuant to Section 3113 of the Streets and Highways Code.

5. Notices of Special Tax Lien. The City Council directs that amended notices of special tax lien be recorded pursuant to Section 3117.5 of the Streets and Highways Code with respect to the Annexation Parcels associated with the Boundary Maps.

6. This Resolution shall be effective immediately upon adoption.

7. The City Clerk shall certify the adoption of this Resolution and shall maintain on file as a public record this Resolution.

9. Repeal of Conflicting Provisions. That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.
423
3 Resolution No. 2025-___
Date Adopted: December 16, 2025
APPROVED AND ADOPTED this 16th day of December 2025.
____________________________
Mayor of the City of Moreno Valley
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
City Attorney
424
4 Resolution No. 2025-___
Date Adopted: December 16, 2025

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor Pro Tem and Mayor)
___________________________________

CITY CLERK
(SEAL)
425
5 Resolution No. 2025-___
Date Adopted: December 16, 2025

EXHIBIT A
List of Annexation Parcel(s)
Boundary Map
Amendment
No.

Assessor's Parcel
Number(s)
FY 2025/26
Maximum
Special Tax Rate
94 481-063-023 Accessory Dwelling
Unit $216.30/Unit
101 487-022-014 Accessory Dwelling
Unit $216.30/Unit
120 475-100-029 Accessory Dwelling
Unit $216.30/Unit
125 478-070-026
478-070-027 Commercial
$58.80/1,000 Feet
of Building Square
Footage
126 256-182-031 Accessory Dwelling
Unit $216.30/Unit
129 296-213-017 Accessory Dwelling
Unit $216.30/Unit
130 474-272-032 Accessory Dwelling
Unit $216.30/Unit
131 482-600-044 Accessory Dwelling
Unit $216.30/Unit
132 486-093-024 Accessory Dwelling
Unit $216.30/Unit
Based on current development plans, it is anticipated that the Annexation Group will be in the Land Use Category listed above; however, all taxes will be calculated as set forth in the Rate and Method of Apportionment.
426
6 Resolution No. 2025-___
Date Adopted: December 16, 2025

EXHIBIT B
Boundary Map Amendments
427
7 Resolution No. 2025-___
Date Adopted: December 16, 2025
428
8 Resolution No. 2025-___
Date Adopted: December 16, 2025
429
9 Resolution No. 2025-___
Date Adopted: December 16, 2025
430
10 Resolution No. 2025-___
Date Adopted: December 16, 2025
431
11 Resolution No. 2025-___
Date Adopted: December 16, 2025
432
12 Resolution No. 2025-___
Date Adopted: December 16, 2025
433
13 Resolution No. 2025-___
Date Adopted: December 16, 2025
434
14 Resolution No. 2025-___
Date Adopted: December 16, 2025
435
15 Resolution No. 2025-___
Date Adopted: December 16, 2025
436
ATTACHMENT 2

CERTIFICATES OF ELECTION OFFICIAL
437
438
439
440
441
442
443
444
445
446
447
Report to City Council
ID: 25-0510 Page 1
TO: Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of
the Moreno Valley Community Services District (CSD)
FROM: Launa Jimenez, Assistant City Manager
(Administration)
AGENDA DATE: December 16, 2025
TITLE: ANNEXATION OF CERTAIN PARCELS INTO CFD NO.
2021-01 (PARKS MAINTENANCE) (REPORT OF:

FINANCIAL AND MANAGEMENT SERVICES)
(DISTRICT: ALL APPLICABLE)
TITLE SUMMARY: Pursuant to Landowner Petitions, Annex Certain Parcels into Community Facilities District No. 2021-01 (Parks
Maintenance) (Reso No. CSD 2025-___)
DISTRICT: All Districts
Recommendation(s)
That the CSD:

1. Adopt Resolution No. CSD 2025-___, a Resolution of Board for the Moreno Valley Community Services District of the City of Moreno Valley, California, ordering the annexation of territory to Moreno Valley Community Services District Community Facilities No. 2021-01 (Parks Maintenance) and approving the amended maps for said District, for the Specific properties as listed in the Discussion section of this report and as previously approved by the Landowner and certified by the City's Election Official (Amendment Nos. 276, 282, 299, 304-306, and 309-311).

SUMMARY
Adoption of this resolution (Attachment 1) will certify the annexation of 10 parcels into 448
ID: 25-0510 Page 2
Community Facilities District (CFD) No. 2021-01 (Parks Maintenance) (“District”). This action impacts only the property owners identified below, not the general citizens or taxpayers of the City.

DISCUSSION
As a condition of approval for development projects, the property owners are required to provide an ongoing funding source for maintenance of certain public facilities (e.g., parks).

The funding mitigates the cost of the impacts created by the proposed development.

On June 1, 2021, the CSD Board formed CFD No. 2021-01, pursuant to the Mello-Roos Community Facilities Act of 1982. The District was created to provide the development community with an alternative funding tool to mitigate the impacts of their proposed development. If a property owner elects to annex the parcels of their development into the District, they also authorize the CSD annually levy a special tax, collected on the annual property tax bill, against property in the development project. Thus, satisfying the condition of approval.

On December 21, 2021, the CSD Board adopted Ordinance No. 56, which designated the entire territory of the City as a future annexation area for the District. With the future annexation area designated, annexations can occur without an additional public hearing as long as the annexing landowner provides unanimous consent. Once annexed, parcels are subject to the annual special tax to fund the service they are receiving.

An applicant has two options to satisfy the condition(s) of approval:

1. The property owner submits a Landowner Petition unanimously approving annexation of the property into the District. Approval of the petition and special tax rate allows the City to annually levy the special tax on the property tax bill of the property. This option is only available if there are fewer than 12 registered voters living within the proposed annexation area; or

2. The applicant funds an endowment in an amount sufficient to yield an annual revenue stream that meets the annual obligation and provides for the ongoing operation and maintenance of parks facilities.

Property Owner(s)
Project
ACP Record No(s).

Amendment
No. APN(s) Location
Juan Gomez Gutierrez and
Araceli Garcia Rodriguez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0109/BFR25-0022
276 481-063-023 24712 Singer St.

Maria Orozco
Accessory Dwelling Unit (ADU)
SCP25-0044/BFR24-0089
282 487-022-014 12397 Grenville Ave.
449
ID: 25-0510 Page 3
Property Owner(s)
Project
ACP Record No(s).

Amendment
No. APN(s) Location
Vilma A. Munoz
Accessory Dwelling Unit (ADU)
SCP25-0159/BFR25-0139
299 475-100-029 24081 Roseleaf Pl.

SAFStor Moreno Beach, LLC
SAFStor Moreno Beach
Self-Storage Facility
SCP25-154/PEN24-0064/BFC25-0108
304 478-070-026
478-070-027 14080 Moreno Beach Dr.

Nest Legacy
2 Accessory Dwelling Units (ADUs)
SCP25-0118/BFR24-0164/BFR24-0178
305 474-272-032 26970 & 26968 Ironwood Ave.

Javier Gomez Perez and Denise Valencia
Accessory Dwelling Unit (ADU)
SCP25-0167/BFR25-0065
306 256-182-031 21177 Martynia Ct.

Juana Lara
Jr. Accessory Dwelling Unit (ADU)
SCP25-0182/BFR25-0116
309 296-213-017 13882 Caspian Way
Dorla Ruby Young Avilez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0184/BFR25-0151
310 482-600-044 13274 Luton Ct.

Luis Alfonso Serrano
Jr. Accessory Dwelling Unit (ADU) &
Accessory Dwelling Unit (ADU)
SCP25-097/BFR25-0048/BFR25-0057
311 486-093-024 25090 & 25094 Gentian Ave.

The Property Owners listed above elected to annex their property into CFD No. 2021-01 and have the special tax applied to their annual property tax bill. The office of the Riverside County Registrar of Voters confirmed the number of registered voters residing at each property, allowing a special election of the landowner. Adoption of the resolution (Attachment 1) amends the District and adds the property to the tax rate area identified in the Fiscal Impact section of this report. The resolution also directs the recordation of the boundary maps (included within the resolution) and amended notice of special tax liens for the amendments. The Election Official confirmed the Property Owners unanimously approved the annexation of their property into the District (Attachment 2).

ALTERNATIVES

1. Adopt the resolution. Staff recommends this alternative since it will annex the properties into CFD No. 2021-01 at the request of the Property Owners and satisfy the condition of approval for the proposed developments.

2. Do not adopt the resolution. Staff does not recommend this alternative because it is contrary to the request of the Property Owners, will not satisfy the condition of approval, and may delay development of the projects. 450
ID: 25-0510 Page 4

3. Do not adopt the resolution but rather continue the item to a future regular scheduled City Council meeting. Staff does not recommend this alternative as it will delay the Property Owners from satisfying the condition of approval and may delay development of the projects.

FISCAL IMPACT
Revenue received from the special tax is restricted and can only be used to fund the services for each tax rate area within the District. The special tax can only be applied to a property tax bill of a parcel wherein the qualified electors (i.e., landowners or registered voters, depending upon the number of registered voters) have previously provided approval. If the projected revenue from the maximum special tax exceeds what is necessary to fund the services within the tax rate area, a lower amount will be applied to the property tax bill for all of the properties within the affected tax rate area. The maximum special tax rates are detailed below.

Property Owner(s)
Project
ACP Record No(s).

Amendment
No. Property Type FY 2025/26Maximum Special Tax Rate1
Juan Gomez Gutierrez and
Araceli Garcia Rodriguez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0109/BFR25-0022
276 Single-Family $369.57/Unit
Maria Orozco
Accessory Dwelling Unit (ADU)
SCP25-0044/BFR24-0089
282 Single-Family $369.57/Unit
Vilma A. Munoz
Accessory Dwelling Unit (ADU)
SCP25-0159/BFR25-0139
299 Single-Family $369.57/Unit
SAFStor Moreno Beach, LLC
SAFStor Moreno Beach
Self-Storage Facility
SCP25-154/PEN24-0064/BFC25-0108
304 Commercial $23.69/1,000 Feet of Building
Square Footage
Nest Legacy
2 Accessory Dwelling Units (ADUs)
SCP25-0118/BFR24-0164/BFR24-0178
305 Single-Family $369.57/Unit
Javier Gomez Perez and Denise Valencia
Accessory Dwelling Unit (ADU)
SCP25-0167/BFR25-0065
306 Single-Family $369.57/Unit
Juana Lara
Jr. Accessory Dwelling Unit (ADU)
SCP25-0182/BFR25-0116
309 Single-Family $369.57/Unit
Dorla Ruby Young Avilez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0184/BFR25-0151
310 Single-Family $369.57/Unit
451
ID: 25-0510 Page 5
Property Owner(s)
Project
ACP Record No(s).

Amendment
No. Property Type FY 2025/26Maximum Special Tax Rate1
Luis Alfonso Serrano
Jr. Accessory Dwelling Unit (ADU) &
Accessory Dwelling Unit (ADU)
SCP25-097/BFR25-0048/BFR25-0057
311 Single-Family $369.57/Unit
The maximum special tax rate is subject to an annual inflation adjustment based on the change in the Consumer Price Index (CPI) or five percent (5%), whichever is greater.

However, the annual adjustment cannot be applied unless the CSD Board annually authorizes such adjustment. The increase to the maximum special tax rate cannot exceed the annual inflationary adjustment without a two-thirds approval of the qualified electors within the affected tax rate area.

NOTIFICATION
The Landowner Petitions were provided to the Property Owners on November 7, 12, 14, 18, and December 2, 2025.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Kaitlyn Choma Launa Jimenez
Management Assistant Assistant City Manager (Administration) Concurred By: Concurred By:

Isa Rojas Jeremy Bubnick
Interim Special Districts Manager Parks & Community Services Director

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
452
ID: 25-0510 Page 6
Objective 4.2: Develop and maintain a comprehensive Infrastructure Plan to invest in and deliver City infrastructure.

Objective 5.2: Promote the installation and maintenance of cost effective, low maintenance landscape, hardscape and other improvements which create a clean, inviting community.
453
ID: 25-0510 Page 7
Report Approval Details
Document Title: STAFFREPORT_FMS_SD_ANNEXATIONS INTO CFD 2021- 01_12.16.25.docx
Attachments: - RESOLUTION ORDERING ANNEXATIONS_12.16.25.docx - CERTIFICATES OF ELECTION OFFICIAL_12.16.25.docx
Final Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

No Signature found
Kaitlyn Choma
No Signature - Task assigned to Isa Rojas was completed by workflow administrator Patty Rodriguez
Isa Rojas
No Signature found
Jeremy Bubnick
Natalia Lopez
Launa Jimenez
Brian Mohan
Patty Rodriguez
454
1 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
RESOLUTION NO. CSD 2025-___

MORENO VALLEY COMMUNITY SERVICES DISTRICT OF

THE CITY OF MORENO VALLEY, CALIFORNIA,

ORDERING THE ANNEXATION OF TERRITORY TO

MORENO VALLEY COMMUNITY SERVICES DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 2021-01 (PARKS

MAINTENANCE) AND APPROVING AMENDED MAP(S)

FOR SAID DISTRICT
WHEREAS, by its Resolution No. CSD 2021-22, Board established the Moreno Valley Community Services District Community Facilities District No. 2021-01 (Parks Maintenance) (the “CFD”), pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”); and WHEREAS, by its Ordinance No. CSD 55, the Board authorized an annual special tax to be levied against all non-exempt parcels of real property within the CFD (the “Special Tax”) to fund parks maintenance services; and
WHEREAS, in order to permit landowners to efficiently annex developing parcels to the CFD, the Board, by its Ordinance No. CSD 56 designated the entire territory of the City of Moreno Valley as a future annexation area for the CFD; and WHEREAS, the landowner(s) of the Parcel(s) listed on Exhibit A to this Resolution, which is attached hereto and incorporated herein by reference, have submitted to the District (a) petition(s) requesting and approving annexation of the listed “Annexation Parcel(s)” to the CFD; and
WHEREAS, the Annexation Parcel(s) are comprised of the territory shown on the boundary map(s) (the “Boundary Map(s)”) entitled “Amendment Numbers: 276, 282, 299, 304-306, and 309-311 to Boundaries of Community Facilities District No. 2021-01 (Parks Maintenance), Moreno Valley Community Services District, City of Moreno Valley, County of Riverside, California” which are set forth in Exhibit B to this Resolution, attached hereto and incorporated herein by this reference; and
WHEREAS, the Board desires to annex the Annexation Parcel(s) to the CFD.

NOW, THEREFORE, THE BOARD FOR THE MORENO VALLEY COMMUNITY

SERVICES DISTRICT OF THE CITY OF MORENO VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Recitals. The above recitals are all true and correct and are herein incorporated.

2. Annexation(s) Approved. The Annexation Parcel(s) are hereby added to and part of the CFD with full legal effect and are subject to the Special Tax.

3. Description of Services. The following is a general description of the services (the “Services”) provided in the CFD:
455
2 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
Maintaining, lighting, and operating parks and park improvements that are owned and operated by the CSD, to the extent such services are in addition to services already provided at the time CFD No. 2021-01 was created and do not supplant existing services.

Fundable services include (i) planting, replanting, mowing, trimming, irrigation and fertilization of grass, trees, shrubs, and other plants and vegetation, (ii) the operation, maintenance, repair, and replacement of irrigation systems and lighting systems, and (iii) the operation maintenance, repair and replacement of any real property or improvements with a useful life of more than five years.

Fundable costs include, but are not limited to: (i) contracted costs for such services, (ii) salaries and benefits of staff, including park rangers, devoted to such services, (iii) expenses related to equipment, apparatus, and supplies related to these services, (iv) administrative and overhead costs, including staff time, associated with providing such services, and (v) lifecycle costs associated with the repair and replacement of facilities and improvements.

4. Amended Boundary Map(s). The Boundary Map(s) attached hereto as Exhibit B are hereby approved. This map amends, and does not supersede, the existing maps of the CFD. The Board directs that said map(s) be filed with the Riverside County Recorder pursuant to Section 3113 of the Streets and Highways Code.

5. Notice of Special Tax Lien(s). The Board directs that an amended notice of special tax lien be recorded pursuant to Section 3117.5 of the Streets and Highways Code with respect to the Annexation Parcel(s) associated with the Boundary Map(s).

6. This Resolution shall be effective immediately upon adoption.

7. The Secretary shall certify to the adoption of this Resolution and shall maintain it on file as a public record this Resolution.

8. Severability. The Board declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.
456
3 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
APPROVED AND ADOPTED this 16th day of December 2025.
_______________________________
Mayor of the City of Moreno Valley,
acting in the capacity as President of the
Board for the Moreno Valley Community
Services District
ATTEST:
_____________________________________
City Clerk of the City of Moreno Valley,
acting in the capacity of Secretary of
the Moreno Valley Community
Services District
APPROVED AS TO FORM:
_________________________________
City Attorney of the City of Moreno Valley,
acting in the capacity of General Counsel
of the Moreno Valley Community Services District
457
4 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, M. Patricia Rodriguez, Secretary of the Moreno Valley Community Services District, Moreno Valley, California do hereby certify that Resolution No. CSD 2025-___ was duly and regularly adopted by the Board of Directors for the Moreno Valley Community Services District at a regular meeting held on the 16th day of December 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Boardmembers, Vice-President and President)
_________________________________

SECRETARY
(SEAL)
458
5 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025

EXHIBIT A
List of Annexation Parcel(s)
Amendment Map Nos. Assessor's Parcel Numbers
276 481-063-023
282 487-022-014
299 475-100-029
304 478-070-026
478-070-027
305 474-272-032
306 256-182-031
309 296-213-017
310 482-600-044
311 486-093-024
459
6 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025

EXHIBIT B
Boundary Map Amendments
460
7 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
461
8 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
462
9 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
463
10 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
464
11 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
465
12 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
466
13 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
467
14 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
468
15 Resolution No. CSD 2025-___
Date Adopted: December 16, 2025
469
ATTACHMENT 2

CERTIFICATES OF ELECTION OFFICIAL
470
471
472
473
474
475
476
477
478
479
Report to City Council
ID: 25-0512 Page 1
TO: Mayor and City Council
FROM: Robert Cardenas, Human Resources Director
AGENDA DATE: December 16, 2025
TITLE: LIST OF PERSONNEL CHANGES (REPORT OF:

HUMAN RESOURCES) (DISTRICT: NOT APPLICABLE)
TITLE SUMMARY: List of Personnel Changes (November 1, 2025 – November 30, 2025)
DISTRICT: Not Applicable
Recommendation(s)
The City Council:

1. Ratify the list of personnel changes as described.

DISCUSSION
The attached list of personnel changes scheduled since the last City Council meeting is presented for the Council's ratification.

Staffing of the City positions ensures the assignment of highly qualified and trained personnel to achieve Momentum Moval priorities, objectives, and initiatives.

FISCAL IMPACT
All position changes are consistent with appropriations previously approved by the City Council.

NOTIFICATION
480
ID: 25-0512 Page 2
Publication of the agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Natalie Potter Robert Cardenas
Human Resources Division Manager Human Resources Director

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
481
ID: 25-0512 Page 3
Report Approval Details
Document
Title:

STAFFREPORT_HR_PERSONNEL
CHANGES_NOVEMBER_2025.docx
Attachments: - November_Personnel_Changes_Staff_Report_12.16.25.pdf Final Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

Robert Cardenas
Natalia Lopez
Launa Jimenez
Brian Mohan
Patty Rodriguez
482
City of Moreno Valley
Personnel Changes - 11/1/25 – 11/30/25
December 16, 2025
New Hires
Luis Arreola, Maintenance Worker I, Maintenance & Operations Division, Public Works Department Oscar Garcia, Maintenance Worker I, Maintenance & Operations Division, Public Works Department Blesselle McMahon, Senior Accountant, Financial Operations Division, Financial & Management Services Department
Frank Temple, Landscape Services Inspector, Parks & Landscape Services Division, Parks & Community Services Department
Promotions
Guillermo Arzu
From: Senior Payroll Technician, Payroll Division, Financial & Management Services Department To: Senior Management Analyst, Payroll Division, Financial & Management Services Department Erik Moreno
From: Senior Accountant, Human Resources Department
To: Senior Human Resources Analyst, Human Resources Department Andrea Palacios
From: Management Assistant, City Manager Department
To: Management Analyst, City Manager Department
Crystal Sandoval
From: Associate Engineer I, Transportation Engineering Division, Public Works Department To: Associate Engineer II, Transportation Engineering Division, Public Works Department Transfers
None
Separations
Danielle Harper-Scott, Senior Planner, Planning Division, Community Development Department Daphne MicKinney, Facilities Maintenance Worker, Fleet & Facilities Division, Public Works Department 483
Report to City Council
ID: 25-0506 Page 1
TO: Mayor and City Council
Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of
the Moreno Valley Community Services District (CSD)
FROM: Jeremy Bubnick, Parks & Community Services
Director
AGENDA DATE: December 16, 2025
TITLE: APPROVAL OF ADJUSTMENTS TO THE CITY USER

FEE SCHEDULE FOR PARKS & COMMUNITY
SERVICES (REPORT OF: PARKS AND COMMUNITY

SERVICES) (ALL DISTRICTS)
TITLE SUMMARY: Request to Approve New User Fees for Parks & Community Services.

DISTRICT: All Districts
Recommendation(s)
That the City Council and CSD:

1. Adopt Resolution 2025-__ approving adjustments to the User Fee Schedule for Parks and Community Services effective January 1, 2026, and every year thereafter.

SUMMARY
This report recommends approval of the Parks & Community Services New User Fees as presented. The revised User Fees will take effect January 1, 2026. A comprehensive list of all fees is attached for reference.

The proposed fee updates are intended to help offset operational costs associated with parks, recreation, senior, and library services, and to support the long-term financial 484
ID: 25-0506 Page 2
sustainability of these programs while maintaining accessibility for the community.

In addition, select fees have been modified to align with updated user group classifications and current service offerings, as follows:

Added:

1. Senior Programs - Vendor Table Fees (Lobby)

2. Senior Programs - Vendor Table Fees (Special Events)

3. Senior Programs - Special Events/Parties

4. Senior Programs - Senior Trips

5. Senior Programs - Presentations for Senior Education/Benefit

6. Library - Meeting Room Rental Fees
Removed:

1. Senior Programs - Line Dancing

2. Senior Programs - Dances

3. Senior Programs - Special Event Meal

4. Library - Overdue Book Fines for Children
Updated:

1. Facility Rental - Updated the language for Group I Facility Rentals by changing government agencies with a reciprocal agreement to city partner agencies.

2. Parks Programs - Updated the sibling discount to include a 15% discount for each sibling registered in the same non-contract program.

DISCUSSION
The Parks and Community Services Department offers a variety of innovative facilities, programs, and services to improve the quality of life in Moreno Valley. The Parks and Community Services User Fee Schedule includes fees related to programs (sports, contract classes, seniors & others), park reservations (athletic fields, picnic shelters, and others), and facility room rentals (Conference and Recreation Center, Senior Community Center, and other community centers) managed by the Parks and Community Services Department.

In keeping with best practices in municipal finance and cost recovery, fees are periodically reviewed and adjusted as needed to reflect the actual cost of providing services.

ALTERNATIVES

1. Approve the recommended action as presented in this staff report. Staff recommends this alternative since this establishes a fee schedule that can meet the expected needs of the community by offering park programs, activities, and facility rentals.

2. Do not approve the recommended action as presented in this staff report. Staff does not recommend this alternative since this will result in a fee structure that is not sufficient to offer the needed programs, activities, and facility rentals to the community. 485
ID: 25-0506 Page 3

FISCAL IMPACT
The fiscal impact of the approval of these user fees will be dependent on the demand for these services from the community.

NOTIFICATION
Posting of Agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Kimberly Reeder Jeremy Bubnick
Senior Management Analyst Parks & Community Services Director Concurred By:

Danielle Monarrez
PCS Admin & Financial Division Manager

CITY COUNCIL GOALS
Revenue Diversification and Preservation. Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of the economic climate.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
486
ID: 25-0506 Page 4
Report Approval Details
Document Title: STAFFREPORT_PCS_2026 NEW FEES.docx
Attachments: - Resolution 2025-XXXX_PCS User Fee Schedule for 2026 .doc
- PCS Fees 2026 - Exhibit A.pdf
Final Approval Date: Dec 10, 2025
This report and all of its attachments were approved and signed as outlined below:

Jeremy Bubnick
Natalia Lopez
Launa Jimenez
Brian Mohan
Patty Rodriguez
487
1 Resolution No. 2025-__
Date Adopted: December 16, 2025
RESOLUTION NO. 2025-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, ESTABLISHING

UPDATED USER FEES FOR THE PARKS AND

COMMUNITY SERVICES DEPARTMENT
WHEREAS, the City Council of the City of Moreno Valley, California, has in the past approved and adopted fee schedules for various services provided by the City for the benefit of a limited number of persons; and
WHEREAS, some portion of the cost of rendering such services should be borne by the beneficiaries of such services; and
WHEREAS, data supporting the estimated cost of providing said services has been made available to the City Council and to the public, and the source of revenues required to defray such costs; and
WHEREAS, the fees set forth in the proposed fee schedule do not exceed the actual or estimated costs to the City of providing the services to which the fees relate; and
WHEREAS, the City Council has duly considered at a duly noticed regularly scheduled meeting, the question of whether or not to modify existing fees and establish new fees for such services; and
WHEREAS, at said meeting, the City Council duly considered all public comments which were made with respect to said question; WHERAS, the City Council continues to support the application of annual Consumer Price Index (CPI) adjustments to applicable Parks & Community Services fees to ensure alignment with ongoing cost-of-service changes over time.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO
VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. The updated Parks & Community Services User Fee Schedule, attached as Exhibit A and incorporating all revisions shown in red, is hereby approved and adopted, effective January 1, 2026.

2. Eligible fees shall be adjusted annually based on the Consumer Price Index (CPI) beginning in calendar year 2026 and each year thereafter.

3. The approved fees shall be applied to all uses set forth in said schedule. 488
2 Resolution No. 2025-__
Date Adopted: December 16, 2025

4. There is a reasonable relationship between the fees to be collected for the provision of various City services, and the City’s costs in providing those services as identified in the data made available.

5. The fees set forth in Exhibit A are necessary to enable the City to provide the services to which they relate.

6. All prior enactments of the City Council establishing fees for services and materials are hereby repealed to the extent that such enactments establish fees for services and materials which are different than the fees established therefore by this Resolution but shall otherwise remain in full force and effect.

8. If any provision, clause, sentence or paragraph of this Resolution or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect any other provision or application of the provisions of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are hereby declared to be severable.

APPROVED AND ADOPTED this 16th day of December 2025.
______________________________
Ulises Cabrera
Mayor
City of Moreno Valley
ATTEST:
____________________________
M. Patricia Rodriguez, City Clerk
APPROVED AS TO FORM:
____________________________
Steven Quintanilla, City Attorney
489
3 Resolution No. 2025-__
Date Adopted: December 16, 2025

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, M. Patricia Rodriguez, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 2025-__ was duly and regularly adopted by the City Council of the City of Moreno Valley at a regular meeting held on the 16th day of December, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor)
_________________________________
M. PATRICIA RODRIGUEZ, CITY CLERK
(SEAL)
490
Exhibit A

PARKS & COMMUNITY SERVICES
FEES
PCS FEES 1 Revised: Jan 1, 2026 491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
Report to City Council
ID: 25-0504 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer AGENDA DATE: December 16, 2025
TITLE: APPROVAL OF TRACT MAP 38442 FOR PEN22-0131
(REPORT OF: PUBLIC WORKS) (DISTRICT 3)
TITLE SUMMARY:

Approval Of Tract Map 38442 For PEN22-0131, A 108 Lot
Residential Subdivision By Developer DR Horton Los
Angeles Holding Company, Inc. Located On The North Side of Alessandro Boulevard, East Of Nason Street
DISTRICT: District 3
Recommendation(s)
That the City Council:

1. Approve Tract Map 38442 for PEN22-0131, a 108 lot residential subdivision by developer DR Horton Los Angeles Holding Company, Inc., located on the north side of Alessandro Boulevard east of Nason Street; and

2. Authorize the City Clerk to sign the map and transmit said map to the Riverside County Clerk Recorder's Office for recordation.

SUMMARY
This report recommends approval of Tract Map 38442 (PEN22-0131), owned by DR Horton Los Angeles Holding Company, Inc. The proposed final map will subdivide two existing lots into 108 single-family residential lots, located on the north side of Alessandro Boulevard, east of Nason Street. This report also recommends authorizing the City Clerk to sign and transmit the map for recordation by the Riverside County Assessor-County 506
ID: 25-0504 Page 2
Clerk-Recorder’s office.

DISCUSSION
On November 9, 2023, the City of Moreno Valley Planning Commission approved PEN22- 0131, Tentative Tract Map 38442. The project involves the subdivision of two lots totaling

20.01 acres into 108 single-family residential lots on the north side of Alessandro Boulevard east of Nason Street. The Agreement for Public Improvements has been executed, and Tract Map 38442 is in substantial conformance with the previously approved Tentative Tract Map. The developer has requested that the final map be approved for recordation.

ENVIRONMENTAL
An initial study was prepared for the project after all discretionary applications were deemed complete. The Initial Study indicated a Mitigated Negative Declaration would be the appropriate environmental document for the project. The Mitigated Negative Declaration incorporates mitigation measures for Biological Resources, Cultural Resources, Geology and Soils, Transportation, and Tribal Cultural Resources, which result in a less than significant impact on these subject areas. Staff prepared a Notice of Availability for this, which indicated a public comment period beginning on September 19, 2023, and ending on October 19, 2023. The consulting firm, MNS Engineering, prepared the draft environmental documents and submitted the documents to the City for review to ensure that they reflect the independent judgment and analysis of the City, as the California Environmental Quality Act (CEQA) lead agency.

ALTERNATIVES

1. Approve and authorize the recommended actions as presented in this staff report.

Staff recommends this alternative, as it will allow the tract map to be recorded and allow the project to move forward with the development of residential property and adjacent improvements.

2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative, as it will not allow the tract map to be recorded and will not allow the project to move forward with the development of residential property and adjacent improvements.

FISCAL IMPACT
No fiscal impact is anticipated.

NOTIFICATION
Publication of the agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
507
ID: 25-0504 Page 3
Larry Gonzales, P.E. Melissa Walker, P.E.

Land Development Principal Engineer Public Works Director/City Engineer Concurred By:

Harold Zamora, P.E.

Engineering Division Manager/Assistant City Engineer

CITY COUNCIL GOALS
Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
Objective 4.2: Develop and maintain a comprehensive Infrastructure Plan to invest in and deliver City infrastructure.
508
ID: 25-0504 Page 4
Report Approval Details
Document Title: STAFFREPORT_PW_LD_TR38442_MAP.docx
Attachments: - Vicinity Map - PEN22-0131 (TR 38442).pdf - Tract Map 38442.pdf
Final Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

Melissa Walker
Sean Kelleher
Natalia Lopez
No Signature - Task assigned to Dena Heald_Deleted was completed by workflow administrator Patty Rodriguez
Dena Heald_Deleted
Launa Jimenez
Brian Mohan
Patty Rodriguez
509

CITY OF MORENO VALLEY

PUBLIC WORKS DEPARTMENT

LAND DEVELOPMENT DIVISION
PEN22-0131 (TR 38442)
Vicinity Map
510
511
512
513
514
515
516
517
Report to City Council
ID: 25-0499 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer AGENDA DATE: December 16, 2025
TITLE: ACCEPTANCE OF PARCEL FOR SUBSTATION
(REPORT OF: PUBLIC WORKS) (DISTRICT 3)
TITLE SUMMARY: Authorization of the Acceptance of Real Property Donation Agreement and Joint Escrow with SOPAC Property
Holdings, LLC For A Substation Site And Easement For
Battery/Energy Storage
District 3
Recommendation(s)
That the City Council:

1. Adopt a Resolution authorizing the City to accept, at no cost, certain real property interests from SOPAC Property Holdings, LLC ("Donor") consisting of APNs 422-070- 029, 422-070-030, and a portion of 422-070-031 (collectively, the "Donation Property") for use as the World Logistics Center (WLC) Specific Plan substation site and easement for related battery/energy storage area; and

2. Authorize the City Manager, or his designee, to execute the Donation Agreement, Certificate of Acceptance, and Professional Service Agreements related escrow and title documents, and to take any actions necessary to effectuate the acceptance and close of escrow consistent with this staff report; and

3. Authorize recordation of the Grant Deed and related documents with the Riverside County Recorder.

SUMMARY
The proposed action would accept, at no cost to the City, three parcels (APNs 422-070- 518
ID: 25-0499 Page 2
029, 422-070-030, and a portion of 422-070-031) from SOPAC Property Holdings, LLC (hereinafter referred to as the “Donor”) to facilitate the siting of a new Moreno Valley Utility (MVU) substation and a battery/energy storage area as contemplated by Section 3.5.5 of the World Logistics Center (WLC) Specific Plan. A small area of APN 422-070-031 is anticipated to be conveyed by separate donation to Eastern Municipal Water District (EMWD) for a future booster pump substation to serve the WLC Specific Plan and eastern Moreno Valley. The battery/energy storage area easement is approximately 159,685 square feet (≈3.66 acres) as depicted on Exhibit A.

The Donation Agreement provides that if the Donation Property is not constructed and operated as a WLC substation as contemplated, the City (or designee) shall reconvey the property to the Donor upon written demand. Title and escrow services will be provided by Chicago Title Company (Newport Beach). Staff finds the acceptance consistent with prior Council approvals for the WLC utilities and within MVU’s service responsibilities.

DISCUSSION
The proposed acceptance relates to three parcels owned by SOPAC Property Holdings, LLC —APNs 422-070-029, 422-070-030, and a portion of 422-070-031—located within the City of Moreno Valley. The property is primarily vacant land; APN 422-070-029 includes a residence constructed in 1979 that the Donor will demolish prior to close of escrow. The City’s acceptance is intended to secure a site for a Moreno Valley Utility (MVU) substation and for a defined energy storage area to support the electrical demands and reliability needs of the World Logistics Center (WLC) Specific Plan. In addition, a small area of APN 422-070-031 is anticipated to be donated by separate agreement to Eastern Municipal Water District (EMWD) for a future booster pump substation that would serve the WLC Specific Plan and eastern Moreno Valley. These facilities are contemplated in Section 3.5.5 of the WLC Specific Plan and are consistent with prior approvals.

Under the Donation Agreement, the Donor will convey the property to the City at no cost and in an as-is condition, except that the Donor will remove the existing residence on APN 422-070-029. The agreement limits the City’s use of the Donation Property to substation purposes consistent with the Specific Plan, and it includes a reconveyance requirement: if the substation is not constructed and operated as contemplated, the City or its designee must reconvey the property to the Donor upon written demand, free and clear of liens other than approved exceptions. Until the City provides notice of need, the Donor may conduct temporary uses pursuant to a City-issued temporary use permit that functions as a license. Upon ninety (90) days’ written notice from the City, any temporary use must cease, and the site must be returned to a broom-clean condition.

Design, construction, and operation of the substation and battery/energy storage area will be implemented by MVU and will adhere to WLC Specific Plan requirements, including on-site design standards for setbacks, landscaping and buffers, screening (walls, berms, and/or landscaping), water quality elements, and public parkway improvements along World Logistics Center Parkway (formerly Theodore Street). The energy storage easement area is approximately 159,685 square feet (about 3.66 acres) as depicted on Exhibit C. Final design submittals will undergo standard City reviews to ensure 519
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conformance with the Specific Plan and City standards.

The transaction will be processed through Chicago Title Company (4911 Birch Street, Newport Beach), which will serve as the escrow and title company. Within fifteen days of the agreement’s effective date, the City will obtain an amended preliminary title report (effective January 13, 2025; Order No. 00197428-987-OC1-KDJ) identifying exceptions and providing a color-coded map. The City may object to title matters; the Donor may elect to cure, and all monetary liens must be released prior to closing. Escrow will obtain a Natural Hazard Disclosure statement for the City’s review. Closing is targeted on or before February 2026, contingent on Council acceptance, and the agreement terminates at 5:00 p.m. on June 30, 2026, unless extended by mutual written agreement.

The City has determined that the acceptance action does not require additional review under the California Environmental Quality Act (CEQA) because it is a subsequent action within the certified WLC Revised Final Environmental Impact Report. A Notice of Determination will be filed and posted following Council action. Overall, the acceptance facilitates the utility infrastructure anticipated by the Specific Plan without altering previously approved policy direction. Protections for both parties are included through the reconveyance provision, title review and lien clearance, and compliance obligations under the Specific Plan.

ALTERNATIVES

1. Approve and authorize the recommended actions as presented in this staff report.

Staff recommends this alternative to ensure that a site will be available for MVU to install the necessary facilities to serve the new load growth in the eastern portion of the City.

2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative as it will limit the ability for MVU to serve new customers in the eastern portion of the City.

FISCAL IMPACT
The City will acquire the three parcels at no purchase cost from the donor. MVU will be responsible for customary escrow, title, recording fees, and minor administrative costs (including NOD filing/posting), estimated to be $10,000 based on recent and similar donations of property at the same development. Costs are estimated to be modest and expensed from the approved Fiscal Year 2025/26 Adopted Operating Budget under MVU’s Electric Fund 6010, with no impact to the General Fund. Donor is responsible for all costs associated with the removal of monetary liens and demolition of the residence on APN 422-070-029 prior to closing. Future design, construction, and operation costs for the substation and battery/energy storage area will be programmed and funded separately by MVU through approved capital improvements and projects in future approved capital improvement budgets. Acceptance may minimally increase property management obligations prior to construction; those costs are anticipated to be de minimis and absorbable within existing budgets.
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NOTIFICATION
Posting of the agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Kamran Aladross, P.E. Melissa Walker, P.E.

Electric Utility Assistant Manager Public Works Director/City Engineer Concurred By:

Jason Niccoli, P.E.

Electric Utility Division Manager

CITY COUNCIL GOALS
Positive Environment: Create a positive environment for the development of Moreno Valley's future.

Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
Objective 1.1: Proactively attract high-quality businesses.

Objective 1.2: Market all the opportunities for quality industrial development in Moreno Valley by promoting all high-profile industrial and business projects that set the City apart from others.

Objective 1.6: Establish Moreno Valley as the worldwide model in logistics development.

Objective 1.9: Ensure the City’s General Plan articulates the vision for how Moreno Valley wants to evolve over time, and provides an orderly and predictable process through which this vision is developed and implemented, including new attention to economic development, sustainability, public health, and innovation.

Objective 4.5: Explore green/renewable innovations and technologies for new developments such as the World Logistics Center.
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-0499 Page 5
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Report Approval Details
Document
Title:

STAFFREPORT_PW_MVU_WLCDONATIONAGREEMENT.docx
Attachments: - Exhibit A - Easement Legal and Platt.pdf - WLC Donation Agreement and Joint Escrow Instructions - DRAFT.pdf
Final
Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

Melissa Walker
Sean Kelleher
Natalia Lopez
No Signature - Task assigned to Dena Heald was completed by workflow administrator Patty Rodriguez
Dena Heald_Deleted
Launa Jimenez
Brian Mohan
Patty Rodriguez
523
October 27, 2025
Project No. A21760-44

Page 1 of 1 ends

Z:\2021\A21760-44\DOCS\SURVEY\LEGAL DESCRIPTIONS\A21760-44-LD-BATTERY STORAGE.docx EXHIBIT “A”

LEGAL DESCRIPTION

ELECTRIC UTILITY EASEMENT AREA
BEING A PORTION OF PARCEL 5 OF PARCEL MAP NO. 17905, IN THE CITY OF MORENO VALLEY, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN ON A MAP FILED FOR RECORD ON MAY 16, 1983 IN BOOK 114 OF PARCEL MAPS AT PAGES 70 THROUGH 83, RIVERSIDE COUNTY RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT A SOUTHWESTERLY CORNER OF SAID PARCEL 5, LYING ON A LINE COMMON WITH THE LANDS OF SOUTHERN CALIFORNIA GAS COMPANY (SAID LANDS BEING SHOWN AS “NOT A PART“ ON SAID PARCEL MAP), SAID CORNER IS SHOWN AS POINT #23 ON SAID PARCEL MAP; THENCE ALONG THE LINE COMMON TO SAID PARCEL 5 AND SAID LANDS OF SOUTHERN CALIFORNIA GAS COMPANY, NORTH 0° 20’ 12” EAST, 200.00 FEET TO THE NORTHEAST CORNER OF SAID LANDS; THENCE ALONG THE NORTHERLY LINE OF SAID LANDS, ALSO BEING A SOUTHERLY LINE OF SAID PARCEL 5, NORTH 89° 39’ 34” WEST, 913.70 FEET TO A POINT ON THE EASTERLY RIGHT OF WAY LINE OF VIRGINIA STREET (AN 88.00 FOOT WIDE ROAD EASEMENT) AS SHOWN ON SAID PARCEL MAP; THENCE ALONG SAID EASTERLY RIGHT OF WAY LINE, NORTH 0° 20’ 08” EAST, 50.00 FEET TO A POINT ON A LINE THAT IS PARALLEL WITH AND 50.00 FEET NORTHERLY OF THE NORTHERLY LINE OF SAID LANDS; THENCE ALONG SAID PARALLEL LINE, SOUTH 89° 39’ 34” EAST, 793.70 FEET; THENCE SOUTH 0° 20’ 12” WEST, 250.00 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID PARCEL 5; THENCE ALONG SAID SOUTHERLY LINE, NORTH 89° 39’ 34” WEST, 600.00 FEET TO THE POINT OF BEGINNING.

CONTAINING 159,685 SQUARE FEET, OR 3.6659 ACRES OF LAND, MORE OR LESS.

AS SHOWN ON A PLAT LABELED EXHIBIT “B”, ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF.

THIS LEGAL DESCRIPTION WAS PREPARED BY ME, OR UNDER MY DIRECTION, IN CONFORMANCE WITH THE REQUIREMENTS OF THE PROFESSIONAL LAND SURVEYORS’ ACT. ___ ___
DATE RICHARD J. HICKENBOTTOM, P.L.S. 8654
10/27/2025
524

VIRGINIA STREET
(88' ROAD EASEMENT)

AS SHOWN
MORENO VALLEY CALIFORNIA 1 OF 1
BY
JOB NO.

SCALE
DATE
RJH
A21760-44
SEPT. 2025
SHEET
250 Cherry Lane, Suite 107, 208
Manteca, CA 95337
Phone: (209) 328-1123
www.kierwright.com
EXHIBIT "B"

ELECTRIC UTILITY

EASEMENT AREA
NORTH
10/27/2025
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REAL PROPERTY DONATION AGREEMENT AND JOINT ESCROW

INSTRUCTIONS
By and Between

CITY OF MORENO VALLEY,
a California General Law Municipality
and

SOPAC PROPERTY HOLDINGS, LLC,
a Delaware limited liability company
(City of Moreno Valley, County of Riverside, State of California Assessor Parcel Nos. 422-070-029, 422-070-030, and 422-070-031) 526
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REAL PROPERTY DONATION AGREEMENT AND ESCROW INSTRUCTIONS This REAL PROPERTY DONATION AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”), is entered into as of _______________________, 2025 (the “Effective Date” to be inserted by Escrow) by and between the City of Moreno Valley, a California general law municipality (“City” or “Donee”), and SOPAC PROPERTY HOLDINGS, LLC, a Delaware limited liability company ("Donor").

RECITALS
The following recitals are a substantive part of this Agreement:

A. Donor is the record owner of Assessor Parcel Nos. (“APN”) 422-070-029, 422-070- 030, and 422-070-031, located in the City of Moreno Valley, County of Riverside, State of California. Said real property, including improvements thereon, if any, is collecƟvely referred to as the “DonaƟon Property.” The DonaƟon Property is primarily vacant land. APN No. 422-070- 029 is improved with a residence constructed in 1979 which is planned for demoliƟon; and the remaining parcels (422-070-030 and 422-070-031) are unimproved, vacant land. The parƟes further contemplate that approximately ___ acre of APN No. 422-070-031 will be reserved for acquisiƟon by donaƟon by the Eastern Municipal Water District (“EMWD”) for a future booster pump substaƟon site to serve the World LogisƟcs Specific Plan and eastern Moreno Valley.

B. To address the electrical infrastructure needs of the World LogisƟcs Center Specific Plan, the parƟes have idenƟfied a porƟon of the DonaƟon Property to be conveyed to the City by easement for electric uƟlity purposes, including but not limited to baƩery energy storage, substaƟons, transformers, switching equipment, and related faciliƟes (the “Electric UƟlity Easement Area).” Exhibit “C” depicts the locaƟon of the Electric UƟlity Easement Area, along with the approximate minimum dimensions (159,685 square feet/3.66 acres).

C. City desires to acquire from Donor APN Nos. 422-070-029, 422-070-030, and a porƟon of 422-070-031 as more parƟcularly described in Exhibits "A" and "B” aƩached hereto as AƩachment "1" and incorporated herein by reference (the "DonaƟon Property") at no cost to the City. Exhibit “A” is the Grant Deed for the DonaƟon Property, and Exhibit “B” is the Legal DescripƟon and Vicinity Map for the DonaƟon Property. The DonaƟon Property is to be used exclusively for the adopted World LogisƟcs Center Specific Plan’s substaƟon, as contemplated in SecƟon 3.5.5 of the Specific Plan (“Specific Plan”), except for that porƟon of APN No. 422-070- 031 to be acquired by EMWD by separate donaƟon agreement. If, for whatever reason, the DonaƟon Property is not to be constructed and operated as described in this paragraph, City or its designee shall cause the DonaƟon Property to be reconveyed to Donor by grant deed, in a form acceptable to Donor and upon Donor’s wriƩen demand as described below.

C. City's acquisition of the Donation Property, pursuant to the terms of this Agreement, are in the best interests of the City, and in accord with the provisions of applicable state and local laws and requirements. Design, construction, and operation of the substation and the Electric Utility Easement Area, will be through Moreno Valley Utility (“MVU”). MVU is the electricity provider for the World Logistics Center Specific Plan. 527
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D. City and Donor acknowledge that no further permiƫng or compliance with the California Environmental Quality Act (“CEQA”) is required for purposes of this Agreement because Donee has determined that no environmental review is required as approval of this Agreement consƟtutes a subsequent acƟon that is part of the cerƟfied World LogisƟcs Center (“WLC”) project for which the WLC Revised Final Environmental Impact Report (“EIR”) was previously cerƟfied.

AGREEMENT
NOW, THEREFORE, in consideration of the agreements, covenants, and conditions contained herein, and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties to this Agreement agree as follows:

SECTION 1

DONATION PROPERTY

1.0 CondiƟon of DonaƟon Property. In accordance with and subject to the terms and provisions of this Agreement, Donor will donate the DonaƟon Property to City in its “as-is” condiƟon, with only one excepƟon, namely, that Donor will demolish any exisƟng residenƟal structure(s). Other than as expressly set forth in this Agreement: (a) Donee agrees that Donee is acquiring the DonaƟon Property in its “as is” condiƟon and accepts the DonaƟon Property in that condiƟon with all faults, if any, and without any warranƟes, express or implied; and (b) neither Donor nor any agent, representaƟve, or employee of Donor has made any warranƟes or representaƟons to Donee or its agents, representaƟves, or employees with respect to the DonaƟon Property. The DonaƟon Property will be held and maintained by Donor in the same condiƟon that exists on the EffecƟve Date of this Agreement (except as to demoliƟon of any exisƟng residenƟal structure(s). Donee acknowledges it has been afforded the opportunity to make independent inspecƟons (or have such inspecƟons made by its consultants) as it desires of the DonaƟon Property and to obtain informaƟon regarding all applicable governmental laws and regulaƟons to which the DonaƟon Property is or may be subject to at the Close of Escrow. Donee is relying solely on its own invesƟgaƟons and inspecƟons as to the DonaƟon Property.

1.1 Use of Donation Property. The Donation Property shall be used by City or its designee for the adopted World Logistics Center Specific Plan’s new substation. If, for whatever reason, the Donation Property is not to be constructed and operated as described herein, City or its designee shall cause the Donation Property to be reconveyed to Donor by grant deed, in a form acceptable to Donor and upon Donor’s written demand. Such reconveyance shall be without delay and without any other or additional action required by either Donee or Donor.

Said reconveyance, if any, shall be in fee simple absolute, free and clear of all liens, encumbrances, assessments, leases, and taxes except for Approved Exceptions. Notwithstanding any provision in this Agreement, City shall not use any portion of the Donation Property for any purpose except as contemplated herein. If City uses the Donation Property for any purpose other than as explicitly contemplated herein, such use shall constitute City’s material breach of this Agreement entitling Donor to an interim order compelling City to halt all such use and restore the Donation Property to a broom-clean condition for immediate reconveyance to Donor. Donor may use the Donation Property for temporary use until such time as City needs said property for the substation. City shall issue a temporary use permit for any such use, which permit will 528
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function as a license, pursuant to this Agreement, for Donor’s temporary use. City will provide Donor with ninety (90) days’ written notice of the need for the Donation Property as a substation, at which point, Donor’s temporary use/license shall expire without any further action; and Donor shall remove any temporary uses onsite, and return said property to a broom clean condition where such temporary use(s) had occurred. Consideration for Donor’s temporary usage is contained in this Agreement

1.2 Development of SubstaƟon/BaƩery Storage. The parƟes acknowledge and agree that the design, development, construcƟon, and use of the DonaƟon Property for the new substaƟon, as well as the Electric UƟlity Easement Area area (Exhibit C) shall fully comply with the WLC’s Specific Plan’s building setbacks; landscaping; streetscapes; general design criteria, streetscape planƟng; landscape buffers; water quality; screening (e.g., walls, berms, and/or landscaping); public parkway requirements, miƟgaƟon measures, if any; and other Specific Plan SecƟon 5.0 On-Site Design Standards, as applicable (Specific Plan Requirements). The parƟes further acknowledge and agree that City or its designee shall fully comply with all applicable Specific Plan Requirements with respect to World LogisƟcs Center Parkway (formerly, Theodore Street).

SECTION 2

CONDITION OF TITLE

2.0 Title Review. Within fifteen (15) days of the Effective Date, City shall cause Title Company to deliver to City and Donor an Amended Preliminary Report, effective date of January 13, 2025 (Order No. 00197428-987-OC1-KDJ), or as amended thereafter (“Preliminary Report”), along with all exceptions and a color-coded map depicting each exception, of the Donation Property.

City shall review title to the Donation Property as disclosed in the Preliminary Report and may deliver to Donor any objections City has to the Title and Donor shall, within ten (10) days following such notice, advise City of Donor's intent to remedy any such objections. In the event Donor advises City that Donor is not willing to remedy any of the objections, then City may (i) terminate this Agreement by giving written notice to Donor and Escrow Agent; or (ii) proceed to Closing and in such case, said objections shall become part of the Permitted Exceptions (as herein defined).

Notwithstanding any language herein to the contrary, any monetary lien (including, but not limited to, mechanic's liens or liens for delinquent unpaid taxes and assessments) must be released by Donor prior to Closing. The term "Permitted Exceptions" means (i) standard exceptions contained in the title insurance policy form, (ii) the specific title exceptions contained in the title insurance policy form that the Title Company has not agreed to insure or remove from the Title Commitment and that Donor is unwilling to remove as provided above; (iii) items which would be disclosed by an accurate ALTA survey of the Donation Property; and (iv) real estate taxes not yet due and payable.
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In the event the Title Company amends or updates the Title Commitment after expiration of the Due Diligence Period but before the Closing Date (each, a "Title Report Update") and such Title Report Update discloses a new title exception not previously known to City and which was not created or permitted by City, then City as Donee may either (i) terminate this Agreement by giving written notice to Donor within ten (10) business days after its receipt of such Title Report Update, or (ii) require Donor to remove the exception prior to Closing, or (iii) waive the exception and proceed to Closing.

From the Effective Date until the earlier of termination of this Agreement or Close of Escrow, Donor shall not encumber the Donation Property with any additional monetary liens.

Additionally, Donor shall not take any affirmative action from the Effective Date until Close of Escrow that results in the imposition of any additional exceptions to title to the Donation Property, without first obtaining City’s written consent.

SECTION 3

ESCROW INSTRUCTIONS

3.0 Escrow Agent/Title Company. Chicago Title Company, 4911 Birch Street, Newport Beach, California, will act escrow agent and establish an escrow for this transaction.

Chicago Title Company, same Newport Beach location, above, will also act at the title company for this transaction.

3.1 Escrow Instructions. This Agreement, together with any standard instructions of Escrow Agent, shall constitute the joint escrow instructions of Donee and Donor to Escrow Agent, as well as an agreement between Donee and Donor. In the event of any conflict between the provisions of this Agreement and Escrow Agent's standard instructions, this Agreement shall control and prevail unless the parties mutually agree in writing otherwise.

3.2 Close of Escrow. The close of the escrow shall occur on or before February __, 2025 or a date for which the parties agree by written amendment, prepared by Escrow Agent and signed by both Donor and Donee (“Closing Date”), contingent upon City acceptance of the Donation Property ("Close of Escrow").

3.3 Payment of Costs. City shall pay all escrow and title fees (or taxes, if applicable).

City shall pay all title insurance premiums for the City's Title Policy premium. Donor shall pay the costs required to remove any monetary liens and encumbrances affecting the Donation Property and any other title exceptions Donor agreed to remove pursuant to this Agreement. Any other costs or expenses not otherwise provided for in this Agreement shall be paid by the requesting party. Donor and Donee shall each be responsible for all their respective administrative costs and attorneys' fees and costs, if any.

3.4 Commission. Donor and Donee each represent and warrant to the other that no broker or finder is entitled to any commission or finder's fee in connection with this Agreement, 530
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and each agrees to defend and hold harmless the other from any claim to any such commission or fee resulting from any action on its part.

3.5 Proration of Real Property Taxes. Donee is a public entity and is not required to pay property taxes. Donor shall pay all property taxes and assessments which may be assessed during the period of Donor's ownership of the Donation Property. Donor may apply for a refund for any portion of taxes and assessments paid by Donor and are allocated to any period after the Closing Date, in accordance with the applicable provisions of the Revenue and Taxation Code.

3.6 Nature Hazard Disclosure. The parties hereby instruct Escrow Agent to obtain and deliver to Donee within three (3) days after the Effective Date a Natural Disclosure Statement disclosing whether the Donation Property is located within any of the following: (a) a special flood hazard area designated by the Federal Emergency Management Agency; (b) an area of potential flooding; (c) a very high fire hazard severity zone; (d) an earthquake fault or special studies zone; or (e) a seismic hazard zone.

3.7 General Provisions Applicable to Escrow Agent. The following general provisions shall be applicable to the Escrow Agent.
(a) All disbursements shall be made by check or bank wire of the Escrow Agent. All funds received in the Escrow shall be deposited in a separate interest-earning escrow account with any bank doing business in the State of California and approved by Donee.
(b) The parties to the Escrow jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorneys’ fees, suffered or incurred by the Escrow Agent in connection with, or arising out of the Escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by the Escrow Agent. In the event that the Escrow Agent files a suit in interpleader, the Escrow Agent shall be fully released and discharged from all obligations imposed upon the Escrow Agent in the Escrow.
(c) All proration's and/or adjustments called for in the Escrow shall be made on a per-day basis using a thirty (30) day month and a three-hundred-sixtyfive (365) day year, unless the Escrow Agent is otherwise instructed by the parties in writing.

3.8 Authority of Escrow Agent. The Escrow Agent is authorized to, and shall:
(a) If applicable, pay and charge Donee for any Escrow Costs, charge Donee for the cost of drawing the Grant Deed, recording fees, notary fees, and any state, county or local documentary transfer fees;
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(b) Pay and charge Donee for the premium of the Title Policy insured in the amount of $_____________, and, if applicable, pay and charge Donee for any upgrade of the Title Policy or Additional Endorsements to the Title Policy which are requested by City;
(c) Accept Donor’s appraisal of the full appraised market value of the Donation Property to be provided by Donor at its sole expense and distribute appraisal report to both Donor and Donee prior to the Close of Escrow;
(d) Disburse funds and record and deliver to Donee the Grant Deed and Title Policy when both Donee’s Closing Conditions and the Donor’s Closing Conditions to the Closing are satisfied or waived in writing by the party for whom the condition was established;
(e) insert the Effective Date in the introductory paragraph of this Agreement and the appropriate amounts and date of the Closing in documents deposited by the parties in Escrow;
(f) Do such other actions as necessary to fulfill the Escrow Agent’s obligations under this Agreement, including, if applicable, obtaining the Title Policy and recording any instrument delivered through Escrow if necessary and proper in the issuance of the Title Policy, and filing and posting any CEQArequired notice(s) required by City under this Agreement (and any such costs for such filing and posting shall be paid by City); (g) Within the discretion of the Escrow Agent, direct Donee and Donor to execute and deliver any instrument, affidavit or statement, and to perform any act reasonably necessary and/or applicable to comply with the provisions of FIRPTA and any similar state act or regulation promulgated thereunder. Donor agrees to execute a Certificate of Non-Foreign Status by individual transferor, a Certificate of Compliance with Real Estate Reporting Requirement of the 1986 Tax Reform Act and/or a California Franchise Tax Board Form 590 or similar form, if applicable, to assure Donee that there exist no withholding requirements imposed by application of law as may be required by the Escrow Agent, on forms supplied by the Escrow Agent;
(H) Prepare and file with all appropriate governmental or taxing authorities a uniform settlement statement, closing statement, tax withholding forms, including an IRS 1099-S form, and be responsible for withholding taxes, if any such forms and/or withholding are provided for or required by law; and
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(h) Prepare and deliver to Donee and Donor for their review and approval prior to the Closing an estimated settlement statement.

3.9 Submittals into Escrow. The parties shall submit documents and funds into Escrow as set forth in this Section.
(a) Submittals by Donor.
(i) At least two (2) days prior to the Closing, Donor shall provide sufficient funds to cover all Closing costs to be paid by Donor, if any.

(ii) Donor shall provide a non-foreign transferor affidavit in a form acceptable to Escrow Agent, if applicable.
(iii) Within two (2) days prior to the Closing, Donor shall provide Donee and Escrow with the final CEQA Notice of Determination stating that the Donee has approved this Agreement and determined that no environmental review is required because the Agreement and related uses are part of the WLC project for which the Revised Final EIR was previously certified.
(b) Submittals by Donee.
(i) At least two (2) days prior to the Closing, Donee shall submit into Escrow the original Grant Deed duly executed by Donor and the original Certificate of Acceptance of the Grant Deed, duly executed by Donee.
(ii) At least two (2) days prior to the Closing, Donee shall provide sufficient funds to cover all Closing costs to be paid by Donee, if any.
(iii) At least two (2) days prior to the Closing, Donee shall submit into Escrow the Battery Storage Easement executed by Donor.

3.10 Closing Procedure. The Escrow Agent shall close the Escrow as follows:
(a) Record the Grant Deed with the Riverside County Recorder's Office; (b) Deliver the Title Policy issued by the Title Company to Donee; (c) File and Post the final Notice of Determination as required by law;

(d) File any informational reports required by Internal Revenue Code Section 533
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6045(e), as amended and any other applicable requirements; (e) Deliver the FIRPTA Certificate, if any, to Donee; and (f) Forward to Donee and Donor a separate accounting of all funds received and disbursed for each party and copies of all executed, recorded, or filed documents deposited into Escrow, with such recording and filing date and information endorsed thereon.

SECTION 4

OTHER TERMS AND CONDITIONS

4.0 Representations and Warranties. Donee warrants that this Agreement constitutes a written, binding obligation of the Donee. Donor warrants that the Agreement constitutes a written binding obligation of the Donor. The parties hereto represent that they have full authority to enter into this Agreement on behalf of their respective entity, district, or public agency.

4.1 Other Agreements. Donee agrees to fully cooperate with Donor’s fair market value determinaƟon; however, Donee is under no obligaƟon to agree to such value. Donor will obtain independent counsel and is solely responsible for compliance with any applicable giŌ substanƟaƟon requirements of any tax code. Donee’s obligaƟon will be to acknowledge receipt of a donaƟon of the DonaƟon Property by execuƟng all required tax forms, if any, before Close of Escrow. Donee acknowledges it has not provided Donor with anything of value in exchange for the DonaƟon Property.

4.2 TerminaƟon of Agreement. Donee and Donor mutually agree that this Agreement shall be effecƟve through June 30, 2025, unless further extended in wriƟng by Donee and Donor.

The parƟes hereto mutually agree that if Close of Escrow does not occur on or before June 30, 2025, and if this Agreement is not extended by Donee and Donor, it shall terminate at 5:00 p.m., on June 30, 2025.

4.3 Survival. All of the terms, provisions, representaƟons, warranƟes, and covenants under this Agreement shall survive the assignment, expiraƟon, or terminaƟon of this Agreement and shall not merge in the Grant Deed or other documents following the recordaƟon of such deed or other documents.

4.4 Possession of DonaƟon Property. Possession of the DonaƟon Property shall be delivered to Donee at the Close of Escrow.

4.5 AƩorneys’ Fees. Should either party insƟtute any acƟon or proceed to enforce any provision of this Agreement, the prevailing party shall be enƟtled to receive all costs and expenses, including reasonable aƩorney’s’ fees incurred by such prevailing party in connecƟon with such acƟon or proceeding, at trial or on any appeal. 534
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4.6 Assignments and Successors. This Agreement shall inure to the benefit of and shall be binding upon the ParƟes to this Agreement and their respecƟve heirs, successors, and assigns.

4.7 NoƟces. All noƟces under this Agreement shall be in wriƟng and emailed and/or deposited in the U.S. Mail, by registered or cerƟfied mail, with postage and charges prepaid and addressed to the parƟes below, and deemed to have been effecƟvely delivered to the respecƟve party to whom it is directed, as follows:

Donor: SOPAC Property Holdings, LLC
Iddo Benzeevi
[email protected]
Patrick Revere
[email protected]
Bobby Kohlƞarber
bkohlƞ[email protected]
29000 Eucalyptus Ave.

Moreno Valley, CA 92555
Donee: City of Moreno Valley
Jason Niccoli
[email protected]
Electric UƟlity Division Manager
Public Works
14331 Frederick Street
Moreno Valley, CA 92553

4.8 EnƟre Agreement. The parƟes have herein set forth the whole of their agreement.

Performance of this Agreement consƟtutes the enƟre consideraƟon. Donor has no other right or claim for compensaƟon arising out of or in connecƟon with the acquisiƟon of the DonaƟon Property by City.

4.9 ConstrucƟon. This Agreement shall not be construed as if it had been prepared by one of the parƟes, but rather as if both parƟes had prepared it. The parƟes and their counsel have read and reviewed this Agreement and hereby agree that any rule of construcƟon to the effect that ambiguiƟes are to be resolved against the draŌing party shall not apply in the interpretaƟon of this Agreement. The Recitals, above, are true and correct and shall be enforceable as part of this Agreement.

4.10 Further Assurances. Whenever requested to do so by the other party, each party shall execute, acknowledge, and deliver all further conveyances, assignments confirmaƟons, releases, instruments, approvals, consents, and all further instruments and documents as may be necessary, expedient, proper, or desired in order to complete all such conveyances, et al. and all further instruments and documents under this Agreement, and do all other acts and to execute, 535
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and deliver all documents as requested in order to carry out the intent and purpose of this Agreement.

4.11 Right to Enter Property. Commencing with execuƟon of this Agreement, City or its designee shall be allowed access to the DonaƟon Property prior to the Close of Escrow, at all reasonable Ɵmes for the purpose of obtaining data and making surveys, inspecƟons, and other studies at City’s sole expense necessary to carry out this Agreement or as required by law. City or its designee shall procure and maintain all required insurance policies, including worker’s compensaƟon, commercial liability insurance, and any other appropriate insurance necessary for access to the DonaƟon Property. City or its designee shall, upon compleƟon of data gathering, making surveys, tests, inspecƟons, and other studies, restore the DonaƟon Property to the extent reasonably possible to its condiƟon prior to such data gathering, surveys, tests, inspecƟons, and other studies. City or its designee shall indemnify, defend, and hold harmless Donor from all mechanic’s liens, claims, acƟons, liabiliƟes, costs, expenses, including aƩorneys’ fees, and damages of any type or nature arising out of or in any way related to any use of or entry onto the DonaƟon Property by Donee or any other person on behalf of Donee.

4.12 Dispute ResoluƟon/MediaƟon/ArbitraƟon. The parƟes shall aƩempt in good faith to mediate and resolve any dispute, claim, or controversy arising from or relaƟng to this Agreement by negoƟaƟng promptly and in advance of any noƟce of arbitraƟon. Said mediaƟon shall take place between the parƟes’ senior personnel with authority to seƩle the dispute, claim, or controversy. The mediaƟon process shall not exceed forty-five (45) days from noƟce of mediaƟon by any party. If mediaƟon is unsuccessful, the arbitraƟon provision below shall apply without any further acƟon by any party.

Any dispute, claim, or controversy arising from or related to this Agreement for the breach, terminaƟon, enforcement, interpretaƟon, or validity thereof, including the determinaƟon of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitraƟon in Riverside County before one mutually agreed upon arbitrator. The arbitraƟon shall be administered by JAMS pursuant to JAMS’ Streamlined ArbitraƟon Rules and Procedures.

Judgment on the arbitraƟon award may be entered in Riverside County Superior Court. This arbitraƟon provision shall not preclude the parƟes from seeking provisional remedies in aid of arbitraƟon from Riverside County Superior Court.

4.13 Counterparts. This Agreement and any amendments hereto may be executed in any number of counterparts and by each party in separate counterparts, each of which when so executed and delivered shall be deemed an original and all of which taken together shall consƟtute one and the same instrument.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below:

Dated: ______________ "DONOR"
536
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SOPAC PROPERTY HOLDINGS, LLC, a Delaware
limited liability company
By: Highland Fairview Construction, Inc., a
California corporation, and Highland
Fairview Operating Company, a Delaware
general partnership
Its: Agent
By:__________________________________
Iddo Benzeevi, President
Dated: _____________ "DONEE"
City of Moreno Valley
By:_________________________________
Name:______________________________
Its:_________________________________
537
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ATTACHMENT 1

REAL PROPERTY DONATION AGREEMENT AND ESCROW INSTRUCTIONS (City of Moreno Valley, County of Riverside, State of California Portion of Assessor Parcel Number 422-070-031)
538
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EXHIBIT “A”

GRANT DEED
539
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EXHIBIT “B”

LEGAL DESCRIPTION AND VICINITY MAP
540
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EXHIBIT “C”
LEGAL DESCRIPTION AND VICINITY MAP–BATTERY STORAGE

EASEMENT
541
Report to City Council
ID: 25-0498 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer AGENDA DATE: December 16, 2025
TITLE: AUTHORIZATION TO AWARD A CONSTRUCTION

CONTRACT FOR THE OVERNIGHT INTERSECTION

VISIBILITY SYSTEMIC IMPROVEMENTS PROJECT,
CITYWIDE (REPORT OF: PUBLIC WORKS) (ALL

DISTRICTS)
TITLE SUMMARY: Authorization To Award A Highway Safety Improvement Program Construction Contract to California Professional Engineering, Inc. For The Overnight Intersection Visibility Systemic Improvements Project, Citywide, Project Number 808 0038
DISTRICT: All Districts
Recommendation(s)
That the City Council:

1. Award a Highway Safety Improvement construction contract to California Professional Engineering, Inc. for the citywide Overnight Intersection Visibility Systemic Improvements Project Number 808 0038; and

2. Authorize the City Manager to execute a contract with California Professional Engineering, Inc. in the amount of $971,635.00 ($844,900.00 bid amount plus $126,735.00 contingency), funded by Highway Safety Improvement Program Grant Funds (Fund 2301) and State Gas Tax Funds (Fund 2000); and 542
ID: 25-0498 Page 2

3. Authorize the issuance of a Purchase Order to California Professional Engineering, Inc in the amount of $971,635.00, when the contract has been signed by all parties; and

4. Authorize the Public Works Director/City Engineer to execute any subsequent change orders related to the contract with California Professional Engineering, Inc. up to the contingency amount, subject to the approval of the City Attorney.

SUMMARY
This report recommends the award of a construction contract to California Professional Engineering, Inc. for construction of the citywide Overnight Intersection Visibility Systemic Improvements Project. This project aims to implement safety improvements at 15 signalized intersections located along high-speed roadways. The project is funded by Caltrans Highway Safety Improvement Program (HSIP) Grant and complies with the City Council’s Momentum MoVal Strategic Plan to manage and maximize Moreno Valley’s Public infrastructure through maintenance programs and capital improvements.

DISCUSSION
The Caltrans Division of Local Assistance (DLA) manages California’s local agency share of Highway Safety Improvement Program (HSIP) funds. HSIP is a core federal aid program under the Infrastructure Investment and Jobs Act (IIJA) that provides states with resources aimed at significantly reducing fatalities and serious injuries on all public roads.

In alignment with local HSIP goals, the Overnight Intersection Visibility Systemic Improvements Project (Project) will implement various safety improvements at 15 signalized intersections located along high-speed roadways. The purpose of this project is to enhance visibility and increase safety for both drivers and pedestrians.

Improvements include the installation of additional lighting, advanced stop bars, highvisibility striping, retroreflective signal backplates, updated traffic signal heads, and illuminated street name signs.

Caltrans added the Overnight Intersection Visibility Systemic Improvements Project to their list of approved projects for HSIP Cycle 11 in March of 2023 and allocated $1,223,730.00 funding for design and construction activities with a local match of $135,970.00. Phase 1, the initial design phase, has been completed, and we are now seeking authorization to award a contract for Phase II, the construction phase.

The project was advertised for construction bids on July 31, 2025, and formal bidding procedures have been followed in conformance with the Public Contract Code. Bids were submitted through the electronic bid management system, OpenGov.com, on September 2, 2025. A total of six (6) bids were received, with California Professional Engineering, Inc. being the lowest qualified bidder with a total bid of $1,329,599.00, which includes the base bid and optional/additive construction items.

Bidders Total Bid

1. California Professional Engineering Inc. $1,329.599.00 543
ID: 25-0498 Page 3

2. Select Electric, Inc. $1,378,369.00

3. Bear Electrical Solutions, LLC $1,446,720.00

4. Ferreira Construction Company $1,447,197.00

5. Alfaro Communications Construction, Inc. $1,511,521.41

6. Crosstown Electrical and Data, Inc. $1,530,719.00
The city was awarded $1,209,700.00 in State HSIP funding for the Construction Phase ($1,059,700.00 for construction and $150,000.00 for construction engineering). To ensure project costs remain within the State-funded amount, the construction contract was awarded using the base bid plus a portion of the optional/additive items.

ALTERNATIVES

1. Approve and authorize the recommended actions as presented in this staff report.

This alternative will allow the City to implement various safety improvements at signalized intersections located along high-speed roadways citywide. Staff recommend this alternative.

2. Do not approve and authorize the recommended actions as presented in this staff report. This alternative will hinder the City from implementing the recommended safety improvements along high-speed roadways citywide and result in forfeiting the remaining award of $1,088,730 in state funds for Phase II of the project. Staff does not recommend this alternative.

FISCAL IMPACT
The Traffic Signal Improvements – Overnight Intersection Visibility Systemic Improvements Project is included in the Fiscal Year (FY) 2025/26 Capital Projects Budget. The project is funded through the Capital Projects Grants Fund (Fund 2301), which is supported by the Highway Safety Improvement Program (HSIP) Grant award.

The City’s 10 percent local match obligation is supported by the State Gas Tax Fund (Fund 2000). There is no financial impact to the General Fund.

TOTAL AVAILABLE PROJECT BUDGET THRU FY 2025/26:

Capital Projects Grants
(GL Account: 2301-70-76-80008-720199)
(Project No. 808 0038-2301-99)................................................................ $1,223,730.00 State Gas Tax
(GL Account: 2000-70-76-80008-720199)
(Project No. 808 0038-2000-99).................................................................... $135,970.00 Total Available Budget ........................................................................... $1,359,700.00 ESTIMATED PROJECT RELATED COSTS:

Design........................................................................................................... $150,000.00 Construction ............................................................................................. $1,059,700.00 Construction Engineering.............................................................................. $150,000.00 Total Estimated Cost............................................................................... $1,359,700.00 544
ID: 25-0498 Page 4

NOTIFICATION
Publication of the Agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Araceli Sahagun Melissa Walker, P.E.

Management Assistant Public Works Director/City Engineer Concurred By: Concurred By:

Wei Sun, T.E. / P.T.O.E Harold Zamora, P.E.

City Traffic Engineer Engineering Division Manager/Assistant City Engineer

CITY COUNCIL GOALS
Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

Public Safety: Provide a safe and secure environment for people and property in the community, control the number and severity of fire and hazardous material incidents, and provide protection for citizens who live, work and visit the City of Moreno Valley.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
545
ID: 25-0498 Page 5
Report Approval Details
Document
Title:

STAFFREPORT_PW_TED_OVERNIGHTVISIBILITYIMPROVEMENTS
.docx
Attachment
s:
- AgreementandBond_808 0038_DRAFT.pdf
Final
Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

AGREEMENT
PROJECT NO. 808 0038
Traffic Signal Safety Improvements
Overnight Intersection Visibility Improvements
HSIPS – 5441(081)
This Agreement (hereinafter, this “Agreement”) is made and entered into this day of 2025 (“Effective Date”), by and between the City of Moreno Valley, a municipal corporation in the County of Riverside, State of California, hereinafter referred to as the “City,” and California Professional Engineering, Inc., hereinafter referred to as “Contractor.” That the City and the Contractor for the consideration hereinafter named, agree as follows:

1. CONTRACT DOCUMENTS. The Contract Documents consist of the following, which are incorporated herein by this reference:

A. This Agreement
B. Community Workforce Agreement by and Between the City of Moreno Valley and San Bernardino/Riverside Counties Building and Construction Trades Council, AFL-CIO and the Signatory Craft Councils and Unions (“CWA”) [PROJECTS OVER $1,000,000] C. Any and all Contract Change Orders and Construction Change Directives issued after execution of this Agreement
D. Addenda No. 0 inclusive, issued prior to the Bid Deadline E. The bound Contract Documents that include City Special Provisions, General Provisions, and Technical Provisions
F. Standard Specifications for Public Works Construction (“Greenbook”) – latest edition in effect at the Bid Deadline, as modified by the City Special Provisions G. Reference Specifications/Reference Documents other than those listed in paragraph 2, below
H. Project Plans
I. City Standard Plans
J. Caltrans Standard Plans
K. EMWD Standard Plans
L. Governmental approvals, including, but not limited to, permits required for the Work M. Contractor’s Labor and Materials Payment Bond (for reference only) N. Contractor’s Faithful Performance Bond (for reference only) O. Contractor’s Certificates of Insurance and Additional Insured Endorsements In the event of conflict between any of the Contract Documents, the provisions placing a more stringent requirement on the Contractor shall prevail. The Contractor shall provide the better quality or greater quantity of Work and/or materials unless otherwise directed by City in writing.

In the event none of the Contract Documents place a more stringent requirement or greater burden on the Contractor, the controlling provision shall be that which is found in the document with higher precedence in accordance with the above order of precedence. 547
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement

2. REFERENCE DOCUMENTS. The following Reference Documents are not considered Contract Documents and are made available to the Contractor for informational purposes:

A. None

3. SCOPE OF WORK. The Contractor shall perform and provide all materials, tools, equipment, labor, and services necessary to complete the Work described in the Contract Documents, except as otherwise provided in the Plans, Standard Specifications, or City Special Provisions to be the responsibility of others.

4. PAYMENT.

4.1. Contract Price and Basis for Payment. In consideration for the Contractor’s full, complete, timely, and faithful performance of the Work required by the Contract Documents, the City shall pay Contractor for the actual quantity of Work required under the Bid Items awarded by the City performed in accordance with the lump sum prices and unit prices for Bid Items and Additive Alternate Bid Items, if any, set forth the Bid Schedule submitted with the Bid. The sum of the unit prices and lump sum prices for the Bid Items and Additive Alternate Bid Items, if any, awarded by the City is Nine Hundred Seventy One Thousand, Six Hundred Thirty Five and 00/100 Dollars ($971,635) (“Contract Price”). It is understood and agreed that the quantities set forth in the Bid Schedule for which unit prices are fixed are estimates only and that City will pay and Contractor will accept, as full payment for these items of Work, the unit prices set forth in the Bid Schedule multiplied by the actual number of units performed, constructed, or completed as directed and measured by the City Engineer.

4.2. Payment Procedures. The Contractor agrees that City payments will be received via Automated Clearing House (ACH) Direct Deposit and that the required ACH Authorization form will be completed prior to any payments by the City. Any invoice not paid because the completed ACH Authorization Form has not been provided will not incur any fees, late charges, or other penalties. The ACH Authorization Form is located at:
http://www.moval.org/city_hall/forms.shtml#bf
Based upon applications for payment submitted by the Contractor to the City, the City shall make payments to the Contractor in accordance with Section 7 of the Standard Specifications, as modified by Section 7 of the City Special Provisions.

5. CONTRACT TIME.

A. Initial Notice to Proceed. After the Agreement has been fully executed by the Contractor and the City, the City shall issue the “Notice to Proceed to Fulfill Preconstruction Requirements & Order Materials.” and Notice to Proceed with Order of Materials.” The date specified in the Notice to Proceed to Fulfill Preconstruction Requirements and Notice to Proceed with Order of Materials constitutes the date of commencement of the Contract Time of Eighty (80) Working Days for the Base Bid only, and up to One Hundred and Fifty (150) Working Days for Base Bid plus Additive Bids. The Contract Time is therefore dependent on the number of Additive Bids selected, if any, and will be based on the table in Section 5A of this Agreement. The Contract Time includes the time necessary to fulfill preconstruction requirements, place the order of materials, and to complete construction of the Project (except as adjusted by subsequent Change Orders).
548
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement
The Notice to Proceed to Fulfill Preconstruction Requirements & Order Materials shall further specify that Contractor must complete the preconstruction requirements within Ten (10) Working Days after the date of commencement of the Contract Time; this duration is part of the Contract Time.

Preconstruction requirements include, but are not limited to, the following:
 Submitting and obtaining approval of Traffic Control Plans  Submitting and obtaining approval of the Stormwater Pollution Prevention Plan (SWPPP)/Water Pollution Control Plan (WPCP)
 Submitting and obtaining approval of critical required submittals  Installation of the approved Project Identification Signs  Obtaining an approved no fee Encroachment Permit
 Obtaining a Temporary Use Permit for a construction yard  Notifying all agencies, utilities, residents, etc., as outlined in the Contract Documents If the City’s issuance of a Notice to Proceed to Fulfill Preconstruction Requirements is delayed due to Contractor’s failure to return the fully executed Agreement and insurance and bond documents within ten (10) Working Days after Contract award, then Contractor agrees to the deduction of one (1) Working Day from the number of days to complete the Project for every Working Day of delay in the City’s receipt of said documents. This right is in addition to and does not affect the City’s right to demand forfeiture of Contractor’s Bid Security if Contractor persistently delays in providing the required documentation.

B. Notice to Proceed with Construction. After all preconstruction requirements are met and materials have been ordered in accordance with the Notice to Proceed to Fulfill Preconstruction Requirements & Order Materials, the City shall issue the “Notice to Proceed with Construction,” at which time the Contractor shall diligently prosecute the Work, including corrective items of Work, day to day thereafter, within the remaining Contract Time.

6. LIQUIDATED DAMAGES AND CONTROL OF WORK.

6.1. Liquidated Damages. The Contractor and City (collectively, the “Parties”) have agreed to liquidate damages with respect to Contractor’s failure to complete the Work within the Contract Time, which includes the time necessary to fulfill preconstruction requirements and to complete construction of the Project (except as adjusted by subsequent Change Orders) in accordance with Article 5 above. The Parties intend for the liquidated damages set forth herein to apply to this Contract as set forth in Government Code Section 53069.85 and in Public Contract Code Section 7203. Contractor acknowledges and agrees that the liquidated damages are intended to compensate the City solely for Contractor’s failure to meet the deadlines for completion of the Work and will not excuse Contractor from liability from any other breach, including any failure of the Work to conform to the requirements of the Contract Documents.

In the event that Contractor fails to complete the Work within the Contract Time, Contractor agrees to pay the City $500.00 per Calendar Day that completion of the each such portion of the Work is delayed beyond the Contract Time. The Contractor will not be assessed liquidated damages for delays occasioned by the failure of the City or of the owner of a utility to provide for the removal or relocation of utility facilities.

The Contractor and City acknowledge and agree that the foregoing liquidated damages have been set based on an evaluation of damages that the City will incur in the event of late completion 549
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement
of portions of the Work. The Contractor and City acknowledge and agree that the amount of such damages are impossible to ascertain as of the date of execution hereof and have agreed to such liquidated damages to fix the City’s damages and to avoid later disputes. It is understood and agreed by Contractor that liquidated damages payable pursuant to this Agreement are not a penalty and that such amounts are not manifestly unreasonable under the circumstances existing as of the date of execution of this Agreement.

It is further mutually agreed that the City will have the right to deduct liquidated damages against progress payments or retainage and that the City will issue a Change Order or Construction Change Directive and reduce the Contract Price accordingly. In the event the remaining unpaid Contract Price is insufficient to cover the full amount of liquidated damages, Contractor shall pay the difference to the City.

Liquidated damages are owed automatically and without notice of any kind upon the accrual of each day of delay. City may at any time deduct liquidated damages as are payable hereunder from money due or to become due to Contractor, or pursue any other legal remedy to collect such liquidated damages from Contractor and/or its Surety. Neither the City's failure or delay in deducting liquidated damages from payments otherwise due Contractor, nor City's failure or delay in notifying Contractor of the accrual of liquidated damages, shall be deemed a waiver of City's right to liquidated damages.

City's rights under this Section shall not be interpreted as precluding or limiting: (1) any right or remedy of City arising from an event of Contractor default other than a failure to complete the Work within the Contract Time; or (2) City's right to order an acceleration, at Contractor's expense, of performance of the Work to overcome delay, including, without limitation, a delay for which City has the right to assess and/or accrue liquidated damages. The availability of liquidated damages shall not limit City's right to terminate the Contractor’s performance and accrual and/or assessment of liquidated damages does not constitute a waiver of such rights.

6.2. Owner is Exempt from Liability for Early Completion Delay Damages. While the Contractor may schedule completion of all of the Work, or portions thereof, earlier than the Contract Time, the Owner is exempt from liability for and the Contractor will not be entitled to an adjustment of the Contract Sum or to any additional costs, damages, including, but not limited to, claims for extended general conditions costs, home office overhead, jobsite overhead, and management or administrative costs, or compensation whatsoever, for use of float time or for Contractor’s inability to complete the Work earlier than the Contract Time for any reason whatsoever, including but not limited to, delay cause by Owner or other Excusable Compensable Delay. See Section 6-4 of the Standard Specifications and City Special Provisions regarding compensation for delays.

6.3. Any work completed by the Contractor after the issuance of a Stop Work Notice by the City shall be rejected and/or removed and replaced as specified in Section 3-5 of the City Special Provisions.

7. INSURANCE.

7.1. General. The Contractor shall procure and maintain at its sole expense and throughout the term of this Agreement, any extension thereof, Commercial General Liability, Automobile Liability, and Workers’ Compensation Insurance with such coverage limits as described herein.
550
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement

7.2. Additional Insured Endorsements. The Contractor shall cause the insurance required by the Contract Document to include the City of Moreno Valley, the City Council and each member thereof, the Moreno Valley Housing Authority, and the Moreno Valley Community Services District and their respective officials, employees, commission members, officers, directors, agents, employees, volunteers and representatives as an additional insureds. For the Commercial General Liability coverage, said parties shall be named as additional insureds utilizing either:

1. Insurance Services Office (“ISO”) Additional Insured endorsement CG 20 10 (11/85); or

2. ISO Additional Insured endorsement CG 20 10 (10/01) and Additional Insured Completed Operations endorsement CG 20 37 (10/01); or

3. Substitute endorsements providing equivalent coverage, approved by the City.

The endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf. The coverage shall contain no special limitations on the scope of protection afforded to such additional insureds. Coverage for such additional insureds does not extend to liability to the extent prohibited by Insurance Code Section 11580.4.

7.3. Waivers of Subrogation. All policies of insurance required by the Contract Documents shall include or be endorsed to provide a waiver by the insurers of any rights of recovery or subrogation that the insurers may have at any time against the City of Moreno Valley, the City Council and each member thereof, the Moreno Valley Housing Authority, and the Moreno Valley Community Services District and their respective officials, employees, commission members, officers, directors, agents, employees, volunteers, and representatives.

7.4. Primary Coverage. All policies and endorsements shall stipulate that the Contractor’s (and the Subcontractors’) insurance coverage shall be primary insurance as respects the City of Moreno Valley, the City Council and each member thereof, the Moreno Valley Housing Authority, and the Moreno Valley Community Services District and their respective officials, employees, commission members, officers, directors, agents, employees, volunteers, and representatives, and shall be excess of the Contractor’s (and its Subcontractors’) insurance and shall not contribute with it.

7.5. Coverage Applies Separately to Each Insured and Additional Insured.

Coverage shall state that the Contractor’s (and its Subcontractors’) insurance shall apply separately to each insured or additional insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. Coverage shall apply to any claim or suit brought by an additional insured against a named insured or other insured.

7.6. Self-Insurance. Any self-insurance (including deductibles or self-insured retention in excess of $50,000) in lieu of liability insurance must be declared by Contractor and approved by the City in writing prior to execution of the Agreement. The City’s approval of self-insurance, if any, is within the City’s sole discretion and is subject to the following conditions:

1. Contractor must, at all times during the term of the Agreement and for a period of at least one (1) year after completion of the Project and any extension of the one-year correction guarantee period in accordance with 551
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement
Section 3-13.3 of the City Special Provisions, maintain and upon Owner’s reasonable request provide evidence of:
(a) Contractor’s “net worth” (defined as “total assets” [defined as all items of value owned by the Contractor including tangible items such as cash, land, personal property, and equipment, and intangible items such as copyrights and business goodwill]) minus total outside liabilities must be reflected in a financial statement for the prior fiscal year reflecting sufficient income and budget for Contractor to afford at least one loss in an amount equal to the amount of self-insurance;
(b) Financial statements showing that Contractor has funds set aside/budgeted to finance the self-insured fund (i.e., Contractor has a program that fulfills functions that a primary insurer would fill); and (c) A claims procedure that identifies how a claim is supposed to be tendered to reach the financing provided by the self-insured fund.

2. If at any time after such self-insurance has been approved, the Contractor fails to meet the financial thresholds or otherwise fails to comply with the provisions set forth in this Paragraph 7, at the option of the City:
(a) The Contractor shall immediately obtain and thereafter maintain the third party insurance required under this Paragraph 7 and otherwise on the terms required above; or
(b) The insurer shall reduce or eliminate such deductibles or selfinsured retention as respects the City, its officers, officials, employees, and volunteers; or
(c) The Contractor shall procure a bond guaranteeing payment of losses and related investigation, claim administration, and defense expenses.

7.7. Insurer Financial Rating. Insurance companies providing insurance hereunder shall be rated A-VII or better in Best's Insurance Rating Guide and shall be legally licensed and qualified to conduct insurance business in the State of California.

7.8. Notices to City of Cancellation or Changes. Each insurance policy described in this Paragraph 7 shall contain a provision or be endorsed to state that coverage will not be cancelled without thirty (30) days’ prior written notice by certified or registered mail to the City (this obligation may be satisfied in the alternative by requiring such notice to be provided by Contractor’s insurance broker and set forth on its Certificate of Insurance provided to the City), except that cancellation for non-payment of premium shall require (10) days prior written notice by certified or registered mail. If an insurance carrier cancels any policy or elects not to renew any policy required to be maintained by Contractor pursuant to the Contract Documents, Contractor agrees to give written notice to the City at the address indicated on the first page of the Agreement.

Contractor agrees to provide the same notice of cancellation and non-renewal to the City that is required by such policy(ies) to be provided to the First Named Insured under such policy(ies).

Contractor shall provide confirmation that the required policies have been renewed 552
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement
not less than seven (7) days prior to the expiration of existing coverages and shall deliver renewal or replacement policies, certificates and endorsements to the City Clerk within fourteen (14) days of the expiration of existing coverages. Contractor agrees that upon receipt of any notice of cancellation or alteration of the policies, Contractor shall procure within five (5) days, other policies of insurance similar in all respects to the policy or policies to be cancelled or altered. Contractor shall furnish to the City Clerk copies of any endorsements that are subsequently issued amending coverage or limits within fourteen (14) days of the amendment.

7.9. Commercial General Liability. Coverage shall be written on an ISO Commercial General Liability “occurrence” form CG 00 01 (10/01 or later edition) or equivalent form approved by the City for coverage on an occurrence basis. The insurance shall cover liability, including, but not limited to, that arising from premises operations, stop gap liability, independent contractors, products-completed operations, personal injury, advertising injury, and liability assumed under an insured contract. The policy shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 (11/85). Coverage shall contain no contractors’ limitation or other endorsement limiting the scope of coverage for liability arising from pollution, explosion, collapse, or underground (x, c, u) property damage. Contractor shall provide Products/Completed Operations coverage to be maintained continuously for a minimum of one (1) year after Final Acceptance of the Work, and any extension of the one-year correction guarantee period in accordance with Section 3-13.3 of the City Special Provisions.

Contractor shall maintain Commercial General Liability insurance with the following minimum limits: $1,000,000 per occurrence / $2,000,000 aggregate / $2,000,000 products-completed operations.

7.10. Business Automobile Liability. Coverage shall be written on ISO form CA 00 01 (12/93 or later edition) or a substitute form providing equivalent coverage for owned, hired, leased and non-owned vehicles, whether scheduled or not, with $1,000,000 combined single limit per accident for bodily injury and property damage. If necessary, the policy shall be endorsed to provide contractual liability coverage.

7.11. Workers’ Compensation. Contractor shall comply with the applicable sections of the California Labor Code concerning workers’ compensation for injuries on the job. Compliance is accomplished in one of the following manners:

1. Provide copy of permissive self-insurance certificate approved by the State of California; or

2. Secure and maintain in force a policy of workers’ compensation insurance with statutory limits and Employer’s Liability Insurance with a minimal limit of $1,000,000 per accident; or

3. Provide a “waiver” form certifying that no employees subject to the Labor Code’s Workers’ Compensation provision will be used in performance of this Contract.

7.12. Subcontractors’ Insurance. The Contractor shall include all Subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each Subcontractor. All coverages for Subcontractors shall be subject to all of the requirements stated herein.
553
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement

8. BONDS. The Contractor shall provide two surety bonds. The Contractor shall furnish a satisfactory Performance Bond meeting all statutory requirements of the State of California on the form provided by the City. The bond shall be furnished as a guarantee of the faithful performance of the requirements of the Contract Documents as may be amended from time to time, including, but not limited to, liability for delays and damages (both direct and consequential) to the City and the City’s Separate Contractors and consultants, warranties, guarantees, and indemnity obligations, in an amount that shall remain equal to one hundred percent (100%) of the Contract Price.

The Contractor shall furnish a separate satisfactory Labor and Materials Payment Bond meeting all statutory requirements of the State of California on the form provided by the City in an amount that shall remain equal to one hundred percent (100%) of the Contract Price to secure payment of all claims, demands, stop payment notices, or charges of the State of California, of material suppliers, mechanics, or laborers employed by the Contractor or by any Subcontractor, or any person, form, or entity eligible to file a stop payment notice with respect to the Work.

All bonds shall be executed by a California-admitted surety insurer. Bonds issued by a Californiaadmitted surety insurer listed on the latest version of the U.S Department of Treasury Circular 570 shall be deemed accepted unless specifically rejected by the City. Bonds issued by sureties not listed in Treasury Circular 570 must be accompanied by all documents enumerated in California Code of Civil Procedure Section 995.660(a). The bonds shall bear the same date as the Contract.

The attorney-in-fact who executes the required bonds on behalf of the surety shall affix thereto a certified and current copy of the power of attorney. In the event of changes that increase the Contract Price, the amount of each bond shall be deemed to increase and at all times remain equal to the Contract Price. The signatures shall be acknowledged by a notary public. Every bond must display the surety’s bond number and incorporate the Contract for construction of the Work by reference. The terms of the bonds shall provide that the surety agrees that no change, extension of time, alteration, or modification of the Contract Documents or the Work to be performed thereunder shall in any way affect its obligations and shall waive notice of any such change, extension of time, alteration, or modification of the Contract Documents. The surety further agrees that it is obligated under the bonds to any successor, grantee, or assignee of the City.

Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering payment of obligations arising under the Contract, the Contractor shall promptly furnish a copy of the bonds or shall authorize a copy to be furnished.

Should any bond become insufficient, or should any of the sureties, in the opinion of the City, become non-responsible or unacceptable, the Contractor shall, within ten (10) Calendar Days after receiving notice from the City, provide written documentation to the Satisfaction of the City that Contractor has secured new or additional sureties for the bonds; otherwise the Contractor shall be in default of the Contract. No further payments shall be deemed due or will be made under Contract until a new surety(ies) qualifies and is accepted by the City.

Contractor agrees that the Labor and Materials Payment Bond and Faithful Performance Bond attached to this Agreement are for reference purposes only, and shall not be considered a part of this Agreement. Contractor further agrees that said bonds are separate obligations of the Contractor and its Surety, and that any attorney’s fee provision contained in any payment bond or performance bond shall not apply to this Agreement. In the event there is any litigation between the parties arising from the breach of this Agreement, each party will bear its own attorneys’ fees in the litigation.
554
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement

9. RECORDS. The Contractor and its Subcontractors shall maintain and keep books, payrolls, invoices of materials, and Project records current, and shall record all transactions pertaining to the Contract in accordance with generally acceptable accounting principles. Said books and records shall be made available to the City of Moreno Valley, Riverside County, the State of California, the Federal Government, and to any authorized representative thereof for purposes of audit and inspection at all reasonable times and places. All such books, payrolls, invoices of materials, and records shall be retained for at least five (5) years after Final Acceptance.

10. INDEMNIFICATION.

10.1. General. To the fullest extent permitted by law, the Contractor assumes liability for and agrees, at the Contractor’s sole cost and expense, to promptly and fully indemnify, protect, hold harmless and defend (even if the allegations are false, fraudulent, or groundless), the City of Moreno Valley, its City Council, the Moreno Valley Housing Authority, and the Moreno Valley Community Services District, and all of their respective officials, officers, directors, employees, commission members, representatives and agents (“Indemnitees”), from and against any and all claims, allegations, actions, suits, arbitrations, administrative proceedings, regulatory proceedings, or other legal proceeds, causes of action, demands, costs, judgments, liens, stop payment notices, penalties, liabilities, damages, losses, anticipated losses of revenues, and expenses (including, but not limited to, any fees of accountants, attorneys, experts or other professionals, or investigation expenses), or losses of any kind or nature whatsoever, whether actual, threatened or alleged, arising out of, resulting from, or in any way (either directly or indirectly), related to the Work, the Project or any breach of the Contract by Contractor or any of its officers, agents, employees, Subcontractors, Sub-subcontractors, or any person performing any of the Work, pursuant to a direct or indirect contract with the Contractor (“Indemnity Claims”).

Such Indemnity Claims include, but are not limited to, claims for:

A. Any activity on or use of the City’s premises or facilities; B. Any liability incurred due to Contractor acting outside the scope of its authority pursuant to the Contract, whether or not caused in part by an Indemnified Party;
C. The failure of Contractor or the Work to comply with any Applicable Law, permit or orders;
D. Any misrepresentation, misstatement or omission with respect to any statement made in the Contract Documents or any document furnished by the Contractor in connection therewith;
E. Any breach of any duty, obligation or requirement under the Contract Documents, including, but not limited to any breach of Contractor’s warranties, representations or agreements set forth in the Contract Documents;
F. Any failure to coordinate the Work with City’s Separate Contractors; G. Any failure to provide notice to any party as required under the Contract Documents;
H. Any failure to act in such a manner as to protect the Project from loss, cost, expense or liability;
I. Bodily or personal injury, emotional injury, sickness or disease, or death at any time to any persons including without limitation employees of Contractor;
555
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement
J. Damage or injury to real property or personal property, equipment and materials (including, but without limitation, property under the care and custody of the Contractor or the City) sustained by any person or persons (including, but not limited to, companies, corporations, utility company or property owner, Contractor and its employees or agents, and members of the general public);
K. Any liability imposed by Applicable Law including, but not limited to criminal or civil fines or penalties;
L. Any dangerous, hazardous, unsafe or defective condition of, in or on the Site, of any nature whatsoever, which may exist by reason of any act, omission, neglect, or any use or occupation of the Site by Contractor, its officers, agents, employees, or Subcontractors;
M. Any operation conducted upon or any use or occupation of the Site by the Contractor, its officers, agents, employees, or Subcontractors under or pursuant to the provisions of the Contract or otherwise; N. Any acts, errors, omission or negligence of Contractor, its officers, agents, employees, or Subcontractors;
O. Infringement of any patent rights, licenses, copyrights, or intellectual property which may be brought against the Contractor or Owner arising out of Contractor’s Work, for which the Contractor is responsible; and P. Any and all claims against the City seeking compensation for labor performed or materials used or furnished to be used in the Work or alleged to have been furnished on the Project, including all incidental or consequential damages resulting to the City from such claims.

10.2. Effect of Indemnitees’ Active Negligence. Contractor’s obligations to indemnify and hold the Indemnitees harmless exclude only such portion of any Indemnity Claim which is attributable to the active negligence or willful misconduct of the Indemnitee, provided such active negligence or willful misconduct is determined by agreement of the parties or by findings of a court of competent jurisdiction. In instances where an Indemnitee’s active negligence accounts for only a percentage of the liability for the Indemnity Claim involved, the obligation of Contractor will be for that entire percentage of liability for the Indemnity Claim not attributable to the active negligence or willful misconduct of the Indemnitee(s). Such obligation shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person described in this Paragraph 10. Subject to the limits set forth herein, the Contractor, at its own expense, shall satisfy any resulting judgment that may be rendered against any Indemnitee resulting from an Indemnity Claim. The Indemnitees shall be consulted with regard to any proposed settlement.

10.3. Independent Defense Obligation. The duty of the Contractor to indemnify and hold harmless the Indemnitees includes the separate and independent duty to defend the Indemnitees, which duty arises immediately upon receipt by Contractor of the tender of any Indemnity Claim from an Indemnitee. The Contractor’s obligation to defend the Indemnitee(s) shall be at Contractor’s sole expense, and not be excused because of the Contractor’s inability to evaluate liability or because the Contractor evaluates liability and determines that the Contractor is not liable. This duty to defend shall apply whether or not an Indemnity Claim has merit or is meritless, or which involves claims or allegations that any or all of the Indemnitees were actively, passively, or concurrently negligent, or which otherwise asserts that the Indemnitees are responsible, in whole or in part, for any Indemnity Claim. The Contractor shall respond within thirty 556
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement
(30) Calendar Days to the tender of any Indemnity Claim for defense and/or indemnity by an Indemnitee, unless the Indemnitee agrees in writing to an extension of this time. The defense provided to the Indemnitees by Contractor shall be by well qualified, adequately insured and experienced legal counsel acceptable to the City.

10.4. Intent of Parties Regarding Scope of Indemnity. It is the intent of the parties that the Contractor and its Subcontractors of all tiers shall provide the Indemnitees with the broadest defense and indemnity permitted by Applicable Law. In the event that any of the defense, indemnity, or hold harmless provisions in the Contract Documents are found to be ambiguous or in conflict with one another, it is the parties’ intent that the broadest and most expansive interpretation in favor of providing defense and/or indemnity to the Indemnitees be given effect.

10.5. Waiver of Indemnity Rights Against Indemnitees. With respect to third party claims against the Contractor, to the fullest extent permitted by law, the Contractor waives any and all rights to any type of express or implied indemnity against the Indemnitees.

10.6. Subcontractor Requirements. In addition to the requirements set forth hereinabove, Contractor shall ensure, by written subcontract agreement, that each of Contractor’s Subcontractors of every tier shall protect, defend, indemnify and hold harmless the Indemnitees with respect to Indemnity Claims arising out of, in connection with, or in any way related to each such Subcontractors’ Work on the Project in the same manner in which Contractor is required to protect, defend, indemnify and hold the Indemnitees harmless. In the event Contractor fails to obtain such defense and indemnity obligations from others as required herein, Contractor agrees to be fully responsible to the Indemnitees according to the terms of this Paragraph 10. Contractor further agrees to ensure that each subcontractor will execute a separate Letter of Assent to the terms of the CWA if the total project cost is $1,000,000 or more and will fully indemnify the City for any claims or losses which result from a Subcontractor’s failure to adhere to the terms of the CWA on this project.

10.7. No Limitation or Waiver of Rights. Contractor’s obligations under this Paragraph 10 are in addition to any other rights or remedies which the Indemnitees may have under the law or under the Contract Documents. Contractor’s indemnification and defense obligations set forth in this Paragraph 10 are separate and independent from the insurance provisions set forth in the Contract Documents, and do not limit, in any way, the applicability, scope, or obligations set forth in such insurance provisions. The purchase of insurance by the Contractor with respect to the obligations required herein shall in no event be construed as fulfillment or discharge of such obligations. In any and all claims against the Indemnitees by any employee of the Contractor, any Subcontractor, any supplier of the Contractor or Subcontractors, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the obligations under this Paragraph 10 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any Subcontractor or any supplier of either of them, under workers’ or workmen’s compensation acts, disability benefit acts or other employee benefit acts. Failure of the City to monitor compliance with these requirements imposes no additional obligations on the City and will in no way act as a waiver of any rights hereunder. 557
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement

10.8. Withholding to Secure Obligations. In the event an Indemnity Claim arises prior to final payment to Contractor, the City may, in its sole discretion, reserve, retain or apply any monies due Contractor for the purpose of resolving such Indemnity Claims; provided, however, the City may release such funds if the Contractor provides the City with reasonable assurances of protection of the Indemnitees’ interests. The City shall, in its sole discretion, determine whether such assurances are reasonable.

10.9. Survival of Indemnity Obligations. Contractor’s obligations under this Paragraph 10 are binding on Contractor’s and its Subcontractors’ successors, heirs, and assigns and shall survive the completion of the Work or termination of the Contractor’s performance of the Work.

11. SUCCESSORS AND ASSIGNS. The Parties bind themselves, their heirs, executors, administrators, successors and assigns the covenants, agreements and obligations contained in the Contract Documents. The Contractor shall not, either voluntarily or by action of law, assign any right or obligation of the Contractor under the Contract Documents without prior written consent of the City.
(SIGNATURE PAGE FOLLOWS)
558
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Standard Form of Agreement
CITY OF MORENO VALLEY, a Municipal Corporation California Professional Engineering, Inc.

BY: License No./
Brian Mohan, City Manager Classification:

DATE: Expiration Date:

Federal I.D. No.:

PRINT NAME:

SIGNATURE:

TITLE:

DATE:

PRINT NAME:

SIGNATURE:

TITLE:

DATE:

SIGNING INSTRUCTIONS TO THE CONTRACTOR:

Signature(s) must be accompanied by a completed notary certificate of acknowledgement attached hereto. A general partner must sign on behalf of a partnership. Two (2) corporate officers must sign on behalf of a corporation unless the corporation has a corporate resolution that allows one person to sign on behalf of the corporation; if applicable, said resolution must be attached hereto. The corporate seal may be affixed hereto.

INTERNAL USE ONLY
APPROVED AS TO LEGAL FORM:

City Attorney
Date
RECOMMENDED FOR APPROVAL:

Public Works Director/City Engineer
Date
559
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
2246371.3
2246371.3

CALIFORNIA ALL-PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
State of California SAMPLE
County of
On before me, ,
(Here insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledgement to me that he/she they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(Notary Seal)
Signature of Notary Public

ADDITIONAL OPTIONAL INFORMATION

INSTRUCTIONS FOR COMPLETING THIS FORM
Any acknowledgment completed in California must contain verbiage exactly appears above in the notary section or a separate acknowledgment form must property completed and attached to that document. The only exception is if a document is recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer).

Please check the document carefully for proper notarial wording and attach this form if required.
 State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment.
 Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed.  The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public).  Print the name(s) of document signer(s) who personally appear at the time of notarization.
 Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/they, is/are) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording.  The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form.
 Signature of the notary public must match the signature on file with the office of the county clerk.
 Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document.  Indicate title or type of attached document, number of pages and date.  Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary).  Securely attach this document to the signed document.

CAPACITY CLAIMED BY THE SIGNER
 Individual(s)
 Corporate Officer
(Title)
 Partner (s)
 Attorney-in-Fact
 Other

DESCRIPTION OF THE ATTACHED DOCUMENT

AGREEMENT SIGNATURE PAGE
(Title or description of attached document)
(Title or description of attached document continued)
Number of Pages
Document Date
Additional Information
560
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
00600
CONTRACTOR’S BONDS
Contractor’s Bond
561
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Faithful Performance Bond
00601-1
BOND No.

PREMIUM $

FAITHFUL PERFORMANCE BOND
(100% of Total Contract Price)
PROJECT NO. 808 0038
Traffic Signal Safety Improvements
Overnight Intersection Visibility Improvements
HSIPL – 5441(081)
KNOW ALL MEN AND WOMEN BY THESE PRESENTS:

THAT WHEREAS, the City Council of the City of Moreno Valley, State of California, known as "City," has awarded to , as Principal hereinafter designated as "Contractor" and have entered into an Agreement whereby the Contractor agrees to construct or install and complete certain designated public improvements, which said Agreement, effective on the date signed by the City of Moreno Valley, and identified as Project No. 808 0038, and all Contract Documents are hereby referred to and made a part hereof; and WHEREAS, said Contractor under the terms of said Contract Documents is required to furnish a bond guaranteeing the faithful performance of said Agreement; NOW THEREFORE, we the undersigned Contractor and ,
as Surety, are held and firmly bound unto the City of Moreno Valley, County of Riverside in the penal sum of dollars, ($ ), lawful money of
the United States, to be paid to the said City or its certain attorney, its successors and assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, and assigns, jointly and severally liable (CCP 995.320 (a)(1)), firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bound Contractor, his or her or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and provisions in said Contract Documents and any alterations thereof made as therein provided, on his or her or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Moreno Valley, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. In the event suit is brought upon this bond by the City and judgement is recovered, the Surety shall pay all costs incurred by the City in such suit, including a reasonable attorney fee to be fixed by the court.

Contractor and Surety agree that this Faithful Performance Bond shall not be considered a part of this Agreement between Contractor and the City (“Agreement”). Contractor and Surety further agree that this Faithful Performance Bond is a separate obligation of the Contractor and its Surety, and that any attorney’s fee provision contained in this Faithful Performance Bond shall not apply to the Agreement. In the event there is any litigation between the parties arising from the breach of the Agreement, each party will bear its own attorneys’ fees in the litigation.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract Documents or to the Work to be performed thereunder, or the Provisions accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract Documents or to the Work or the Provisions. 562
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Faithful Performance Bond
00601-2
(SIGNATURE PAGE FOLLOWS)
563
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
Faithful Performance Bond
00601-3
BOND No.

IN WITNESS WHEREOF, we have hereunto set our hands, and seals on this day of 20 .

CONTRACTOR (Principal) SURETY
Contractor Name: Name:

Address: Address:

Telephone No.: Telephone No.:

Print Name: Print Name:

Attorney-in-Fact
Signature: Signature:

Approved as to Form this
day of 20
City Attorney
City of Moreno Valley
NOTE:
 The bond shall be executed by a California admitted surety insurer (CCP 995.311).  The bond shall include an attached Notary Certificate for the Attorney-in-Fact.  The bond shall include an attached Notary Certificate for the Contractor.  The bond shall include an attached original Power of Attorney only authorizing the Attorneyin-Fact to act for the Surety.  The bond shall include the address at which the Principal (Contractor) and Surety may be served with notices, papers and other documents.
 The Contractor’s and Surety’s corporate seal may be affixed hereto. 564
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)

CALIFORNIA ALL-PURPOSE

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(Notary Seal)
Signature of Notary Public

ADDITIONAL OPTIONAL INFORMATION

CAPACITY CLAIMED BY THE SIGNER
 Individual(s)
 Corporate Officer
(Title)
 Partner (s)
 Attorney-in-Fact
 Other

DESCRIPTION OF THE ATTACHED DOCUMENT

PERFORMANCE BOND SIGNATURE PAGE
(Title or description of attached document)
(Title or description of attached document continued)
Number of Pages
Document Date
Additional Information
565
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)

LABOR AND MATERIALS PAYMENT BOND
(100% of Total Contract Amount)
BOND No.

PREMIUM $
PROJECT NO. 808 0038
Traffic Signal Safety Improvements
Overnight Intersection Visibility Improvements
HSIPL – 5441(081)
KNOW ALL MEN AND WOMEN BY THESE PRESENTS:

THAT WHEREAS, the City Council of the City of Moreno Valley, State of California, known as "City", has awarded to , as Principal hereinafter designated as "Contractor" and have entered into an Agreement whereby the Contractor agrees to construct or install and complete certain designated public improvements, which said Agreement, effective on the date signed by the City of Moreno Valley, and identified as Project No. 808 0038, and Contract Documents are hereby referred to and made a part hereof; and
WHEREAS, said Contractor under the terms of said Contract Documents is required to furnish a bond to secure the payment of claims of laborers, mechanics, materialmen, and other persons, as provided by law;
NOW, THEREFORE, we the undersigned Contractor and ,
as Surety are held and firmly bound unto the City of Moreno Valley, County of Riverside, in the penal sum of dollars, ($ ), lawful money of the
United States, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, and assigns, jointly and severally liable (CCP 995.320 (a)(1)), firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Contractor, his or her or its heirs, executors, administrator, successors, or assigns, or subcontractors, shall fail to pay any of the persons described in the State of California Civil Code, Section 9100, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the Contractor and his or her subcontractors, pursuant to Section 13020, of the Unemployment Insurance Code, with respect to such work and labor, that the Surety or Sureties herein will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In the event suit is brought upon this bond by the City or other person entitled to bring such an action and judgement is recovered, the Surety shall pay all costs incurred by the City in such suit, including a reasonable attorney fee to be fixed by the court.

Contractor and Surety agree that this Labor and Materials Payment Bond shall not be considered a part of this Agreement between Contractor and the City (“Agreement”). Contractor and Surety further agree that this Labor and Materials Payment Bond is a separate obligation of the Contractor and its Surety, and that any attorney’s fee provision contained in this Labor and Materials Payment Bond shall not apply to the Agreement. In the event there is any litigation between the parties arising from the breach of the Agreement, each party will bear its own attorneys’ fees in the litigation.

This bond shall inure to the benefit of any of the persons described in the State of California Civil Code Section9100, to give a right of action to such persons or their assigns in any suit brought upon this bond. (SIGNATURE PAGE FOLLOWS)
566
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)
BOND No.

IN WITNESS WHEREOF, we have hereunto set our hands, and seals on this day of 20 .

CONTRACTOR (Principal) SURETY
Contractor Name: Name:

Address: Address:

Telephone No.: Telephone No.:

Print Name: Print Name:

Attorney-in-Fact
Signature: Signature:

Approved as to Form this
day of 20
City Attorney
City of Moreno Valley
NOTE:
 The bond shall be executed by a California admitted surety insurer (CCP 995.311).  The bond shall include an attached Notary Certificate for the Attorney-in-Fact.  The bond shall include an attached Notary Certificate for the Contractor.  The bond shall include an attached original Power of Attorney only authorizing the Attorneyin-Fact to act for the Surety.  The bond shall include the address at which the Principal (Contractor) and Surety may be served with notices, papers and other documents.
 The Contractor’s and Surety’s corporate seal may be affix 567
City of Moreno Valley Project No. 808 0038
State Project No. HSIPS-5441(081)

CALIFORNIA ALL-PURPOSE

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(Notary Seal)
Signature of Notary Public

ADDITIONAL OPTIONAL INFORMATION

CAPACITY CLAIMED BY THE SIGNER
 Individual(s)
 Corporate Officer
(Title)
 Partner (s)
 Attorney-in-Fact
 Other

DESCRIPTION OF THE ATTACHED DOCUMENT

PAYMENT BOND SIGNATURE PAGE
(Title or description of attached document)
(Title or description of attached document continued)
Number of Pages
Document Date
Additional Information
568
569
Report to City Council
ID: 25-0502 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer AGENDA DATE: December 16, 2025
TITLE: AUTHORIZE NEW PUBLIC PURPOSE PROGRAM

INCENTIVES FOR THE MORENO VALLEY ELECTRIC

UTILITY AND AN UPDATE TO THE EMERGENCY
ASSISTANCE FUND CREDIT (REPORT OF: PUBLIC

WORKS) (ALL DISTRICTS)
TITLE SUMMARY: Authorize Two New Incentive Programs Under The Moreno Valley Electric Utility’s Public Purpose Programs: The Shade Tree Incentive Program and The Solar Generator Rebate
Program for Medical Baseline Customers and Authorize An Increase To The Maximum One-Time Hardship Credit
Available Through The Emergency Assistance Fund For
Residential Customers
DISTRICT: All Districts
Recommendation(s)
That the City Council:

1. Authorize the addition of two new incentive programs under the Moreno Valley Electric Utility’s Public Purpose Programs: the Shade Tree Incentive Program and the Solar Generator Rebate Program for Medical Baseline Customers; and

2. Authorize an increase to the maximum one-time hardship credit available through the Emergency Assistance Fund to $1,400 per hardship event, and funded through Public Purpose Funds (Fund 6012) as detailed in the Fiscal Impact section of this report; and 570
ID: 25-0502 Page 2

3. Authorize the Public Works Director/City Engineer to make any minor amendments as necessary to finalize the programs, subject to the approval of the City Attorney; and

4. Authorize a budget adjustment as set forth in the Fiscal Impact section.

SUMMARY
This report recommends approval of a budget allocation to implement two proposed rebate programs: the Shade Tree Incentive Program and the Solar Generator Rebate Program for Medical Baseline Customers, both offered by Moreno Valley Electric Utility through its Public Purpose Programs. Additionally, staff also suggests modifying the Emergency Assistance Fund Program by increasing the one-time hardship credit to $1,400 per hardship event. These proposed initiatives are funded through Public Purpose Funds, as adopted in the City Council approved operating budget for Fiscal Year 2025/26.

There is no impact to the General Fund.

DISCUSSION
Moreno Valley Electric Utility (MVU) is committed to promoting environmental sustainability, improving energy efficiency, and supporting expanded assistance for residents. To further these objectives, the department is proposing two new rebate programs for residential customers: the Shade Tree Incentive Rebate Program and the Solar Generator Rebate for Medical Baseline Customers Program. These programs will also assist MVU’s compliance with the state-mandated efficiency standards of Senate Bill (SB) 1037, which require publicly owned utilities to report energy savings from Public Purpose Programs.

Shade Tree Incentive Rebate Program
The Shade Tree Incentive Rebate Program provides financial incentives to residents who purchase and plant qualifying shade trees on their property. Increasing the tree canopy results in lower cooling energy demand, reduces indoor temperatures, improves air quality, and contributes to a healthier, more sustainable environment. Additionally, customers benefit from lower energy use and costs, while the reduced demand eases strain on the electrical grid, thereby improving system reliability.

Eligibility and Requirements
 Open to all MVU-served residential customers.
 Rebate offers $50 per qualifying shade tree, up to four trees per account per calendar year.
 Trees must be recently purchased and selected from MVU’s list of approved species.
 Customers must submit a complete application and required documentation.  Applicant must be the account holder of record.
 Rebates are issued after MVU confirms compliance with program requirements.  Incentives are distributed on a first-come, first-served basis until funds are exhausted, or the program is discontinued.
 Property owner is responsible for maintaining the trees. 571
ID: 25-0502 Page 3
Solar Generator Rebate for Medical Baseline Customers
This program supports medically dependent customers by offering an incentive towards the purchase of a qualifying solar generator system. Solar generators harness energy from the sun to provide a clean, reliable source of electricity, offering medically dependent customers an important backup power option. Because these systems operate independently from the electrical grid, they do not add demand during peak periods or emergency conditions. This allows customers access to a renewable energy device capable of maintaining uninterrupted access to essential medical equipment during outages, extreme weather events, or other medical emergency situations.

Eligibility and Requirements
 Open to residential customers enrolled in MVU’s Medical Baseline Allowance Program.
 Rebate offers up to $500 for an eligible portable solar generator system that includes solar panels and at least 1 kWh of battery storage.  Customers must submit a complete application and required documentation.  Applicant must be the account holder of record.
 Rebates are issued after MVU confirms compliance with program requirements.  Incentives are offered on a first-come, first-served basis until funding is exhausted, or the program is discontinued.

Emergency Assistance Fund (EAF) Program Update
In addition to the two new rebate programs the department also recommends updating the Emergency Assistance Fund Program for residential MVU customers. Moreno Valley Utility (MVU) offers customers an emergency one-time credit to their electric bill through the Emergency Assistance Fund (EAF) Program. This credit is designed to help customers alleviate outstanding charges on their electric bills during a financial hardship.

Funding is limited and provided on a first-come, first-served basis and may be terminated or discontinued at any time once funding is exhausted.

The current assistance amount is up to $1,200 per eligible customer. Staff is proposing to increase the maximum one-time credit to $1,400. This increase will provide disadvantaged customers with greater access to financial relief during times of temporary financial hardship that can help prevent service interruptions.

ALTERNATIVES

1. Approve the two new incentive programs and associated budget adjustment as well as the proposed increase to the Emergency Assistance Fund (EAF) one-time hardship credit for residential customers. Staff recommends this alternative as it will strengthen MVU’s ability to meet state-mandated energy-efficiency goals while providing meaningful support to customers through energy saving measures and emergency financial assistance.

2. Do not approve the proposed additional incentive programs or requested increase to the Emergency Assistance Fund (EAF) one-time hardship credit. Staff does not 572
ID: 25-0502 Page 4
recommend this alternative as it will limit customer access to renewable-energy benefits, reduce emergency assistance support, and hinder the utility’s ability to meet state-mandated energy-efficiency requirements.

FISCAL IMPACT
MVU Public Purpose Programs were formally adopted by the City Council in January 2004 and are funded through the collection of state-mandated funds through the Public Purpose Program. Public Purpose Program funds may only be strictly used under a category of programs determined by the State of California. A budget increase is proposed in the amount of $20,000 for the Shade Tree Rebate Program and $50,000 for the Solar Generator Rebate Program for Medical Baseline Customers, for a total proposed budget increase of $70,000. The Fiscal Year 2025/26 adopted budget includes $1,600,000, which provides sufficient funding to support the proposed credit increase for the Emergency Assistance Fund Program’s one-time credit.

All proposed initiatives and budget amendments will be funded through Public Purpose Funds. There is no impact to the general fund.

Description Fund GL Account No. Type
(Rev/Exp)
FY 25/26
Budget
FY 25/26
Proposed
Adjustments
FY 25/26
Amended
Budget
Energy Efficiency 6012 6012-70-80-45511-710144 Exp $1,600,000 $70,000 $1,670,000

NOTIFICATION
Publication of the Agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Tanya Dunlap Melissa Walker, P.E.

Electric Utility Program Coordinator Public Works Director/City Engineer Concurred By:

Jason Niccoli, P.E.

Electric Utility Division Manager

CITY COUNCIL GOALS
Positive Environment: Create a positive environment for the development of Moreno Valley's future.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
573
ID: 25
-0502 Page 5
574
ID: 25-0502 Page 6
Report Approval Details
Document
Title:

STAFFREPORT_PW_MVU_NEW_PPP_INCENTIVES_EAF_MODIFICA
TION.docx
Attachment
s:
- DRAFT_Proposal for Shade Tree Incentive Program.pdf
- DRAFT_Tree Program Application.pdf
- DRAFT_Proposal For Solar Generator Rebate for Medical Benefit Customers.pdf
- DRAFT_Solar Generator Rebate Application.pdf
Final
Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

Proposal For:

Shade Tree
Incentive Program
Energy Efficiency Program
2025
DRAFT
576
Takeasimple
stepto
KeepMoVal

BEAUTIFUL
DRAFT
577
Program’sProposal
The proposed Tree Shade Rebate Program offers Moreno
Valley Utility (MVU) customers up to $200 annually in
rebates for planting shade trees. By encouraging the
purchase of up to four qualifying trees each year, $50
rebate per tree. This initiative promotes environmental stewardship, improves home energy efficiency, and
beautifies our neighborhoods, one tree at a time.

Overview
IncentiveStructure
Rebate Amount: $50 per shade tree
Annual Limit: 4 shade trees per year
RebateQualifications
Must be an MVU residential customer.

Must provide proof-of-purchase (dated receipt) and proof-ofplantation.

Trees must be from the approved species list and be at least #5 container (5 gallons or larger).

All documentation must be submitted within 90 days of
purchase
HowtoApply?
Customer can submit an online application at:
https://moval.gov/mvu/efficiency-progs.html
DRAFT
578
Program’sProposal
ProposedBudget
$20,000
MarketingandOutreachStrategy
Marketing efforts may include partnerships with local nurseries for instore advertisements, as well as promotion through the City’s website, social media channels, and newsletters.

EvaluationandReporting
In evaluating the program's progress, key metrics such as the number of trees planted annually, rebates disbursed, estimated energy savings, and customer engagement levels will serve as indicators of success.

These metrics will be reviewed on an annual basis to identify areas where the program may require adjustments or improvements.

ProposedTreeList

1.Texas Ebony

2.Netleaf Hackberry

3.Rosewood

4.Tecate Cypress

5.Red Push Pistache

6.Canary Island Pine

7.Island Oak

8.Escarpment Live Oak

9. American Sweetgum

10. Southern Magnolia

11. Fruitless Olive Tree

12.Tulip Tree

13. Jacaranda

14. Crape Myrtle
D

15. Desert Willow
RAFT
579
ProposedTerms&Conditions

1.Trees must be planted within 10 to 35 feet of the foundation on the customer’s private property (preferably on the south or west side) and may not be planted on City property or within the public right-of-way.

2.All trees must be planted in a manner that does not interfere with utilities, easements, or existing structures.

3.Trees obtained through this program are not City property. The applicant/property owner is solely responsible for the planting, care, and maintenance of trees and assumes all associated risk.

4.Trees must be selected from the approved species list and planted in containers of at least #5 size (5 gallons or larger).

5.Rebates of up to $50 per tree will be issued only to the customer of record, and may not be transferred or assigned to third parties.

6.Customers must submit a signed application, dated proof of purchase, and all required documentation within 90 days of purchase. Incomplete or late applications may be denied or delayed.

7.All trees are subject to inspection, and by applying, customers authorize MVU staff to access the property to verify compliance.

8.Program updates will be sent by email. Be sure to provide an address you check regularly.

9.If all program requirements are met, rebate checks will be mailed within 6–8 weeks of approval.

Applications selected for inspection may take longer.

10.Funding is limited. Rebates are available on a first-come, first-served basis and are not guaranteed. The program may be modified or terminated without prior notice.

11.MVU does not warrant or endorse any tree, contractor, vendor, or installation and assumes no liability for their performance, safety, or quality.

12.Participants are responsible for complying with all applicable local, state, and federal laws, including building codes and HOA requirements.

13.As a condition of participation, customers agree to release, indemnify, and hold harmless the City of Moreno Valley, MVU, and their officers, employees, and agents from any and all claims, damages, or liabilities related to the selection, purchase, planting, installation, or maintenance of trees.

14.MVU reserves the right to deny any rebate application at its sole discretion if program terms are not met.

15.Customer must contact the Underground Service Alert of Southern California or DigAlert at 1- 800-422-4133 prior to planting
DRAFT
TAX LIABILITY:

Rebates and incentives may be taxable. Customers are advised to seek guidance from their tax advisor regarding the tax implications of rebates. MVU is not responsible for any taxes that may be imposed on the customer as a result receiving a rebate.
580
ProposedTreeList
TecateCypress
Netleaf Hackberry
Rosewood
TexasEbony
DRAFT
581
RedPushPistache
IslandOak
EscarpmentLiveOak
CanaryIslandPine
DRAFT
582
AmericanSweetgum
SouthernMagnolia
FruitlessOliveTree
TulipTree
DRAFT
583
Jacaranda
CrapeMyrtle
DesertWillow
DRAFT
584
Shade T ree Incentive Program
Publ ic Works Department
14331 F rederick S t, Suite 2, Moreno Val ley, CA 92553 MVUti l [email protected]
www.moval.org/mvu
Moreno Valley Utility residential customers that have purchased a qualifying tree within 90 days of purchase are eligible for a Shade Tree Incentive. Eligible applicants may receive a rebate of $50 per tree, with a four tree annual maximum.

Shade Tree Rebate Qualifications:

Applicant must be a Moreno Valley Utility residential customer.

A valid proof of purchase with the purchase date must be submitted with this application.

To qualify for the rebate, applicant must provide proof of tree planting, including but not limited to photographs.

Trees must be 5 gallon sized container or larger.

All documentation must be submitted within 90 days of tree(s) purchase to be eligible for rebate.

AFTER COMPLETION, PLEASE RETURN THE APPLICATION TO THE FRONT DESK:
14331 Frederick Street, Suite 2
Moreno Valley, CA 92553
If you have questions, please call our 24/7 Customer Service Center at 1.844.341.6469 or visit www.moval.org/mvu If you have any ques tions ,
please cal l our 24/ 7 Cus tomer Ser vice Center at

1.844.341.6469 or vi s it www.moval.org/mvu
Texas Ebony
Net leaf Hack Berr y
Rosewood
Tecate Cypress
Red Push Pistache
Canar y Island Pine
Island Oak
Escarpment L ive Oak
American Sweetgum
Southern Magnol ia
F ruitless Ol ive T ree
Tul ip T ree
Jacaranda
Crape Myrtle
Desert Wi l low
Rebate-Eligible T ree Species
T rees must be selected from the approved l ist below
DRAF T
585

CUSTOMER INFORMATION
DRAF
Proof of Purchase: A valid proof of purchase with the purchase date is subm T
itted.

Proof of Planting: Evidence of tree planting is provided, including but not limited to photographs.

Date:

Notes :
$50 - Shade Tree Rebate
Supporting Documents Checklist:

By signing below, I certify under penalty and perjury that the information provided in this application is true and correct under the laws of the State of California.

Applicant Signature:

MORENO VAL LEY UT I L I TY

SHADE TREE INCENT IVE

PROGRAM APPL ICAT ION

CHECK THE FOLLOWING THAT APPLY
For office use only
AFTER COMPLETION, PLEASE RETURN THE APPLICATION TO THE FRONT DESK:
14331 Frederick Street, Suite 2
Moreno Valley, CA 92553
If you have questions, please call our 24/7 Customer Service Center at 1.844.341.6469 or visit www.moval.org/mvu MVU Account Number
First & Last Name
Service Address
Phone Number
Email Address
☐ Texas Ebony
☐ Net Leaf Hack Berry
☐ Rosewood
☐ Tecate Cypress
☐ Red Push Pistache
☐ Canar y Island Pine
☐ Island Oak
☐ Escarpment L ive Oak
☐ American Sweetgum
☐ Southern Magnol ia
☐ F ruitless Ol ive T ree
☐ Tul ip T ree
☐ Jacaranda
☐ Crape Myrtle
☐ Desert Wi l low
Tree Species
Quantity of Trees
586
Trees must be planted within 10 to 35 feet of the foundation on the customer’s private property (preferably on the south or west side) and may not be planted on City property or within the public right-of-way.

All trees must be planted in a manner that does not interfere with utilities, easements, or existing structures.

Trees obtained through this program are not City property. The applicant/property owner is solely responsible for the planting, care, and maintenance of trees and assumes all associated risk.

Customer must contact the Underground Service Alert of Southern California or DigAlert at 1-800-422-4133 prior to planting.

Trees must be selected from the approved species list and planted in containers of at least #5 size (5 gallons or larger).

Rebates of up to $50 per tree will be issued only to the customer of record, and may not be transferred or assigned to third parties.

Customers must submit a signed application, dated proof of purchase, and all required documentation within 90 days of purchase. Incomplete or late applications may be denied or delayed.

All trees are subject to inspection, and by applying, customers authorize MVU staff to access the property to verify compliance.

Program updates will be sent by email. Be sure to provide an address you check regularly.

If all program requirements are met, rebate checks will be mailed within 6–8 weeks of approval. Applications selected for inspection may take longer.

Funding is limited. Rebates are available on a first-come, first-served basis and are not guaranteed. The program may be modified or terminated without prior notice.

MVU does not warrant or endorse any tree, contractor, vendor, or installation and assumes no liability for their performance, safety, or quality.

Participants are responsible for complying with all applicable local, state, and federal laws, including building codes and HOA requirements.

As a condition of participation, customers agree to release, indemnify, and hold harmless the City of Moreno Valley, MVU, and their officers, employees, and agents from any and all claims, damages, or liabilities related to the selection, purchase, planting, installation, or maintenance of trees.

MVU reserves the right to deny any rebate application at its sole discretion if program terms are not met.

TAX LIABILITY—Rebates and incentives may be taxable. Customers are advised to seek guidance from their tax advisor regarding the tax implications of rebates. MVU is not responsible for any taxes that may be imposed on the customer as a result receiving a rebate.

REBATE TERMS & CONDITIONS
Applicant Signature: Date:

This signed and dated application, copies of all documentation required must be submitted to Moreno Valley Utility.

The applicant is responsible for filling out the application completely, truthfully and accurate.

Payment of the rebate is conditional that all supporting documentation be submitted with the application. Delays in proper documentation will delay the rebate delivery.

Moreno Valley Utility will mail rebate checks within 6-8 weeks of an approved application.

By signing this form, I certify that I have read and understand the terms and conditions of the Shade Tree Incentive Program. The information I have provided is true and correct and the Incentive for which I am requesting meets the requirements as stated on this application.

PAYMENT:

APPLICATION REQUIREMENTS:

For office use only
MVU Representative Signature: Date:

MORENO VAL LEY UT I L I TY

SHADE TREE INCENT IVE

PROGRAM APPL ICAT ION
Application Status : ☐ Approved ☐ Denied
Number of Trees Approved:

DRAF T
587
DRAF T
588
The Solar Generator Rebate Program is
proposed to provide financial assistance to
customers enrolled in the Medical Baseline
Program. This initiative aims to help medically
dependent customers maintain reliable access
to electricity during power interruptions
through the purchase of clean, portable solar- D
powered generators.

RAF T
589
Many Medical Baseline customers depend on
electrically powered medical devices for health
and mobility. During outages or emergency
situations, these customers face increased risk if
power is lost. The Solar Generator Rebate
Program is designed to enhance safety,
independence, and preparedness by making
renewable backup power solutions more
affordable.

This program supports the City’s goals of
improving energy resilience, promoting
sustainability, and protecting the well-being of
vulnerable residents. DRAF T
590
Eligibility Requirements
To qualify for the rebate, applicants must meet the
following criteria:

Be an active residential customer of MVU.

Be enrolled in the Medical Baseline Program.

Submit a rebate application within 90 days of
purchase.

Limit: One rebate per household.

Rebate Details
Rebate Amount: Up to $500
rebate amount not to excess the cost of purchase
(excluding taxes, shipping, warranties, and
additional add-ons)
Eligible Equipment: Portable solar generator systems
that include both solar panels and battery storage
(minimum capacity of 1 W).

Ineligible Items: Gas-powered generators, standard
battery packs without solar charging capability, used,
refurbi
D
shed , and resold equipment.

RAF T
591
Application Process
Complete the Solar Generator Rebate Application
Form (available online or at the Customer Service).

Provide proof of Medical Baseline
enrollment/approval.

Attach item purchase receipt and product
specifications.

Submit the application within 90 days of purchase.

Allow 8 weeks for application review and rebate
processing.

MVU will issue rebate checks within 8 weeks upon
approval of application
Proposed Budget
$50,000
Program Duration
Program
D
subject to end once funds are exhausted
RAF T
592
How to Apply?
Customer can submit an online application at:
https://moval.gov/mvu/efficiency-progs.html
Enhances energy reliability for customers reliant
on medical equipment.

Provides clean, renewable, and quiet backup power
options.

Promotes emergency preparedness and peace of
mind for vulnerable households.

Advances the City’s sustainability and energy
resiliency goals.

Program Benefits
DRAF T
593
ProposedTerms&Conditions

1.Eligibility:
a.Applicant must be a current residential customer of MVU. b.Applicant must be enrolled in the Medical Baseline at the time of purchase and application. c.Only one rebate per household will be issued.

2.Qualifying Equipment:
a.The portable solar generator must include both solar panels and battery storage capable of powering medical or mobility-related devices.
b.Used, refurbished, or resold units do not qualify.
c.Gasoline or diesel-powered generators are not eligible.

3.Rebate Amount:
a.The rebate amount is up to $500.
b.Rebate amount cannot exceed the total purchase cost (excluding taxes, shipping, warranties, and additional add-ons).
c.Rebates are issued as a one-time credit or check and are subject to available program funds.

4.Application Requirements:
a.Application must be submitted within 90 days of purchase. b.A complete application includes:
i.Proof of purchase (sales receipt or invoice)
ii.Product specifications showing eligibility
iii.Proof of current Medical Baseline enrollment
c.Incomplete or illegible applications will not be processed.

5.Processing and Payment:
a.Rebates will be processed on a first-come, first-served basis while program funds remain available. b.Allow 8 weeks for processing after submission of a complete application. c.MVU reserves the right to verify equipment purchase and installation prior to issuing payment.

6.Program Limitations:
a.Funding is limited and subject to change or discontinuation without prior notice. b.MVU does not endorse, recommend, or warrant any specific brand, manufacturer, or dealer. c.Customers are responsible for proper use, maintenance, and storage of equipment. d.MVU is not liable for any damages, losses, or injuries resulting from the use or misuse of the equipment.

7.Audit and Verification:
a.MVU reserves the right to inspect and verify qualifying purchases before or after rebate issuance. b.False, misleading, or fraudulent information will result in denial or repayment of rebate funds.

8.Tax Responsibility:
a.Rebates may be considered taxable income. Customers are responsible for any applicable taxes or reporting requirements.

9.Program Modification or Termination:
a.MVU reserves the right to modify program terms, rebate amounts, or eligibility requirements at any time without notice.

10.Acceptance of Terms:
a.Submission of an application constitutes the applicant’s acknowledgment and acceptance of these Terms & Cond
D
itions.

RAF T
TAX LIABILITY:

Rebates and incentives may be taxable. Customers are advised to seek guidance from their tax advisor regarding the tax implications of rebates. MVU is not responsible for any taxes that may be imposed on the customer as a result receiving a rebate.
594
Solar Generator Rebate for
Medical Baseline Cus tomer s
Publ ic Works Department
MVUti l [email protected]
www.moval.org/mvu
Moreno Valley Utility residential customers enrolled in the Medical Baseline Program will also qualify for the Solar Generator Rebate if the purchase was made within the last 90 days.

Eligible applicants may receive a rebate up to $500 per rebate, per household.

Solar Generator Rebate Qualifications:

Applicant must be a Moreno Valley Utility residential customer.

Applicant must be enrolled in the MVU Medical Baseline Program.

A valid proof of purchase with the purchase date must be submitted with this application.

All documentation must be submitted within 90 days of purchase to be eligible for rebate.

1.844.341.6469 or vi s it www.moval.org/mvu
Solar Generator Rebate Details:

Rebate Amount: Up to $500
Rebate amount does not to excess the cost of purchase
Rebate amount exclude taxes, shipping, warranties, and additional add-ons Eligible Equipment: Portable solar generator systems that include both solar panels and battery storage (minimum capacity of 1 W).

Ineligible Items: Gas-powered generators, standard battery packs without solar charging capability, used, refurbished , and resold equipment.

Rebate Limit: One
D
rebate per household.

RAF T
595
Date:

CUSTOMER INFORMATION
Proof of Purchase: A valid proof of purchase with the purchase date is submitted.

Proof of Enrollment: A Proof that applicant is enrolled in the Medical Baseline Program.

Proof of Equipment: Evidence of portable solar generator systems that include both solar panels and battery storage (minimum capacity of 1 W). $500 - Solar Generator Rebate
Supporting Documents Checklist:

By signing below, I certify under penalty and perjury that the information provided in this application is true and correct under the laws of the State of California.

Applicant Signature:

DRAF T

MORENO VAL LEY UT I L I TY

SOLAR GENERATOR REBATE

PROGRAM APPL ICAT ION
For office use only
AFTER COMPLETION, PLEASE RETURN THE APPLICATION TO THE FRONT DESK:
14331 Frederick Street, Suite 2
Moreno Valley, CA 92553
If you have questions, please call our 24/7 Customer Service Center at 1.844.341.6469 or visit www.moval.org/mvu MVU Account Number
First & Last Name
Service Address
Phone Number
Email Address
NOTES:
596

SOLAR GENERATOR REBATE

PROGRAM APPL ICAT ION

REBATE TERMS & CONDI T IONS

2.Qualifying Equipment:
a. The portable solar generator must include both solar panels and battery storage capable of powering medical or mobility-related devices. b.Used, refurbished, or resold units do not qualify.
c.Gasoline or diesel-powered generators are not eligible.

3.Rebate Amount:
a. The rebate amount is up to $500.
b.Rebate amount cannot exceed the total purchase cost (excluding taxes, shipping, warranties, and additional add-ons). c.Rebates are issued as a one-time credit or check and are subject to available program funds.

8. Tax Responsibility:
a.Rebates may be considered taxable income. Customers are responsible for any applicable taxes or reporting requirements.

9.Program Modification or Termination:
a.MVU reserves the right to modify program terms, rebate amounts, or eligibility requirements at any time without notice.

10.Acceptance of Terms:
a.Submission of an application constitutes the applicant’s acknowledgment and acceptance of these Terms & Conditions.

Applicant Signature: Date:

This signed and dated application, copies of all documentation required must be submitted to Moreno Valley Utility.

The applicant is responsible for filling out the application completely, truthfully and accurate.

Payment of the rebate is conditional that all supporting documentation be submitted with the application. Delays in proper documentation will delay the rebate delivery.

Moreno Valley Utility will mail rebate checks within 8 weeks of an approved application.

By signing this form, I certify that I have read and understand the terms and conditions of the Program.

The information I have provided is true and correct and the Incentive for which I am requesting meets the requirements as stated on this application.

PAYMENT:

APPLICATION REQUIREME
D
NTS:

RAF T
For office use only
MVU Representative Signature: Date:

Application Status : ☐ Approved ☐ Denied
TAX LIABILITY:

Rebates and incentives may be taxable. Customers are advised to seek guidance from their tax advisor regarding the tax implications of rebates. MVU is not responsible for any taxes that may be imposed on the customer as a result receiving a rebate. 597
Report to City Council
ID: 25-0500 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer AGENDA DATE: December 16, 2025
TITLE: ADOPTION OF A RESOLUTION TO APPROVE THE

MORENO VALLEY ELECTRIC UTILITY RULES AND
RATES (REPORT OF: PUBLIC WORKS) (ALL

DISTRICTS)
TITLE SUMMARY: Adoption Of Resolution 2025-__, A Resolution Of The City Council Of The City of Moreno Valley California To Approve And Update The Moreno Valley Electric Utility Service Rules, Fees, Charges, and Electric Rates
DISTRICT: All Districts
Recommendation(s)
That the City Council:

1. Approve Resolution 2025-__, a resolution of the City Council of the City of Moreno Valley, California, to confirm the Electric Service Rules, Fees, Charges, and Electric Rates for Moreno Valley Utility to be effective January 2026; and.

2. Authorize the Public Works Director/City Engineer to make minor updates to the Electric Service Rules, Fees, and Charges for the Moreno Valley Electric Utility, subject to the approval of the City Attorney.

SUMMARY
The previous Moreno Valley Utility (MVU) business model required MVU rate parity with Southern California Edison (SCE) pursuant to the ENCO contract. Now that the MVU operations are under a new contract, the business model proposes shifting from rate parity with SCE to a cost-of-service-based model that better reflects the true cost of 598
ID: 25-0500 Page 2
providing electricity. This approach ensures fair, transparent rates, maintains financial stability, and supports local reinvestment in reliability and clean energy. Despite rising renewable energy and capacity costs, MVU recommends a modest rate reduction while remaining fiscally responsible.

DISCUSSION
There are two utility providers that currently serve electric service in the City of Moreno Valley - Moreno Valley Electric Utility (MVU) and Southern California Edison (SCE).

Between the two electric utilities, there are over 60,000 electric accounts. Historically, MVU has aligned its rates with SCE under a rate-parity philosophy. However, this approach has limited MVU’s ability to align rates with the actual cost of providing service.

MVU now proposes to transition to a cost-of-service-based rate model that more accurately reflects the underlying costs of generating, transmitting, distributing, and maintaining the electric system, while retaining the core benefits of public power.

A cost-of-service methodology allocates all utility costs (fixed, variable, capital, operations, maintenance, and administrative) to customer classes based on cost causation, and then recovers those costs through rates designed to reflect how and when customers use electricity from the grid. This approach ensures that:
 Each customer class pays for the demand it imposes on the system (rather than subsidizing or being subsidized by others).
 The utility can maintain adequate reserves, fund capital reinvestment, and provide stable service over the long term.
 Rate adjustments are more predictable, transparent, and defensible.

The benefits of this cost-of-service model directly flow to our customers and to the community. Public power utilities typically:
 Operate on a not-for-profit basis, with no shareholder profits embedded in rates (unlike investor-owned utilities).
 Are locally accountable and subject to community oversight in rate decisions.  Can finance capital investments with tax-exempt municipal debt, reducing borrowing costs.
 Make targeted reinvestments (e.g. in reliability, modernization, clean energy) in our own community.

Under the proposed cost-of-service framework, the new rates will provide an average rate reduction of 26% across MVU’s rate classes compared to SCE’s current rates. This rate reduction is both viable and prudent given current and projected revenues, loads, and system needs. This reduction still aligns MVU with prudent fiscal practices and positions MVU to invest in future infrastructure and reliability improvements without overburdening customers.

Currently, MVU non-residential customers account for approximately 70% of MVU revenues, while residential customers only account for around 30% of MVU revenues. 599
ID: 25-0500 Page 3
The requirement for utilities to purchase greater amounts of renewable energy continuously increased, moving from an amount equal to 20% of retail sales by 2017 to 33% by 2020, to 60% by 2030, and 100% carbon-free energy by 2045. In addition, the focus on renewable, clean energy has impacted the capacity market by limiting the amount of generation capacity available to cover peak demand periods, thus reducing supply and driving up prices. In Calendar Year (CY) 2018, the cost per kW-month for capacity products was approximately $1.30. In Calendar Years 2021 and 2022 cost per kW- month was approximately $6.20, and in CY 2024, the cost per kW-month increased to over $23.00.

MVU has seen a significant increase in power costs over the last decade and requires investments in technology to upgrade the system to maintain reliability and resiliency for its customers. For this reason, MVU will continue to assess its costs to serve and adjust rates as needed in the future to ensure that rates align with the utility’s fully burdened cost to serve.

The proposed rate changes were presented to the Utilities Commission on November 19, 2025. The average expected change by customer class is included in the attachments.

ALTERNATIVES

1. Approve and authorize the recommended actions as presented in this staff report.

Staff recommend this alternative to allow MVU to align its rates with its cost-toserve, which will provide a reduction in rates on average for its customers and benefit the customer base.

2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative as it will prevent MVU from being able to properly align its rates with the true cost to serve.

FISCAL IMPACT
The recommended rate reductions will align MVU’s fully burdened rates with the actual cost of serving both residential and non-residential customers. These adjustments are designed to maintain fiscal neutrality, resulting in no adverse impact on MVU’s financial operations and no impact on the General Fund.

NOTIFICATION
Posting of the agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Lesia Bowers Melissa Walker, P.E.

Customer Service Manager Public Works Director/City Engineer Concurred By:

Jason Niccoli, P.E.

Electric Utility Division Manager
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ID: 25-0500 Page 4

CITY COUNCIL GOALS
Positive Environment: Create a positive environment for the development of Moreno Valley's future.

Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
Objective 1.1: Proactively attract high-quality businesses.

Objective 1.2: Market all the opportunities for quality industrial development in Moreno Valley by promoting all high-profile industrial and business projects that set the City apart from others.

Objective 1.6: Establish Moreno Valley as the worldwide model in logistics development.

Objective 1.7: Promote small business development and entrepreneurship.

Objective 4.1: Develop a Moreno Valley Utility Strategic Plan to prepare for the 2022 expiration of the ENCO Utility Systems agreement.
601
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Report Approval Details
Document Title: STAFFREPORT_PW_MVU_RATES.docx
Attachments: - Resolution Dec 2025 Rates.docx
- EXHIBIT A_ MVU Rates_DRAFT.pdf
- EXHIBIT B_MVU_RulesFeesCharges_Dec2025_DRAFT.pdf
Final Approval
Date:

Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, TO CONFIRM THE

ELECTRIC RATES AND RULES FOR MORENO VALLEY

UTILITY
WHEREAS, the City of Moreno Valley (the “City”), a municipal corporation, is authorized pursuant to Article XI, Section 9(a) of the California Constitution to establish, purchase, and operate public works to furnish its inhabitants with light, water, power, heat, transportation, or means of communication; and
WHEREAS, on June 26, 2001, the City Council of the City of Moreno Valley approved Resolution No. 2001-33 and, as amended by Resolution 2002-46, authorized the formation of a municipally owned utility for the purpose of providing electrical power, storm water, telephone telecommunications, cable TV, water, natural gas, and sanitary sewer; and
WHEREAS, on July 8, 2003, the City Council approved Resolution No. 2003-58 adopting the Electric Service Rules, Fees and Charges document for Moreno Valley Utility, which states, in part, that the rates to be charged by and paid to the City for electric service will be the rates legally in effect and on file with the City Council; and WHEREAS, on January 13, 2004, the City Council approved Resolution No. 2004-05 establishing the electric rates for Moreno Valley Utility; and WHEREAS, on September 26, 2006, the City Council approved Resolution No. 2006-112 implementing a schedule to adjust Moreno Valley Utility electric rates to reflect the same schedule as Southern California Edison; and
WHEREAS, there are sections of the Electric Service Rules, Fees and Charges document that contain rules which define the terms and conditions under which electric service will be provided to the customer; and
WHEREAS, there are rules, fees, charges, and rates associated with providing the services identified in these documents. These rules, fees, charges, and rates are deemed necessary and equitable for services rendered and are required to fund in whole or in part, all of the services required to facilitate the delivery of electric distribution pursuant to the rules; and
WHEREAS, Urgency Ordinance No. 651 was adopted by the City Council on December 9, 2003, allowing for the adoption of rates by resolution.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
1 Resolution No. 2025-__
Date Adopted: December 16, 2025
603

1. The City Council hereby confirms the amended Moreno Valley Utility Rates and Rules, attached hereto as Exhibits A and B, incorporated herein, and on file in the Public Works Department.

APPROVED AND ADOPTED this 16th day of December 2025.

Mayor of the City of Moreno Valley
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney
2 Resolution No. 2025-__
Date Adopted: December 16, 2025
604

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, M. Patricia Rodriguez, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 2025-__ was duly and regularly adopted by the City Council of the City of Moreno Valley at a regular meeting thereof held on the 16th day of December 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor Pro Tem and Mayor)

CITY CLERK
(SEAL)
3 Resolution No. 2025-__
Date Adopted: December 16, 2025
605
Moreno Valley Utility
Electric Rates
Exhibit A
606
-
SCHEDULE A – RESIDENTIAL SERVICE .................................................................. 3 SCHEDULE B – GENERAL SERVICE ......................................................................... 9 SCHEDULE C – LARGE GENERAL SERVICE ......................................................... 13 SCHEDULE P1 – PUMPING AND AGRICULTURAL SERVICE (CONNECTED LOAD BASIS) ............................................................................................................ 16 SCHEDULE SL – STREET LIGHTING SERVICE - MVU OWNED SYSTEM .......... 18 SCHEDULE SL2 – STREET LIGHTING SERVICE .................................................. 20 SCHEDULE SL3 – STREET LIGHTING SERVICE .................................................. 22 SCHEDULE TC-1 – TRAFFIC CONTROL SERVICE ................................................ 23 SCHEDULE TOU-LGS – TIME OF USE – LARGE GENERAL SERVICE ................ 24 SCHEDULE NEM – NETENERGY METERING ....................................................... 29 SCHEDULE NEM 2.0 – NET ENERGY METERING SUCCESSOR RATE .............. 31 SOLAR BILLING PLAN (SBP) – NEM 2.0 SUCCESSOR RATE .............................. 34 SCHEDULE ED – ECONOMIC DEVELOPMENT (“ED”) RATE ................................ 36 SCHEDULE ED 2.0 – ECONOMIC DEVELOPMENT (“ED”) RATE.......................... 40 SCHEDULE ED – LH - ECONOMIC DEVELOPMENT – LOCAL HIRING INCENTIVE . .................................................................................................................................... 44

SCHEDULE ED-BR - ECONOMIC DEVELOPMENT- BUSINESS RETENTION RATE ............................................................................................................................ 45 SCHEDULE EV PUBLIC – ELECTRIC VEHICLE PUBLIC CHARGING ................ 48 SCHEDULE WTR – WIRELESS TECHNOLOGY RATE ............................................ 49 SCHEDULE NCR – NETCOMPENSATION RATE ................................................. 53 SCHEDULE VNEM – VIRTUAL NET ENERGY METERING................................. 55 607
SCHEDULE A – RESIDENTIAL SERVICE
Applicability
Applicable to electric service for residential uses. This schedule has two rate options.

Rate A is applicable to all residential customers except for residential customers with solar generation installations that filed an application on or after December 15, 2020.

For these customers, Rate B Residential Time of Use (TOU) is applicable. All other residential customers may select Rate B Residential Time of Use (TOU) if desired.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Basic Charge - $/Day: Rate A – Non-TOU
Single-Family Residence $ 0.49315031
Multi-Family Residence $ 0.38179024
Energy Usage Charge - $/kWh:

Summer:

Tier 1 -Baseline Quantities, all kWh, per kWh $ 0.2623031253 Tier 2 – 101% to 400% of Baseline $ 0.3428140845
Tier 3 – All excess kWh, per kWh $ 0.3428140845
Winter:

Tier 1 -Baseline Quantities, all kWh, per kWh $ 0.2623031253 Tier 2 – 101% to 400% of Baseline $ 0.3428140845
Tier 3 – All excess kWh, per kWh $ 0.3428140845
Public Purpose Programs:

All kWh used $ 0.02145
CA Energy Resources Surcharge - All kWh used $ 0.0003
Utility User’s Tax: Calculated on total bill before any discounts
Monthly Minimum Charge:

Monthly Minimum Charge- will be calculated after public purpose charge

5.75%
$ 10.00
608
Rates
Basic Charge - $/Day: Rate B - TOU
Single-Family Residence $

0.4931503
1 Multi-Family Residence $

0.3817902
4 Energy Usage Charge - $/kWh:

Baseline Credit – Applies to 100% of baseline allocation regardless of time of use
Summer
$ -0.09591
On-Peak $

0.4833457590
Mid-Peak $

0.3923246
745
Off-Peak $

0.2980535513
Winter
Mid-Peak $

0.4287151080
Off-Peak $

0.3203438168
Super Off-Peak $

0.2891834455
Public Purpose Programs:

All kWh used $ 0.02145
CA Energy Resources Surcharge - All kWh used $ 0.0003
Utility User’s Tax: Calculated on total bill before any discounts
Monthly Minimum Charge:

Monthly Minimum Charge- will be calculated after public purpose charge

5.75%
$ 10.00
609
Special Conditions

1. Baseline Rates: Baseline rates are applicable only to separately metered residential use.

2. Baseline Quantities: The residential allocation shall be 18.9 kWhs per day in the Summer season and 12.5 kWhs per day in the Winter season.

3. Existing generating facilities currently under Schedule NEM or NEM 2.0 that are modified such that the generating capacity or output increases by 10% or more or if they have storage are required to be billed under Rate B.

4. Time periods are defined as follows:

TOU Period Weekdays Weekends &
Holidays
Weekdays Weekends &
Holidays
Summer Summer Winter Winter
On-Peak 4 p.m. – 9 p.m. N/A N/A N/A
Mid-Peak N/A 4 p.m. - 9 p.m. 4 p.m. - 9 p.m. 4 p.m. - 9 p.m.

Off-Peak All other hours All other hours 9 p.m. - 8 a.m. 9 p.m. - 8 a.m.

Super-Off-Peak N/A N/A 8 a.m. - 4 p.m. 8 a.m. - 4 p.m.

5. Holidays are defined as New Year’s Day (January 1), Martin Luther King’s Birthday (third Monday in January), Washington’s Birthday (third Monday in February), Memorial Day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Veterans 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 will be made for holidays falling on Saturday.

6. Summer and Winter Seasons are defined as follows: The Summer season begins at 12:00 a.m. on June 1 and will continue until 12:00 a.m. on October 1 each year.

The Winter season begins at 12:00 a.m. on October 1 and continues until 12:00 a.m. on June 1 of the following year.

7. Voltage: Service will be supplied at one standard voltage. 610

8. For the purposes of applying the Basic Charge, the following definitions shall be used:

Single-Family Residence - A building of single occupancy which does not share common walls, floors, or ceilings with other residential dwelling units.

Multi-Family Residence - Apartments, mobile homes, condominiums, townhouses, or a building of multiple occupancy which shares common walls and /or floors and ceilings with other residential dwelling units.

9. Medical Baseline Allocation: Upon application and acceptance of a certification from a medical doctor or osteopath licensed to practice medicine in California, eligible residential customers are provided a standard year-round medical baseline allocation of 16.5 kWh per day in addition to the applicable baseline allocation for the season.

Regular Baseline Daily kWh
Allocation
Additional Medical
Baseline
Daily kWh Allocation
Total Baseline Daily
kWh Allocation
Summer 18.9 16.5 35.4
Season Regular Baseline
Daily kWh Allocation
Additional Medical Baseline
Daily kWh Allocation
Total Baseline Daily
kWh Allocation
Summer 18.9 16.5 35.4
Winter 12.5 16.5 29.0
Winter 12.5 16.5 29.0
Medical Baseline Allocation Eligibility:
a) Regular use in the customer's home of one or more medical life-support devices essential to maintain the life of a full-time resident of the household; and/or b) A full-time resident of the household is: a paraplegic, hemiplegic, quadriplegic, multiple sclerosis or scleroderma patient, being treated for life-threatening illness, and/or has a compromised immune system.

Life support devices are those devices or equipment that utilize mechanical or artificial means to sustain, restore or supplant a vital function, or mechanical 611
equipment relied upon for mobility both within and outside of buildings.

Life-support devices include:
612
Aerosol Tent
Pressure Pad
Apnea Monitor
Pressure Pump
Compressor
Concentrator
Respirator (all types)
Electronic Nerve Stimulator
Suction Machine
Ultrasonic Nebulizer
Electrostatic Nebulizer
Inhalation Pulmonary Pressure
Breather Machine (IPPB)
Iron Lung
Dialysis Machine
Hemodialysis Machine
Motorized Wheelchair
Oxygen Generator
Applying for the Medical Baseline Allocation:

A. Request application from Moreno Valley Utility by telephone, mail or in person B. Complete application.

C. The patient’s physician will need to fill out the required information on the application and sign it certifying the medical need.

D. The customer can mail or bring the application to Moreno Valley Utility’s offices.

E. Once the application is reviewed and approved, the Medical Baseline Allocation will be effective on the next regular electric billing.

F. Applications must be renewed every two years.

10. Low Income Program - A low-income assistance discount program is offered under this standard residential rate. To be considered for this discount, an application must be filed with Moreno Valley Utility. To be eligible for this discount, the income of the customer, including all members of the household, must meet the income levels of the program and can be no more than 200% of Federal Poverty Guidelines. Under this program a discount for qualified low- income residents of 30% is provided on monthly energy charges. The discount applies to energy charges only. The customer charge, public purpose charge, service fees and all taxes are calculated at the standard rates.

11. Family Electric Rate Assistance (FERA) Program: The FERA discount program is offered under the standard residential rate. To be considered for this discount, an application must be filed with Moreno Valley Utility. To be eligible for this discount the household must consist of three or more persons where the total gross income from all sources is no more than 250% of Federal Poverty Guidelines. Under this program a discount for qualified FERA households of 18% is provided on monthly 613
energy charges. The discount applies to energy charges only. The customer charge, public purpose charge, service fees and all taxes are calculated at the standard rates.

12. Electric Vehicle Off-Peak Charging Discount: Qualified residential customers owning or leasing electric vehicles and receiving electric service under Schedule A – Residential Service, will receive a discount. For these qualified residential customers, the discount per month will be $50.00. To qualify, residential customers must file an application with the City and evidence of vehicle ownership or lease and registration. Once approved, the discount will apply beginning with the next bill cycle after approval of the application. To remain on the program, qualified customers must submit annual application renewals.

13. Residential customer-generators on Rate B Time of Use shall abide by Special Condition 2 of Schedule NEM 2.0 when the customer is a net producer of energy. 614
SCHEDULE B – GENERAL SERVICE
Applicability
Applicable to non-residential electric service for all types of uses including lighting and power. Customers whose monthly maximum demand is expected to exceed 20 kW or has exceeded 20 kW in any three months during the preceding 12 months, are ineligible for service under this schedule.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Customer Charge - $/Day: Rate A – Non-TOU
Single-Phase Service $ 10.548468
Polyphase Service $ 10.700514
Energy Usage Charge - $/kWh:

Summer, all kWh, per kWh $

0.22082303
86 Winter, all kWh, per kWh $

0.1746924039
Public Purpose Programs:

All kWh- used $ 0.01843
CA Energy Resources Surcharge - All kWh used $ 0.0003
Utility User’s Tax: Calculated on total bill before any discounts
Monthly Minimum Charge:

Monthly Minimum Charge - will be calculated after
public purpose charge

5.75%
$ 10.00
615
Customer Charge - $/Day: Rate B – TOU
Single-Phase Service $
68 Polyphase Service $
00 10.5484

10.5147
Energy Usage Charge - $/kWh:

All kWh per kWh
Summer
On-Peak $

0.484936673
0 Mid-Peak $

0.22126304
47 Off-Peak $

0.10055383
6 Winter
Mid-Peak $

0.27155373
67 Off-Peak $

0.17253237
42 Super Off-Peak $

0.11797162
33 CA Energy Resources Surcharge - All kWh used $ 0.0003 Utility User’s Tax: Calculated on total bill before any discounts 5.75% Public Purpose Programs: $0.01843
Monthly Minimum Charge:

Monthly Minimum Charge - will be calculated after public purpose charge $ 10.00
616
Special Conditions
Applicable rate time periods are defined as follows:

TOU
Period Weekdays Weekends &
Holidays
Weekdays Weekends &
Holidays
Summer Summer Winter Winter
On-Peak 4 p.m. – 9 p.m. N/A N/A N/A
Mid-Peak N/A 4 p.m. - 9 p.m. 4 p.m. - 9 p.m. 4 p.m. - 9 p.m.

Off-Peak All other hours All other hours 9 p.m. - 8 a.m. 9 p.m. - 8 a.m.

Super-OffPeak N/A N/A 8 a.m. - 4 p.m. 8 a.m. - 4 p.m.

Holidays are New Year’s Day (January 1), Presidents’ Day (third Monday in February), Memorial Day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Veterans Day (November 11), Thanksgiving Day (fourth Thursday in November), and Christmas (December 25).

When any holiday listed above falls on Sunday, the following Monday will be recognized as a holiday. No change will be made for holidays falling on Saturday. The Summer Season shall commence at 12:00 a.m. on June 1 and continue until 12:00 a.m. on October 1 of each year. The Winter Season shall commence at 12:00 a.m. on October 1 of each year and continue until 12:00 a.m. on June 1 of the following year.

Voltage: Service will be supplied at one standard voltage. 617
Customer-Owned Electrical Generating Facilities:
a. Where Customer-owned electrical Generating Facilities are used to meet a part or all of the Customer’s electrical requirements, service shall be provided concurrently under the terms and conditions of Schedule S and this Schedule. Parallel operation of such Generating Facilities with SCE’s electrical system is permitted. A generation interconnection agreement is required for such operation. b. Customer-owned electrical Generating Facilities used solely for auxiliary, emergency, or standby purposes (auxiliary/emergency generating facilities) to serve the Customer’s load during a period when SCE’s service is unavailable and when such load is isolated from the service of SCE are not subject to Schedule S.

However, upon approval of SCE, momentary parallel operation may be permitted to allow the Customer to test the auxiliary/emergency generating facilities. A Momentary Parallel Generation Agreement is required for this type of service. c. For Customers of record on Schedule GS-1-PG as of April 30, 1996, who were subsequently transferred by SCE to an applicable Commercial rate schedule, who have a valid Qualifying Facilities (QF) contract with SCE, and who are not eligible for service under Schedule NEM, Net Energy Metering, or its successor, Schedule NEM-ST, the Energy Charges for such parallel generation Customers shall be determined using kWh of Net Energy as defined and set forth below:
(1) Net Energy: Net Energy is ES minus EF, where ES is energy supplied by SCE, and EF is energy generated by the Customer and fed back into SCE's system at such times as Customer generation exceeds Customer requirements. Only if Net Energy is positive shall Net Energy charges be applied at the rates specified above except that the Customer Charge will be applied in any case. If the calculation of Net Energy yields a negative result, all such negative Net Energy shall be considered Net Energy transmitted and shall be treated as stated in Section (2), below. The components of Net Energy, ES and EF, shall be separately recorded unless SCE and Customer agree that energy fed back, EF, is negligible or zero, and so specify by waiver in the generation interconnection agreement.
(2) Net Energy Transmitted: Net Energy transmitted occurs when the cumulative value of EF exceeds the cumulative value of ES during an entire billing period and is the amount by which the energy generated by the Customer and fed back into SCE’s system exceeds the energy supplied by SCE over an entire billing period. Such Net Energy transmitted will be purchased by SCE at a rate for payment equal to SCE’s applicable standard offer energy payment rate filed with the Commission. A new rate for payment shall be effective for Net Energy transmitted on and after the effective date of each such filing. 618
SCHEDULE C – LARGE GENERAL SERVICE
Applicability
Applicable to non-residential electric service for all types of uses including lighting and power where the customer’s monthly maximum demand is expected to exceed 20 kW or has exceeded 20 kW in any of the 3 months during the preceding 12 months.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Customer Charge - $/Meter/Month:

Single-Phase Service $ 220.23
Polyphase Service $ 228.13
Energy Usage Charge - $/kWh:

Summer, all kWh, per kWh $

0.15580169
55 Winter, all kWh, per kWh $

0.1203113093
Demand Charge - $/kW: Summer Winter
Facilities Related Demand Charge, per kW $ 23.6021.69 $

21.69 3.60
Time Related Demand Charge, per kW $ 21.3119.58 $ 0.00
Public Purpose Programs:

All kWh- used $ 0.01912
CA Energy Resources Surcharge - All kWh used $ 0.0003
Utility User’s Tax: Calculated on total bill before any discounts
Monthly Minimum Charge:

Monthly Minimum Charge - will be calculated after
public purpose charge

5.75%
$ 10.00
619
Special Conditions

1. Summer and Winter Seasons are defined as follows:

The Summer season begins at 12:00 a.m. on June 1 and will continue until 12:00 a.m. on October 1 each year. The Winter season begins at 12:00 a.m. on October 1 and continues until 12:00 a.m. on June 1 of the following year.

2. Voltage: Service will be supplied at one standard voltage.

3. Billing Demand: The Billing Demand shall be the kilowatts of Maximum Demand, determined to the nearest kW. The Billing Demand shall be the greater of the kilowatts of Maximum Demand recorded (or established for) the monthly billing period or 50% of the highest Maximum Demand established in the preceding eleven months (Ratcheted Demand).

4. 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 City, during any 15-minute metered interval in the month.

5. Voltage Discount: The monthly Facilities Related Demand Charge will be reduced by $0.21 per kW for service delivered and metered at voltages of 4 kV through 12 kV. The energy charge will be reduced by $.00101 per kWh for service delivered and metered at voltages of 2 kV through 12 kV.

6. Excess Transformer Capacity: Excess Transformer Capacity is the amount of transformer capacity requested by a customer in excess of that which the City would normally install to serve the customer’s Maximum Demand. Excess Transformer Capacity shall be billed at the amount shown in the rates section above.

7. Power Factor Adjustment: When Maximum Demand has exceeded 200 kW for three consecutive months, kilovar metering will be installed as soon as practical, and thereafter, until the Maximum Demand has been less than 150 kW for twelve consecutive months, the billing will be adjusted each month for power factor. 7a. Adjustment Rate:
i. For service delivered and metered at voltages 12 kV or less, the billing will be increased by $0.60 per kilovar of maximum reactive demand. 620
7b. Determining the Reactive Demand:
i. Service delivered and metered at voltages of 4 kV or greater:

1. The maximum reactive demand shall be the highest
measured maximum average kilovar demand indicated or
recorded by metering during any 15-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.
ii. Services delivered and metered at voltages less than 4 kV:

1. For customers with metering used for billing that measures reactive demand, the maximum reactive demand shall be
the highest measured maximum average kilovar demand
indicated or recorded by metering during any 15-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.

2. For customers with metering used for billing that measures kilovar-hours instead of reactive demand, 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. 621
SCHEDULE P1 – PUMPING AND AGRICULTURAL SERVICE
(CONNECTED LOAD BASIS)
Applicability
Applicable to electric service for agricultural power service or for general water pumping or sewerage pumping based on connected load in horsepower. This schedule is not applicable to service for which a residential, commercial or industrial schedule is applicable. Customers whose monthly maximum demand is expected to or have exceeded 500 kW or 671 hp in any three months during the preceding 12 months, are ineligible for service under this schedule.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Customer Charge - $/Month: $
10089.
4600
Energy Usage Charge - $/kWh:

Summer, all kWh, per kWh $

0.17111
Winter, all kWh, per kWh
8647
$

0.17111864
7 Service Charge $/HP/Month $ 6.2177
Public Purpose Programs:

All kWh- used $ 0.02092
CA Energy Resources Surcharge - All kWh used $ 0.0003
Utility User’s Tax: Calculated on total bill before any discounts 5.75% Monthly Minimum Charge:
622
Monthly Minimum Charge - will be calculated after public purpose charge
$ 10.00
623
Special Conditions

1. Summer and Winter Seasons are defined as follows: The Summer season begins at 12:00 a.m. on June 1 and will continue until 12:00 a.m. on October 1 each year.

The Winter season begins at 12:00 a.m. on October 1 and continues until 12:00 a.m. on June 1 of the following year.

2. Voltage: Service will be supplied at one standard voltage.

3. Connected Load: Connected load is the sum of the rated capacities of all the customer’s equipment that is possible to connect to the utility’s lines at the same time, determine to the nearest 1/10th hp.
624
SCHEDULE SL – STREET LIGHTING SERVICE - MVU OWNED SYSTEM Applicability
Applicable to un-metered service for the lighting of streets and highways where MVU owns and maintains the street lighting equipment and associated facilities included under this schedule.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Energy Usage Charge - High Pressure Sodium Vapor Lamps
Basic Charge:

Initial
Lumens Wattage All Night ServicekWhs/Month $/Lamp/Month $/Lamp/Month PublicPurpose Programs 9,500 100 40 $ 186.0157 $ 0.37
16,000 150 67 $ 231.4456 $ 0.61
22,000 200 85 $ 275.2810 $ 0.78
27,500 250 108 $ 2931.7218 $ 0.99
Energy Usage Charge – Light Emitting Diode (LED) Lamps
Basic Charge:

Initial
Lumens Wattage All Night ServicekWhs/Month $/Lamp/Month $/Lamp/Month PublicPurpose Programs 14,700 173 75 $ 235.7276 $ 0.72
11,500 98 47 $ 179.545 $ 0.44
3,800 31 15 $ 112.7853 $ 0.14
Operations and Maintenance Charge – Solar Powered Lamps Basic Charge:

Initial Lumens $/Lamp/Month $/Lamp/Month Public Purpose Programs 1-7500 $ 179.2066 $ 0.44
7500-15,000 $ 2831.3281 $ 0.72
Special Conditions
625

1. Maintenance shall include periodic inspection, renewal of lamps, cleaning of glassware, replacement of damaged glassware and lamps, and minor repairs to wiring and electrical appurtenances.

2. Hours of Service: Under MVU’s standard all-night operating schedule, approximately 4,140 hours of service will be furnished.

3. The developer shall install streetlights that will be served from MVU’s underground system. These streetlights must be installed in accordance with MVU’s specifications, and the developer will deed such facilities to MVU.

4. Requirements and Restrictions:
a. The applicant for street light service shall specify the lamp size and location of streetlights.
b. Service shall not be furnished under this schedule where location, mounting height, or other considerations are unacceptable to the MVU. c. The installation of street lighting equipment and facilities hereunder is contingent upon the MVU obtaining easements, rights of way, and highway permits satisfactory to the MVU for the required poles, equipment, and facilities.
d. In accordance with Rule No. 4, a written contract for a term of not less than one year is required in order to receive street light service under the provisions of this schedule.
e. Should the applicant not commence using the street lighting in a bona fide manner within ninety (90) days after date of completion and installation of a streetlight or street lighting system requested by the applicant, the MVU will bill, and the applicant shall pay, the applicable lamp charge(s).

5. Liability of Utility: MVU shall not, by taking action pursuant to its tariffs, be liable for any loss, damage, or injury, established or alleged, which may result, or be claimed to result, therefrom.
626
SCHEDULE SL2 – STREET LIGHTING SERVICE

CUSTOMER OWNED AND MAINTAINED SYSTEM SCHEDULE
(UNMETERED)
Applicability
Applicable to service for un-metered lighting of streets, highways, and directional highway signs served in conjunction with street and highway lighting, and other publicly operated automobile parking lots which are open to the general public, where the customer owns and maintains the street lighting equipment operated within the period from dusk to dawn.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Energy Usage Charge - High Pressure Sodium Vapor Lamps
Basic Charge:

Initial
Lumens Wattage All Night Service kWhs/Month $/Lamp/Month $/Lamp/Month
Public Purpose
Programs
9,500 100 40 $ 910.648 $ 0.37
16,000 150 67 $ 145.4420 $ 0.61
22,000 200 85 $ 178.390 $ 0.78
27,500 250 108 $ 213.2741 $ 0.99
627
Special Conditions

1. Voltage: Service will be supplied at one standard voltage.

2. Requirements and Restrictions:
a. The applicant for street light service shall specify the lamp size and location of streetlights.
b. Service shall not be furnished under this schedule where location, mounting height, or other considerations are unacceptable to the MVU. c. The installation of street lighting equipment and facilities hereunder is contingent upon the MVU obtaining easements, rights of way, and highway permits satisfactory to the MVU for the required poles, equipment, and facilities.

3. Liability of Utility: MVU shall not, by taking action pursuant to its tariffs, be liable for any loss, damage, or injury, established or alleged, which may result, or be claimed to result, therefrom.
628
SCHEDULE SL3 – STREET LIGHTING SERVICE

CUSTOMER OWNED SYSTEM SCHEDULE
(METERED)
Applicability
Applicable to service for metered lighting service of streets, highways, and directional highway signs served in conjunction with street and highway lighting, and other publicly operated automobile parking lots which are open to the general public, where the customer owns the street lighting equipment operated within the period from dusk to dawn.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Customer Charge - Per Meter Per Month: $

27.001

3.98 Energy Usage Charge - $/kWh:

All Year - all kWh, per kWh $

0.11726
2993
CA Energy Resources Surcharge - All kWh used $ 0.0003
Utility User’s Tax: Calculated on total bill before any discounts 5.75% Public Purpose Programs:

All kWh used $ 0.00920
Special Conditions

1. Voltage: Service will be supplied at one standard voltage.

2. The customer will furnish and maintain all equipment beyond the meter. 629
SCHEDULE TC-1 – TRAFFIC CONTROL SERVICE
Applicability
Applicable to service for traffic directional sign or signal lighting service owned by governmental agencies and located on streets, highways and other publicly dedicated outdoor ways and places.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates
Customer Charge – Per Meter Per Day: Rate B – Non TOU
Single-Phase Service $ 0.9540
Polyphase Service $ 0.9850
Energy Usage Charge - $/kWh:

All kWh used $ 0.195321944
CA Energy Resources Surcharge - All kWh used $ 0.0003
Utility User’s Tax: Calculated on total bill before any discounts 5.75% Public Purpose Programs: $ 0.02064
Special Conditions

1. Voltage: Service will be supplied at one standard voltage. 630
SCHEDULE TOU-LGS – TIME OF USE – LARGE GENERAL SERVICE
Applicability
Applicable to non-residential electric service for all types of uses including lighting and power where the customer’s monthly maximum demand is expected to exceed 500 kW or has exceeded 500 kW in any of the 3 months during the preceding 12 months.

Territory
Within the designated areas served by the Moreno Valley Utility.

Rates – Primary Voltage
Customer Charge:
$/Meter/Month $ 447.88
Energy Usage Charge - $/kWh:

Summer
On-Peak $

0.1228513369
Mid-Peak $

0.1179812839
Off-Peak $

0.0868909456
Winter
Mid-Peak $

0.0982210689
Off-Peak $

0.0978210645
Super Off-Peak $

0.0614306685
Demand Charge - $/kW: Summer Winter
Facilities Related Demand Charge, per kW $ 213.235 $ 231.235 Time Related Demand Charge, per kW:

On-Peak $ 358.3042 $ 0.00
Mid-Peak $ 0.00 $ 10.9405
631
Off-Peak $ 0.00 $ 0.00
CA Energy Resources Surcharge - All kWh used $ 0.0003
632
Utility User’s Tax: Calculated on total bill before any discounts

5.75%
Public Purpose Programs:

All kWh used $ 0.01715
Monthly Minimum- Charge will be calculated after public purpose charge
See Condition #4
633
Rates – Secondary Voltage
Customer Charge:
$/Meter/Month $ 434.84
Energy Usage Charge - $/kWh:

Summer
On-Peak $

0.1304514196
Mid-Peak $

0.1357512474
Off-Peak $

0.1005909243
Winter
Mid-Peak $

0.1043311354
Off-Peak $

0.1035611270
Super Off-Peak $

0.0714906569
Demand Charge - $/kW: Summer Winter
Facilities Related Demand Charge, per kW $ 223.0094 $
232.0
094
Time Related Demand Charge, per kW:

On-Peak
Mid-Peak
Off-Peak
CA Energy Resources Surcharge - All kWh used
Utility User’s Tax: Calculated on total bill before any discounts
Public Purpose Programs:
$ 41.2737.92 $ 0.00
$ 0.00 $

9.179
8 $ 0.00 $ 0.00
$ 0.0003

5.75%
634
All kWh used $ 0.01770
Monthly Minimum- Charge will be calculated after public purpose charge
See Condition #4
635
Special Conditions

1. Time periods are defined as follows:

TOU
Period Weekdays Weekends &
Holidays
Weekdays Weekends &
Holidays
Summer Summer Winter Winter
On-Peak 4 p.m. – 9 p.m. N/A N/A N/A
Mid-Peak N/A 4 p.m. - 9 p.m. 4 p.m. - 9 p.m. 4 p.m. - 9 p.m.

Off-Peak All other hours All other hours 9 p.m. - 8 a.m. 9 p.m. - 8 a.m.

Super-OffPeak N/A N/A 8 a.m. - 4 p.m. 8 a.m. - 4 p.m.

Holidays are defined as New Year’s Day (January 1), Martin Luther King’s Birthday (third Monday in January), Washington’s Birthday (third Monday in February), Memorial Day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Veterans 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 will be made for holidays falling on Saturday.

2. Summer and Winter Seasons are defined as follows: The Summer season begins at 12:00 a.m. on June 1 and will continue until 12:00 a.m. on October 1 each year.

The Winter season begins at 12:00 a.m. on October 1 and continues until 12:00 a.m. on June 1 of the following year.

3. Voltage: Service will be supplied at one standard voltage.

4. Billing Demand: The Billing Demand shall be the kilowatts of Maximum Demand, determined to the nearest kW. The Billing Demand shall be the greater of the kilowatts of Maximum Demand recorded (or established for) the monthly billing period or 50% of the highest Maximum Demand established in the preceding eleven months (Ratcheted Demand).

5. 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 City, during any 15-minute metered interval in the month. 636

6. Power Factor Adjustment: The billing will be adjusted each month for power factor. a. Adjustment Rate: The customer’s bill will be increased each month for the power factor $0.52 per kilovar of maximum reactive demand. b. The maximum reactive demand shall be the highest measured maximum average kilovar demand indicated or recorded by metering during any 15- minute metered interval in the month. For customers with metering used for billing that measures kilovar-hours instead of reactive demand, 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 unit.

A device will be installed on the kilovar-hour meter to prevent its reverse operation on leading power factors
637
SCHEDULE NEM – NET ENERGY METERING
Applicability
Applicable to general service and domestic service customers who have eligible renewable energy generation systems connected to MVU’s system (interconnected) and meet program requirements. This schedule is closed to new applicants effective April 2018.

Territory
Within the entire territory served by Moreno Valley Utility.

Net Surplus Compensation Rate
The net surplus compensation rate shall be the value in the NCR Tariff - Schedule A applied to any net surplus energy remaining at the end of the customer’s twelve (12) monthly billing period (“relevant period”).

Special Conditions

1. NEM customers will receive a credit for the surplus electricity supplied to MVU’s system.

2. This credit will be applied to the customer’s energy bill, to offset all or part of the costs associated with the energy that is consumed each month.

3. Residential accounts are billed once a year for “net” energy consumed or generated over the previous 12 months, if any.

4. Small business accounts served under the General Service Rate also qualify for annual billing.

5. Large business NEM accounts under the Large General Service Rate are billed monthly for their energy usage.

6. Net surplus energy is the amount of generated kilowatt-hours (kWh) energy that is exported to MVU’s system that exceeds the amount that is received from MVU.

7. Any net surplus energy remaining at the end of the 12-month billing period (also called the “relevant period”) will be given a monetary value known as the Net Surplus Compensation Rate (NSCR).

8. The NSCR value is established by MVU to reflect the costs MVU avoids in procuring power during the time period net surplus generators are likely to produce excess power.
638

9. Customers may choose to either roll over the monetary value of any net surplus energy minus any non-energy related charges to the next billing cycle or receive payment for any net surplus energy minus and non-energy related charges at the end of your 12-month relevant period.

10. Customers will be billed monthly for nominal non-energy-related charges such as taxes.

11. Existing generating facilities currently under Schedule NEM that are modified such that: (1) the generating capacity or output increases by 10% or more; or (2) adding battery storage will be placed under the Solar Billing Plan (SBP) Schedule

12. Existing generating facilities currently under Schedule NEM that don’t make payment within thirty (30) days of the due date will be placed under Schedule NEM 2.0 A.

13. Existing customers under Schedule NEM will remain under Schedule NEM for a period of fifteen (15) years from the original year in which their generating facility was interconnected to MVU’s grid as determined from the date the customer received the permission to operate (PTO), and then will be switched to the Solar Billing Plan (SBP) or any otherwise applicable rate schedule.

Existing customers under Schedule NEM can request to be placed under Schedule NEM 2.0 at any time; the customer’s account will be trued up at the time of the request. This means that any outstanding balance due or credit due will be applied to the next regular billing.
639
SCHEDULE NEM 2.0 – NET ENERGY METERING SUCCESSOR RATE
Applicability
Applicable to Eligible Customer-Generators, as defined in Section 2827 of the California Public Utilities Code, operating a renewable electrical generation facility, as therein defined, located on the customer’s owned, leased, or rented premises with a capacity of no more than one megawatt that is intended primarily to offset part or all of the customer’s own electrical requirements and which is interconnected and operates in parallel with MVU’s power system pursuant to Electric Rule 21 – Generating Facility Interconnections. This schedule is closed to new applicants effective January 2024.

Territory
Within the entire territory served by Moreno Valley Utility.

Special Conditions

1. As determined in each billing period, when a customer is a net consumer of energy, the resulting net consumed energy will be used in the calculation of all applicable energy charges.

2. As determined in each billing period, when a customer is a net producer of energy within any TOU block, the resulting TOU net produced energy will be used to offset consumption in other TOU blocks in the following order:

Winter Super Off Peak -> Winter Off Peak -> Winter Mid-Peak -> Summer Off-Peak -> Summer Mid-Peak -> Summer On-Peak
If there is remaining surplus energy after offsetting all usage in this order the surplus will be used to calculate a monetary value that shall only be applied to the customer’s monthly bill, including any minimum charges and applicable taxes.

3. A customer is a net producer of energy when the amount of generated kilowatt-hours (kWh) of energy that is exported to MVU’s system exceeds the amount that the customer receives from MVU.
640

4. The monetary value calculated is the product of the net kWh produced multiplied by the Net Surplus Compensation Rate (NSCR) found in the NCR Tariff – Schedule A.

5. The NSCR value is established by MVU to reflect the costs MVU avoids in procuring power during the time period net surplus generators are likely to produce excess power.

6. MVU shall retain any net surplus energy generated by the NEM customer, including any associated environmental attributes or renewable energy credits (“REC”).

7. To be eligible for service under this Schedule, generating facilities must meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules regarding safety and reliability (i.e., MVU’s Electric Rule 21).

All generating facilities must have a warranty of at least 10 years for all equipment and the associated installation from the system provider (not from MVU). All major solar system components (including PV panels and other generation equipment, inverters and meters) must be on the verified equipment list maintained by the CEC. Any other equipment, as determined by MVU, must be verified as having safety certification from a Nationally Recognized Testing Laboratory.

8. To be eligible for service under this Schedule, the customer’s generating facilities must be sized to offset part or all of the customer’s own electrical requirements and cannot be oversized. This means that the estimated output of the generating facility, using the CEC-AC nameplate rating for inverterbased generating facilities must not exceed the customer’s previous annual usage in kWh. In the event that there is less than 12 months of previous recorded usage data, the calculation shall be in conformance with the formulas listed in Rule 21.

9. Customers seeking to interconnect their generating facilities for the purpose of receiving service under this Schedule are subject to the interconnection requirements and interconnection cost responsibility provisions as established in MVU’s Electric Rule 21.

10. A new customer of record who owns, rents, or leases a premise that includes a generating facility that was approved by MVU for parallel operation prior to the new customer moving in and/or taking electric service with MVU will take service under the Solar Billing Plan (SBP). . This provision also applies to 641
premises where the developer/contractor establishes the interconnection.

11. Existing generating facilities currently under Schedule NEM 2.0 that are modified such that: (1) the generating capacity or output increases by 10% or more; or (2) adding battery storage will be placed under the Solar Billing Plan (SBP) Schedule

12. Existing generating facilities currently under Schedule NEM 2.0 that get disconnected for non-payment will be placed under the Solar Billing Plan (SBP) Schedule, which is a TOU rate schedule.

13. Existing customers under Schedule NEM 2.0 will remain under Schedule NEM 2.0 for a period of ten (10) years from the original year in which their generating facility was interconnected to MVU’s grid as determined from the date the customer received the permission to operate (PTO), and then will be switched to the Solar Billing Plan (SBP) Schedule, which is a TOU rate schedule, or any otherwise applicable rate schedule. Existing customers under Schedule NEM 2.0 can request to be placed under the Solar Billing Plan (SBP) at any time; the customer’s account will be trued up at the time of the request. This means that any outstanding balance due or credit due will be applied to the next regular billing.
642
SOLAR BILLING PLAN (SBP) – NEM 2.0 SUCCESSOR RATE
Applicability
Applicable to Eligible Customer-Generators, as defined in Section 2827 of the California Public Utilities Code, operating a renewable electrical generation facility, as therein defined, located on the customer’s owned, leased, or rented premises with a capacity of no more than one megawatt that is intended primarily to offset part or all of the customer’s own electrical requirements and which is interconnected and operates in parallel with MVU’s power system pursuant to Electric Rule 21 – Generating Facility Interconnections.

Territory
Within the entire territory served by Moreno Valley Utility.

Net Surplus Compensation Rate
The net surplus compensation rate shall be the value in the NCR Tariff - Schedule B applied to any net surplus energy remaining at the end of the customer’s monthly billing period.

Special Conditions

1. As determined in each billing period, when a customer has more generation in a TOU block the resulting TOU net produced energy will be credited to your account based on the value of the energy generated during that TOU block per the NCR Tariff – Schedule B.

2. The monetary value calculated is the product of the net kWh produced multiplied by the Net Surplus Compensation Rate (NSCR) found in the NCR Tariff – Schedule B

3. The NSCR value is established by MVU to reflect the costs MVU avoids in procuring power during the time period net surplus generators are likely to produce excess power.

4. MVU shall retain any net surplus energy generated by the NEM customer, including any associated environmental attributes or renewable energy credits (“REC”).

5. To be eligible for service under this Schedule, generating facilities must meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and electronics Engineers, and 643
accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules regarding safety and reliability (i.e., MVU’s Electric Rule 21).

6. To be eligible for service under this Schedule, the customer’s generating facilities must be sized to offset part or all of the customer’s own electrical requirements and cannot be oversized. This means that the estimated output of the generating facility, using the CEC-AC nameplate rating for inverterbased generating facilities must not exceed the customer’s previous annual usage in kWh. In the event that there is less than 12 months of previous recorded usage data, the standard of 2 watts per square foot of the premises will apply. The calculation shall be in conformance with the formulas listed in Rule 21.

7. Customers seeking to interconnect their generating facilities for the purpose of receiving service under this Schedule are subject to the interconnection requirements and interconnection cost responsibility provisions as established in MVU’s Electric Rule 21.

8. A new customer of record who owns, rents, or leases a premise that includes a generating facility that was approved by MVU for parallel operation prior to the new customer moving in and/or taking electric service with MVU will take service under this Schedule as long as the requirements of this Schedule are met. This provision also applies to the premises where the developer/contractor establishes the interconnection.
644
SCHEDULE ED – ECONOMIC DEVELOPMENT (“ED”) RATE
Applicability
Commercial or industrial end-use customers that would otherwise receive service under Electric Rate Schedule TOU-LGS (Time of Use-Large General Service) and meet certain criteria as established and adopted by resolution of the City Council of the City of Moreno Valley may take advantage of the ED rate as a New Customer or Expanded Load Customer. This ED rate is applicable to all or part of the services provided to New Customers and Expanded Load Customers, as such terms are defined herein. Local Hiring Incentive applicable to certain other rate classes as described in Special Condition No. 6.

1. A New Customer shall be a customer seeking to locate a new business or relocate an existing business (not currently located within the territory served by Moreno Valley Utility) within Moreno Valley Utility’s service territory.

2. An Expanded Load Customer shall be an existing Moreno Valley Utility TOULGS customer that is adding new load to Moreno Valley by a minimum of 200 kW based upon the customer’s past electrical demand as determined by Moreno Valley Utility. The expanded load can be at the customer’s current site, or at a new site within the Moreno Valley Utility service territory. The ED rate will only be applied to the expanded load as determined in Section 5 below.

3. A New Customer shall meet the following criteria:
a. Targeted industries
i. Logistics/Distribution
ii. Medical/Healthcare
iii. Auto Dealerships
b. Job Creation
i. Tier 1 Discount Rate 150 – 499 jobs
ii. Tier 2 Discount Rate 500 – 999 jobs
iii. Tier 3 Discount Rate greater than 1000 jobs
iv. Tier 4 Discount Rate 350 jobs minimum
v. Tier 5 Discount Rate 200 jobs minimum
c. City Revenue Producer – either sales tax or use tax generation i. Tier 1a Discount Rate
645
Territory
ii. Tier 4 Discount Rate - minimum $40,000 annual sales tax revenue to the City
Within the entire territory served by Moreno Valley Utility.

Character of Service
The service provided hereunder shall be alternating current with regulated frequency of 60 hertz, three-phase, or a combination single and three-phase served through one meter, at a standard voltage not to exceed 480 volts, or as may be specified by the Electric Division. To be eligible to participate all customers must have a demand meter.

Rates
Except as provided herein, or in the Economic Development Rate Agreement, all charges and provisions of the customer’s otherwise applicable rate schedule shall apply. The applicable Energy Charge and Demand Charge under the customer’s otherwise applicable rate schedule will be reduced as follows:

Tier 2 Tier 3
Year 1 19.00% 21.50% 24.00% 26.50%
Year 2 16.00% 18.50% 21.00% 23.50%
Year 3 13.00% 15.50% 18.00% 20.50%
Year 4 10.00% 12.50% 15.00% 17.50%
Year 5 7.00% 9.50% 12.00% 14.50%
Tier 5
Years 1 – 4 20.00%
Years 5 – 8 15.00%
Years 9 – 12 10.00%
Years 13 - 16 5.00%
646
Special Conditions

1. Term: Economic Development Rate Agreements entered into under this Schedule shall be for a single five-year term, except for Tier 5, which shall be for a single sixteen-year term.

2. Approval: Application of this Rate Schedule shall be subject to the approval of the City Manager or his designee, based on meeting the eligibility criteria outlined herein.

3. Agreement: The customer must sign a standard Moreno Valley Economic Development Rate Agreement in order for the rates under this Schedule to be applicable. In addition to the other terms of this Schedule, the Economic Development Rate Agreement shall require the customer to reimburse Moreno Valley for all rate reductions received under this Schedule, if the customer fails to maintain the required minimum load during the applicable term of the Agreement.

4. Minimum Load: Customers qualifying under this Schedule as a New Customer with a projected minimum monthly electric demand of at least 500 kW or as an Expanded Load Customer under Applicability Sections 1 and 2 above, respectively, must agree to maintain a minimum level of load for five years for Tiers 1 through 4 and sixteen years for Tier 5 from the date service is first rendered under this Schedule as set forth in the Economic Development Rate Agreement.

5. Jobs: Job as prescribed in Section 3c above is defined as Full Time Equivalent that is working at least 1750 hours per year. The Customer retains authority in making individual hiring decisions. This program does not require the Customer to hire any person who does not have the experience and ability to qualify such persons for a job.

6. Local Hiring Incentive: The Local Hiring Incentive is available for Tier 1 through Tier 5. Customers who qualify under Tiers 1 – 4 and voluntarily hire at least 20% of Full Time Equivalent (FTE) employees that are City of Moreno Valley residents will receive an additional discount of 2%; those Customers who hire at least 40% of Full Time Equivalent (FTE) employees that are City of Moreno Valley residents will receive an additional discount of 4%. For Customers eligible for the Tier 5 discount, the Local Hiring Incentive is an additional 1% discount for Customers who voluntarily hire at least 20% of FTE employees that are City of Moreno Valley residents. The additional 1% discount will be applied to the first five years of the sixteen-year term. Any additional discounts will apply to the Energy Charge and Demand Charge.

Customers must certify the local hire percentage each year to remain eligible for the additional discount.
647

7. Base Period Usage: Base Period Usage shall be established and agreed to in the Economic Development Rate Agreement for Expanded Load Customers. Base Period Usage shall be the average monthly energy use and demand for the customer during the last three years of service to the customer, from the date ending the last payment period before the date of the Agreement. Expanded Load qualifying for the rate under this Schedule shall be measured as the difference between the new monthly, meter documented energy use and demand, and the Base Period Usage.

8. State Mandated Public Purpose Program Charge: All bills rendered under this Schedule shall be subject to the Public Purpose Program Charge as established by the City Council.

9. Miscellaneous Fees and Charges: Rates charged pursuant to this Schedule shall be subject to any Energy Users Taxes, Utility Users Taxes, and any other governmental taxes, duties, or fees which are applicable to Electric Service provided to Customer by the City of Moreno Valley. Rates are also subject to adjustment, as established by the City of Moreno Valley City Council in response to federal or state climate change laws, renewable portfolio standard or other mandated legislation. These adjustments may include but are not limited to charges to mitigate the impacts of greenhouse gas emissions or “green power” premiums.

10. Expanded Load: Expanded Load customers applying for this rate must demonstrate to the satisfaction of the Utility that the expanded load is new to Moreno Valley.

11. Effective Date: The effective date of the Economic Development Rate Agreement shall commence within 12 months from the date of the City’s approval, or the Agreement becomes null and void. The Agreement becomes effective upon execution by the parties, and the Economic Development Rate commences upon written notice by customer and coincides with the customer’s normal billing cycle.

12. Reapplication: Customers who have received service under the Economic Development Rate are eligible to reapply for the rate as an Expanded Load Customer 12 months after their current Economic Development Rate Agreement has expired, if they meet the criteria therefore.

13. Restrictions: Residential customers and federal, state or local government agencies are not eligible to apply for service under this Schedule.

14. City Manager: The City Manager or his/her designee may offer to customers an Economic Development Rate and term based upon the actual cost to serve the customer. The customer must sign a Moreno Valley Economic Development Rate Agreement, and such Agreement shall be approved by the City Council. All other terms and conditions under this rate schedule shall apply.
648
SCHEDULE ED 2.0 – ECONOMIC DEVELOPMENT (“ED”) RATE
Applicability
Commercial or industrial end-use customers that would otherwise receive service under Electric Rate Schedule TOU-LGS (Time of Use-Large General Service) and meet certain criteria as established and adopted by resolution of the City Council of the City of Moreno Valley may take advantage of the ED rate as a New Customer or Expanded Load Customer. This ED rate is applicable to all or part of the services provided to New Customers and Expanded Load Customers, as such terms are defined herein. Local Hiring Incentive applicable to certain other rate classes as described in Special Condition No. 6.

2. An Expanded Load Customer shall be an existing Moreno Valley Utility TOU- LGS customer that is adding new load to Moreno Valley by a minimum of 200 kW based upon the customer’s past electrical demand as determined by Moreno Valley Utility. The expanded load can be at the customer’s current site, or at a new site within the Moreno Valley Utility service territory. The ED rate will only be applied to the expanded load as determined in Section 5 below.

3. A New Customer shall meet the following criteria:
a. Qualifications
i. Tier 1 Discount Rate 150 – 499 jobs
ii. Tier 2 Discount Rate 500 – 999 jobs
iii. Tier 3 Discount Rate greater than 1000 jobs
iv. Tier 4 Discount Rate 350 jobs minimum
• Minimum $40,000 annual sales tax revenue to the City
v. Tier 5 Discount Rate 200 jobs minimum
• Regional Corporate Office and 200,000+ Sq. Ft.

Perishable space.
649
Territory
Within the entire territory served by Moreno Valley Utility Character of Service
The service provided hereunder shall be alternating current with regulated frequency of 60 hertz, three-phase, or a combination single and three-phase served through one meter, at a standard voltage not to exceed 480 volts, or as may be specified by the Electric Division. To be eligible to participate all customers must have a demand meter.

Tier 1/Tier 1a Tier 2 Tier 3 Tier 4
Year 1 19.00% 21.50% 24.00% 26.50%
Year 2 16.00% 18.50% 21.00% 23.50%
Year 3 13.00% 15.50% 18.00% 20.50%
Year 4 10.00% 12.50% 15.00% 17.50%
Year 5 7.00% 9.50% 12.00% 14.50%
Tier 5
Years 1 – 4 20.00%
Years 5 – 8 15.00%
Years 9 – 12 10.00%
Years 13 - 16 5.00%
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Special Conditions

1. Term: Economic Development Rate Agreements entered into under this Schedule shall be for a single five-year term, except for Tier 5, which shall be for a single sixteen-year term.

2. Approval: Application of this Rate Schedule shall be subject to the approval of the City Manager or his designee, based on meeting the eligibility criteria outlined herein.

6. Base Period Usage: Base Period Usage shall be established and agreed to in the Economic Development Rate Agreement for Expanded Load Customers. Base Period Usage shall be the average monthly energy use and demand for the customer during the last three years of service to the customer, from the date ending the last payment period before the date of the Agreement. Expanded Load qualifying for the rate under this Schedule shall be measured as the difference between the new monthly, meter documented energy use and demand, and the Base Period Usage.
651

7. State Mandated Public Purpose Program Charge: All bills rendered under this Schedule shall be subject to the Public Purpose Program Charge as established by the City Council.

8. Miscellaneous Fees and Charges: Rates charged pursuant to this Schedule shall be subject to any Energy Users Taxes, Utility Users Taxes, and any other governmental taxes, duties, or fees which are applicable to Electric Service provided to Customer by the City of Moreno Valley. Rates are also subject to adjustment, as established by the City of Moreno Valley City Council in response to federal or state climate change laws, renewable portfolio standard or other mandated legislation. These adjustments may include but are not limited to charges to mitigate the impacts of greenhouse gas emissions or “green power” premiums.

9. Expanded Load: Expanded Load customers applying for this rate must demonstrate to the satisfaction of the Utility that the expanded load is new to Moreno Valley.

10. Effective Date: The effective date of the Economic Development Rate Agreement shall commence within 12 months from the date of the City’s approval, or the Agreement becomes null and void. The Agreement becomes effective upon execution by the parties, and the Economic Development Rate commences upon written notice by customer and coincides with the customer’s normal billing cycle.

11. Reapplication: Customers who have received service under the Economic Development Rate are eligible to reapply for the rate as an Expanded Load Customer 12 months after their current Economic Development Rate Agreement has expired, if they meet the criteria therefore.

12. Restrictions: Residential customers and federal, state or local government agencies are not eligible to apply for service under this Schedule.

13. City Manager: The City Manager or his/her designee may offer to customers an Economic Development Rate and term based upon the actual cost to serve the customer. The customer must sign a Moreno Valley Economic Development Rate Agreement, and such Agreement shall be approved by the City Council. All other terms and conditions under this rate schedule shall apply.
652

SCHEDULE ED-LH - ECONOMIC DEVELOPMENT- LOCAL HIRING

INCENTIVE
Local Hiring Incentive:

Customers who voluntarily hire at least 20% of Full Time Equivalent (FTE) employees that are City of Moreno Valley residents will receive an additional discount of 2%; those Customers who hire at least 40% of Full Time Equivalent (FTE) employees that are City of Moreno Valley residents will receive an additional discount of 4%.

Full Time Equivalent employees is defined as working at least 1750 hours per year. The Customer retains authority in making individual hiring decisions. This program does not require the Customer to hire any person who does not have the experience and ability to qualify such persons for a job.
653

SCHEDULE ED-BR - ECONOMIC DEVELOPMENT- BUSINESS

RETENTION RATE
Applicability
This Schedule is applicable to the anchor stores at Stoneridge Towne Centre and Moreno Beach Plaza, whose building size is 25,000 square feet or larger and have 30 or more employees.

1. The Customer must demonstrate to the satisfaction of the City that relocation of its entire operation to a site outside of Moreno Valley Utility’s service territory is a viable alternative or that the threat of closure of the Customer’s existing facilities is otherwise imminent.

2. The Customer must provide:
a. An affidavit that “but for” the economic development retention rate incentives, in combination with other city-sponsored incentives, such customer would relocate outside of the City’s electric service territory, and b. Substantial evidence demonstrating the business has considered viable locations outside of Moreno Valley’s service territory including but not limited to incentive offer letters from competing states, local jurisdictions and economic development organizations and/or real estate sale and lease agreements for competing sites, or
c. Substantial evidence documenting the imminent threat of facility closure, including but not limited to letters from business owners or appropriate corporate officers documenting the circumstances which have led to this imminent threat and why the Business Retention Rate is necessary to retain the business within Moreno Valley Utility’s service territory.

3. The Customer must agree to maintain a minimum level of load for five years from the date service is first rendered as set forth in the Economic Development Rate Agreement for Business Retention.

Territory
Within the entire territory served by Moreno Valley Utility. 654
Rates
Except as provided herein, or in the Economic Development Business Retention Rate Agreement, all charges and provisions of the customer’s otherwise applicable rate schedule shall apply. The applicable Energy Charge and Demand Charge under the customer’s otherwise applicable rate schedule will be reduced as follows:

Year 1 20%
Year 2 20%
Year 3 20%
Year 4 0%
Year 5 0%
Special Conditions

1. Term: Economic Development Rate Agreement for Business Retention entered into under this Schedule shall be for a single five-year term.

2. Approval: Application of this Rate Schedule shall be subject to the approval of the Public Works Director or his designee, based on meeting the eligibility criteria outlined herein.

3. Agreement: The customer must sign a standard Moreno Valley Economic Development Rate Agreement for Business Retention in order for the rates under this Schedule to be applicable. In addition to the terms of this Schedule, the Economic Development Rate Agreement for Business Retention shall require the customer to reimburse Moreno Valley for all rate reductions received under this Schedule, if the customer fails to maintain the required minimum load during the five-year term of the Agreement.

4. Minimum Load: All customers must agree to maintain a minimum level of load for five years from the date service is first rendered under this Schedule as set forth in the Economic Development Rate Agreement for Business Retention.

5. State Mandated Public Purpose Charge: All bills rendered under this Schedule shall be subject to the Public Purpose Charge as established by the City Council.

6. Miscellaneous Fees and Charges: Rates charged pursuant to this Schedule shall be subject to any Energy Users Taxes, Utility Users Taxes, and any other governmental taxes, duties, or fees which are applicable to Electric Service provided to Customer by the City of Moreno Valley. Rates are also subject to adjustment, as established by the City of Moreno Valley City Council in response to federal or state climate change laws, renewable 655
portfolio standard or other mandated legislation. These adjustments may include but are not limited to charges to mitigate the impacts of greenhouse gas emissions or “green power” premiums.

7. Effective Date: The Agreement becomes effective upon execution by the parties, and the Economic Development Business Retention Rate commences with the customer’s normal billing cycle following execution of the Agreement by both parties.

8. Restrictions: Residential customers, small commercial customers, and federal, state or local government agencies are not eligible to apply for service under this Schedule.
656
SCHEDULE EV PUBLIC – ELECTRIC VEHICLE PUBLIC CHARGING
Applicability
This Schedule is applicable to electric vehicle charging stations owned and maintained by Moreno Valley Utility.

Charging Type Voltage
Level 2 240V
Level 3 480V
Territory
Within the entire territory served by Moreno Valley Utility.

Rates
Level 2
City Owned Charging Station $0.219 per kWh
Level 3
City Owned Charging Station $0.325 per kWh
Per Ordinance 942, there is a four-hour maximum for parking and charging of electric vehicles in a single charging session. Sessions will be given a 30-minute grace period and thereafter will be charged $1.00 per hour up to a maximum of $30.00. 657
SCHEDULE WTR – WIRELESS TECHNOLOGY RATE
Applicability
This Schedule is applicable to single-phase service for wireless technology industries and utility customers deploying advanced metering infrastructure (AMI) that require electric service to operate wireless communication devices that are mounted on existing utility facilities, or other facilities approved by the utility and are unmetered.

The monthly kilowatt-hour (kWh) usage of each device shall not exceed 2,700 kWh.

Effective with the date the customer becomes ineligible for service under this Schedule, the customer’s account shall be transferred to Schedule B - General Service or another applicable rate schedule.

Territory
Within the entire territory served by Moreno Valley Utility.

Rates
Customer Charge - $/Month:

Single Phase $
134.1
704
Polyphase $
134.2
06 Inspection Charge - $/Device/Inspection $ 15.23
Initialization of Service Charge – One-Time Fee
Fixed Energy Charge - $/Device/Month: $

67.73 1
Tier Energy Use
kWhs/Month Max Watts/Connected Load $/Device/Month
1 0-25 75 $ 5.49

1.5 26-50 75 $ 10.98
2 51-100 149 $ 21.40
3 101-150 224 $ 32.90
4 151-200 298 $ 43.89
5 201-250 373 $ 54.87
658
6 251-300 448 $ 65.84
7 301-350 522 $ 76.80
8 351-400 597 $ 87.77
9 401-450 672 $ 98.75
10 451-500 746 $ 109.74
11 501-900 1,343 $ 197.50
12 901-1,350 2,014 $ 296.24
13 1,351-1,800 2,686 $ 394.99
14 1,801-2,250 3,357 $ 493.75
15 2,251-2,700 4,028 $ 592.49
Public Purpose Charge – Per Device per Month
Tier
Energy Use
kWhs/Month
$/Device/
Month
1 0-25 $ 0.52

1.5 26-50 $ 1.04
2 51-100 $ 2.06
3 101-150 $ 3.10
4 151-200 $ 4.13
5 201-250 $ 5.17
6 251-300 $ 6.19
7 301-350 $ 7.23
8 351-400 $ 8.26
9 401-450 $ 9.29
10 451-500 $ 10.32
11 501-900 $ 18.58
12 901-1,350 $ 27.87
13 1,351-1,800 $ 37.15
14 1,801-2,250 $ 46.45
15 2,251-2,700 $ 55.73
Special Conditions

1. Voltage: Service will be supplied at 120 volts (one fuse per 120-volt leg).

2. Three-Phase Service: Where the utility determines, it is impractical to provide single-phase service under this Schedule three-phase service will be provided. 659

3. Limited Availability: This Schedule is available only where MVU determines that an applicable agency having jurisdiction has an existing code, ordinance, formal policy statement or requirement that prohibits above ground electrical meter facilities in the public right-of-way.

4. Determination of Monthly usage: The customer must provide the utility information from which the utility can determine the level of kWh usage to be consumed and/or level of service to be provided, such as the manufacturers’ equipment specifications, data sheets, etc., and the number of devices to be installed. The utility will place the customer in the appropriate usage tier and charge according to the maximum value of that tier. The utility retains the right to perform on- site inspections to verify the energy consumption of the device(s).

5. Maximum Wattage: The rate tiers must coincide with the maximum wattage ratings listed below. The wattage information shall be provided by the customer in order to assist SCE in determining the appropriate tier.

Tier
Energy Use
kWhs/Month
Usage
Fuse Size
Maximum Watts /
Connected Load
Name Plat
1 0-25 KTK-3/4 75

1.5 26-50 KTK-3/4 75
2 51-100 KTK-1 149
3 101-150 KTK-1-1/2 224
4 151-200 KTK-2 298
5 201-250 KTK-2-1/2 373
6 251-300 KTK-3 448
7 301-350 KTK-3-1/2 522
8 351-400 KTK-4 597
9 401-450 KTK-5 672
10 451-500 KTK-6 746
11 501-900 KTK-10 1,343
12 901-1,350 KTK-15 2,014
13 1,351-1,800 KTK-20 2,686
14 1,801-2,250 KTK-25 3,357
15 2,251-2,700 KTK-30 4,028
660

6. Installation: The device(s) shall be installed on utility facilities, or other facilities approved by the utility. Utility customers taking service for AMI-related devices attached to utility-owned facilities may attach only to underground-fed streetlight poles. When the devices are installed on utility facilities, the installation and removal of such device(s) will be performed at the customer’s expense. Device installation shall not be performed under this Schedule where location, mounting height, and/or other considerations are not acceptable to the utility. Unless approved by the utility, all wireless communication devices must be visible to the utility.

7. Modification of Facilities: No modifications can be made to the customer-owned wireless communications devices or the AMI-related devices unless approved by MVU. Where the customer requests a modification of MVU-owned facilities, and such modifications are acceptable to MVU, MVU will perform the requested modifications at the customer’s expense.

8. Maintenance: Upon installation of the device(s), where the utility experiences, or expects to experience, maintenance costs exceeding its normal maintenance expense resulting from, but not limited to, vandalism, the utility may require the customer to pay the excess maintenance expense.

9. Discontinuance and Restoration of Service: Discontinuance and restoration of service to the customer shall be completed in accordance with Rule 11.

10. Liability of the Utility: The utility shall not, by taking action pursuant to its tariffs, be liable for any loss, damage, or injury, established or alleged, which may result, or be claimed to result, there from.

11. Distribution Line Extension: Distribution line extensions shall be installed in accordance with Rule 15.

12. Service Extension: Services shall be installed and maintained as provided in Rule

16. 13. Initialization of Service Charge: A one-time charge, as shown in the RATES section of this schedule, is applied to each service account provided service under this Schedule to recover the costs of a lock and spare fuse which are required with the initialization of service.
661
SCHEDULENCR–NETCOMPENSATIONRATE
Applicability
This Schedule is applicable to any electrical service customer receiving service under a TOU rate, where the customer either owns and operates a generation device in parallel with MVU’s electrical grid or is a Benefiting Account associated with a generation device installed as part of a virtual net metering site.

Territory
Within the designated areas served by Moreno Valley Utility.

Rates
Schedule A (grandfathered for customers with active Rule 21 Agreements before 1/1/2023)
Net Compensation Rate - $ 0.0372
Schedule B (All new Rule 21 Agreements beginning on or after 1/1/2023, or by customer request)
Energy Compensation for Overproduction - $/kWh:

Summer
On-Peak $ 0.0611
Mid-Peak $ 0.0431
Off-Peak $ 0.0348
Winter
Mid-Peak $ 0.0460
Off-Peak $ 0.0516
Super Off-Peak $ 0.0090
662
Time Periods –
TOU
Period Weekdays Weekends &
Holidays
Weekdays Weekends &
Holidays
Summer Summer Winter Winter
On-Peak 4 p.m. – 9 p.m. N/A N/A N/A
Mid-Peak N/A 4 p.m. - 9 p.m. 4 p.m. - 9 p.m. 4 p.m. - 9 p.m.

Off-Peak All other hours All other hours 9 p.m. - 8 a.m. 9 p.m. - 8 a.m.

Super-OffPeak N/A N/A 8 a.m. - 4 p.m. 8 a.m. - 4 p.m.
663
SCHEDULEVNEM–VIRTUALNETENERGYMETERING
Applicability
This Schedule is applicable to Qualified Customers served on time-of-use (TOU) rates whose Service Account(s) are located within a multi-tenant and multi-meter Property upon which an Eligible Facility has been installed pursuant to the additional terms and conditions contained herein and any other applicable law; and for which the Owner or Operator of the Property contracts with MVU to have all eligible energy produced by the Eligible Generator or Energy Storage Device exported to MVU’s system for the sole purpose of offsetting the costs to designated Benefitting Accounts within the same Property as the Eligible Generator or Energy Storage Device.

Territory
Within the designated areas served by Moreno Valley Utility.

Rates
All terms and conditions of the Qualified Customer’s TOU Tariff apply. Allocated TOU Credits, as further defined in Special Conditions, Section 4 below, are determined by multiplying the kilowatt-hours (kWh) that the Eligible Generator(s) or Energy Storage Device(s) deliver within each TOU block by the percentages calculated by the portion of NEC load required by each meter vs the unadjusted NEC load of the entire site.

1. Mandatory TOU Rates.
a. Qualified Customers must receive service on a TOU rate schedule, with no exceptions.
b. The default TOU rate for Residential Qualified Customers is Schedule A – Rate B.
c. The default TOU rate for General Service Qualified Customers is Schedule B – Rate B.

2. Non-by-passable Charges (NBCs)
For the purpose of this Schedule, NBCs apply to the Public Purpose Programs charges. As determined in each billing period, a Qualified Customer is responsible for NBCs, assessed on a $-per-kWh basis using the NBC factors contained in the Qualified Customer’s applicable Tariff, for each kWh of electricity that is consumed / imported from the grid in each metered interval. Allocated Credits cannot be used to offset or net the kWh on which a Qualified Customer’s NBCs are based.
664

3. Monthly Energy (kWh) Charges and Credits.

As determined in each billing period and within each TOU block, when a Qualified Customer is a net consumer of energy for the TOU block, Es is greater than Ec, where Es is energy supplied from the grid and Ec is the Allocated Credit, the resulting net consumed energy within the TOU block will be used in the calculation of all applicable energy charges, with the exception of the NBCs as outlined above, calculated by (1) multiplying the Qualified Customer’s net consumed kWh by the applicable energy rate components of applicable Tariff, in each TOU period.

As determined in each billing period and within each TOU block, when a Qualified Customer is a net producer of energy for the TOU block, Ec is greater than Es, the resulting net produced energy will be used in the calculation of TOU based energy credits in accordance with the Net Compensation Rate Tariff.

See below for a table representing a Qualifying customers Energy Charges or Credits
If Es is greater than Ec in a TOU block:

On Peak* Off Peak* Super Off-Peak*
(Es – Ec) = Ensop (Es – Ec) = Ensof (Es – Ec) = Enssof
Ensop * [Customer’s applicable
On-Peak Rate] = Ensop Cost
Ensof *[Customer’s applicable
On-Peak Rate] = Ensof Cost
Enssof * [Customer’s applicable
On-Peak Rate] = Enssof Cost
Encop Value = 0 Encof Value = 0 Encsof Value = 0
If Ec is greater than Es in a TOU block:

On Peak* Off Peak* Super Off-Peak*
(Ec – Es) = Encop (Ec – Es) = Encof (Ec – Es) = Encsof
Encop * [Net Compensation
Tariff On-Peak Rate] = Encop
Value
Encof * [Net Compensation
Tariff Off-Peak Rate] = Encof
Value
Encsof * [Net Compensation
Tariff Super-Off-Peak Rate] =
Encsof Value
Ensop Cost = 0 Ensof Cost = 0 Enssof Cost = 0
* See Qualified Customer’s Applicable Rate Schedule for Time Periods associated with Total Energy Charges = Ensop Cost + Encop Value + Ensof Cost + Encof Value + Essof Cost + Encsof Value
NBCs are calculated solely on the basis of Es.

4. Account Set-Up and Administrative Charges. Qualified Customers are subject to the following additional charges:
a. A one-time set-up charge of 500$ per newly established Source Account 665
and 25$ per newly established Benefiting Account.
b. Disconnect / Reconnect – If a Qualified Customer requests to disconnect from an applicable NEM system, the service address shall retain the Allocation Percentage established during system construction. This allocation percentage shall be available to a new Qualified Customer that establishes service with MVU at this service address
Special Conditions

1. Definitions: Except as otherwise defined in MVU’s Electric Rule 1, capitalized terms utilized in the context of this Schedule are defined below and applicable to Qualified Customers receiving service under this Schedule. a. Qualified Customer –
i. The Owner or Operator of the multi-tenant, multi-meter Property with one or more separately metered Benefitting Accounts. ii. An entity authorized by the Owner to install and/or operate the Eligible Generator or Eligible Energy Storage Device and who will be MVU’s customer of record on the Generating Account.
iii. A tenant / occupant of the Property with a separately metered TOU account that is located on the same Property as the Eligible Generator or Eligible Energy Storage Device and is designated as a Benefiting Account on the site construction plans submitted to the City.
b. Owner – An Owner is the Qualified Customer who has legal right to claim ownership of the Property on which one or more Eligible Generator(s) or Eligible Energy Storage Device(s) have been installed.
c. Operator – An Operator is a Qualified Customer who operates a business by leasing or renting the Property from an Owner and who has an Eligible Generator or Eligible Energy Storage Device on the Property. d. Generating Account – The TOU account to which an Eligible Generator is interconnected with MVU through a single meter for which the Owner or Operator is an MVU customer.
i. No loads shall be attached to the Generating Account. e. Benefitting Account – Each Qualified Customer TOU Service Account that is established when site construction plans are submitted to the City. Each Qualified Customer Account will be assigned an Allocation Credit such that the sum of all Benefitting Account Allocation Credits are equal to the Allocation Credits available from the Generating Account. 666
i. A Benefitting Account receives Allocation Credits based on the percentage of NEC load to the Benefiting Account which is associated to the Generating Account compared to the sum of all NEC loads associated to the Generating Account based on electrical construction plans submitted to the city.
ii. A Benefiting Account may incur costs from the generating account for any TOU block where the system is not generating energy. iii. A Benefitting Account will split the fixed costs of a Generating Account based on the same ratio established in (i).
f. Property – All of the real property and apparatus employed in a single multi-tenant or multi-meter facility on contiguous parcels of land. These parcels may be divided by a dedicated street, highway or public thoroughfare or railway, so long as they are otherwise contiguous, and all under the same ownership.
g. Eligible Generator(s)
i. A Renewable Electrical Generating Facility that is: (A) located on the Owner or Operator’s Property; (B) interconnected and operates in parallel with the electrical grid and (C) intended primarily to offset part or all of the combined electrical requirements of all designated Benefitting Accounts.
ii. To be eligible for service under this Schedule, Eligible Generator(s) must meet all applicable safety and performance standards established by the National Electric Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories, MVU’s Electric Rule 21, any applicable rules regarding safety and reliability, and applicable building codes. All Eligible Generators must have a warranty period of at least 10 years for all equipment and the associated installation from the system provider. Additionally, for Qualified Customers installing solar Generating Facilities, all major solar system components (including PV panels and other generating equipment, inverters and meters) must be on the verified equipment list maintained by the CEC. For Eligible Generators, any other equipment, as determined by MVU, must be verified as having safety certification from a Nationally Recognized Testing Laboratory (NRTL).
iii. Sizing – Qualified Customers’ Eligible Generator(s) must meet the sizing requirements outlined below in order to be eligible for service under this Schedule.

1. Sized to Load Requirement – the total energy (in kWh) estimated to be recorded by the generation output meter(s) on the Eligible Generator(s) and allocated to the Benefitting 667
Accounts must be sized no more than 20% larger than
California Building Energy Efficiency Standards (Title 24) minimum prescriptive requirements. The Generating
Account shall submit evidence of this compliance with their application.

2. Capacity – The peak capacity of an Eligible Generator on a Generating Account is limited to the cumulative peak loads of all designated Benefitting Accounts. No Generator other than the Eligible Generator can be connected behind the single generation output meter.
h. Relevant Period – A one month period commencing on the start of the next regular billing period following the Date of Parallel Operation of the Owner or Operator’s Eligible Generator(s) to MVU’s electric system, for purposes of participating in the VNEM tariff and monthly thereafter. i. If an Owner or Operator terminates service under this Schedule for the Property prior to the end of any Relevant Period, the Relevant Period for all associated Benefitting Accounts will end on the effective date of the service termination.
ii. If a change of Owner or Operator occurs for the Property prior to the end of any Relevant Period, the Relevant Period for the Owner’s or Operator’s associated Benefitting Accounts will end.

The new Owner’s or Operator’s associated Benefitting Accounts will automatically be placed on this Schedule and a Relevant Period will begin for that new Owner or Operator on the start of the next regular billing period following the date the new Owner or Operator takes service under this Schedule, and every month thereafter. i. Eligible Energy Storage Device(s)
i. A Energy Storage Device that is: (A) located on the Owner or Operator’s Property; (B) interconnected and operates in parallel with the electrical grid and (C) intended primarily to be charged during times where energy is readily available and discharged during times when energy is scare and pass the savings through Allocation Credits to Benefitting Accounts.
ii. To be eligible for service under this Schedule, Eligible Energy Storage Devices(s) must meet all applicable safety and
performance standards established by the National Electric Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories, MVU’s Electric Rule 21, any applicable rules regarding safety and reliability, and applicable building codes. All Eligible Energy Storage Device(s) must have a warranty period of at least 10 years for all equipment and the associated installation from the system 668
provider. For Eligible Energy Storage Device(s), any other equipment, as determined by MVU, must be verified as having safety certification from a Nationally Recognized Testing Laboratory (NRTL).
iii. Sizing – Qualified Customers’ Eligible Energy Storage Device(s) must meet the sizing requirements outlined below in order to be eligible for service under this Schedule.

1. Sized to Load Requirement – the cumulative total energy (in kWh) estimated to be discharged by the storage device at the output meter(s) on the Eligible Energy Storage Device(s) and allocated to the Benefitting Accounts must be sized no more than 1.5 Watts / Conditioned Residential Floor Area.

The Generating Account shall submit evidence of this
compliance with their application.
iv. Capacity – The peak capacity of an Eligible Energy Storage Device(s) on a Generating Account is limited to the cumulative peak loads of all designated Benefitting Accounts.
j. Date of Parallel Operation – The date that MVU provides the Owner or Operator with MVU’s written approval (e.g. the Permission to Operate (PTO) notice) to commence parallel operation of the Eligible Generator(s).

2. Required Application and Contracts for Interconnection a. To commence any Eligible Facility interconnection process, Owners or Operators that are a Qualified Customer must submit completed interconnection application materials and agree to any applicable terms, conditions, and other contract materials prior to interconnecting the Eligible Facility.
b. Owners or Operators seeking to interconnect their Eligible Facility for the purpose of receiving service under this Schedule are subject to the interconnection requirements and interconnection cost responsibility provisions as established in MVU’s Electric Rule 21. These costs may include interconnection application fees, study costs and / or costs for upgrading the Distribution and/or Transmission Systems, depending on the size of the Eligible Generator(s). Owners or Operators are also responsible for the costs of any applicable Interconnection Facilities, as defined in MVU’s Electric Rule 21, and applicable re-wiring, trenching, conduit and other facility costs as needed.
c. Qualified Customer shall deliver energy from the Eligible Facility to MVU at MVU’s meter.
d. Qualified Customer, and not MVU, shall be solely responsible for all legal and financial obligations arising from the construction, installation, design, 669
operation, and maintenance of the Eligible Facility in accordance with all applicable laws and regulations.
e. Qualified Customer, at Qualified Customer’s sole expense, shall obtain and possess all permits and authorizations in accordance with all applicable laws and regulations for the construction, installation, design operation and maintenance of the Eligible Facility.
f. MVU shall furnish and install one or more standard watt-hour meters to read energy generated by Qualified Customer’s Eligible Facility. Qualified Customer shall provide and install a meter socket and connections in accordance with MVU’s metering standards. If the Qualified Customer desires more detailed metering equipment, all associated costs will be incurred by the Owners or Operators.
g. MVU shall have the right to have its representatives present at the final inspection made by the governmental authority having jurisdiction to inspect and approve the installation of the Eligible Facility. For interconnections involving battery storage, Qualified Customer shall be responsible for all inspection and commissioning fees. Qualified Customer shall notify MVU at least five (5) days prior to such inspection. h. Qualified Customer shall not connect the Eligible Facility, or any portion of it, to MVU's distribution system, until written approval of Eligible Facility has been given to Qualified Customer by MVU. Such approval shall not be unreasonably withheld.
i. Qualified Customer may reconnect its Eligible Facility to the MVU system following normal operational outages and interruptions without notifying MVU unless MVU has disconnected service, or MVU notifies Qualified Customer that a reasonable possibility exists that reconnection would pose a safety hazard.
j. If MVU has disconnected service to the Eligible Facility, or MVU has notified Qualified Customer that a reasonable possibility exists that reconnection would pose a safety hazard, Qualified Customer may call MVU's Customer Service Center to request authorization to reconnect the Eligible Facility.
k. Qualified Customer shall: (a) maintain the Eligible Facility and interconnection facilities in a safe and prudent manner and in conformance with all applicable laws and regulations, and (b) to the extent that future requirements may require, obtain any governmental authorizations or permits required for the operation of the Eligible Facility.

Qualified Customer shall reimburse MVU for any and all losses, damages, claims, penalties, or liability MVU incurs as a result of failure to obtain or maintain any governmental authorizations and permits required for 670
construction and operation of the Owners or Operator’s Eligible Facility.

MVU may enter Qualified Customer’s premises without prior notice (a) to inspect, at all reasonable hours, Qualified Customer’s protective devices and read or test any meter for the Eligible Facility and (b) to disconnect, at any time, without notice, the Eligible Facility if, in MVU’s sole opinion, a hazardous condition exists and that immediate action is necessary to protect persons, or MVU’s facilities, or property of others from damage or interference caused by (1) Qualified Customer’s Eligible Facility, or (2) Qualified Customer’s failure to comply with the requirements of this Rule.

3. Metering Requirements – Metering requirements for Qualified Customers served under this Schedule are as follows:
a. The Owner or Operator will be responsible for and will pay for all costs associated with installing, on each Eligible Facility, a net generation output meter (NGOM) capable of recording generator output in 15-minute intervals and the flow of energy in two directions at the point of common coupling where each Eligible Generator transfers energy to MVU’s grid.

The cost of the NGOM(s) is a one-time, upfront charge that includes material, labor, maintenance and replacement, and may vary from project to project depending on the type of NGOM required to interconnect a particular project. No additional load other than incremental load related to the inverters and support of the Eligible Generator(s) may be registered at the meter. MVU must approve the location of the NGOM equipment, which should be normally grouped with the service and metering for one or more Benefitting Accounts.
b. Each Benefitting Account must have a standard MVU TOU billing meter that is capable of Interval Metering

4. Billing Process
a. Gross Credit – The total metered kWh output of all Eligible Facilities, delivered to MVU’s grid, as metered at the point of common coupling, described in Condition 3.a above, during the billing period and TOU block of the Generating Account.
b. Gross Debit - The total metered kWh consumption of all Eligible Generators, delivered to MVU’s grid, as metered at the point of common coupling, described in Condition 3.a above, during the billing period and TOU block of the Generating Account and the fixed costs associated with the Generating Account.
c. Allocated Credit –
i. The percentage of Gross Credit that will be allocated to the 671
individual Benefitting Account(s) is determined by calculating the percentage of NEC load for each Benefitting Account vs the sum of all NEC loads of all Benefitting Accounts included in the electrical plans submitted for building and safety review prior to site construction. This percentage can be updated by specific request by the Owner or Operator when the site undergoes construction permitted by the City which impacts the NEC loads.
ii. The individual allocation of the kWh to each Benefitting Account is calculated by multiplying the Gross Credit by the designated percentage allocation for each individual Benefitting Account during each applicable TOU block.
d. Allocated Debit -
i. The percentage of Gross Debit that will be allocated to the individual Benefitting Account(s) is determined by calculating the percentage of NEC load for each Benefitting Account vs the sum of all NEC loads of all Benefitting Accounts included in the electrical plans submitted for building and safety review prior to site construction. This percentage is updated when the percentage affecting Allocation Credit is updated.
ii. The individual allocation of the kWh and fixed costs to each Benefitting Account is calculated by multiplying the Gross Debit by the designated percentage allocation for each individual Benefitting Account during each applicable TOU block.
e. Qualified Customer’s Bill – MVU will provide each Qualified Customer with its net energy information with each regular bill. That information will include the monetary balance of energy charges and credits for the current Relevant Period. Qualified Customers are responsible for all charges of their TOU tariff. Each month, Allocated Credits, in kWh are subtracted from the Benefitting Account’s metered usage in kWh during each TOU block. Allocated Debits, in kWh are added to the Benefitting Account’s metered usage in kWh during each TOU block. Allocated Debits for fixed charges of the associated Generating Account are added to the fixed charges of the Benefiting Accounts. The bill may therefore reflect either a charge or a credit for energy (kWh).
f. Bill Payment – Qualified Customers are required to pay their bill on a monthly basis. Bill payments made by the Qualified Customer within the Relevant Period will continue to be applied to the Qualified Customer’s account. Excess energy credits are converted to dollars in accordance with the Net Compensation Tariff and carried forward to the following billing period. For Benefitting Accounts with a net negative bill, MVU will issue checks annually in November for the net negative balance.

5. Interruption or Reduction of Deliveries
672
a. MVU shall not be obligated to accept, and MVU may require Qualified Customer to interrupt or reduce, deliveries of energy to MVU: (a) when necessary in order to construct, install, maintain, repair, replace, remove, investigate, or inspect any of MVU’s equipment or part of the MVU system; or (b) if MVU determines that curtailment, interruption, or reduction of receipt of energy from the Eligible Facility is necessary because of emergencies, forced outages, force majeure, or compliance with prudent electrical practices.
b. Notwithstanding any other provision, if at any time MVU, in its sole discretion, determines that either (a) the Eligible Facility may endanger MVU personnel or members of the general public, or (b) the continued operation of the Eligible Facility may impair the integrity of MVU’s electric distribution system, MVU shall have the right to disconnect the Eligible Facility from MVU’s electric distribution system. Qualified Customer’s Eligible Facility shall remain disconnected until such time as MVU is satisfied that the condition(s) referenced in (a) or (b) of this paragraph have been corrected, and MVU shall not be obligated to compensate Qualified Customer for any loss of use of generation or energy during any and all periods of such disconnection.

6. Indemnity and Liability by Qualified Customer
a. Qualified Customer shall indemnify and hold MVU, its directors, officers, agents and employees harmless against all loss, damages expense and liability to third persons for injury to or death of persons or injury to property caused by the Qualified Customer’s engineering design, construction, installation, ownership, maintenance or operations of the Eligible Facility by reason of omission or negligence, whether active or passive. Qualified Customer shall, on MVU’s request, defend any suit asserting a claim covered by this indemnity. Qualified Customer shall pay all costs that may be incurred by MVU in enforcing this indemnity.
b. Neither MVU, its officers, agents nor employees shall be liable for any claims, demands, costs, losses, causes of action, or any other construction, ownership, maintenance or operation of, or making of replacements, additions or betterment to, Qualified Customer's Eligible Facility except to the extent actually caused by the sole and gross negligence of the MVU.
c. Neither MVU, its officers, agents nor employees shall be liable for damages of any kind to the Eligible Facility caused by any electrical disturbance of the MVU system or on the system of another, whether or not the electrical disturbance results from the negligence of MVU. d. MVU shall have the right to require that Customer acquire and maintain 673
insurance sufficient to cover any potential loss, damages, expense, and liability arising from use or interconnection of the Facility.

7. Release of Information – The Owner or Operator agrees that MVU may from time to time release to the CEC and/or any other applicable regulatory bodies information regarding the Owner / Operator’s name, each Eligible Generator’s location, their capacity and operating characteristics.

8. Period of Eligibility – Unless otherwise specified, the provisions of this tariff shall remain in effect for 20 years from the date Qualified Customers receive service under this tariff. The transfer of an existing Eligible Facility to a new location is considered a new installation and subject to a new interconnection process under this tariff. Modifications or repairs to the Eligible Facility that increase the Eligible Facility’s generating capacity or electric output by 10% or more will result in a loss of eligibility. This tariff or Qualified Customer eligibility may be discontinued or modified if required by applicable law, regulation utility practices, or MVU’s electric system standards. Unless otherwise specified, Qualified Customers will be required to comply with the terms of the most recent applicable tariff while receiving service under this tariff.
674
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 1

City of Moreno Valley
Electric Service Rules, Fees and Charges
675
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 2 ELECTRIC RULE 1—ADOPTION OF ELECTRIC RULES AND DEFINITIONS .............................. 3 ELECTRIC RULE 2—DESCRIPTION OF SERVICE ....................................................................... 7 ELECTRIC RULE 3—APPLICATION FOR SERVICE .................................................................... 19 ELECTRIC RULE 4—CONTRACTS .............................................................................................. 22 ELECTRIC RULE 5—SPECIAL INFORMATION REQUIRED ON FORMS ................................... 23 ELECTRIC RULE 6—ESTABLISHMENT AND RE-ESTABLISHMENT OF CREDIT ..................... 24 ELECTRIC RULE 7—DEPOSITS .................................................................................................. 25 ELECTRIC RULE 8—NOTICES ..................................................................................................... 27 ELECTRIC RULE 9—RENDERING AND PAYMENT OF BILLS ................................................... 29 ELECTRIC RULE 10—DISPUTED BILLS ...................................................................................... 32 ELECTRIC RULE 11—DISCONTINUANCE AND RESTORATION OF SERVICE ........................ 34 ELECTRIC RULE 12—RATES AND OPTIONAL RATES .............................................................. 38 ELECTRIC RULE 13—TEMPORARY SERVICE ........................................................................... 39 ELECTRIC RULE 14—SHORTAGE OF SUPPLY AND INTERRUPTION OF DELIVERY ............ 40 ELECTRIC RULE 15—DISTRIBUTION LINE EXTENSIONS ........................................................ 41 ELECTRIC RULE 16—SERVICE EXTENSIONS ........................................................................... 46 ELECTRIC RULE 17—METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR . 56 ELECTRIC RULE 17.1– ADJUSTMENTS OF BILLING ERROR ................................................... 58 ELECTRIC RULE 17.2— ADJUSTMENT OF BILLS FOR UNAUTHORIZED USE ....................... 59 ELECTRIC RULE 21— GENERATING FACILITY INTERCONNECTIONS ................................... 62 CHART OF CHARGES AND FEES................................................................................................ 99 PLAN CHECKING and INSPECTION/TESTING FEES ............................................................... 101 Electric Rules, Fees and Charges - Table of Contents
676
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 3 ELECTRIC RULE 1—ADOPTION OF ELECTRIC RULES AND DEFINITIONS These Electric Rules established by the City of Moreno Valley (“City”) and approved by the City Council are effective throughout the service area of the City of Moreno Valley’s Electric Utility.

All rules are subject to change. Copies of the rules currently in effect will be kept in the offices of the Electric Utility Division, Department of Public Works. Customers or others contemplating any expenditures or activities governed by these rules should assure themselves that they have the current version by contacting the Electric Utility Division. A copy of the current rates is also available on the City’s website – www.moval.org.

For the purpose of these rules, the following terms shall have the following meanings:

Applicant: A person, persons, firm, association, governmental agency, corporation or other entity that submits a request for electric service from the Utility and who will be responsible for all related charges.

Billing Demand: The load or demand used for computing charges under rate schedules based on the size of the Customer's load or demand. It may be connected load, the measured maximum demand, or a modification of either as provided for by the applicable rate schedule.

Billing Period: The time interval between two consecutive meter readings that are taken for billing purposes.

California Independent System Operator (CAISO): The California Independent System Operator Corporation, a nonprofit corporation that controls the transmission facilities of all participating transmission owners and dispatches certain generating units and loads. The CAISO is responsible for operation and control of the statewide transmission grid.

City Council: The City Council of the City of Moreno Valley, designated as the governing body of the Utility.

Commission: The Public Utilities Commission of the State of California, sometimes referred to as the Public Utilities Commission or the CPUC.

Connected Load: The sum of the nameplate-rated capacities of all of the Customer's equipment that can be connected to the Utility's lines at any one time as more completely described in the rate schedules.

Customer: The person, persons, firm, association, governmental agency, corporation or other concern that use, are entitled to use, or benefit from the use of electricity from the Utility.

Customer’s Mailing Address(es): The physical and/or electronic mailing (e-mail) address specified in a customer’s application or contract, or any other address subsequently given to the Utility by the Customer, to which any bill, notice or other communication is to be sent. 677
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 4 Customer Services: The Utility’s staff assigned to handle Customer requests and establish new service.

Date of Presentation: The date upon which a bill or notice is sent or delivered by the Utility to the Customer via U.S. Mail or electronic mail (e-mail).

Distribution Line Extension: New distribution facilities of the Utility that are a continuation of, or branch from, the nearest available existing permanent Distribution Line (including any facility rearrangements and relocations necessary to accommodate the Distribution Line Extension) to the point of connection of the last service. SCE’s Distribution Line Extension includes transmission underbuilds and converting an existing single-phase line to three-phase in order to furnish threephase service to an Applicant, but excludes service transformers, meters and services.

Distribution Lines: Overhead pole lines and underground facilities consisting of conduit, wire and cable that are operated at distribution voltages, and which are designed to supply two (2) or more services.

Distribution System: Those distribution facilities owned, controlled, and operated by the Utility that are used to provide distribution service under the rules.

Electric Rules: Sheets which set forth the application of all rates, charges, and service when such applicability is not set forth in and as part of the rate schedules Electric Vehicle: An electric vehicle is any vehicle that utilizes electricity from external sources of electrical power, including the grid, for all or part of vehicles, vessels, trains, boats, or other equipment (e.g. aircraft, forklifts, port equipment) that are mobile sources of air pollution and greenhouse gasses. Types of electric vehicles include, but are not limited to, plug-in hybrid electric vehicles (PHEV), battery electric vehicles (BEV), electric golf carts, or neighborhood electric vehicles (NEV), transit buses, short-haul fleets and ground equipment supporting goods movement.

Electronic Record: A record created, generated, sent, communicated received, or stored by electronic means.

Electronic Signature: An electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.

Electronic Transfer: Paperless exchange of data and/or funds, usually involving computer and telecommunication technology.

Energy Diversion: Electricity being received by a Customer without registering through the meter due to either tampering with the meter or bypassing the meter.

HP: Horsepower.
678
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 6 kVAR: Kilovar.
kVARh: Kilovar-hour.
kW: Kilowatt.
kWh: Kilowatt-hour.

Mailed: Any notice or other communication will be considered “mailed” when sent by electronic means (e-mail) or when it is enclosed in a sealed envelope, properly addressed, and deposited in any U.S. Post Office box, postage prepaid.

Maximum Demand: The average kilowatts during the specified interval when the Customer’s use is greatest in the billing period as indicated or recorded by the meter.

Meter: The instrument used for measuring the electricity delivered to the Customer.

Metering Facilities: The necessary meter, instrument transformers, test facilities, data communication equipment, and other associated metering equipment.

Nominal Voltage: The nominal voltage of a circuit is the approximate voltage between conductors in a circuit or system of a given class, assigned for the purpose of convenient designation. For any specific nominal voltage, the operating voltage actually existing at different points and times on the system will vary.

On-Site Facilities: On-site facilities include the facilities located on the Premises as well as those in adjacent rights-of-way, easements and a proportionate share of any facilities on adjacent property used to provide service to the Premises.

Paid or Payment: Funds received by the Utility through postal service, the Utility payment office, or deposited in a Utility account by Electronic Transfer.

Person: Any individual, partnership, corporation, public agency or other organization operating as a single entity.

Point of Delivery: The point where conductors of the Utility are connected to the conductors of the Customer, regardless of the location of the Utility’s meters or transformers. The Utility conductors may be owned, leased, or under license by the Utility, and conductors of the Customer may be owned, leased or under license by the Customer.

Premises: All real property, buildings, and appurtenances upon an integral parcel of land undivided by a street, highway or other public thoroughfare.

Rate Schedule: May be one or more rate sheets setting forth the charges and conditions for a particular class or type of service in a given area or location. A rate schedule, as referred to herein, shall include all the wording on the applicable rate sheet or sheets, such as, but not limited to the 679
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 7

following: Class of Service, Character or Applicability, Territory, Rates, Conditions, and reference to Rules.

Service Wires or Connection: The group of conductors connecting the service entrance conductors of the Customer to the Utility's supply line, regardless of the location of the Utility's meters or transformers.

Service Extension: The overhead and underground primary or secondary facilities (including, but not limited to the Utility-owned service facilities and Applicant-owned service facilities) extending from the point of connection at the Distribution Line to the Point of Delivery.

Utility: The City of Moreno Valley Electric Utility.
680
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 8 ELECTRIC RULE 2—DESCRIPTION OF SERVICE
A. GENERAL

1. The type of service available at any particular location should be determined by inquiry at the Utility’s local office.

2. Alternating-current service will be regularly supplied at a frequency of approximately 60 Hertz (cycles per second).

3. In areas where a certain standard secondary voltage is presently being served to one or more Customers, an Applicant applying for new service in such areas may be required by the Utility to receive the same standard voltage supplied to existing Customers.

4. All electric service described in this rule is subject to the conditions in the applicable Rate Schedule and other pertinent rules.

5. It is the responsibility of the Applicant to ascertain and comply with the requirements of all governmental authorities having jurisdiction.

6. Service to a premise is normally established at one delivery point, through one meter, and at one voltage class. Other arrangements for service at multiple service delivery points, or for services at more than one voltage class, are permitted only where feasible and with the approval of the Utility. For purposes of this rule, distribution service voltage classes, delta or wye connected, are described as:
a. 12,000 volt nominal, three phase (3Ø) and lower
b. 6,930 volt nominal, single-phase, (1Ø) and lower
681
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 9 B. SERVICE DELIVERY VOLTAGES

1. Following are the standard service voltages normally available, although not all of them are or can be made available at each Point of Delivery:

Distribution Voltages
Single-phase
Secondary
Three-phase
Secondary Three-phase Primary
120/240, 3-wire 240/120, 4-wire 12,000, 3-wire
120/208, 3-wire* 480/277, 4-wire 2400, 3 wire*
208Y/120, 4-wire 4,160, 3-wire*
4,160Y/2,400, 4-wire*
12,000Y/6,930, 4-wire*
*Limited Availability.

2. All voltages referred to in this rule and appearing in some rate schedules are nominal service voltages at the Point of Delivery. The Utility’s facilities are designed and operated to provide sustained service voltage at the Point of Delivery, but the voltage at a particular Point of Delivery, at a particular time, will vary within fully satisfactory operating range limits established in Section C.

3. The Point of Delivery and point of metering will normally be at the same voltage and within close proximity to each other. When the Utility determines it is not feasible for the Point of Delivery and point of metering to be at the same voltage and within close proximity to each other, the demand and energy meter readings used in determining the charges will be adjusted to correct for transformation and line losses. 682
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 10 C. VOLTAGE AND FREQUENCY CONTROL

1. CUSTOMER SERVICE VOLTAGES
a. Under all normal load conditions, the Utility’s distribution circuits will be operated so as to maintain secondary service voltage levels to Customers within the service voltage ranges specified below:

Nominal Two-Wire
and Multi-Wire
Service Voltage
Minimum Voltage to
All Services
Maximum Service
Voltage on All
Services
120 114 126
208 197 218
240 228 252
277 263 291
480 456 504
The Utility’s distribution voltage will be regulated to the extent practicable to maintain service voltage on distribution circuits within the minimum and maximum voltages specified above.
b. Exceptions to Voltage Limits. Voltage may be outside the limits specified when the variations:
1) Arise from the temporary action of the elements.
2) Are infrequent momentary fluctuations of a short duration 3) Arise from service interruptions.
4) Arise from temporary separation of parts of the system from the main system. 5) Are from causes beyond the control of the Utility, and which may be sustained duration.
c. Where the operation of the Applicant’s equipment requires unusually stable voltage regulation or other stringent voltage control beyond that supplied by the Utility in the normal operation of its system, the Applicant, at his own expense, is responsible for installing, owning, operating, and maintaining any special or auxiliary equipment on the load side of the service delivery point as deemed necessary by the Applicant.
d. The Applicant shall be responsible for designing and operating his service facilities between the Point of Delivery and the utilization equipment to maintain proper utilization voltage at the line terminals of the utilization equipment. 683
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 11

2. CUSTOMER UTILIZATION VOLTAGES
a. All Customer-owned utilization equipment must be designed and rated in accordance with the following utilization voltages specified by the American National Standard Institute C84.1 if Customer equipment is to give fully satisfactory performance:

Nominal Utilization
Voltage
Minimum Utilization
Voltage
Maximum
Utilization Voltage
120 110 125
208 191 216
240 220 250
277 254 289
480 440 500
Minimum utilization voltages from ANSI C84.1 are shown for Customer information only as the Utility has no control over voltage drop in Customer’s wiring.
684
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 12 D. GENERAL LOAD LIMITATIONS

1. SINGLE-PHASE SERVICE
Single-phase service normally will be three-wire, 120/240 volts where the size of any single motor does not exceed 7.5 horsepower (10 horsepower at the option of the Utility). For any single-phase service, the maximum demand as determined by the Utility is limited to the capability of a 100-kVA transformer and 400 amp main disconnect unless otherwise approved by the Utility. If the load requires a transformer installation in excess of 100 kVA, the standard service will be three-phase.

2. THREE-PHASE SERVICE (LESS THAN 600 VOLTS)
a. Secondary service from underground primary distribution systems (where the Utility maintains existing 3-phase primary circuits):

Nominal Voltage Minimum Load Maximum
Demand
208Y/120, 4-wire Demand load justifies a 75
kVA transformer
1,500 kVA
480Y/277, 4-wire Demand load justifies a 75
kVA transformer
3,000 kVA
b. Where three-phase service is supplied, the Utility reserves the right to use singlephase transformers connected open-delta or closed-delta, or three-phase transformers.
c. Three-phase service will be supplied on request for installations aggregating less than the minimums listed above where existing transformer capacity is available and approved by the Utility.
d. Three-phase metering for one service voltage supplied to installations on one premise at one delivery location normally is limited to a maximum of a 4,000 ampere service rating. Metering for larger installations, or installations having two (2) or more service switches with a combined rating in excess of 4,000 amperes, or service for loads in excess of the maximum demand load permitted, may be installed provided approval of the Utility has been first obtained as to the number, size, and location of switches, circuits, transformers and related facilities. Service supplied to such approved installations in excess of one 4,000 ampere switch or breaker at one service delivery point may be totalized for billing purposes.
685
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 13

3. THREE-PHASE SERVICE (OVER 600 VOLTS)
a. The following are three-phase voltages that may be transformed from higher existing primary distribution voltages and provided only as isolated services for a single Applicant where the Applicant’s demand load justifies, as determined by the Utility, the installation of the minimum size transformer bank used by the Utility:

Nominal Voltage Minimum Size
Bank Installed
Maximum Demand
Load Permitted
4,160* 500 kVA 5,000 kVA
12,000 500 kVA 12,000 kVA
*Limited Availability.
b. For its operating convenience and necessity, the Utility may elect to supply an Applicant whose demand load is in excess of 2,000 kVA from a substation on the Applicant’s Premises supplied from a transmission source. c. City reserves the right to change its distribution or transmission voltage to another standard service voltage when, in its judgment, it is necessary or advisable for economic reasons or for proper service to its Customers. Where a Customer is receiving service at the voltage being changed, the Customer then has the option to:
(1) accept service at the new voltage,
(2) accept service at the secondary side of an additional stage of transformation to be supplied by the Utility at a location on the Customer’s Premises in accordance with the Utility’s requirements, or
(3) contract with the Utility for an additional stage of transformation to be installed as Special Facilities (including any fees as determined by the Utility) under the provisions of Section I, below, whereby the Customer will be considered as accepting service at the primary side of the additional stage of transformation. Metering not relocated to the primary side of the additional stage of transformation will be subject to a transformer loss adjustment as determined by the Utility.

The option to contract with the Utility for an additional stage of transformation (option 3, above) is available only once in conjunction with a change in standard voltage by the Utility.
686
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 14

4. LOAD BALANCE
The Applicant must balance his demand load as nearly as practicable between the two sides of a three-wire single-phase service and between all phases of a three-phase service. Loads on three-phase service must be balanced between phases in accordance with good engineering practice.

E. PROTECTIVE DEVICES

1. It shall be the Applicant’s responsibility to furnish, install, inspect and keep in good and safe condition at his own risk and expense, all appropriate protective devices of any kind or character, which may be required to properly protect the Applicant’s facilities. The Utility shall not be responsible for any loss or damage occasioned or caused by the negligence, or wrongful act of the Applicant or of any of its agents, employees or licensees in omitting, installing, maintaining, using, operating or interfering with any such protective devices.

2. It shall be the Applicant’s responsibility to select and install such protective devices as may be necessary to coordinate properly with the Utility’s protective devices to avoid exposing other Customers to unnecessary service interruptions.

3. It shall be the Applicant’s responsibility to equip their three-phase motor installations with appropriate protective devices, or use motors with inherent features, to completely disconnect each such motor from its power supply, in accordance with the National Electrical Code, giving particular consideration to the following:
a. Protection in each set of phase conductors to prevent damage due to overheating in the event of overload.
b. Protection to prevent automatic restarting of motors or motor driven machinery, which has been, subjected to a service interruption and, because of the nature of the machinery itself or the product it handles, cannot safely resume operation automatically.
c. Open-phase protection to prevent damage due to overheating in the event of loss of voltage on one phase.
d. Reverse-phase protection where appropriate to prevent uncontrolled reversal of motor rotation in the event of accidental phase reversal. (Appropriate installations would include, but are not limited to, motors driving elevators, hoists, tramways, cranes, pumps, conveyors, etc.)

4. The available short-circuit currents vary from one location to another, and also depends on available generation, condition of the system loads, and the ultimate design characteristics of the Utility’s supply and service facilities. Consult the Utility for the ultimate maximum short-circuit current at each service termination point. 687
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 15

5. Where an Applicant proposes to use a ground-fault sensing protective system which would require special Utility-owned equipment, such a system may be installed only where feasible and with written approval of the Utility.

6. Any non-Utility-owned emergency standby or other generation equipment that can be operated to supply power to facilities that are also designed to be supplied from the Utility’s system shall be controlled with suitable protective devices by the Applicant to prevent parallel operation with the Utility’s system in a fail-safe manner, such as the use of a double-throw transfer switch to disconnect all conductors, except where there is a written agreement or service contract with the Utility permitting such parallel operation.

F. INTERFERENCE WITH SERVICE

1. GENERAL
The Utility reserves the right to refuse to serve new loads or to discontinue supply to existing loads of a size or character that may be detrimental to the Utility’s operations or to the service of its Customers. Any Customer who operates or plans to operate any equipment such as, but not limited to, pumps, welders, saw mill apparatus, furnaces, compressors or other equipment where the use of electricity is intermittent, causes intolerable voltage fluctuations, or otherwise causes intolerable service interference, must reasonably limit such interference or restrict the use of such equipment upon request by the Utility. The Customer is required either to provide and pay for whatever corrective measures are necessary to limit the interference to a level established by the Utility as reasonable, or avoid the use of such equipment, whether or not the equipment has previously caused interference.

2. HARMFUL WAVE FORM
Customer shall not operate equipment that superimposes a current of any frequency or waveform upon the Utility’s system, or draws current from the Utility’s system at a harmful waveform, which causes interference with the Utility’s operations, or the service to other Customers, or inductive interference to communication facilities.

3. CUSTOMER’S RESPONSIBILITY
Any Customer causing service interference to others must diligently pursue and take corrective action after being given notice and a reasonable time to do so by the Utility.

If the Customer does not take corrective action in the time set, or continues to operate the equipment causing the interference without restriction or limit, the Utility may, without liability, after giving five (5) days written notice to Customer, either install and activate control devices on its facilities that will temporarily prevent the detrimental operation, or discontinue electric service until a suitable permanent solution is provided by the Customer and it is operational.

4. MOTOR STARTING CURRENT LIMITATIONS
688
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 16 a. The starting of motors shall be controlled by the Customer as necessary to avoid causing voltage fluctuations that will be detrimental to the operation of the Utility’s distribution or transmission system, or to the service of any of the Utility’s Customers.

Nominal Voltage and
Phase
Maximum Rated Motor Size
120V 1Ø 1 HP
208V 1Ø 7.5 HP
240V 1Ø 7.5 HP
208V 3Ø 40 HP
240V 3Ø 40 HP
480V 3Ø 75 HP
For motors rated over 75 HP the Customer needs to consult with the Utility. b. If the starting current for a single motor installation exceeds the value listed for Class C or better (per National Electrical Code Section 430) and the resulting voltage disturbance causes or is expected to cause detrimental service to others, reduced voltage starters or other suitable means must be employed, at the Customer’s expense, to limit the voltage fluctuations to a level equivalent to a Class C motor.
c. Where service conditions permit, subject to the Utility’s approval, motor starters may be deferred in the original installation. The Utility may later order the installation of a suitable starter or other devices when it has been determined that the operation of the Customer’s motors interfere with service to others. Also, the Utility may require starting current values lower than those set forth herein where conditions at any point on its system require such reduction to avoid interference with service to other Customers.
d. Starters may be omitted on the smaller motors of a group installation when their omission will not result in a starting current in excess of the allowable starting current of the largest motor of the group. Where motors start simultaneously, they will be treated as a single unit equal to the sum of their individual starting currents. e. The Utility may limit the maximum size and type of any motor that may be operated at any specific location on its system to that which will not be detrimental to the Utility’s system operations or to the service of its Customers, as determined by the Utility.
f. For installations of motors where the equipment is started automatically by means of float, pressure, or thermostat devices, such as with pumps or wind machines for frost protection, irrigation pumps or other similar installations, the Utility may require the Customer to install, at his own expense and in accordance with the Utility’s operating requirements, suitable preset time-delay devices to stagger the 689
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 17 automatic connection of load to the supply system and to prevent simultaneous start-up for any reason.

G. POWER FACTOR
The Utility may require the Customer to provide, at their own expense, equipment to increase the operating power factor of their equipment, as seen at the Point of Delivery, to not less than 90%, lagging or leading.

I. SPECIAL FACILITIES

1. The Utility normally installs only those standard facilities, which it deems are necessary to provide regular service in accordance with the Electric Rules. Where the Applicant requests the Utility to install Special Facilities and the Utility agrees to make such an installation, the additional costs thereof shall be borne by the Applicant, including such continuing ownership costs as may be applicable.

2. Special Facilities are: (a) facilities requested by an Applicant which are in addition to or in substitution for standard facilities which the Utility would normally provide for delivery of service at one point, through one meter, at one voltage class under its Electric Rules, or (b) a pro rata portion of the facilities requested by an Applicant, allocated for the sole use of such Applicant, which would not normally be allocated for such sole use. Unless otherwise provided by the Utility’s rate schedules, Special Facilities will be installed, owned and maintained by the Utility as an accommodation to the Applicant only if acceptable for operation by the Utility, and the reliability of service to the Utility’s other Customers is not impaired and Applicant funds construction and pays incremental costs.

3. Special Facilities will be installed under the terms and conditions of a contract in the form on file with the Utility. Such contract will include, but is not limited to, the following terms and conditions:
a. Where new facilities are to be installed for Applicant’s use as Special Facilities, the Applicant shall advance to the Utility the estimated additional installed cost of the Special Facilities over the estimated cost of standard facilities. At the Utility’s option, the Utility may finance the new facilities.

J. WELDER SERVICE

1. RATING OF WELDERS
Electric welders will be rated for billing purposes as follows:
a. MOTOR-GENERATOR ARC WELDERS - The horsepower rating of the motor driving a motor-generating type arc welder will be taken as the horsepower rating of the welder.
690
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 18 b. TRANSFORMER ARC WELDERS - Nameplate maximum kVA input (at rated output amperes) will be taken as the rating of transformer type arc welders. c. RESISTANCE WELDERS - Resistance welder ratings will be determined by multiplying the welder transformer nameplate rating (at 50 percent duty cycle) by the appropriate factor listed below:

TYPE OF WELDER

TRANSFORMER

NAMEPLATE
RATING @ 50% Duty
Cycle**
FACTOR Utility
Owned
Distribution
Transformer

1. Rocker Arm, Press
or Projection Spot 20 kVA or less 0.60

2. Rocker Arm, Press
Spot Project Spot
Flash or Butt Seam
or Portable Gun
Over 20 kVA
21 to 75 kVA, inclusive
100 kVA or over
All sizes

0.80 3. Flash or Butt 67 to 100 kVA, inclusive ***

4. Projection Spot
Flash or Butt
Over 75 kVA
66 kVA or less 1.20
** The kVA rating of all resistance welders to which these rating procedures are applied must be at or equivalent to 50 percent duty cycle operation. Duty cycle is the percent of the time welding current flows during a given operating cycle. If the operating kVA nameplate rating is for some other operating duty cycle, then the thermally equivalent kVA rating at 50 percent duty cycle must be calculated.
*** Each flash or butt welder in this group will be rated at 80 kVA. d. Ratings prescribed by a, b, and c above normally will be determined from nameplate data or from data supplied by the manufacturer. If such data are not available or are believed by either the Utility or Customer to be unreliable, the rating will be determined by test at the expense of the Customer. e. If established by seals approved by the Utility, the welder rating may be limited by the sealing of taps, which provide capacity greater than the selected tap, and/or by the interlocking lockout of one or more welders with other welders. f. When conversion of units is required for rate application, one welder kVA will be taken as one horsepower for rules stated on a horsepower basis and one welder kVA will be taken as one kilowatt for rates stated on a kilowatt basis.

2. BILLING OF WELDERS
Welders will be billed at the regular rates and conditions of the rules on which they are served, subject to the following provisions:
a. CONNECTED LOAD TYPE OF SCHEDULE. Welder load will be included as part of the connected load with ratings as determined under Section 1, above, 691
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 19 based on the maximum load that can be connected at any one time, and no allowance will be made for diversity between welders.
b. DEMAND METERED TYPE OF SCHEDULE. Where resistance welders are served on these schedules, the computation of diversified resistance welder load shall be made as follows:

Multiply the individual resistance welder ratings, as prescribed in Sections 1.c. to

1.f. inclusive (above) by the following factors, and add to the results thus obtained:

1.0 times the rating of the largest welder

0.8 times the rating of the next largest welder

0.6 times the rating of the next largest welder

0.4 times the rating of the next largest welder

0.2 times the ratings of all additional welders
If this computed, diversified, resistance welder load is greater than the metered demand, the diversified resistance welder load will be used in lieu of the metered demand for rate computation purposes.

K. RESALE, SUBMETERING, AND REDISTRIBUTION
Electric service provided by Moreno Valley Utility (MVU) is strictly for the sole and exclusive use of the customer associated with the MVU account for a specific service location. The following activities are expressly prohibited:

1. Resale of Power: Customers may not resell electric power obtained from MVU to any other person, business, unit, or entity under any circumstances.

2. Submetering: Customers are prohibited from installing or operating submeters to allocate or charge for electricity usage among occupants, tenants, or units.

Violation of this rule constitutes a breach of MVU’s service terms and may result in immediate disconnection of service.
692
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 20 ELECTRIC RULE 3—APPLICATION FOR SERVICE
B. APPLICATIONS
The Utility may require each Customer to sign an application for the service desired, and also to establish credit. Generally, applications for service will be taken over the telephone, but may be taken in person or received by U.S. mail or e-mail.

Application form shall set forth:

1. Legal name of Applicant.

2. Date of application

3. Location of Premises to be served.

4. Date Applicant will be ready for service.
a. Service restoration: When the Customer’s service has been terminated either because of a determination by the Utility that an unsafe apparatus or condition exists on the Premises, or because the Customer has threatened to create a hazardous condition, service will not be restored until the Utility determines the Customer’s electrical wiring or equipment or the use of either, has been made safe. When service is denied or terminated solely under these sections, the Customer may seek remedies before the City Council.
b. When the Customer’s service has been terminated because of an order of termination issued to the Utility by a governmental agency, service will not be restored until the Utility has received authorization to restore the service from the appropriate governmental agency.

5. Whether electric service was previously supplied to the Premises.

6. Purpose for which service is to be used, with description of appliances.

7. Customer’s Mailing Address to which bills are to be sent, e-mailed or delivered.

8. Whether Applicant is owner, agent, or tenant of Premises.

9. Rate schedule desired where an optional rate is available.

10. Information to establish credit-worthiness of the applicant. (see Rule 6)

11. Information necessary to the design, installation, maintenance, and operation of the Utility’s facilities.

12. Such other information as the Utility may reasonably require for service. 693
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 21 The application is merely a request for service, and does not in itself bind the Utility to serve except under reasonable conditions, nor does it bind the Customer to take service for a longer period than the minimum requirements of the rate. The Utility may disconnect or refuse to provide service to the Applicant if the acts of the Applicant or the conditions upon the Premises indicate that false, incomplete, or inaccurate information was provided to the Utility. The Utility shall provide the Applicant the reason for such refusal.

C. INDIVIDUAL LIABILITY FOR JOINT SERVICE
Where two or more persons join in one application or contract for service, they shall be jointly and severally liable thereunder and shall be billed by means of a single periodic bill sent to the person designated on the application to receive the bill. Whether or not the Utility obtained a joint application, where two (2) or more adults occupy the same premises, they shall be jointly and severally liable for bills for energy supplied.

D. CHANGE OF CUSTOMER’S APPARATUS OR EQUIPMENT
In the event that the Customer shall make any material change either in the amount or character of the loads, protective equipment, or characteristic apparatus changes (reactive vs. inductive loads) installed upon the Premises to be supplied with electric energy by the Utility, the Customer shall immediately give the Utility written notice of this fact.

E. E-MAIL AS MEANS OF CUSTOMER CONTACT
When a Customer provides an e-mail address to the Utility as a means of contact, the Utility may use such e-mail address to communicate with the Customer, absent instructions to the contrary.

F. PHONE AS MEANS OF CUSTOMER CONTACT
When a Customer provides a phone number to the Utility, the Utility may use such phone number to communicate with the Customer, absent instructions to the contrary. The Customer of record is presumed to be an authorized user of such phone number. By providing a mobile number, absent instructions to the contrary, the Customer expressly consents to receiving calls or text messages (texts) from the Utility to such mobile number, including an automatic dialing system and/or an artificial voice or prerecorded message, for:
a. Emergency Purposes
This includes without limitation calls or tests providing notice of and status updates on planned and unplanned outages, calls or texts providing 24 or 48 hour notice of credit or non-credit related service disconnections, and other types of calls or texts made necessary in any situation affecting the health and safety of consumers; and b. Informational Purposes
694
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 22 This includes without limitation calls or texts regarding credit or non-credit related service disconnections outside the 24 or 48 hour emergency window, non-emergency outage related calls or texts, calls or texts providing information on new rates, rate changes or available rate options, service related account matters, or income-qualified programs and services, and surveys for Customer opinion research purposes. c. Opt-out
The Utility will honor requests to opt-out of receiving calls or texts from the Utility at such mobile number, except under certain emergency circumstances (at the Utility’s discretion) or as otherwise authorized under the Utility’s Electric Rules. 695
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 23 ELECTRIC RULE 4—CONTRACTS
Contracts will not be required as a condition precedent for service except:

1. As may be required by conditions set forth in the regular schedule of rates approved or accepted by the Utility.

2. In the case of electric extensions, temporary service, or service to speculative projects, in which case a contract may be required.

3. Where a person, whether or not a Customer, desires to have the Utility modify, rearrange, relocate, or remove any of its facilities, the Utility, if it agrees to make such changes, may require the person at whose request the changes are made, to agree to pay in advance or otherwise, the cost to the Utility of making the changes. 696
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 24 ELECTRIC RULE 5—SPECIAL INFORMATION REQUIRED ON FORMS
A. CONTRACTS
Each contract for electric service will contain the following provisions: “This contract shall at all times be subject to such changes or modification by the City Council as may, from time to time, direct in the exercise of its jurisdiction.” B. CUSTOMERS’ BILLS
Each bill for electric service will include the following statements: “This bill is now due and payable. Customers who believe their utility bill is in error must first contact Customer Services by telephone, in writing, or in person within 30 days from the bill date and initiate a complaint or request an investigation concerning the bill. Utility services will not be discontinued for nonpayment of a disputed bill pending the outcome of a timely filed investigation. The City may require that an amount equal to an average bill for a comparable period of time be deposited with Moreno Valley Utility pending outcome of the investigation. Failure to make the deposit if requested when due shall constitute abandonment of the complaint or request for investigation. Subsequent utility bills, which are not disputed, must be paid within the time allowed to avoid discontinuance of service in accordance with Rule 9 and Rule 11. If, after contact with the Customer Services, the Customer believes the bill is still incorrect, the Customer may, within 10 days from the date of determination, contact the Manager of Customer Service by phone or submit a written statement regarding the billing dispute to the Manager of Customer Service, Moreno Valley Utility, 14331 Frederick Street., Suite 2, Moreno Valley, CA 92553. The Manager of Customer Service will conduct an investigation of the dispute and send his or her determination in writing to the Customer.” See Rule 10.

C. DISCONTINUANCE OF SERVICE NOTICE
Each Discontinuance of Service Notice for nonpayment of bills will include the following information:

1. The name and address of the Customer whose account is delinquent.

2. The amount of the delinquency.

3. The date by which payment (or arrangements for payment) is required, or the date by which the dispute must be documented in order to avoid termination.

4. The procedure by which the Customer may initiate a complaint or request an investigation concerning service or charges as defined herein.

5. The telephone number of a representative of the Utility who can provide additional information or institute arrangements for payment.

6. The telephone number to which inquiries by the Customer may be directed. 697
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 25 ELECTRIC RULE 6—ESTABLISHMENT AND RE-ESTABLISHMENT OF CREDIT An Applicant for Utility service may be required to establish credit. A Customer whose Utility service has been terminated for nonpayment of an energy bill or whose payments have been past due, as set forth below, may be required to re-establish credit.

A. ESTABLISHMENT OF CREDIT
When, for Applicant’s convenience, the Utility provides service to the Applicant before credit is established and the Applicant fails to establish credit in accordance with this rule, service may be terminated after notice is given in accordance with these regulations.

Credit can be established if the Applicant:
a. is the owner with a substantial equity, of value satisfactory to the Utility, in the Premises to be served; or
b. makes a deposit to secure payment of bills as prescribed in Electric Rule 7; or c. furnishes a qualified guarantor to secure payment of Applicant’s Utility bills; or d. has been a Customer of the Utility for a similar type of service within the past two years, and during the last twelve consecutive months of that prior service, Customer has had not more than two past due bills as defined in Rules 8 and 11.

The periodic bill for such previous service must equal at least 50 percent of the estimated bill amount(s) for the new service, and provided further, that the credit of Applicant is unimpaired in the opinion of the Utility; or e. otherwise establishes credit to the satisfaction of the Utility; and f. has paid all bills for nonresidential electric service previously supplied to Applicant by the Utility.

B. RE-ESTABLISHMENT OF CREDIT

1. An Applicant who previously has been a Customer of the Utility, and whose electric service has been discontinued by the Utility during the last twelve (12) months of that prior service because of nonpayment of bills, may be required to re-establish credit. a. A Customer who fails to pay bills before they become past due and who further fails to pay such bills within five days after presentation of a discontinuance of service notice for nonpayment of bills, may be required to pay said bills and reestablish credit by depositing the amount established by the Utility in accordance with Electric Rule 7. A deposit may be required regardless of whether or not service has been discontinued for such nonpayment.
698
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 26 ELECTRIC RULE 7—DEPOSITS
A. AMOUNT OF DEPOSIT

1. ESTABLISHMENT OF CREDIT
a. Residential accounts: The amount of deposit required to establish credit shall be twice the average monthly bill as estimated by the Utility. b. Nonresidential accounts: The amount of deposit required to establish credit shall be twice the maximum monthly bill as estimated by the Utility. c. Residential and nonresidential accounts: The amount of deposit taken to establish credit shall be subject to adjustment upon request by the Customer or upon review by the Utility.
d. Residential solar accounts are eligible for a special metering and billing option called Net Energy Metering (NEM). Under this billing option, each NEM Customer is billed monthly for their total bill but is not required to pay for the consumed energy until the end of each 12-month period. Therefore, if a deposit is required, the amount of the deposit taken to establish credit shall be the annual total billed amount plus twice the average monthly bill as estimated by the Utility.

2. RE-ESTABLISHMENT OF CREDIT
Should the Customer’s payment history with the Utility warrant it, the Utility may require the Customer to re-establish credit by paying a re-establishment deposit. The amount of deposit required to re-establish credit for residential and nonresidential accounts will be twice the maximum monthly bill as determined by City. For residential solar accounts, the amount will be the annual total billed amount plus twice the maximum monthly bill as determined by the Utility.

B. RETURN OF DEPOSIT

1. The Utility may refund a Customer’s deposit by draft or by applying the deposit to the Customer’s account. If the Customer establishes service at a new location, the Utility may retain the deposit for such new account, subject to the conditions of Sections B.3 and B.4 below.

2. Upon discontinuance of service, the Utility will refund the Customer’s deposit or the balance thereof that is in excess of unpaid bills for service furnished by the Utility.

3. When the Customer’s credit is otherwise established, the Utility will refund the deposit either upon the Customer’s request for return of the deposit or upon review by the Utility.
699
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 27

4. For residential and nonresidential accounts, the Utility will review the Customer’s account at the end of the first twelve- (12) months that the deposit is held and each month thereafter. After the Customer has not had more than two past due bills during the twelve (12) months prior to any such review and has not had service temporarily or permanently discontinued for nonpayment of bills during such period, the deposit will be refunded in accordance with this section. For residential solar accounts billed on Net Energy Metering (NEM), if a deposit is required to establish or re-establish credit on the account, the deposit shall be held on the account for the life of the account or until the Utility determines that a deposit is no longer required.

5. Deposits cannot be used to offset past due bills or to avoid or delay discontinuance of service.
700
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 28 ELECTRIC RULE 8—NOTICES
Any notice pursuant to the Utility’s rules may be given to the Customer in writing. Written notice is effective when it is either: (1) presented to the Customer, or (2) sent to the Customer via U.S.

Mail at the address where the Customer is receiving service, or (3) sent to the Customer via U.S.

Mail at the Customer’s Mailing Address provided by the Customer, (4) sent via electronic mail (email) to the Customer at the e-mail address on file, or (5) delivered by door hanger at the address where the Customer is receiving service. The Utility may also provide the Customer with verbal notice in person or by telephone. Any notice pursuant to the Utility’s rules from the Customer or the Customer’s authorized agent may be given to the Utility by telephone, in person, or in writing.

Verbal notice is acceptable unless written notice is requested by the Utility or required by the rules.

A. NOTICES OF TERMINATION OF SERVICE FOR NONPAYMENT
Monthly bills for residential service are due and payable upon presentation and will be considered past due if payment is not received by the Utility within fifteen (15) days after the bill is sent to the Customer. Deposit requests are due and payable when request for service is made. When a deposit is billed, it will be considered past due if payment is not received by the Utility within fifteen (15) days after the deposit request is sent. If the past due amount is not paid, service may be terminated for nonpayment in accordance with Electric Rule 11. A field notification charge may appear on your next bill if the Utility posts a collection notice at your Premises. If a termination order is processed for your account due to nonpayment, payment of the balance in full, plus a Collection Processing Fee and deposit may be required prior to restoration of service. The Collection Processing Fee may be charged whether or not electric service is actually terminated if the arrears balance is paid after the payment deadline has passed. Unpaid closing bills may be reported or forwarded to a credit reporting agency.

1. 10-DAY NOTICE
When a bill for service or deposit request has become past due, the Utility will send the Customer a notice that service may be terminated for nonpayment in 10 calendar days.

2. 48-HOUR NOTICE
When the past due balance on a 10-day notice is unpaid, the Utility will make a reasonable attempt to contact an adult residing at the service address either by telephone including calls or text messages to mobile phones or by e-mail, or in person at least 48 hours prior to terminating service.

3. NOTICE OF TERMINATION OF SERVICE FOR NONPAYMENT OF

PAYMENT ARRANGEMENT AGREEMENT
When the Utility and the Customer enter into a payment arrangement agreement and the Customer does not abide by the terms of the agreement, in whole or in part, the Utility will give the Customer at least 48 hours notice by telephone including calls or 701
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 29 text messages to mobile phones or by e-mail, or in person prior to terminating service for nonpayment.

B. NOTICES FOR UNPAID CLOSING BILLS
Closing bills are due and payable upon presentation and will be considered past due if payment is not received by the Utility within fifteen (15) days after the closing bill is sent to the Customer. When the Utility determines that the Customer has an open account for Utility service at one location and an unpaid closing bill in the Customer’s name for Utility service at another location, the Utility may transfer the unpaid closing bill to the open account, except that the unpaid closing bills for nonresidential service may not be transferred to a residential account. Before the Customer’s open account may be terminated for nonpayment of the closing bill, the Customer will be given notices in accordance with Section A of this Rule.
702
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 30 ELECTRIC RULE 9—RENDERING AND PAYMENT OF BILLS
A. BILLS PREPARED AT REGULAR INTERVALS
Bills for electric service will be rendered at regular intervals. All bills will be based on meter registration, except as provided in Section C below, or as may otherwise be provided in the Utility’s rules. Meters will be read as nearly as possible at regular intervals. Except as otherwise stated, the regular billing period will be once each month. Due to Sundays and holidays and other factors, it is not always possible to read meters on the same day of each month.

B. PRO RATA CORRECTION
Opening and closing bills rendered will be computed in accordance with the rate schedule applicable to that service, unless otherwise provided in this rule, or in the applicable rate schedule. The basic charge, Customer charge, the amount of energy blocks, demand blocks, etc., and the service charge, demand charge, or minimum charge will be prorated on the basis of the number of days in the period in question to the total number of days in the subject month. However, where daily equivalents are used, there will be no pro rata correction. Instead, the calculation shall use the number of days in the billing period multiplied by the daily equivalent charge.

When one or more regularly scheduled meter readings have been missed, the proration factor for the next regularly scheduled meter reading shall be 1.000 times the number of monthly billing cycles in the period. When an interim bill based on a special reading for a period other than 27 to 33 days has been issued during the interval since the last regularly scheduled meter reading, the proration factor for the regularly scheduled bill shall be the factor derived above, less the proration factor applied to the interim bill. However, where daily equivalents are used, there will be no pro rata correction. Instead, the calculation shall use the number of days in the billing period by the daily equivalent charge.

C. ESTIMATED BILLS
If, because of unusual conditions or for reasons beyond its control, the Utility is unable to read the Customer’s meter on the scheduled reading date, the Utility may bill the Customer for estimated consumption during the billing period and make any necessary corrections when a reading is obtained. Estimated consumption for this purpose will be calculated considering the Customer’s prior usage, the Utility’s experience with other Customers of the same class in that area, and the general characteristics of the Customer’s operations.

Adjustments for any underestimate or overestimate of a Customer’s consumption will be reflected on the first regularly scheduled bill rendered and based on an actual reading following the period of inaccessibility.
703
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 31 D. READINGS OF SEPARATE METERS NOT COMBINED
For the purpose of making charges, each meter upon the Customer’s Premises will be considered separately, and the readings of two or more meters will not be combined, except as follows:

1. Where combinations of meter readings are specifically provided for in rate schedules; or

2. Where the Utility’s operating convenience or necessity shall require the installation of two or more meters upon the Customer’s Premises instead of one meter.

E. BILLS DUE ON PRESENTATION
Bills for electric service are due and payable upon presentation. Payments shall be received at the office of the Utility, or by an authorized agent of the Utility.

F. CLOSING BILL PAYABLE ON PRESENTATION
Removal bills, special bills, bills rendered on vacation of Premises, or bills rendered to persons discontinuing the service, shall be due and payable upon presentation. Bills for connection or reconnection of service and payments for deposits or to re-establish credit as required under the rules of the Utility shall be paid before service will be connected or reconnected.

G. RETURNED CHECK CHARGE
If a check, tendered in payment of amounts owing the Utility, is not honored by a bank and is returned to the Utility unpaid, the Utility will add to the Customer’s bill a charge for processing each such returned check consistent with these rules. Where service is subject to discontinuance under Electric Rule 11, the returned check charge shall be included in the total amount due and payable.

H. FIELD NOTIFICATION AND COLLECTION PROCESSING FEES
The Utility will require payment of a Collection Processing Fee when an authorized Utility representative makes a field call to a Customer’s Premises to discontinue electric service in accordance with Electric Rule 11 for nonpayment of a past due billing. The Utility will also assess the Collection Processing Fee when an authorized Utility representative makes a field call to discontinue electric service for nonpayment of a deposit that was requested in accordance with Electric Rule 6.

Where service is discontinued under the provisions of Electric Rule 11, the Utility will require payment of the balance in full, the balance of any unpaid closed accounts, plus any assessed field notification charges, Collection Processing Fees and Deposits prior to restoration of service.
704
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 32 If the Customer makes payment in full or makes acceptable payment arrangements in order to avoid discontinuance of service, the Utility may still assess the Collection Processing Fee.

The Utility may assess a Field Notification Charge when notification must be made due to nonpayment. Generally, these notifications are in the form of a door hanger left at the Customer’s Premises. The Field Notification Charge is in addition to any Collection Processing Fees that may apply.

I. LATE PAYMENT CHARGE
A late payment charge of 0.9% per month will be applied to the total unpaid balance of a Customer Account if the Customer’s payment is not received by the date indicated on the Customer Account billing.

J. ACCUMULATIVE AMOUNT DUE
The Utility reserves the right to accumulate bills until the total amount due exceeds $2.00. 705
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 33 ELECTRIC RULE 10—DISPUTED BILLS
A. CORRECTNESS OF BILL
If the correctness of a bill is questioned or disputed by a Customer, an explanation should be promptly requested from Customer Services. If the bill is determined to be incorrect, a corrected bill will be issued.

B. BILL REVIEW PROCEDURE

1. REVIEW BY CUSTOMER SERVICE
Customers who believe their utility bill is in error must first contact Customer Services by telephone, in writing, or in person within 30 days from the bill date and initiate a complaint or request an investigation concerning the bill. Utility services will not be discontinued for nonpayment of a disputed bill pending the outcome of a timely filed investigation. The Utility may require that an amount equal to an average bill for a comparable period of time be deposited with Moreno Valley Utility pending outcome of the investigation. Failure to make the deposit if as requested when due shall constitute abandonment of the complaint or request for investigation.

Subsequent utility bills, which are not disputed, must be paid within the time allowed to avoid discontinuance of service in accordance with Electric Rule 9 and Electric Rule 11.

2. REVIEW BY CUSTOMER SERVICE MANAGER.

If, after contact with the Customer Services, the Customer believes the bill is still incorrect, the customer may, within 10 days from the date of determination, contact the Manager of Customer Services by phone or submit a written statement regarding the billing dispute to the Manager of Customer Services, Moreno Valley Utility, 14331 Frederick Street., Suite 2, Moreno Valley, CA 92553. The Manager of Customer Services will conduct an investigation of the dispute and send his or her determination in writing to the Customer.

3. APPEAL TO ELECTRIC UTILITY DIVISION MANAGER.

If a Customer disagrees with the decision of the of Customer Service Manager, or designee, the Customer may appeal that decision to the Electric Utility Division Manager. Any such appeal must be filed in writing with the Electric Utility Division Manager within (10) days after written notice of the decision of the Manager of Customer Services, or designee, is given to the Customer. The Electric Utility Division Manager, or a designated representative , may review the accuracy of the amount billed , but will not review appeals under this procedure concerning the general level of rates, pending rate changes, source of energy and similar matters.

All decisions of the Electric Utility Division Manager will be final.

4. DISCONTINUANCE OF SERVICE FOR FAILURE TO PAY.
706
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 34 Electric service will be discontinued if a bill has not been paid in full and a timely and proper appeal has not been filed or an appeal has been denied and the appeal is final. All other bills not in dispute are due and payable in accordance with Electric Rule 9 and Electric Rule 11.

5. NOTICE
Under this review and appeal procedure, notice by the Utility is deemed to be given when (1) personally given to the Customer, (2) left at the premises where the service was given, (3) enclosed in an envelope addressed to the Customer with postage prepaid and deposited in the U.S. mail or (4) sent via electronic means to the electronic mailing (e-mail) address provided by the Customer as their Customer’s address.
707
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 35 ELECTRIC RULE 11—DISCONTINUANCE AND RESTORATION OF SERVICE If the Utility terminates or refuses to restore service to a Customer or any other person for any of the reasons or upon any of the grounds stated herein, the Utility shall incur no liability whatsoever to said Customer or person or to any other Customers or persons.

A. CUSTOMER REQUEST TO TERMINATE LIABILITY FOR PAYMENT FOR

SERVICE
When a Customer wants to terminate liability for payment for service, the Customer shall give the Utility not less than two days notice and state the date on which the termination is to become effective. The Customer may be held responsible for service furnished at the Premises until two days after receipt of such notice by the Utility, or until the date of termination specified in the notice, whichever date is later.

B. TERMINATION OF SERVICE FOR NONPAYMENT—WEEKENDS AND

HOLIDAYS
Service will not be terminated for nonpayment of bills or deposit requests on Saturdays, Sundays, legal holidays or on days when the offices of the Utility are closed to the public.

C. TERMINATION OF SERVICE FOR NONPAYMENT OF BILLS OR DEPOSIT

REQUESTS
Monthly bills are due and payable upon presentation and will be considered past due if payment is not received by the Utility within 15 days after the bill is sent to the Customer.

Deposit requests are due and payable when request for service is made. When a deposit is billed, it will be considered past due if payment is not received by the Utility within 15 days after the deposit request is sent to the Customer. Customers who fail to pay their bills within this time period are subject to service disconnection.

D. FAILURE TO ESTABLISH OR RE-ESTABLISH CREDIT
When the Utility provides service to an Applicant before credit is established or continues service to a Customer pending re-establishment of credit, and the Applicant/Customer fails to establish or re-establish credit, any and all services the Customer is receiving may be terminated after notice has been given. The Utility will not restore the Customer’s service until the Customer has complied with the requirements to establish or re-establish credit.

E. TERMINATION OF SERVICE FOR NONPAYMENT OF BILLS AT OTHER

LOCATIONS
Any and all services the Customer is receiving may be terminated for nonpayment of a bill for service previously supplied by the Utility to the same Customer at another location after the Customer has been given notices of termination, except that residential service shall not be terminated for nonpayment of a bill for any other class of service. Nonresidential service may be terminated for nonpayment of a bill for any class of service. Service shall not be terminated for nonpayment within 15 days after establishment of service at the new 708
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 36 location. If the Customer is receiving service at more than one location, any or all services may be terminated with proper notice for nonpayment of any bill at any location for Utility service.

F. TERMINATION OF SERVICE—RETURNED CHECKS
When the Customer has received notice of termination and a check tendered in payment of the past due bill or deposit request for service is returned unpaid, the Utility may terminate service. When the Customer has received a 10-day notice of termination, the notice will remain in effect, and collection action will continue. When the Customer has received a 24-hour notice of termination, the notice will remain in effect, and service may be terminated without further notice.

G. UNSAFE APPARATUS OR CONDITION
The Utility may deny or terminate service to the Customer immediately and without notice when:
a. The Utility determines that the Premises wiring, or other electrical equipment, or the use of either, is unsafe, or endangers the Utility’s service facilities; or b. The Customer threatens to create a hazardous condition; or c. Any governmental agency, authorized to enforce laws, ordinances or regulations involving electric facilities and/or the use of electricity, notifies the Utility in writing that the Customer’s facilities and/or use of electricity is unsafe or not in compliance with applicable laws, ordinances, or regulations. The Utility does not assume the responsibility of inspecting or repairing the Customer’s facilities, appliances or other equipment for receiving or using service, or any part thereof.

In the event the Customer has knowledge that the service is in any way defective, it is the Customer’s responsibility to notify the Utility at once. The Utility shall not be liable or responsible for any plumbing, appliances, facilities, or apparatus beyond the Point of Delivery, which it does not own or maintain in accordance with these rules.

H. SERVICE DETRIMENTAL TO OTHER CUSTOMERS
The Utility will not supply service to a Customer operating equipment, which is considered by the Utility to be detrimental to either the service of other Utility Customers or to the Utility. The Utility will terminate service and refuse to restore service to any Customer who continues to operate such equipment after receiving notification from the Utility to cease.
709
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 37 I. UNAUTHORIZED USE

1. The Utility may terminate service without notice for unauthorized use of service as defined in Electric Rule 17.2. When the Customer’s service has been terminated under this section, the Utility may refuse to restore service until:
a. the unauthorized use has ceased, and
b. The Utility has received full compensation for all charges authorized in Electric Rule 17.2.

2. The Utility may terminate and refuse to restore service if the acts of the Customer or conditions on the Premises indicate intent to deny the Utility full compensation for services rendered, including, but not limited to, any act which may result in a denial of service. The Utility shall provide the Customer with the reasons for such termination and/or refusal to restore service. When the Customer’s service has been terminated under this section, the Utility may refuse to restore service until:
a. the acts and/or the conditions described above have ceased or have been corrected to the Utility’s satisfaction, and
b. The Utility has received full compensation for all charges resulting from the Customer’s acts or the conditions on the Premises.

J. NONCOMPLIANCE WITH UTILITY’S RULES
Unless otherwise specifically provided, the Utility may terminate service to a Customer for noncompliance with any of the Utility’s rules if the Customer fails to comply within five days after the Utility’s presentation of written notification of noncompliance to the Customer. The Customer shall comply with the Utility’s rules before service will be restored.

K. REVOCATION OF PERMISSION TO USE PROPERTY
If the Utility’s service facilities and/or a Customer’s wiring to the meter are installed on property other than the Customer’s property and the owner of such property revokes permission to use it, the Utility will have the right to terminate service upon the date of such revocation. If service is terminated under these conditions, the Customer may have service restored under the provisions of the Utility’s line and service extension rules.

L. CHARGES FOR TERMINATION AND/OR RESTORATION OF SERVICE

1. The Utility may require payment of the entire amount due, including the past due amount and current charges, payment of a deposit or additional deposit in accordance with Electric Rule 7, and payment of other charges indicated herein, prior to restoring service to accounts which have been terminated for nonpayment. 710
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 38

2. The Utility will require a returned check charge for processing a check, which is returned to the Utility unpaid.

3. The Utility will require payment of a Collection Processing Fee when a Utility representative makes a field call to a Customer’s Premises to terminate service for nonpayment of bills or deposit.

4. The Utility will require payment of a Collection Processing Fee per connection before restoring service that has been terminated for nonpayment of bills, to prevent fraud, or for failure to comply with the Utility’s rules. If the Customer requests that service be restored outside of regular business hours, an additional charge per connection may apply. Refer to the Chart of Charges and Fees for amounts of applicable charges.

5. In addition, the Utility may charge and collect any unusual costs incidental to the termination or restoration of service, which have resulted from the Customer’s action or negligence.

6. Service wrongfully terminated will be restored without charge. 711
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 39 ELECTRIC RULE 12—RATES AND OPTIONAL RATES
A. EFFECTIVE RATES
The rates to be charged by and paid to the Utility for electric service will be the rates legally in effect, approved by the City Council, and on file with the Electric Utility Division, Department of Public Works. Complete schedules of all rates in effect will be kept at all times in the Utility’s local office, where they will be available for public inspection. Unless stated otherwise on the rate schedules themselves, the Utility’s rate schedules are only applicable for service supplied entirely by the Utility.

B. ESTABLISHING RATE SCHEDULES FOR NEW CUSTOMERS
At the time of application for service, the Utility will, based on information provided by the Applicant, ensure that the Applicant is placed on an applicable rate schedule approved by the City Council. Thereafter, the Utility will take such measures as may be practical to provide the Customer with information regarding rate schedules or options applicable to the Customer’s class of service.

C. CHANGING RATE SCHEDULES
The Utility may not be required to make more than one change in rate schedules within a twelve-month period unless a new rate schedule is approved or the Customer’s operating conditions have changed sufficiently to warrant a change in rate schedule.

Changes in rate schedules will take effect starting with the next regular meter reading date or meter change date following receipt of the Customer’s request to change the rate schedule, unless (1) the rate schedule states otherwise, (2) a written agreement between the Utility and the Customer specifies another date, or (3) the required metering equipment is unavailable. In those cases, the change of schedule will take effect on the date stated in the schedule or agreement, or the date the metering equipment is available. It is the Customer’s responsibility to request another schedule or option if the Customer’s connected load, hours of operation, type of business or type of service have changed. Where the Customer changes equipment or operation without notifying the Utility, the Utility assumes no responsibility for advising the Customer of other rate options available to the Customer as a result of the Customer’s equipment/operation changes.

D. NOTIFYING CUSTOMERS OF NEW RATE SCHEDULES
Where the Utility establishes new rate schedules, the Utility shall take such measures as may be practical to advise affected Customers of the availability of the new rate schedules. 712
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 40 ELECTRIC RULE 13—TEMPORARY SERVICE
A. ESTABLISHMENT OF TEMPORARY SERVICE
The Utility shall, if no undue hardship to its existing Customers will result therefrom, furnish temporary service under the following conditions:

1. The Applicant shall pay, in advance or otherwise as required by the Utility, the estimated cost installed plus the estimated cost of removal, less the estimated salvage of the facilities necessary for furnishing service.

2. The Applicant shall establish credit as required by Electric Rule 6, except that the amount of deposit prescribed in Electric Rule 7 shall not exceed the estimated bill for the duration of service.

B. CHANGE TO PERMANENT STATUS & REFUNDS

1. If service to the electrical machinery or apparatus as originally installed, or its equivalent, is supplied to a temporary Customer on a continuous, intermittent or seasonal basis for a period of 36 consecutive months from the date electric service first was delivered under this rule, the Customer shall be classified as permanent. The payment made in excess of that required for permanent service or under the line extension rule for permanent Customers shall be refunded, provided the Customer then complies with all of the rules applicable to electric service.

2. If at any time the character of a temporary Customer’s operations changes so that, in the opinion of City, the Customer may be classified as permanent, the amount of payment made in excess of that required for permanent service immediately shall be refunded to the Customer under the provisions of this section. 713
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 41 ELECTRIC RULE 14—SHORTAGE OF SUPPLY AND INTERRUPTION OF DELIVERY The Utility will exercise reasonable diligence and care to furnish and deliver a continuous and sufficient supply of electric energy to the Customer, but does not guarantee continuity or sufficiency of supply. The Utility will not be liable for interruption or shortage or insufficiency of supply, or any loss or damage of any kind of character occasioned thereby the Utility will not be liable for interruption or shortage or insufficiency of supply. If same is caused by inevitable accident, act of God, fire, strikes, riots, war, or any other cause except that arising from its failure to exercise reasonable diligence. The Utility, whenever it shall find it necessary for the purpose of making repairs or improvements to its system, will have the right to suspend temporarily the delivery of electric energy. In case of shortage of supply and during the period of such shortage, The Utility will make such apportionment of its available supply of energy among its Customers as shall be ordered or directed from time to time by the State of California, acting either directly or by a power administrator or other official appointed by it for that purpose. In the absence of such order or direction, the Utility will, in times of shortage, apportion its available supply of energy among all Customers in the most reasonable manner possible. 714
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 42 ELECTRIC RULE 15—DISTRIBUTION LINE EXTENSIONS
APPLICABILITY: This rule is applicable to extension of electric distribution lines of the Utility’s standard voltages (less than 50 kV) necessary to furnish Permanent electric service to Applicants and will be made in accordance with the following provisions:

A. GENERAL

1. EXTENSION BASIS
a. Design: The Utility will be responsible for planning, designing, and engineering extensions using the Utility’s standards for material, design, and construction.

The Applicant will furnish all necessary plot plans, utility plans, street improvement plans, tract maps and electric loads for the design of the system.

The Applicant may design the electrical Distribution Lines using qualified design firms approved by the Utility. The system will be designed in accordance with the Utility’s standards and the final design will be approved by the Utility.

Ownership of Applicant’s final design and as-built documents shall be transferred to the Utility upon completion of work.
b. Ownership: The facilities installed under the provisions of this rule, shall be owned, operated, and maintained by the Utility, except for substructures and enclosures that are on, under, within, or part of a building or structure. c. Private Lines: The Utility shall not be required to serve any Applicant from extension facilities that are not owned, operated, and maintained by the Utility.

2. EXTENSION LOCATIONS
a. Rights of Way: The Utility will own, operate and maintain extension facilities only;
1) along public streets, alleys, roads, highways and other publicly dedicated ways and places which the Utility has the legal right to occupy, and 2) along public lands and private property across which rights of way and permits satisfactory to the Utility may be obtained without cost to or condemnation by the Utility.
b. Normal Route of Line: The length and normal route of an extension will be determined by the Utility and shall be considered as the distance along the shortest, most practical, available, and acceptable route which is clear of obstructions from the Utility’s nearest permanent and available distribution facility to the point from which the service facilities will be connected. 715
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 43

3. UNDERGROUND EXTENSIONS
Underground extensions shall be installed where required to comply with applicable laws and ordinances or similar requirements of governmental authorities having jurisdiction and where the Utility maintains or desires to maintain underground distribution facilities.

4. OVERHEAD EXTENSIONS
Overhead extensions may be installed only where underground extensions are not required by other jurisdictions and as approved by the Utility.

5. SPECIAL OR ADDED FACILITIES
Any special or added facilities the Utility agrees to install at the request of Applicant will be installed at Applicant’s expense in accordance with Electric Rule 2— Description of Service.

6. TEMPORARY SERVICE
Facilities installed for temporary service or for operations of speculative character or questionable permanency shall be made in accordance with the fundamental installation and ownership provisions of this rule, except that all charges shall be made under the provisions of Electric Rule 13—Temporary Service.

7. SERVICES
Service facilities connected to the Distribution Lines to serve an Applicant’s Premises will be installed, owned and maintained as provided in Electric Rule 16—Service Extensions.

8. STREET LIGHTS AND AREA LIGHTS
Streetlights, area lights, and other associated facilities shall be installed in accordance with the service provisions of the applicable street light schedule.

No written contracts will be required under this Rule. All provisions of the Rule shall apply and obligate all parties.

B. INSTALLATION RESPONSIBILITIES

1. UNDERGROUND EXTENSIONS
a. Applicant Responsibility: In accordance with the Utility’s design, specifications, and requirements, Applicant is responsible for;
1) Excavation: All necessary trenching, backfilling, compaction and other digging as required as well as any pavement cutting or repair. 716
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 44 2) Substructures and Conduits: Furnishing, installing, and upon acceptance by the Utility, conveying to the Utility the ownership of all necessary installed Substructures and Conduits, including Feeder and Service Conduits and related Substructures required to extend to and within subdivisions and developments.
3) Protective Structures: Furnishing, installing, and upon acceptance by the Utility, conveying to the Utility the ownership of all necessary Protective Structures.
4) Safety Barriers and Measures: Applicant is responsible for providing safety barriers, signs, and other suitable means to protect public from potential injuries arising from construction of underground extension. b. The Utility Responsibility: The Utility is responsible for installing cables, switches, transformers, and other distribution facilities as required to complete the extension.

The Applicant may install the system in accordance with the Utility’s design and construction standards using qualified electrical contractors approved by the Utility.

2. OVERHEAD EXTENSIONS
The Utility is responsible for installing all facilities required for a pole line extension at the Applicants expense and only where underground extensions are not required.

3. PERFORMED WORK
Where requested by Applicant and mutually agreed upon, the Utility may perform that portion of the new extension work normally installed by Applicant, provided Applicant pays the Utility its total estimated installed cost. Upon completion of the work, the difference between the estimated and actual cost of the work will be refunded or billed to the Applicant as appropriate.

C. CONTRIBUTIONS OR ADVANCES BY APPLICANT

1. CASH ADVANCE
A cash advance will be required from every Applicant. If the scope of the work lends itself to progress payments in the sole judgment of the Utility, such progress payments will be considered by the Utility. The cash advance will be equal to the Utility’s total estimated installed cost to complete an extension including transformers and meters. Upon completion of the work, the difference between the estimated and actual cost of the work will be refunded or billed to the Applicant as appropriate.
717
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 45 Applicant shall contribute or advance, before the start of Utility’s construction, the following;
a. Underground Non-Refundable Amount: Applicant’s contribution is the portion of the Utility’s total estimated installed cost, to complete the underground extension including transformers and meters for;
1) Cabling: The estimated installed cost of any necessary cabling installed by the Utility to complete the underground extension. This includes the cost of conversion of existing single-phase lines to three-phase lines, if required; plus 2) Substructures: The Utility’s estimated value of substructures installed by Applicant and deeded to the Utility as required.
3) The cost of cabling and substructures installed and/or paid for by a previous Customer or developer in anticipation of providing service to the current Customer or development.
b. Underground Refundable Amount:
1) The cost of cabling and substructures in anticipation of providing service to a future Customer or developer. Such costs will be refunded at the time they are collected from the future Customer or developer in accordance with this Rule. c. Overhead Non-Refundable Amount: Applicant’s contribution is the portion of the Utility’s total estimated installed cost to complete the overhead extension including transformers and meters;
1) Pole Line; All necessary facilities required for an overhead extension and, if required, the conversion of existing single-phase lines to three-phase lines; plus
2) Transmission Underbuilds; Utility’s total estimated installed cost of the underbuild, where all or a portion of an overhead extension is to be constructed on existing poles.
d. Other Non-Refundable Amounts: Applicant’s non-refundable amount includes the Utility’s estimated value of excavation, conduits, and protective structures required by the Utility for the extension. The applicant will pay the Utility for the cost of inspection of any facilities installed by the applicant.

4. JOINT APPLICANTS
The total contribution or advance from a group of Applicants will be apportioned among the members of the group in such manner as they may mutually agree. A signed agreement describing this apportionment will be required by the Utility as part of the application for service.
718
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 46

5. PAYMENT ADJUSTMENTS
Excess Facilities: If the loads provided by Applicant(s) result in the Utility having installed facilities which are in excess of those needed to serve the actual loads, and the Utility elects to reduce such excess facilities, Applicant shall pay the Utility its estimated total costs to remove, abandon, or replace the excess facilities, less the estimated salvage of any removed facilities.

D. SPECIAL CONDITIONS

1. FACILITY RELOCATION OR REARRANGEMENT
Any relocation or rearrangement of the Utility’s existing facilities, at the request of, or to meet the convenience of an Applicant or Customer, and agreed upon by the Utility, normally shall be performed by the Utility. In all instances, the Utility shall abandon or remove its existing facilities, at the option of the Utility. Applicant or Customer shall be responsible for the costs of all related relocation, rearrangement and removal work.
719
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 47 ELECTRIC RULE 16—SERVICE EXTENSIONS
APPLICABILITY: This rule is applicable to both (1) Utility service facilities that extend from the Utility’s distribution line facilities to the service delivery point, and (2) service related equipment required of Applicant on Applicant’s Premises to receive electric service.

A. GENERAL

1. DESIGN
The Utility will be responsible for planning, designing, and engineering its Service Extension using the Utility’s standards for design, materials and construction. The Utility will allow Applicant’s design with the Utility’s approval.

2. SERVICE FACILITIES
The Utility’s service facilities shall consist of (a) primary or secondary underground or overhead service conductors, (b) poles conduits, sleeves, pedestals, pads, or structures to support service conductors, and service transformers, (c) Utility-owned metering equipment, and (d) other Utility-owned service related equipment.

3. OWNERSHIP OF FACILITIES
Service facilities installed under the provisions of this rule shall be owned, operated, and maintained by the Utility if they are (a) located in the street, road or franchise area of the Utility, (b) installed by the Utility under and or on the Applicant’s Premises for the purpose of the delivery of electric energy to Applicant, or installed by Applicant under the provisions of this rule, and conveyed to the Utility.

4. PRIVATE LINES
The Utility shall not be required to connect service facilities to or serve any Applicant from electric facilities that are not owned, operated, and maintained by the Utility.

5. SPECIAL OR ADDED FACILITIES
Any special or added facilities the Utility installs at the request of Applicant, will be installed at Applicant’s expense in accordance with Rule 2-Description of Service.

6. TEMPORARY SERVICE FACILITIES
Service facilities installed for temporary service or for operations of speculative character or questionable permanency shall be made in accordance with the fundamental installation and ownership provisions of this rule, except that all charges shall be made under the provisions of Rule 13-Temporary Service. 720
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 48

7. STREET LIGHTS AND AREA LIGHTS
Streetlight and area light services and other associated facilities shall be installed in accordance with the service provisions of the applicable street light schedule.

8. DISTRIBUTION LINE EXTENSIONS
Whenever the Utility’s distribution system is not complete to the point designated by the Utility where the service extension is to be connected to the Utility’s distribution system, the extension of distribution line facilities will be installed in accordance with Rule 15-distribution line extensions.

9. RIGHTS-OF-WAY
Rights-of-way or easements may be required by the Utility to install service facilities on Applicant’s property to serve only Applicant.
a. Service Facilities: If the service facilities must cross property owned by a third party to serve Applicant, the Utility may, at its option, install such service facilities after appropriate rights-of-way or easements, satisfactory to the Utility, are obtained without cost to the Utility; or
b. Distribution Line Extensions: If the Utility’s facilities installed on Applicants property or third-party property, will be or are designed to serve adjacent property, then the Utility may, at its option, install its facilities under Rule 15, after appropriate rights-of-way or easements, satisfactory to the Utility, are obtained without cost to the Utility.
c. Clearances: Any necessary rights-of-way or easements for the Utility’s facilities shall have provisions to maintain legal and operational clearances from adjacent structures.

B. METERING FACILITIES
For revenue billing, electric service shall be individually metered to each tenant in a building or group of buildings or other development on a single Premises with multiple tenants or enterprises (such as, but not limited to a commercial business, a school campus, or shopping center complex). Alternative metering arrangements as determined by the Utility may be allowed only as specified in these rules and applicable rate schedules.

C. SERVICE EXTENSIONS

1. GENERAL LOCATION
The location of the service extension facilities shall be approved by the Utility as follows:
721
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 49 a. Franchise Area: From the point of connection at the distribution line to Applicant’s nearest property line abutting upon any street, highway, road, or right-of-way, along which it already has, or will install distribution facilities; and, b. Private Property: On private property, along the shortest, most practical and available route (clear of obstructions) as necessary to reach a service delivery point designated by the Utility.

2. NUMBER OF SERVICE EXTENSIONS
City will not normally provide more than one service extension, including associated facilities, either overhead or underground, for any one building or group of buildings, for a single enterprise on a single Premises, except;
a. Electric Rules: Where otherwise allowed or required under City’s Electric Rules; or,
b. City Convenience: At the option of and as determined by the Utility, for its operating convenience, consistent with engineering design for different voltage and phase classification, or when replacing an existing service; or, c. Ordinance: Where required by ordinance or other applicable law, for such things as fire pumps, fire alarm systems, etc.; and,
d. Other: The Utility may charge for additional services provided under this paragraph, as special or added facilities.

3. UNDERGROUND INSTALLATIONS
Underground Service Extensions will be installed;
a. Underground Required: Underground service extensions (1) shall be installed where required to comply with applicable Electric Rules, laws, ordinances, or similar requirements of governmental authorities having jurisdiction, and (2) may be necessary as determined by the Utility where Applicant’s load requires a separate transformer installation of 75 kVA or greater. b. Underground Optional: An underground service extension may be installed in an area where it is not otherwise required and when requested by Applicant and agreed upon by the Utility.

4. UNUSUAL SITE CONDITIONS
In cases where Applicant’s building is located a considerable distance from the available distribution line or where there is an obstruction or other deterrent obstacle or hazard such as plowed land, ditches, or inaccessible security areas between the Utility’s distribution line and Applicant’s building or facility to be served that would prevent the Utility from prudently installing, owning, and maintaining its service 722
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 50 facilities, the Utility may, at its discretion, waive the normal service delivery point location. In such cases, the service delivery point will be at such other location on Applicant’s property as may be mutually agreed upon; or, alternatively, the service delivery point may be located at or near Applicant’s property line as close as practical to the available distribution line.

D. RESPONSIBILITIES FOR NEW SERVICE EXTENSIONS

1. APPLICANT RESPONSIBILITY
In accordance with the Utility’s design, specifications, and requirements for the installation of service extensions, and subject to the Utility’s inspection and approval, Applicant is responsible for;
a. Clear Route: Providing (or paying for) a route on any private property that is clear of obstructions which would inhibit the construction of either underground or overhead service extensions.
b. Excavation: All necessary trenching, backfilling, and other digging as required including permit fees.
c. Conduit and Substructures:
1) Furnishing and installing all conduits (including pull wires) and substructures on Applicant’s Premises.
2) Installing (or paying for) any Conduits and Substructures in the Utility’s franchise area (or rights-of-way, if applicable) as necessary to install the service extension.
3) Conveying ownership to the Utility upon acceptance of those conduits and substructures not on Applicant’s Premises.
d. Protective Structures: Furnishing, installing, owning, and maintaining all necessary protective structures as specified by the Utility for the Utility’s facilities on Applicant’s Premises
e. Applicant’s Facility Design and Operation: Applicant shall be solely responsible to plan, design, install, own, maintain, and operate facilities and equipment beyond the service delivery point (except for the Utility’s metering facilities) in order to properly receive and utilize the type of electric service available from the Utility. Refer to Rule 2 for a description, among other things, of; 1) Available service delivery voltages and the technical requirements and conditions to qualify for them,
2) Customer utilization voltages,
723
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 51 3) Load balancing requirements,
4) Requirements for installing electrical protective devices, 5) Loads that may cause service interference to others, and 6) Motor starting limitations.
f. Required Service Equipment: Applicant shall, at its sole liability, risk, and expense, be responsible to furnish, install, own, maintain, inspect, and keep in good and safe condition, all facilities of any kind or character on Applicant’s Premises that are not the responsibility of the Utility but are required by the Utility for Applicant to receive service. Such facilities shall include but are not limited to the overhead or underground termination equipment, conduits, service entrance conductors from the service delivery point to the location of the Utility’s metering facilities, connectors, meter sockets, meter and instrument transformer housing, service switches, circuit breakers, fuses, relays, wireways, metered conductors, machinery and apparatus of any kind or character. Detailed information on the Utility’s service equipment requirements will be furnished by the Utility. The Applicant shall provide all service conduit (s) from the Utility’s franchise area to the Utility’s metering facilities.
g. Coordination of Electrical Protective Devices: When, as determined by the Utility, Applicant’s load is of sufficient size as to require coordination of response time characteristics between Applicant’s electrical protective devices (circuit breakers, fuses, relays, etc.) and those of the Utility’s, it shall be Applicant’s responsibility to provide such coordination in accordance with Rule 2. h. Liability: the Utility shall incur no liability whatsoever, for any damage, loss or injury occasioned by;
1) Applicant-owned equipment or Applicant’s transmission and delivery of energy; or,
2) The negligence, omission of proper protective devices, want of proper care, or wrongful act of Applicant, or any agents, employees, or licensees of Applicant, on the part of Applicant in installing, maintaining, using, operating, or interfering with any such conductors, lines, machinery, or apparatus.
i. Facility Tampering: Applicant shall provide a suitable means acceptable to the Utility for placing its seals on meter rings and covers of service enclosures and instrument transformer enclosures which protect unmetered energized conductors installed by Applicant. All Utility-owned meters and enclosure covers will be sealed only by the Utility’s authorized employees or agents and such seals shall be broken only by the Utility’s authorized employees or agents. However, in an emergency, the Utility may allow a public authority or other appropriate party to break the seal. Any unauthorized tampering with Utility-owned seals or 724
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 52 connection of Applicant-owned facilities to unmetered conductors at any time is prohibited and is subject to the provisions of Rule 11 - Discontinuance and Restoration of Service for unauthorized use.
j. Transformer Installations on Applicant’s Premises: Transformer installations on Applicant’s Premises shall be as specified by the Utility and in accordance with the following applicable provisions;
1) Space For Transformers: Applicant shall provide space on Applicant’s Premises at a location approved by the Utility for a standard transformer installation (including any necessary equipment access for operation, and ancillary equipment such as switches, capacitors, and electric protective equipment, where required) if (a) in an overhead area, the Utility determines that the load to be served is such that a separate transformer installation is required, or (b) if the Utility determines that the installation of a padmounted or subsurface transformer of any size is required on Applicant’s Premises to serve only Applicant.
2) Padmounted Equipment: In the Utility’s standard installation, Applicant shall furnish, install and convey ownership to the Utility for substructures and any required protective structures specified by the Utility for the proper installation of the transformer, switches, capacitors, and other equipment as determined by the Utility.
3) Single Utility-Owned Customer Substation: When the Utility elects, for its operating convenience, to supply Applicant from a transmission line and install a Utility-owned substation on Applicant’s Premises, Applicant shall furnish, install and convey ownership to the Utility the necessary site improvements as specified by the Utility for the proper installation of the transformer. Such improvements shall include but are not limited to a concrete pad or foundation and grounding system. Applicant shall own and maintain all facilities not specifically conveyed to the Utility yet associated with the service, such as fences and gates, access road, grading, and paving as required. Detailed information on the Utility’s requirements for a single Customer substation will be furnished by the Utility.
k. Transformer Room or Vault: Where Applicant requests and the Utility approves the installation of the transformer(s) in a vault or room on Applicant’s Premises, rather than the Utility’s standard padmounted installation; 1) The room or vault on Applicant’s Premises shall be furnished, installed, owned, and maintained by Applicant and shall meet the Utility’s specifications for such things as access, operational and safety clearances ventilation, drainage, grounding system, etc.
2) If space cannot be provided on Applicant’s Premises for the installation of a transformer on either a pad or in a room or vault, a vault will be installed at 725
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 53 Applicant’s expense in the street near the property line. It shall be Applicant’s responsibility to install (or pay for) such vault if not restricted by governmental authority having jurisdiction and Applicant shall convey ownership of the vault to the Utility upon its acceptance. The additional facilities shall be treated as special or added facilities under the provisions of Rule 2.
3) All the additional costs as well as ongoing maintenance shall be paid by Applicant for special or added facilities.
l. Transformer Lifting Requirements: Where the Utility has installed or agrees to install, transformers at locations where the Utility cannot use its standard transformer lifting equipment and special lifting facilities are required to install or remove the transformers on Applicant’s Premises, Applicant shall, at its expense, (a) furnish, install, own, and maintain permanent lifting facilities and be responsible for lifting the transformer to and from its permanent position, or (b) provide (or pay for) portable lifting facilities acceptable to the Utility for installing or removing the transformers. Rights-of-way and space provisions shall be provided by Applicant such that access and required clearances from adjacent structures can be maintained. The Utility may require a separate contract for transformer lifting requirements.
m. Overhead Transformers: In remote areas or in areas not zoned for residential or commercial use or for underground services, pad-mounted transformers are preferred for installation on Applicant’s Premises. However, where the Utility determines that it is not practical to install a transformer on a pad, in a room or vault, the Utility may furnish a pole-type structure for an installation not exceeding 500 kVA.

2. BUILDING CODE REQUIREMENTS
Any service equipment and other related equipment owned by Applicant, as well as any vault, room, enclosure, or lifting facilities for the installation of transformers shall conform with applicable laws, codes, and ordinances of all governmental authorities having jurisdiction.

3. REASONABLE CARE
Applicant shall exercise reasonable care to prevent the Utility’s Service Extensions, other Utility facilities, and meters owned by the Utility or others, on the Applicant’s Premises from being damaged or destroyed, and shall refrain from interfering with the Utility’s operation of the facilities and shall notify the Utility of any obvious defect. Applicant may be required to provide and install suitable mechanical protection (barrier posts, etc.) as required by the Utility.

4. UTILITY RESPONSIBLITY
726
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 54 a. Meter and Service: The Utility will install, own, and maintain the following service facilities as applicable after Applicant meets all requirements to receive service:
1) Underground Service: A set of service conductors to supply permanent service from the distribution line source to the service delivery point approved by the Utility.
2) Riser Material: Any necessary pole riser material for connecting underground services to an overhead distribution line.
3) Overhead Service: A set of overhead service conductors to supply permanent service from a distribution line source to a suitable support at the service delivery point approved by the Utility. Support shall be of a type and located such that service wires may be installed in accordance with good engineering practice and in compliance with all applicable laws, ordinances, rules, and regulations including those governing clearances and points of attachment. 4) Metering: When the meter is owned by the Utility, the Utility will be responsible for the necessary instrument transformers where required, test facilities, meters and associated metering equipment. Additionally the Utility will be responsible for the metering enclosures when the Utility elects to locate metering equipment at a point that is not accessible to Applicant. b. Special Conduit Installations: The Utility shall own and maintain service conduits only if: (1) they are located in the same trench with distribution facilities, and (2) when it is necessary to locate Conduits on property other than that owned by Applicant, as determined by the Utility, or as may be required by local authorities. c. Government Inspection: The Utility will establish electric service to Applicant following notice from the governmental authority having jurisdiction that the Applicant-owned facilities have been installed and inspected in accordance with any applicable laws, codes, ordinances, rules, or regulations, and are safe to energize.

5. UTILITY-PERFORMED WORK
a. Where requested by Applicant and mutually agreed upon, the Utility may perform that portion of the new service extension work normally the responsibility of Applicant provided Applicant pays the Utility its estimated installed cost.

E. PAYMENTS BY APPLICANT

1. PAYMENTS
Applicant is responsible to pay the Utility the following non-refundable costs as applicable under this rule and in advance of the Utility commencing its work:
727
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 55 a. Pole Riser: The Utility’s estimated installed costs of any riser materials on its poles.
b. The Utility’s total estimated installation cost (including appurtenant facilities, such as connectors, service conductors, service transformers and metering equipment.).
c. Other: The Utility’s total estimated cost of any work it performs that is Applicant’s responsibility or performs for the convenience of the Applicant.

F. EXISTING SERVICE FACILITIES

1. SERVICE REINFORCEMENT
a. Utility–Owned: When the Utility determines that its existing service facilities require replacement, the existing service facilities shall be replaced as new service facilities under the provisions of this rule.
b. Applicant-Owned: When the Utility determines that existing Applicant-owned service facilities require replacement; such replacement or reinforcement shall be accomplished under the provisions for a new service installation.

2. SERVICE RELOCATION OR REARRANGEMENT
a. Utility Convenience: When, in the judgment of the Utility, the relocation or rearrangement of a service, including Utility-owned transformers, is necessary for the maintenance of adequate service or for the operating convenience of the Utility, the Utility normally will perform such work at its own expense, except for Applicant convenience or damage.
b. Applicant Convenience: Any relocation or rearrangement of the Utility’s existing service facilities at the request of Applicant (aesthetics, building additions, remodeling, etc.) and agreed upon by the Utility shall be performed in accordance with this rule except that Applicant shall pay the Utility its total estimated costs.

In all instances, the Utility shall abandon or remove its existing facilities at the option of the Utility rendered idle by the relocation or rearrangement.

3. IMPAIRED ACCESS AND CLEARANCES
Whenever the Utility determines that access or clearance to service facilities is impaired, correction action consistent with this section shall be enforced. a. Access: Its existing service facilities have become inaccessible for inspecting, operating, maintenance, meter reading, or testing.
b. Clearances: A hazardous condition exists or any of the required clearances between the existing service facilities and any object becomes impaired under 728
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 56 any applicable laws, ordinances, rules, or regulations of the Utility or public authorities, then the following applies;
Corrective Action: Applicant or owner shall, at Applicant’s or owner’s expense, either correct the access or clearance infractions or pay the total estimated cost to relocate its facilities to a new location which is acceptable to the Utility. Applicant or owner shall also be responsible for the expense to relocate any equipment, which Applicant owns and maintains. Failure to comply with corrective measures within a reasonable time may result in discontinuance of service.

4. OVERHEAD TO UNDERGROUND SERVICE CONVERSIONS
Applicant’s Convenience: Where overhead services are replaced by underground services for Applicant’s convenience, Applicant shall perform all excavation, furnish and install all substructures, and pay the Utility its total estimated installed cost to complete the new service and remove the overhead facilities.

5. DAMAGED FACILITIES
When the Utility’s facilities are damaged by others, the repair will be made by the Utility at the expense of the party responsible for the damage. Applicants are responsible for repairing their own facilities.

6. SUBDIVISION OF PREMISES
When the Utility’s service facilities are located on private property and such private property is subsequently subdivided into separate Premises with ownership divested to other than Applicant or Customer, the subdivider is required to provide the Utility with adequate rights-of-way satisfactory to the Utility for its existing facilities and to notify property owners of the subdivided Premises of the existence of the rights-ofway. When adequate rights-of-way are not granted as a result of the property subdivision, the Utility shall have the right, upon written notice to Applicant, to discontinue service without obligation or liability. The existing owner, Applicant, or Customer shall pay to the Utility the total estimated cost of any required relocation or removal of the Utility’s facilities. A new electric service will be re-established in accordance with the provisions of this Rule for new service and the provisions of any other applicable Utility rules.

7. EXCEPTIONAL CASES
When the application of this rule appears impractical or unjust to either party, or ratepayers, the Utility or Applicant may refer the matter to the Utility for a special ruling or for approval of special conditions, which may be mutually agreed upon. 729
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 57 ELECTRIC RULE 17—METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR
A. METER TESTS
Any Customer may, upon not less than five (5) working days notice, request that the Utility test the Customer’s electric meter. No payment or deposit will be required from the Customer for such tests except when a Customer requests a meter test within six months after the date of installation of the meter, or more often than once each six months thereafter. A deposit to cover the reasonable cost of the test will be required of the Customer.

The deposit will be returned to the Customer if the meter is found to register more than two percent fast or slow under conditions of normal operation as a result of the test. A Customer shall have the right to request the Utility conduct the test in the Customer’s presence or in the presence of an expert or other representative appointed by the Customer. A report giving the result of the test will be supplied to the Customer within a reasonable time after completion of the test. All electric meters will be tested at the time of their installation. No meter will be placed in service or allowed to remain in service which has an error in registration in excess of two percent under conditions of normal operation. On newly purchased single-phase meters, the manufacturer’s test may be used as the installation test when the Utility’s random tests indicate satisfactory test results for a particular manufacturer and for a particular shipment.

B. ADJUSTMENT OF BILLS FOR METER ERROR
Meter error is the incorrect registration of energy usage resulting from a malfunctioning or defective meter. It does not include incorrect registration attributable to billing error or unauthorized use. Where, as the result of a meter test, a meter is found to be non-registering or incorrectly registering, the Utility may render an adjusted bill to the Customer for the amount of any undercharge without interest. The Utility shall issue a refund or credit to the Customer for the amount of any overcharge, without interest, computed back to the date that is determined to be when the meter error commenced, except that the period of adjustment shall not exceed the limits set forth in this Rule. Such adjusted bill shall be computed as follows:

1. FAST METER
If a meter, for either residential or nonresidential service, is found to be registering more than two percent fast, the Utility will calculate the amount of the overcharge for refund to the Customer based on the corrected usage for a period of up to 6 months.

When it is known that the period of meter error was less than six months, the overcharge will be calculated for only those months during which the meter error occurred.

2. SLOW METER
730
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 58 If a meter, for either residential or nonresidential service is found to be registering more than two percent slow, the Utility may bill the Customer for the amount of the undercharge based on the corrected usage or based upon the Utility’s estimate of the energy usage for a period of up to three years. However, if it is known that the period of meter error was less than three years, the undercharge will be calculated for only those months during which the meter error occurred.

3. NONREGISTERING METER
If a meter, for either residential or nonresidential service is found to be nonregistering, the Utility may bill the Customer for the amount of the undercharge based on the Utility’s estimate of the electricity used, but not registered, for a period of up to three years. However, if it is known that the period the meter was non-registering was less than three years, the undercharge will be calculated for only those months the meter was non-registering. Where the condition of the meter renders it un-testable (no-test), the Utility may bill the Customer based upon the Utility’s estimate of the unmetered energy. Nothing herein is intended to limit the Utility’s authority to bill the Customer for unauthorized use.

4. NO-TEST METERS
Where the condition of the meter renders it untestable (no-test), the Utility may bill the Customer based upon the Utility’s estimate of the unmetered energy. Nothing herein is intended to limit the Utility’s authority to bill the Customer for unauthorized use.

5. ESTIMATED USAGE
When regular, accurate meter readings are not available or when the electric usage has not been accurately measured, the Utility may estimate the Customer’s energy usage for billing purposes on the basis of information including, but not limited to, the physical condition of the metering equipment, available meter readings, records of historical use, and the general characteristics of the Customer’s load and operation. 731
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 59 ELECTRIC RULE 17.1– ADJUSTMENTS OF BILLING ERROR
A. BILLING ERROR DEFINED
Billing error is the incorrect billing of an account due to an error by the Utility or the Customer, which results in incorrect charges to the Customer. Billing error includes, but is not limited to, incorrect meter reads or clerical errors, wrong daily billing factor, incorrect voltage discount, wrong connected load information, crossed meters, incorrect billing calculation, incorrect meter multiplier, incorrect rate, or the Utility’s failure to provide the Customer with notice of rate options. Field error, including, but not limited to, installing the meter incorrectly and failure to close the meter potential or test switches, is also considered billing error. Billing error which does not entitle the Customer to a credit adjustment includes failure of the Customer to notify the Utility of changes in the Customer’s connected load, equipment or operation or failure of the Customer to take advantage of any noticed rate option or condition of service for which the Customer becomes eligible subsequent to the date of application for service.

B. ADJUSTMENT OF BILLS FOR BILLING ERROR
Where the Utility overcharges or undercharges a Customer as the result of a billing error, the Utility may render an adjusted bill to the Customer for the amount of any undercharge, without interest, and shall issue a refund or credit to the Customer for the amount of any overcharge, without interest, in accordance with the procedures and limitations set forth below.

1. BILLING ERROR RESULTING IN OVERCHARGES TO THE CUSTOMER If either a residential or nonresidential service is found to have been overcharged due to billing error, the Utility will calculate the amount of the overcharge, for refund to the Customer, for a period of up to three years. However, if it is known that the period of billing error was less than three years, the overcharge will be calculated for only those months during which the billing error occurred.

2. BILLING ERRORS RESULTING IN UNDERCHARGES TO THE CUSTOMER If either residential or nonresidential service is found to have been undercharged due to a billing error, the Utility may bill the Customer for the amount of the undercharge for a period of up to three years. However, if it is known that the period of billing error was less than three years, the undercharge will be calculated for only those months during which the billing error occurred.
732
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 60 ELECTRIC RULE 17.2— ADJUSTMENT OF BILLS FOR UNAUTHORIZED USE A. UNAUTHORIZED USE DEFINED
Unauthorized use includes, but is not limited to:

1. Unmetered use of electricity resulting from unauthorized connections, alterations or modifications to electric supply lines and/or electric meters;

2. Placing conductive material in the meter socket to allow energy to flow from the line side of the service to the load side of the service without a meter (cut in flat);

3. Installing an unauthorized electric meter in place of the meter assigned to the account;

4. Inverting or otherwise repositioning the meter, thereby altering registration;

5. Damaging the meter to stop registration, thereby rendering it untestable;

6. Using the Utility service without compensation to the Utility in violation of applicable rules and/or statutes.

Where the Utility determines there has been unauthorized use, the Utility shall have the legal right to recover, from any Customer or other person who caused or benefited from such unauthorized use, the estimated undercharges for the full period of such unauthorized use. The estimated bill shall indicate unauthorized use for the most recent three years and, separately, unauthorized use beyond the three-year period for collection as provided by law. Nothing in this rule shall be interpreted as limiting the Utility’s rights under any provisions of any applicable civil or criminal law.

B. INVESTIGATION OF UNAUTHORIZED USE
Where unauthorized use is suspected by the Utility, the Utility shall promptly conduct an investigation.

Whenever possible, the Utility shall collect and preserve evidence in the matter, test the meter, and obtain connected load information from the Customer or other person to be charged for the unauthorized energy use. If the meter cannot be tested or connected load data cannot be obtained, the Utility will document the reasons why such information could not be obtained. Whenever possible, upon completion of the Utility’s investigation, the Customer or other person being billed will be advised of the Utility’s claim and shall be given an opportunity to respond to the claim. Notwithstanding any provisions herein, the Utility reserves all evidentiary privileges and rights. 733
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 61 C. ADJUSTMENT OF BILLS FOR UNAUTHORIZED USE

1. ACTUAL USAGE
If accurate meter readings are available for the unauthorized use period, they will be used for billing purposes.

2. ESTIMATED USAGE
If accurate meter readings are not available or the electric usage has not been accurately measured, the Utility may estimate the energy usage for billing purposes.

The basis for the estimate may include, without limitation and for illustrative purposes only, the physical condition of the metering equipment, available meter readings, records of historical use, or the general characteristics of the load and operation of the service being billed, with consideration of any appropriate seasonal adjustment. Estimated bills for the unauthorized use period may be determined by the Utility based on one or more of the following, without limitation and for illustrative purposes only:
a. Accurately metered use from a remote check meter;
b. The known percent error in metering attributable to the unauthorized use condition as determined by the Utility;
c. Accurately metered use prior to the onset of the unauthorized use; d. The equipment and hours of operation of the service being billed; e. Accurately metered subsequent use of 30 days or more (if available); f. Annual use profile of at least five Customers with similar connected load, Premises load profiles, hours of energy use, etc. (percent of annual use); or g. Other reasonable and supportable billing methodology when none of the aforementioned billing techniques is appropriate under the circumstances.

D. INTEREST ON BILLS FOR UNAUTHORIZED USE

1. The Utility may bill and collect interest at a rate of 10 percent per annum on unauthorized use billings from the date the unauthorized use commenced, and/or

2. The Utility may bill and collect interest at a rate of 10 percent per annum on amortized repayment agreements.

E. RECOVERY OF ASSOCIATED COSTS
The Utility may recover the associated costs resulting from the unauthorized use including, but not limited to, investigative and equipment damage costs. 734
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 62 F. DISCONTINUANCE OF SERVICE
In accordance with the provisions of Electric Rule 11, where the Utility determines unauthorized use is occurring, the Utility may refuse service or discontinue service. If any part of the Customer’s wiring or any other equipment, or the use thereof, is determined by the Utility or any other authorized public agency to be unsafe or in violation of applicable laws, ordinances, rules or regulations of public authorities, or is in such condition as to endanger the Utility’s service facilities, the Utility may discontinue service. The Utility may also discontinue service in accordance with the provisions of its rules, for nonpayment of a delinquent billing for unauthorized use, and for associated costs, including nonpayment under an amortization agreement.
735
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 63 ELECTRIC RULE 21— GENERATING FACILITY INTERCONNECTIONS
A. APPLICABILITY
Applicability: This Rule describes the Interconnection, operating and Metering requirements for Generating Facilities to be connected to Moreno Valley Utility’s (“MVU”) Distribution System. Subject to the requirements of this Rule, MVU will allow the Interconnection of Generating Facilities with its Distribution System.

Definitions: Capitalized terms used in this Rule, and not defined in MVU’s other rules, shall have the meaning ascribed to such terms in Section H of this Rule. The definitions set forth in Section H of this Rule shall only apply to this Rule and may not apply to MVU’s other rules.

In the event of any conflict between this rule and any of the standards listed herein, the requirements of this rule shall take precedence.

B. DEFINITIONS
The definitions in this Section are applicable only to this Rule, the Application and Interconnection Agreements.

Anti-Islanding: A control scheme installed as part of the Generating Facility or Interconnection Facilities that senses and prevents the formation of an Unintended Island.

Applicant: The entity submitting an Application for Interconnection pursuant to this Rule.

Application: A standard MVU provided form submitted to MVU for Interconnection of a Generating Facility.

Certification Test: A test pursuant to this Rule that verifies conformance of certain equipment with MVU-approved performance standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs.

Certification; Certified; Certificate: The documented results of a successful Certification Testing.

Certified Equipment: Equipment that has passed all required Certification Tests.

Commissioning Test: A test performed during the commissioning of all or part of a Generating Facility to achieve one or more of the following:
 Verify specific aspects of its performance;
 Calibrate its instrumentation; and
 Establish instrument or Protective Function set-points. 736
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 64 Customer: The entity that receives or is entitled to receive Distribution Service through the MVU’s Distribution System.

Dedicated Transformer; Dedicated Distribution Transformer: A transformer that provides electricity service to a single Customer. The Customer may or may not have a Generating Facility.

Device: A mechanism or piece of equipment designed to serve a purpose or perform a function. The term may be used interchangeably with the terms “equipment” and “function” without intentional difference in meaning. See also Function and Protective Function.

Distribution Service: All services required by, or provided to, a Customer pursuant to the approved rate schedules and rules of MVU.

Distribution System: All electrical wires, equipment, and other facilities owned or provided by MVU, by which MVU provides Distribution Service to its Customers.

Emergency: An actual or imminent condition or situation, which jeopardizes MVU’s Distribution System Integrity.

Field Testing: Testing performed in the field to determine whether equipment meets MVU’s requirements for safe and reliable Interconnection.

Function: Some combination of hardware and software designed to provide specific features or capabilities. Its use, as in Protective Function, is intended to encompass a range of implementations from a single-purpose device to a section of software and specific pieces of hardware within a larger piece of equipment to a collection of devices and software.

Generating Facility: All Generators, electrical wires, equipment, and other facilities owned or provided by Producer for the purpose of producing electric power.

Generator: A device converting mechanical, chemical or solar energy into electrical energy, including all of its protective and control Functions and structural appurtenances.

One or more Generators comprise a Generating Facility.

Gross Nameplate Rating; Gross Nameplate Capacity: The total gross generating capacity of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s).

Host Load: The electrical power, less the Generator auxiliary load, consumed by the Customer, to which the Generating Facility is connected.

Initial Review: The review by MVU, following receipt of an Application, to determine the following: (a) the Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be made to qualify for Interconnection with a Supplemental Review determining any additional requirements.
737
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 65 In-rush Current: The current determined by the In-rush Current Test.

Interconnection Agreement: An agreement between MVU and the Producer that gives certain rights and obligations to effect or end Interconnection.

Interconnection; Interconnected: The physical connection of a Generating Facility in accordance with the requirements of this Rule so that Parallel Operation with MVU’s Distribution System can occur (or has occurred).

Interconnection Facilities: The electrical wires, switches and related equipment that are required in addition to the facilities required to provide electric Distribution Service to a Customer to allow Interconnection. Interconnection Facilities may be located on either side of the Point of Common Coupling as appropriate to their purpose and design.

Interconnection Facilities may be integral to a Generating Facility or provided separately.

Interconnection Study: A study to establish the requirements for Interconnection of a Generating Facility with MVU’s Distribution System.

Island; Islanding: A condition on MVU’s Distribution System in which one or more Generating Facilities deliver power to Customers using a portion of MVU’s Distribution System that is electrically isolated from the remainder of MVU’s Distribution System.

Line Section: That portion of MVU’s Distribution System connected to a Customer bounded by automatic sectionalizing devices or the end of the distribution line.

Load Carrying Capability: The maximum electrical load that may be carried by a section of MVU’s Distribution System consistent with reliability and safety under the circumstances being evaluated.

Metering: The measurement of electrical power in kW and/or energy in kWh, and, if necessary, reactive power in kVAR at a point, and its display to MVU, as required by this Rule.

Metering Equipment: All equipment, hardware, software including meter cabinets, conduit, etc., that are necessary for Metering.

Momentary Parallel Operation: The interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less.

Nationally Recognized Testing Laboratory (NRTL): A laboratory accredited to perform the Certification Testing requirements under this Rule.

Net Energy Metering: Metering for the receipt and delivery of electricity between the Producer and MVU over a timeframe established per the applicable NEM rate, the difference between these two values yields either net consumption or surplus over the given time period.
738
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 66 Net Generation Output Metering: Metering of the net electrical power output in kW or energy in kWh, from a given Generating Facility. This may also be the measurement of the difference between the total electrical energy produced by a Generator and the electrical energy consumed by the auxiliary equipment necessary to operate the Generator. For a Generator with no Host Load and/or Public Utilities Code Section 218 Load (Section 218 Load), Metering that is located at the Point of Common Coupling. For a Generator with Host Load and/or Section 218 Load, Metering that is located at the Generator but after the point of auxiliary load(s) and prior to serving Host Load and/or Section 218 Load.

Net Nameplate Rating: The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s).

Network Service: More than one electrical feeder providing Distribution Service at a Point of Common Coupling.

Non-Export; Non-Exporting Scheme: Designed to prevent the transfer of electrical energy from the Generating Facility to MVU’s Distribution System.

Non-Islanding: Designed to detect and disconnect an Unintended Island with matched load and generation. Reliance solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non-Islanding.

Parallel Operation: The simultaneous operation of a Generator with power delivered or received by MVU while Interconnected. For the purpose of this Rule, Parallel Operation includes only those Generating Facilities that are Interconnected with MVU’s Distribution System for more than 60 cycles (one second).

Paralleling Device: An electrical device, typically a circuit breaker, operating under the control of a synchronization function or by a qualified operator to connect an energized generator to an energized electric power system or two energized power systems to each other.

Periodic Test: A test performed on part or all of a Generating Facility/Interconnection Facilities at pre-determined time or operational intervals to achieve one or more of the following:
 Verify specific aspects of its performance
 Calibrate instrumentation
 Verify and re-establish instrument or Protective Function set-points.

Point of Common Coupling (PCC): The transfer point for electricity between the electrical conductors of MVU and the electrical conductors of the Producer.

Point of Common Coupling Metering: Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Metering for Generating Facilities with no Host Load and/or Section 218 Load.
739
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 67 Point of Interconnection: The electrical transfer point between a Generating Facility and MVU’s Distribution System. This may or may not be coincident with the Point of Common Coupling.

Producer: The entity that executes an Interconnection Agreement with MVU. The Producer may or may not own or operate the Generating Facility but is responsible for the rights and obligations related to the Interconnection Agreement.

Production Test: A test performed on each device coming off the production line to verify certain aspects of its performance.

Protective Function(s): The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with other functions) whose purpose is to protect against Unsafe Operating Conditions.

Prudent Electrical Practices: Those practices, methods, and equipment, as changed from time to time, that are commonly used in prudent electrical engineering and operations to design and operate electric equipment lawfully and with safety, dependability, efficiency and economy.

Scheduled Operation Date: The date specified in the Interconnection Agreement when the Generating Facility is, by the Producer's estimate, expected to begin operation pursuant to this Rule.

Secondary Network: A network supplied by several primary feeders suitably interlaced through the area in order to achieve acceptable loading of the transformers under emergency conditions and to provide a system of extremely high service reliability. Secondary networks usually operate at 600 V or lower.

Section 218 Load: Electrical power that is supplied in compliance with California Public Utilities Code Section 218. Public Utilities Code Section 218 defines an “Electric Corporation” and provides conditions under which a transaction involving a Generating Facility would not classify a Producer as an Electric Corporation. These conditions relate to “over-the-fence” sale of electricity from a Generating Facility without using MVU’s Distribution System.

Short Circuit (Current) Contribution Ratio (SCCR): The ratio of the Generating Facility’s short circuit contribution to the short circuit contribution provided through MVU’s Distribution System for a three-phase fault at the high voltage side of the distribution transformer connecting the Generating Facility to MVU’s system.

Simplified Interconnection: Interconnection conforming to the Initial Review requirements under this Rule, as determined by Section I.

Single Line Diagram; Single Line Drawing: A schematic drawing, showing the major electric switchgear, Protective Function devices, wires, Generators, transformers and other devices, providing sufficient detail to communicate to a qualified engineer the essential design and safety of the system being considered.
740
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 68 Special Facilities: As defined in MVU’s Rules governing Special Facilities.

Starting Voltage Drop: The percentage voltage drop at a specified point resulting from In-rush Current. The Starting Voltage Drop can also be expressed in volts on a particular base voltage, (e.g., 6 volts on a 120-volt base, yielding a 5% drop).

Supplemental Review: A process wherein MVU further reviews an Application that fails one or more of the Initial Review Process steps. The Supplemental Review may result in one of the following: (a) approval of Interconnection; (b) approval of Interconnection with additional requirements; or (c) required modifications for interconnection.

System Integrity: The condition under which MVU’s Distribution System is deemed safe and can reliably perform its intended functions in accordance with the safety and reliability rules of MVU.

Telemetering: The electrical or electronic transmittal of Metering data in real-time to MVU.

Transfer Trip: A Protective Function that trips a Generating Facility remotely by means of an automated communications link controlled by MVU.

Type Test: A test performed on a sample of a particular model of a device to verify specific aspects of its design, construction and performance.

Unintended Island: The creation of an island, usually following a loss of a portion of MVU’s Distribution System, without the approval of MVU.

Unsafe Operating Conditions: Conditions that, if left uncorrected, could result in hard to personnel, damage to equipment, loss of System Integrity or operation outside preestablished parameters required by the Interconnection Agreement.

Visible Disconnect: An electrical switching device that can separate the Generating Facility from the Distribution System and is designed to allow visible verification that separation has been accomplished. This requirement can be met by opening the enclosure to observe the contact separation.

C. GENERAL REQUIREMENTS

1. Authorization Required to Operate:

A Producer must comply with this Rule and receive MVU’s express written permission before Parallel Operation of its Generating Facility with MVU’s Distribution System.

MVU shall apply this Rule in a non-discriminatory manner and shall not unreasonably withhold its permission for Parallel Operation of Producer’s Generating Facility with MVU’s Distribution System.

2. Access to Premises:

MVU may enter Customer’s premises without prior notice (a) to inspect, at all reasonable hours, Customer’s protective devices and read or test any meter for the Facility and (b) to 741
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 69 disconnect, at any time, without notice, the Facility if, in MVU’s sole opinion, a hazardous condition exists and that immediate action is necessary to protect persons, or MVU’s facilities, or property of others from damage or interference caused by (1) Customer’s Facility, or (2) Customer’s failure to comply with the requirements of this Rule.

3. Separate Agreements Required for Other Services:

Producer requiring other electric services from MVU including, but not limited to, Distribution Service during periods of curtailment or interruption of the Producer’s Generating Facility, will comply with these Rules and agrees to abide by all requirements as set forth by MVU for such services in accordance with MVU’s City Council-approved Electric Rules.

4. Transmission Service Not Provided with Interconnection:

Interconnection with MVU's Distribution System under this Rule does not provide a Producer any rights to utilize MVU's System for the transmission, distribution, or wheeling of electric power.

5. Design Reviews and Inspections:

MVU shall have the right to review the design of a Producer's Generating and/or Interconnection Facilities and to inspect a Producer's Generating and/or Interconnection Facilities prior to the commencement of Parallel Operation with MVU’s Distribution System. MVU may require a Producer to make modifications as necessary to comply with the requirements of this Rule. MVU's review and authorization for Parallel Operation shall not be construed as confirming or endorsing the Producer's design or as warranting the Generating and/or Interconnection Facilities' safety, durability or reliability. MVU shall not, by reason of such review or lack of review, be responsible for the strength, adequacy or capacity of such equipment.

6. Design Requirements:
a. Customer’s Facility, and all portions of it used to provide or distribute electrical power and parallel interconnection with MVU’s distribution equipment shall be designed, installed, constructed, operated, and maintained in compliance with this Rule. Compliance with this section is mandatory.
b. Customer shall conform to all applicable solar or wind electrical generating system safety and performance standards established by this rule, the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), and accredited testing laboratories such as Underwriters Laboratories, and where applicable, rules of the Public Utilities Commission regarding safety and reliability, and applicable building codes.

7. Testing and Compliance:

Generating facilities must meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories. All generating facilities must have a warranty of at least 10 years for all equipment and the associated installation from the system provider (not from MVU). All major solar system components (including 742
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 70 PV panels and other generation equipment, inverters and meters) must be on the verified equipment list maintained by the CEC. Any other equipment, as determined by MVU, must be verified as having safety certification from a Nationally Recognized Testing Laboratory.

8. Sized to offset all or part of load:

The Customer’s generating facilities must be sized to offset part or all of the customer’s own electrical requirements and cannot be oversized.

9. Transferability of Generating Facility:

A new Customer of record who owns, rents, or leases a premise that includes a generating facility that was approved by MVU for parallel operation prior to the new Customer moving in and/or taking electric service with MVU will take service under this Schedule as long as the requirements of this Schedule are met. This provision also applies to premises where the developer/contractor establishes the interconnection.

10. System Modifications:

Existing generating facilities currently under a legacy NEM Schedule that are modified such that: (1) the generating capacity or output increases by 10% or more; or (2) adding battery storage will be placed under the most recent NEM Schedule.

11. NEM Schedule Agreement:

Existing Customers under a legacy NEM schedule will remain under their legacy Schedule for a period of fifteen (15) years from the original year in which their generating facility was interconnected to MVU’s grid as determined from the date the Customer received the permission to operate (PTO), and then will be switched to the most recent NEM schedule or any otherwise applicable rate schedule. Existing Customers under Schedule NEM can request to be placed under the most recent NEM Schedule at any time; the Customer’s account will be trued up at the time of the request. This means that any outstanding balance due or credit due will be applied to the next regular billing.

12. Interruption or Reduction of Deliveries:
a. MVU shall not be obligated to accept, and MVU may require Customer to interrupt or reduce, deliveries of energy to MVU: (a) when necessary in order to construct, install, maintain, repair, replace, remove, investigate, or inspect any of MVU’s equipment or part of the MVU system; or (b) if MVU determines that curtailment, interruption, or reduction of receipt of energy from Customer’s Facility is necessary because of emergencies, forced outages, force majeure, or compliance with prudent electrical practices.
b. Notwithstanding any other provision of this Rule, if at any time MVU, in its sole discretion, determines that either (a)the Facility may endanger MVU personnel or members of the general public, or (b) the continued operation of Customer’s Facility may impair the integrity of MVU’s electric distribution system, MVU shall have the right to disconnect Customer’s Facility from MVU’s electric distribution system. Customer’s Facility shall remain disconnected until such time as MVU is satisfied that the condition(s) referenced in (a) or (b) of this paragraph have been corrected, and MVU shall 743
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 71 not be obligated to compensate Customer for any loss of use of generation or energy during any and all periods of such disconnection.

13. Maintenance and Permits:

Customer shall: (a) maintain the Facility and interconnection facilities in a safe and prudent manner and in conformance with all applicable laws and regulations including, but not limited to, requirements of Section 5 above, and (b) to the extent that future requirements may require, obtain any governmental authorizations or permits required for the operation of the Facility. Customer shall reimburse MVU for any and all losses, damages, claims, penalties, or liability MVU incurs as a result of Customer’s failure to obtain or maintain any governmental authorizations and permits required for construction and operation of the Customer’s Facility.

14. Indemnity and Liability by Customer:
a. Customer shall indemnify and hold MVU, its directors, officers, agents and employees harmless against all loss, damages expense and liability to third persons for injury to or death of persons or injury to property caused by the Customer’s engineering design, construction, installation, ownership, maintenance or operations of the Facility in connection with this Agreement by reason of omission or negligence, whether active or passive. Customer shall, on MVU’s request, defend any suit asserting a claim covered by this indemnity.

Customer shall pay all costs that may be incurred by MVU in enforcing this indemnity.
b. Neither MVU, its officers, agents nor employees shall be liable for any claims, demands, costs, losses, causes of action, or any other construction, ownership, maintenance or operation of, or making of replacements, additions or betterment to, Customer’s Facility except to the extent actually caused by the sole and gross negligence of the MVU.
c. Neither MVU, its officers, agents nor employees shall be liable for damages of any kind to the Facility caused by any electrical disturbance of the MVU system or on the system of another, whether or not the electrical disturbance results from the negligence of MVU.

D. PROTECTION REQUIREMENTS

1. General Interconnection and Protective Function Requirements The Protective Functions and requirements of this Rule are designed to protect MVU’s Distribution System and not the Generating Facility. A Producer shall be solely responsible for providing adequate protection for its Generating Facility and Interconnection Facilities. The Producer's Protective Functions shall not impact the operation of other Protective Functions utilized on MVU’s Distribution System in a manner that would affect MVU's capability of providing reliable service to its Customers.
744
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 72 a. Protective Functions Required Generating Facilities operating in parallel with MVU’s Distribution System shall be equipped with the following Protective Functions to sense abnormal conditions on MVU’s Distribution System and cause the Generating Facility to be automatically disconnected from MVU’s Distribution System or to prevent the Generating Facility from being connected to MVU’s Distribution System inappropriately:
1) Over and under voltage trip functions and over and under frequency trip functions;
2) A voltage and frequency sensing and time-delay function to prevent the Generating Facility from energizing a de-energized Distribution System circuit and to prevent the Generating Facility from reconnecting with MVU’s Distribution System unless MVU’s Distribution System service voltage and frequency is within the Voltage Range of 106V to 127V (on a 120V basis), inclusive, and a frequency range of 59.3 Hz to 60.5 Hz, inclusive, and are stable for at least 60 seconds; and
3) A function to prevent the Generating Facility from contributing to the formation of an Unintended Island and cease to energize the MVU’s Distribution System within two seconds of the formation of an Unintended Island.

The Generating Facility shall cease to energize MVU’s Distribution System for faults on MVU’s Distribution System circuit to which it is connected.

The Generating Facility shall cease to energize MVU’s Distribution circuit prior to re-closure by MVU’ Distribution System equipment. b. Momentary Paralleling Generating Facilities. With MVU’s approval, the transfer switch or scheme used to transfer the Producer’s loads from MVU’s Distribution System to Producer’s Generating Facility may be used in lieu of the Protective Functions required for Parallel Operation. c. Purpose of Protective Functions. The Protective Functions and requirements of this Rule are designed to protect MVU’s Distribution System and not the Generating Facility. A Producer shall be solely responsible for providing adequate protection for its Generating Facility and Interconnection Facilities.

The Producer’s protective devices utilized on the Distribution System in a manner that would affect MVU’s capability of providing reliable service to its Customers.
d. Suitable Equipment Required. Circuit breakers or other interrupting equipment located at the Point of Common Coupling must be Certified or "Listed" (as defined in Article 100, the Definitions Section of the National Electrical Code) as suitable for their intended application. This includes being 745
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 73 capable of interrupting the maximum available fault current expected at their location. Producer’s Generating Facility and Interconnection Facilities shall be designed so that the failure of any single device or component shall not potentially compromise the safety and reliability of MVU’s Distribution System.
e. Visible Disconnect Required. When required by MVU’s operating practices, the Producer shall furnish and install a ganged, manually-operated isolating switch (or a comparable device mutually agreed upon by MVU and the Producer) near the Point of Interconnection to isolate the Generating Facility from MVU’s Distribution System. The device does not have to be rated for load break nor provide over-current protection.

The device must:
1) allow visible verification that separation has been accomplished. (This requirement may be met by opening the enclosure to observe contact separation.)
2) include markings or signage that clearly indicate open and closed positions.
3) be capable of being reached quickly and conveniently 24 hours a day by MVU personnel for construction, operation, maintenance, inspection, testing or reading, without obstacles or requiring those seeking access to obtain keys, special permission, or security clearances.
4) be capable of being locked in the open position.
5) be clearly marked on the submitted single line diagram and its type and location approved by the MVU prior to installation. If the device is not adjacent to the Point of Common Coupling, permanent signage must be installed at an MVU-approved location providing a clear description of the location of the device.

Generating Facilities with Non-Islanding inverters totaling one (1) kilovolt-ampere (kVA) or less are exempt from this requirement.
f. Drawings Required. Prior to Parallel Operation or Momentary Parallel Operation of the Generating Facility, MVU shall approve the Producer's Protective Function and control diagrams. Generating Facilities equipped with Protective Functions and a control scheme previously approved by MVU for system-wide application or only Certified Equipment may satisfy this requirement by reference to previously approved drawings and diagrams.
746
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 74 g. Generating Facility Conditions Not Identified. In the event this Rule does not address the Interconnection conditions for a particular Generating Facility, MVU and Producer may agree upon other arrangements.

2. Prevention of Interference:

The Producer shall not operate Generating or Interconnection Facilities that superimpose a voltage or current waveform upon MVU’s Distribution System that interferes with MVU operations, service to MVU Customers, or communication facilities. If such interference occurs, the Producer must diligently pursue and take corrective action at its own expense after being given notice and reasonable time to do so by MVU. If the Producer does not take corrective action in a timely manner, or continues to operate the facilities causing interference without restriction or limit, MVU may, without liability, disconnect the Producer's facilities from MVU’s Distribution System. To eliminate undesirable interference caused by its operation, each Generating Facility shall meet the following criteria:
a. Voltage Regulation: The Generating Facility shall not actively regulate the voltage at the Point of Common Coupling while in parallel with MVU’s Distribution System.
b. Operating Voltage Range: The voltage ranges in Table D.1 define protective trip limits for the Protective Function and are not intended to define or imply a voltage regulation Function. Generating Facilities shall cease to energize MVU’s Distribution System within the prescribed trip time whenever the voltage at the Point of Common Coupling deviates from the allowable voltage operating range. The Protective Function shall detect and respond to voltage on all phases to which the Generating Facility is connected.
1) Generating Facilities (30 kVA or less). Generating Facilities with a Gross Nameplate Rating of 30 kVA or less shall be capable of operating within the voltage range normally experienced on MVU’s Distribution System. The operating range shall be selected in a manner that minimizes nuisance tripping between 106 volts and 132 volts on a 120-volt base (88%-110% of nominal voltage). Voltage shall be detected at either the Point of Common Coupling or the Point of Interconnection.
2) Generating Facilities (greater than 30 kVA). MVU may require adjustable operating voltage settings. In the absence of such requirements, the Generating Facility shall operate at a range between 88% and 110% of the applicable interconnection voltage.

Voltage shall be detected at either the Point of Common Coupling or the Point of Interconnection, with settings compensated to 747
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 75 account for the voltage at the Point of Common Coupling, Generating Facilities that are Certified Non-Islanding or that meet one of the options of the Export Screen (Section I.3.b) may detect voltage at the Point of Interconnection without compensation. 3) Voltage Disturbances. Whenever MVU’s Distribution System voltage at the Point of Common Coupling varies from and remains outside normal (nominally 120 volts) for the predetermined parameters set forth in Table D-1, the Generating Facility’s Protective Functions shall cause the Generator(s) to become isolated from MVU’s Distribution System:

Table D.1 Voltage Trip Settings
Voltage at Point of Common Coupling Maximum Trip Time* # of Cycles (Assuming 120 V Base) % of Nominal Voltage (Assuming 60Hz Nominal)
Seconds
Less than 60 Volts Less than 50% 10 Cycles 0.16 Seconds Greater than or equal to 60
volts but less than 106 volts
Greater than or equal to
50% but less than 88%
120 Cycles 2 Seconds
Greater than or equal to 106
volts but less than 132 volts
Greater than or equal to
88% but less than 110%
Normal Operation
Greater than or equal to 132
volts but less than 144 volts
Greater than or equal to
110% but less than 120%
120 Cycles 2 Seconds
Greater than 144Volts Greater than 120% 10 Cycles 0.16 Seconds * "Maximum Trip time" refers to the time between the onset of the abnormal condition and the Generating Facility ceasing to energize MVU’s Distribution System. Protective Function sensing equipment and circuits may remain connected to MVU’s Distribution System to allow sensing of electrical conditions for use by the "reconnect" feature. The purpose of the allowed time delay is to allow a Generating Facility to “ride through” short-term disturbances to avoid nuisance tripping. Set points shall not be user adjustable (though they may be field adjustable by qualified personnel). For Generating Facilities with a Gross Nameplate Rating greater than 30 kVA, set points shall be field adjustable and different voltage set points and trip times from those in Table D.1 may be negotiated with MVU.
c. Paralleling. The Generating Facility shall parallel with MVU’s Distribution System without causing a voltage fluctuation at the Point of Common Coupling greater than ±5% of the prevailing voltage level of MVU’s Distribution System at the Point of Common Coupling. 748
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 76 d. Flicker. The Generating Facility shall not create objectionable flicker for other Customers on MVU’s Distribution System. To minimize the adverse voltage effects experienced by other Customers (IEEE1547-4.3.2), flicker at the Point of Common Coupling caused by the Generating Facility should not exceed the limits defined by the "Maximum Borderline of Irritation Curve" identified in IEEE 519-1992 (IEEE Recommended Practices and Requirements for Harmonic Control in Electric Power Systems, IEEE STD 519-1992). This requirement is necessary to minimize the adverse voltage affects experienced by other Customers on MVU’s Distribution System.

Generators may be connected and brought up to synchronous speed (as an induction motor) provided these flicker limits are not exceeded. e. Integration with MVU’s Distribution System Grounding. The grounding scheme of the Generating Facility interconnection shall not cause over-voltages that exceed the rating of the equipment connected to the MVU’s Distribution System and shall not disrupt the coordination of the ground fault protection on the MVU’s Distribution System (IEEE1547-

4.1.2) (See Section I.3.h).
f. Frequency: MVU controls system frequency, and the Generating Facility shall operate in synchronism with the MVU’s Distribution System.

Whenever MVU’s Distribution System frequency at the Point of Common Coupling is outside of the acceptable operating range (59.3-60.5 Hertz) for more than ten cycles, the Generating Facility’s Protective Functions shall cease to energize MVU’s Distribution System.
g. Harmonics. Harmonic distortion shall be in compliance with IEEE 519. h. Direct Current Injection. Generating Facilities should not inject direct current greater than 0.5% of rated output current into MVU’s Distribution System.
i. Power Factor. Each Generator in a Generating Facility shall be capable of operating at some point within a power factor range from 0.9 leading to 0.9 lagging. Operation outside this range is acceptable provided the reactive power of the Generating Facility is used to meet the reactive power needs of the Host Loads or that reactive power is otherwise provided under Rate Schedule by MVU. The Producer shall notify MVU if it is using the Generating Facility for power factor correction. Unless otherwise agreed upon by the Producer and MVU, Generating Facilities shall automatically regulate power factor, not voltage, while operating in parallel with MVU’s Distribution System.
j. Unintended Islanding. Generating Facilities must mitigate their potential contribution to an Unintended Island. This can be accomplished by one of the following options: (1) incorporating certified Non-Islanding control functions into the Protective Functions, or (2) installation of non-export 749
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 77 relays and protective equipment or (3) verifying that local loads always sufficiently exceed the Net Nameplate Rating of the Generating Facility. k. Fault Detection. A Generating Facility shall be equipped with Protective Functions designed to detect Distribution System faults, both line-to-line and line-to-ground, and promptly cease to energize the Distribution System in the event of a fault. For a Generating Facility that cannot detect these faults within two seconds, a transfer trip or equivalent function may be required. Reclose-blocking of MVU’s affected recloser(s) may also be required.

3. Technology Specific Requirements:
a. Three-Phase Synchronous Generators. For three-phase Generators, the Generating Facility circuit breakers shall be three-phase devices with electronic or electromechanical control. The Producer shall be responsible for properly synchronizing its Generating Facility with MVU’s Distribution System by means of either manual or automatic synchronizing equipment. Automatic synchronizing is required for all synchronous Generators that have a Short Circuit Contribution Ratio (SCCR) exceeding 0.05. Loss of synchronism protection is not required except as may be necessary to meet Section D.2.d (Flicker) (IEEE1547-4.2.5). Unless otherwise agreed upon by the Producer and MVU, synchronous Generators shall automatically regulate power factor, not voltage, while operating in parallel with MVU’s Distribution System. A power system stabilization function is specifically not required for Generating Facilities under 10 MW Net Nameplate Rating.
b. Induction Generators. Induction Generators (except self-excited Induction Generators) do not require a synchronizing Function. Starting or rapid load fluctuations on induction generators can adversely impact MVU’s Distribution System's voltage. Corrective step-switched capacitors or other techniques may be necessary and may cause undesirable ferro-resonance. When these counter measures (e.g., additional capacitors) are installed on the Producer's side of the Point of Common Coupling, MVU must review these measures. Additional equipment may be required as determined in a Supplemental Review or an Interconnection Study.
c. Inverters. Utility-interactive inverters do not require separate synchronizing equipment. Non-utility-interactive or “stand-alone” inverters shall not be used for Parallel Operation with MVU’s Distribution System.
d. Single-Phase Generators. For single-phase Generators connected to a shared single-phase secondary system, the maximum Net Nameplate Rating of the Generating Facilities shall be 20 kVA. Generators connected to a center-tapped neutral 240-volt service must be installed such that no more than 6 kVA of imbalanced power is applied to the two “legs” of the 240-volt service. For Dedicated Distribution Transformer services, the maximum Net Nameplate 750
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 78 Rating of a single-phase Generating Facility shall be the transformer nameplate rating.

E.INTERCONNECTION FACILITIES AND DISTRIBUTION SYSTEM

MODIFICATIONS

1. Scope and Ownership of Interconnection Facilities and Distribution System Modifications
a. Scope. Parallel Operation of Generating Facilities may require Interconnection Facilities or modifications to MVU’s Distribution System (“Distribution System modifications”). The type, extent and costs of Interconnection Facilities and Distribution System modifications shall be consistent with this Rule and determined through the Supplemental Review and/or Interconnection Studies described in the application process.
b. Ownership. Interconnection Facilities installed on Producer’s side of the Point of Common Coupling may be owned, operated and maintained by the Producer or MVU. Interconnection Facilities installed on MVU’s side of the Point of Common Coupling and Distribution System modifications shall be owned, operated and maintained only by MVU.

2. Responsibility of Costs of Interconnecting a Generating Facility a. Review, Study, and Additional Commissioning Test Verification (preparallel inspections) Costs. A producer shall be responsible for the reasonably incurred costs of the review’s studies, and additional Commissioning Test verifications (pre-parallel inspections) conducted pursuant to the application section of this Rule. If the initial Commissioning Test verification (pre-parallel inspection) is not successful through no fault of MVU, MVU may impose upon the Producer a cost-based charge for subsequent Commissioning Test verifications (pre-parallel inspections). All Costs for additional Commissioning Test verifications (pre-parallel inspections) shall be paid by Producer within thirty days of receipt of MVU’s invoice. Additional costs, if any, will be specified on the invoice. If the initial Commissioning test (pre-paralleling inspection) is not successful through the fault of the MVU, that visit will not be considered the initial Commissioning Test (pre-parallel inspection). b. Facility Costs. A Producer shall be responsible for all costs associated with Interconnection Facilities owned by the Producer. The Producer shall also be responsible for any costs reasonably incurred by MVU in providing, operating, or maintaining the Interconnection Facilities and Distribution System modifications required solely for the Interconnection of the Producer’s Generating Facility with MVU’s Distribution System.
751
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 79 c. Separation of Costs. Should MVU combine the installation of Interconnection Facilities or Distribution System modifications required for the Interconnection of a Generating Facility with modifications to MVU’s Distribution System to serve other Customers or Producers, MVU shall not include the costs of such separate or incremental facilities in the amounts billed to the Producer.

3. Installation of Interconnection Facilities and Distribution System Modifications a. Agreement Required. The costs for Interconnection Facilities and Distribution System modifications shall be paid by the Producer pursuant to the provisions contained in the Interconnection Agreement. Where the type and extent of the Interconnection Facilities and Distribution System Improvements warrant additional detail, the detail shall be found in a separate agreement between the Producer and MVU, and MVU’s applicable rate schedules and rules for Added Facilities.
b. Interconnection Facilities and Distribution System Modifications. Except as provided for in Section E.3.c. of this Rule, Interconnection Facilities connected to MVU’s side of the Point of Common Coupling and Distribution System modifications shall be provided, installed, owned and maintained by MVU at Producer’s expense.
c. Third-Party Installations. Subject to the approval of MVU, a Producer may at its option employ a qualified contractor to provide and install Interconnection Facilities or Producer paid Distribution System modifications, to be owned and operated by MVU, on MVU’s side of the Point of Common Coupling. Such Interconnection Facilities and Distribution System modifications shall be installed in accordance with MVU's design and specifications. Upon final inspection and acceptance by MVU, the Producer shall transfer ownership of such Producer installed Interconnection Facilities or Distribution System modifications to MVU and such facilities shall thereafter be owned and maintained by MVU. The Producer shall pay MVU's reasonable cost of design, administration, and monitoring of the installation for such facilities to ensure compliance with MVU's requirements. The Producer shall also be responsible for all costs associated with the transfer of Producer installed Interconnection Facilities and Distribution System modifications to MVU.

F. METERING, MONITORING AND TELEMETRY

1. General Requirements: All Generating Facilities shall be metered in accordance with this Section F and shall meet all applicable standards of MVU contained in MVU’s applicable rules and published MVU manuals dealing with specifications. 752
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 80

2. Metering By Non-MVU Parties: The ownership, installation, operation, reading and testing of revenue Metering Equipment for Generating Facilities shall be by MVU.

3. Net Generation Output Metering (NGOM): Generating Facilities’ Customers may be required to install NGOM for evaluation, monitoring and verification purposes, to satisfy applicable CAISO reliability requirements, and for Distribution System planning and operations.

The relevant factors in determining the need for NGOM are as listed below:
a. Data requirements in proportion to need for information; b. Producer’s election to install equipment that adequately addresses MVU’s operational requirements;
c. Accuracy and type of required Metering consistent with purposes of collecting data;
d. Cost of Metering relative to the need for and accuracy of the data; e. The Generating Facility’s size relative to the cost of the Meter/monitoring; f. Other means of obtaining the data (e.g., Generating Facility logs, proxy data etc.);
g. Requirements under any interconnection Agreement with the Producer.

The requirements in this Section may not apply to Metering of Generating Facilities operating under MVU’s Net Energy Metering Rate Schedule pursuant to the California Public Utilities Cod Section 2827, et seq. Nothing in this Section F.3 supersedes Section B.4.

4. Point of Common Coupling Metering: For purposes of assessing MVU charges for retail service, the Producer’s PCC Metering shall be a bi-directional meter so that power deliveries to and from the Producer’s site can be separately recorded.

Alternately, the Producer may, at its sole option and cost, require MVU to install multi-metering equipment to separately record power deliveries to MVU’s Distribution System and retail purchases from MVU. Where necessary, such PCC Metering shall be designed to prevent reverse registration.

5. Telemetering: If the nameplate rating of the Generating Facility is 1 MW or greater, Telemetering equipment at the Net Generator Output Metering location may be required at the Producer's expense. If the Generating Facility is Interconnected to a portion of MVU’s Distribution System operating at a voltage below 10 kV, then Telemetering equipment may be required on Generating Facilities 250 kW or greater. MVU shall only require Telemetering to the extent 753
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 81 that less intrusive and/or more cost effective options for providing the necessary data in real time are not available.

6. Location: Where MVU-owned Metering is located on the Producer’s premises, Producer shall provide, at no expense to MVU, a suitable location for all such Metering Equipment.

7. Costs of Metering: The Producer will bear all costs of the Metering required by this Rule, including the incremental costs of operating and maintaining the Metering Equipment.

G. DISPUTE RESOLUTION PROCESS
The following procedures will apply for disputes arising from this Rule:

1. The City Council shall have jurisdiction to interpret, add, delete or modify any provision of this Rule or of any agreements entered into between MVU and the Producer to implement this Rate Schedule (“The Implementing Agreements") and to resolve disputes regarding MVU’s performance of its obligations under its rules, the applicable agreements, and requirements related to the Interconnection of the Producer’s Generating or Interconnection Facilities pursuant to this Rule.

2. The dispute shall be submitted in writing by the Producer to MVU. Authorized representatives from both Parties shall meet and confer to try to resolve the dispute.

If the Parties cannot resolve the dispute, the dispute will be submitted to the City Council for resolution. Their decision shall be final.

3. Pending resolution of any dispute under this Section, the Parties shall proceed diligently with the performance of their respective obligations under this Rule and the Implementing Agreements, unless the Implementing Agreements have been terminated. Disputes as to the application and implementation of this Section shall be subject to resolution pursuant to the procedures set forth in this Section.

H. SYSTEM SIZING REQUIREMENTS

1. Residential Systems
a. 12 Months of Usage Data Exists
Residential Systems must be designed such that they do not produce more power than they consume on an annual basis. This means that the estimated output of the generating facility, using the CEC-AC nameplate rating for inverter-based generating facilities, must not exceed the Customer’s previous annual usage in kWh.
b. 12 Months of Usage Data Does Not Exist
In the event that there is less than 12 months of previous recorded usage data, the following equation will be used to determine the maximum allowable CECAC nameplate rating for the inverter-based generating facility in watts:
754
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 82 1692 x [Number of Dwelling Units] + 0.75 x [Dwelling conditioned floor area in square feet]
c. Electric Vehicle Usage Calculation Proration
If the Customer enrolls in the Electric Vehicle Off-Peak Charging Discount Program, they can prorate their calculated usage or maximum allowable system size as follows:
i. The number of months that will be used to estimate the prorated usage from the electric vehicle shall be calculated as:

Number of Months = 12 – [number of months the vehicle has been registered to the Customer at the address]
If the Number of Months is calculated to be negative, no proration will be allowed.
ii. If the Customer has 12 months of recorded usage data, the following equation will be used to determine their annual usage in kWh:
iii. [Customer’s previous annual usage in kWh] + 500 kWh x Number of Months
iv. If the Customer has less than 12 months of recorded usage data, the following equation will be used to determine the maximum allowable CEC-AC nameplate rating for the inverter-based generating facility in watts:
1692 x [Number of Dwelling Units] + 0.75 x [Dwelling conditioned floor area in square feet] + 170 x Number of Months

2. Commercial or Industrial Systems
a. Expedited Interconnection
The estimated output of the Generating Facility measured by the CEC-AC Nameplate capacity of the proposed system must not exceed 50% of the Customer’s verified annual minimum daytime load. If there are less than 12 months of previous recorded usage data, the maximum allowable size in watts will be determined by MVU through Supplemental Review.
b. Supplemental Review Required
Supplemental review will be required if the Customer intends to install a generating facility who’s estimated output, measured by the CEC-AC Nameplate capacity of the proposed system, exceeds 50% of the Customer's verified annual minimum daytime load, or if there are less than 12 months of previous recorded usage data available. Supplemental review will follow the following process and requirements:
i. Evaluation and Calculation of Minimum Daytime Load - For customers who do not have at least 12 months of verified energy usage data, MVU will perform a calculation to determine the minimum daytime load. This value will be used to assess whether the proposed 755
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 83 generation system triggers the supplemental review threshold. a. Determination Notification: MVU will provide the calculated minimum daytime load determination to the customer, who will then select which compliance path they wish to follow (nonexport system or battery-supported system). b. Compliance Paths: The customer must notify MVU of their selected compliance path before advancing further in the interconnection process. (i.e. 50% minimum daytime load, 100% minimum daytime load or up to 100% annual usage)
ii. 100% of Minimum Daytime Load with Non-Export Relays – Customers can install solar generation systems up to 100% of their minimum daytime load with the installation of Non-Export Relays a. Installation of Non-Export Relays

1. Customers must install a utility-grade non-export relay system that ensures zero export of electricity to MVU’s distribution grid at the point of interconnection.

2. The non-export condition remains in place indefinitely unless the system is later modified to incorporate battery storage, subject to MVU review and approval.
b. Responsibilities

1. Customer - Responsible for installing, testing,
commissioning, and initially certifying both the solar PV system and the non-export relay system.

2. MVU - Conducts a final inspection to verify correct nonexport functionality. i. If the non-export relay is standalone, ownership is
deeded to MVU at no cost after acceptance.
ii. If non-export functionality is integrated within
inverter equipment, ownership remains with the
customer.
c. Enforcement

1. If MVU identifies a malfunction or failure in non-export functionality, it will issue a written notice requiring corrective action within 20 business days.

2. Failure to correct the issue within this window may result in MVU disconnecting and locking out the system until
proper operation is restored and verified.
iii. Up to 100% of Annual Usage with Battery Energy Storage System (BESS) – Customers who wish to export energy up to 100% of their annual usage must follow one of two options under this section. These pathways ensure MVU can safely manage energy export while maintaining grid reliability.
a. Purchase, Install, and Transfer Ownership of BESS

1. BESS Procurement and Installation - The customer must purchase, install, and commission a battery energy
storage system (BESS) on their project site.

2. Sizing Requirements - The BESS must be sized at a
minimum of 50% of the CEC-AC nameplate capacity of
756
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 84 the proposed generating facility. The calculated size will be rounded up to the nearest 250 kW increment. For
example, if the generating facility is sized at 720kW, the 50% calculation yields 360 kW, the customer must size
the battery system to at least 500 kW.

3. Ownership Transfer - Once installed and commissioned, the batteries and the physical site they occupy, and a path to access must be deeded over to MVU at no cost. MVU
will then take full ownership, operation, and maintenance responsibility for the BESS.
b. Install Non-Export Relays and Provide a Dedicated BESS Site

1. Non-Export Relay Installation - The customer must
initially install utility-grade non-export relays that
actively prevent export of electricity to MVU’s grid.

These must remain in operation until the BESS is
installed, commissioned, and placed into service by
MVU.

2. Dedicated BESS Site - The customer must deed a site to MVU, meeting the minimum size and access
requirements outlined in the table below. MVU will then procure, install, and commission the BESS at that site.

Installed Solar Capacity Option A: Smaller Lots Option B: Larger Lots Up to 1 MW Two (2) lots of 40' × 40' each One (1) lot of 50' × 50' or One (1) lot of 40’ x 60’
Between 1 MW to 2 MW Four (4) lots of 40' × 40' each
Two (2) lots of 50' × 50' or
Two (2) lots of 40' × 60' or
One (1) lot of 75' × 50'
Between 2 MW to 3 MW Six (6) lots of 40' × 40' each
Three (3) lots of 50' × 50' or
Three (3) lots of 40' × 60' or
One (1) lot of 125’ × 50'
Between 3 MW to 4 MW Eight (8) lots of 40' × 40' each
Four (4) lots of 50' × 50' or
Four (4) lots of 40’ × 60' or
One (1) lot of 150' × 50'
Between 4 MW to 5 MW Ten (10) lots of 40' × 40' each
Five (5) lots of 50' × 50' or
Five (5) lots of 40' × 60' or
One (1) lot of 175' × 50'

3. Timing and Budget Constraints - MVU does not
guarantee a specific timeframe for the installation and commissioning of the BESS associated with any given
project.

4. Permission to Operate (PTO) Requirements – MVU will
not grant PTO until it confirms completion of all of the following:
i. A complete interconnection application, including
all necessary supporting documentation;
757
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 85 ii. Payment of all applicable fees, including
application review fees and supplemental review
fees; and
iii. Finalized execution and recording of a utility
easement deed or formal dedication of land to the
City of Moreno Valley, allowing MVU to install,
operate, and maintain the BESS and associated
equipment required to interconnect the BESS with
the distribution grid. Easement deeds will need to
be reviewed and approved by MVU before filing to
ensure they will meet the requirements of this rule.

5. Enforcement
i. If MVU identifies a malfunction or failure in nonexport functionality, it will issue a written notice requiring corrective action within 20 business days.
ii. Failure to correct the issue within this window may result in MVU disconnecting and locking out the
system until proper operation is restored and
verified.

6. Post BESS Commissioning and Energy Export - After
MVU has successfully installed, tested, commissioned,
and placed the BESS into service, the customer will be
authorized by MVU to remove or deactivate the nonexport relay system. At that point, MVU will allow export of energy from the customer's generation system
onto MVU's distribution grid. The customer’s bill
including compensation will be calculated based on MVU
most current applicable rate schedule when the system
received PTO.
c. Non-Export Relay, BESS Installation, Prioritization, and Energy Export Terms for Systems Requiring Supplemental Review
i. Installation and Initial Non-Export Requirement
The applicant must install a utility-grade non-export relay system ensuring zero export of electricity from the applicant’s generation system to Moreno Valley Utility’s (MVU) distribution grid at the point of interconnection.

This non-export requirement shall remain fully effective until MVU installs, tests, commissions, and places into service the associated Battery Energy Storage System (BESS).
ii. Timing and Budget Constraints
758
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 86 MVU does not guarantee a specific timeframe for the installation and commissioning of the BESS associated with any given project. MVU’s ability to install and commission a BESS is subject to available funding within its approved Capital Improvement Program (CIP) budget, which may vary by fiscal year.
iii. Project Prioritization and Requirements
MVU will prioritize projects requiring BESS installation based upon the date MVU receives and confirms completion of all of the following items:
 A complete interconnection application, including all necessary supporting documentation;
 Payment of all applicable fees, including application review fees and supplemental review fees; and
 Finalized execution and recording of a utility easement deed or formal dedication of land to the City of Moreno Valley, allowing MVU to install, operate, and maintain the BESS and associated equipment required to interconnect the BESS with the distribution grid. Easement deeds will need to be reviewed and approved by MVU before filing to ensure they will meet the requirements of this rule.

MVU will not begin engineering design for the BESS until all the above-listed conditions have been satisfied and formally approved.
iv. Customer and MVU Responsibilities
 The developer/customer shall be responsible for installation, commissioning, and initial certification of the solar PV system and the non-export relay system.
 MVU shall conduct a final inspection verifying correct operation of the nonexport relay functionality.  Upon MVU acceptance, ownership of the non-export relay system shall be deeded and transferred to MVU at no cost. If non-export functionality is integrated within inverter equipment, ownership shall remain with the customer. MVU reserves the right to verify and enforce proper functionality. v. Enforcement of Non-Export Functionality
If MVU determines that the applicant’s non-export relay or integrated inverter control is not functioning correctly, MVU will issue written notice requiring corrective action within 20 business days. Should corrective action fail to occur within this timeframe, MVU reserves the right to disconnect and lock out the applicant’s PV system until corrections are completed and successfully verified by MVU.
vi. Post-BESS Commissioning and Energy Export Terms
After MVU has successfully installed, tested, commissioned, and placed the BESS into service, the customer will be authorized by MVU to remove or 759
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 87 deactivate the non-export relay system. At that point, MVU will allow export of energy from the customer's generation system onto MVU's distribution grid.

The customer shall then be compensated for any excess generation exported to MVU’s grid during each billing period in accordance with MVU’s Net Compensation Rate – Schedule B.
d. Battery Energy Storage System (BESS) Dedicated Area Requirements Applicants exceeding the 50% of minimum daytime load limitation must either provide a dedicated parcel of land or grant MVU a specific utility easement at the proposed project site to install a battery energy storage system. The area provided must meet all the following criteria:
 Clearly defined and dedicated via deed or easement specifically to MVU.

Any parcel maps, lot line adjustments, or utility easements must be reviewed and approved by MVU, and filed with the County of Riverside.  Pre-approved in writing by MVU before interconnection approval.  Accessible directly from public streets without special permissions, keys, badges, or codes. If the area is behind any security gates, doors, or access points, MVU’s staff must be granted 24/7 access to the site.  Free from existing or planned major utilities or critical infrastructure (including but not limited to storm drains, Best Management Practices (BMPs), drainage courses, retention basins, water mains, gas pipelines, telecommunications infrastructure, and other major utility assets).  MVU shall secure the provided area with appropriate security walls/fencing as needed.
e. Minimum Dedicated Area per MW of Installed Solar PV Capacity:

Applicants may select one of the following two standard options for providing dedicated land space to MVU for BESS
 Multiple lots must each independently meet accessibility and clearance requirements unless otherwise approved by MVU.
 Projects exceeding 5 MW will require customized spacing, reviewed and approved by MVU engineering staff.
760
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 88 Installed Solar Capacity Option A: Smaller Lots Option B: Larger Lots Up to 1 MW Two (2) lots of 40' × 40' each One (1) lot of 50' × 50' or One (1) lot of 40’ x 60’
Between 1 MW to 2 MW Four (4) lots of 40' × 40' each
Two (2) lots of 50' × 50' or
Two (2) lots of 40' × 60' or
One (1) lot of 75' × 50'
Between 2 MW to 3 MW Six (6) lots of 40' × 40' each
Three (3) lots of 50' × 50' or
Three (3) lots of 40' × 60' or
One (1) lot of 125’ × 50'
Between 3 MW to 4 MW Eight (8) lots of 40' × 40' each
Four (4) lots of 50' × 50' or
Four (4) lots of 40’ × 60' or
One (1) lot of 150' × 50'
Between 4 MW to 5 MW Ten (10) lots of 40' × 40' each
Five (5) lots of 50' × 50' or
Five (5) lots of 40' × 60' or
One (1) lot of 175' × 50'
f. Responsibility and Ownership Clarification
 MVU Responsibility:

MVU will procure, install, commission, operate, own, and maintain the battery energy storage system on the dedicated property provided by the developer/customer.
 Customer/Developer Responsibility:

Customer/developer shall install, test, commission, and initially certify the solar PV system and non-export relay. After acceptance by MVU, ownership of the relay system shall be deeded to MVU at no cost.  Customer/developer must also provide continuous, unrestricted access (including keys, badges, or electronic gate access) to locations containing PV system disconnects, meters, and non-export relays.

Non-Export Relay Operation and Timing for Battery Installation The installed non-export relay must remain operational, actively preventing electricity export onto MVU’s distribution grid, until MVU completes installation, commissioning, and operational approval of the battery energy storage system. Following successful commissioning, MVU will adjust or remove operational restrictions as appropriate.

I. APPLICATION AND INTERCONNECTION PROCESS

1. Application Process
a. Applicant Initiates Contact with MVU. Upon request, MVU will provide information and documents (such as requirements, Application, technical information, listing of Certified Equipment, Initial and Supplemental Review deposit information, applicable tariff schedules, Metering requirements and 761
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 89 Rules) to a potential Applicant. Unless otherwise agreed upon, all such information shall normally be sent to an Applicant within three (3) business days following the initial request from the Applicant. MVU will establish an individual representative as the single point of contact for the Applicant but may allocate responsibilities among its staff to best coordinate the Interconnection of an Applicant’s Generating Facility.
b. Applicant Completes an Application: All Applicants shall complete and file an Application and supply any relevant additional information requested by MVU. Application Fees will be determined in accordance with the fee schedule.
i. Normally, within 10 business days of receiving the Application, MVU shall acknowledge its receipt and state whether the Application has been completed adequately. If defects are noted, MVU and Applicant shall cooperate in a timely manner to establish a satisfactory Application. ii. Fifty Percent of the deposit associated with the Initial Review will be returned to the Applicant if the Application is rejected by MVU exactly as submitted or the Applicant retracts the Application. iii. The Applicant may propose and MVU may negotiate specific costs for processing non-standard applications such as multi-units, multi-sites, or otherwise as conditions warrant. The fees for the Initial Review and Supplemental Review contained in the fee schedule do not apply in these situations.
iv. Applications that are over one year old (from the date of MVU’s acknowledgement) without a completed application, or a Generating Facility that has not been approved for parallel operation within one year of completion of all applicable review and/or studies are subject to cancellation by MVU; however, MVU may not cancel an Application if the Producer provides reasonable evidence that the project is still active. c. MVU Performs Expedited or Supplemental Review
i. Upon receipt of a satisfactorily completed Application and any additional information necessary to evaluate the Interconnection of a Generating Facility, MVU shall perform an Initial Review using the process defined in Section I. The Initial Review determines if: (a) the Generating Facility qualifies for Simplified Interconnection; or (b) the Generating Facility requires a Supplemental Review.
ii. MVU shall complete its Initial Review, absent any extraordinary circumstances, within 10 business days after its determination that the Application is complete. If the Initial Review determines the proposed Generating Facility can be Interconnected by means of a Simplified Interconnection, MVU will provide the Applicant with an Interconnection Authorization.
762
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 90 iii. If the Generating Facility does not pass the Initial Review for Simplified Interconnection as proposed, MVU will notify the applicant and perform a Supplemental Review as described in Section I. Applicant shall pay an additional fee for the Supplemental Review, unless the Application is withdrawn. The Supplemental Review will result in MVU providing either: (a) Interconnection requirements beyond those for a Simplified Interconnection, and an Interconnection Authorization; or (b) a cost estimate and schedule for an Interconnection Study. The Supplemental Review shall be completed, absent any extraordinary circumstances, within 20 business days of receipt of a completed Application and fees.

2. Interconnection Process
a. Applicant shall comply with the Interconnection Requirements as stated in this Rule. MVU shall review with the Applicant all requirements for Interconnection and Net Energy Metering appropriate for the Applicant’s Generating Facility and desired mode of operation. These requirements are detailed in Electric Rule 21A, Interconnection Rules, Terms & Conditions.

Electric Rule 21A sets forth MVU’s and the Applicant’s responsibilities, completion schedules, and fixed price or estimated costs for the required work. b. Where Applicable (for commercial systems greater than 1MW), MVU or Producer Installs Required Interconnection Facilities or Modifies MVU’s Distribution System. After executing the applicable agreements, MVU or Producer will commence construction/ installation of MVU’s Distribution System modifications or Interconnection Facilities which have been identified in the agreement and application. The parties will use good faith efforts to meet schedules and estimated costs as appropriate.
c. Producer Arranges for and Completes Commissioning Testing of Generating Facility and Producer’s Interconnection Facilities. The Producer is responsible for testing new Generating Facilities and associated Interconnection Facilities according to Section J.5 to ensure compliance with the safety and reliability provisions of this Rule prior to being operated in parallel with MVU’s Distribution System. For non-Certified Equipment, the Producer shall develop a written testing plan to be submitted to MVU for its review and acceptance.

Alternatively, the Producer and MVU may agree to have MVU conduct the required testing at the Producer’s expense. Where applicable, the test plan shall include the installation test procedures published by the manufacturer of the generation or Interconnection equipment. Facility testing shall be conducted at a mutually agreeable time, and depending on who conducts the test, MVU or Producer shall be given the opportunity to witness the tests. d. MVU Authorizes Parallel Operation or Momentary Parallel Operation. MVU shall authorize the Producer’s Generating Facility for Parallel Operation or 763
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 91 Momentary Parallel Operation with MVU’s Distribution System, in writing, within 5 calendar days of satisfactory compliance with the terms of all applicable Rules. Compliance may include, but not be limited to, provision of any required documentation and satisfactorily completing any required inspections or tests as described herein or in the agreements formed between the Producer and MVU. A Producer shall not commence Parallel Operation of its Generating Facility with MVU’s system unless it has received MVU’s express written permission to do so.
e. For Net Energy Metering Generating facilities, MVU authorization for Parallel Operation shall normally be provided no later than 30 business days following MVU’s receipt of 1) a completed Net Energy Metering Application including all supporting documents and required payments; 2) a completed signed Net Energy Metering Interconnection Agreement; and 3) evidence of the Producer’s final inspection clearance from the governmental authority having jurisdiction over the Generating Facility. If the 30-day period cannot be met, the MVU shall notify the Applicant and the Commission.
764
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 92 J. REVIEW PROCESS FOR APPLICATIONS TO

INTERCONNECT GENERATION FACILITIES

1. Introduction
This Review Process allows for rapid approval for the interconnection of those Generating Facilities that do not require an Interconnection Study. The review process includes a screening to determine if a Supplemental Review is required.

Note: Failure to pass any step of the review process means only that further review and/or studies are required before the Generating Facility can be approved for Interconnection with MVU’s Distribution System. It does not mean that the Generating Facility cannot be Interconnected. Though not explicitly covered in the Initial Review Process the Generating Facility shall be designed to meet all of the applicable requirements in Section D.

2. Purpose
The review determines the following:
a. If a Generating Facility qualifies for Simplified Interconnection; b. If a Generating Facility can be made to qualify for Interconnection with a Supplemental Review determining any additional requirements; or c. If an Interconnection Study is required, the cost estimate and schedule for performing the Interconnection Study.

3. Review Process:
a. If the Application has sufficient data and the design meets the size restrictions for Residential Service, or Expedited Interconnection for Commercial or Industrial Service per Section H. The application qualifies for Simplified Interconnection.
b. If the Application is requesting service under any of the additional authorized uses, MVU will perform Supplemental Review to provide feedback to the Applicant for next steps to follow in the Interconnection Process.

K. CERTIFICATION AND TESTING CRITERIA

1. INTRODUCTION
This Section describes the test procedures and requirements for equipment used for the Interconnection of Generating Facilities to MVU’s Distribution System.

Included are Type Testing, Production Testing, Commissioning Testing and Periodic Testing. The procedures listed rely heavily on those described in appropriate Underwriters Laboratory (UL), Institute of Electrical and Electronic Engineers (IEEE), and International Electrotechnical Commission (IEC) documents—most notably UL 1741 and IEEE 929, as well as the testing described in May 1999 New York State Public Services Commission Standardized 765
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 93 Interconnection Requirements. As noted in Section A, this rule has been revised to be consistent with ANSI/IEEE 1547-2003 Standard for Interconnecting Distributed Resources with Electric Power Systems.

The tests described here, together with the technical requirements in Section D of this Rule, are intended to provide assurance that the Generating Facility’s equipment will not adversely affect MVU’s Distribution System and that a Generating Facility will cease providing power to MVU’s Distribution System under abnormal conditions. The tests were developed assuming a low level of Generating Facility penetration or number of connections to MVU’s Distribution System. At high levels of Generating Facility penetration, additional requirements and corresponding test procedures may need to be defined.

Section J also provides criteria for “Certifying” Generators or inverters. Once a Generator or inverter has been Certified per this Rule, it may be considered suitable for Interconnection with MVU’s Distribution System. Subject to the exceptions described in Section J, MVU will not repeat the design review or require retesting of such Certified Equipment. It should be noted that the Certification process is intended to facilitate Generating Facility Interconnections. Certification is not a prerequisite to interconnect a Generating Facility.

The revisions made to this rule relative to IEEE 1547-2003 have resulted in changes in set points, test criteria, test procedures, and other requirements that will impact previously certified or listed equipment as well as equipment currently under evaluation. These changes were made to provide consistency with IEEE 1547.

Equipment that is certified or that has been submitted to a Nationally Recognized Testing Laboratory (NRTL) for testing prior to the adoption of the revised Underwriters Laboratories (UL) 1741 titled Inverters, Converters, Controllers and Interconnection Systems Equipment for use with Distributed Energy Resources and that subsequently meet the provisions Rule 21 certification requirements will continue to be accepted as Certified Equipment for Interconnection Applications submitted through May 7, 2007, the effective date of the revised UL 1741. [this change will be incorporated by Advice Letter in Dec. 2005]

2. CERTIFIED AND NON-CERTIFIED INTERCONNECTION EQUIPMENT a. Certified Equipment
Equipment tested and approved (e.g., “Listed”) by an accredited NRTL as having met both the Type Testing and Production Testing requirements described in this document is considered to be Certified Equipment for purposes of Interconnection with MVU’s Distribution System. Certification may apply to either a pre-packaged system or an assembly of components that address the necessary functions. Type Testing may be done in the manufactures’ factory or test laboratory, or in the field. At the discretion of the testing laboratory, field-certification may apply only to the particular 766
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 94 installation tested. In such cases, some or all of the tests may need to be repeated at other installations.

When equipment is certified by a NRTL, the NRTL shall provide to the manufacturer, at a minimum, a Certificate with the following information for each device:

Administrative:
1) The effective date of Certification or applicable serial number (range or first in series), and/or other proof that Certification is current; 2) Equipment model number(s) of the Certified Equipment; 3) The software version utilized in the equipment, if applicable; 4) Test procedures specified (including date or revision number); and 5) Laboratory accreditation (by whom and to what standard).

Technical (as appropriate):
1) Device ratings (kW, kVA, Volts, Amps, etc.);
2) Maximum available fault current in Amps;
3) In-rush Current in Amps;
4) Trip points, if factory set (trip value and timing); 5) Trip point and timing ranges for adjustable settings; 6) Nominal power factor or range if adjustable;
7) If the equipment is Certified for Non-Exporting and the method used (reverse power or under power); and
8) If the equipment is Certified Non-Islanding.

It is the responsibility of the equipment manufacturer to ensure that Certification information is made publicly available by the manufacturer, the testing laboratory or by a third party.
b. Non-Certified Equipment
For non-Certified Equipment, some or all of the tests described in this Rule may be required by MVU for each Generating Facility and/or Interconnection Facilities. The manufacturer or a laboratory acceptable to 767
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 95 MVU may perform these tests. Test results for Non-Certified Equipment must be submitted to MVU for the Supplemental Review. Approval by MVU for equipment used in a particular Generating Facility and/or Interconnection Facilities does not guarantee MVU’s approval for use in other Generating Facility and/or Interconnection Facilities.

3. TYPE TESTING
a. Type Tests and Criteria for Interconnection Equipment Certification Type Testing provides a basis for determining that equipment meets the specifications for being designated as Certified Equipment under this Rule.

The requirements described in this Section cover only issues related to Interconnection and are not intended to address equipment safety or other issues.

Table J.1. defines the test criteria by Generator or inverter technology.

While UL 17411 was written specifically for inverters, the requirements are readily adaptable to synchronous Generators, induction Generators, as well as single/multi-function controllers and protection relays. Until a universal test standard is developed, MVU or NRTL shall adapt the procedures referenced in Table J.1 as appropriate and necessary for a Generating Facility and/or Interconnection Facilities or associated equipment performance and its control and Protective Functions. The tests shall be performed in the sequence shown in Table J.2 below.
768
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 96 Table J.1 Type Tests and Requirements for Interconnection Equipment Certification Type Test Reference (1) Inverter Synchronous
Generator
Induction
Generator
Utility Interaction UL 1741 – 39 X X X
DC Isolation UL 1741 – 40.1 X - -
Simulated PV Array (Input)
Requirements
UL 1741 – 41.2 X - -
Dielectric Voltage Withstand UL 1741 – 44 X X X
Power Factor UL 1741 –

45.2.2 X X X
Harmonic Distortion UL 1741 – 45.4 X X X
DC Injection UL 1741 – 45.5 X - -
Utility Voltage and Frequency
Variation
UL 1741 – 46.2 X X X
Reset Delay UL 1741 –

46.2.3 X X X
Loss of Control Circuit UL 1741 – 46.4 X X X
Short Circuit UL 1741 – 47.3 X X X
Load Transfer UL 1741 – 47.7 X X X
Surge Withstand Capability J.3.e X X X
Anti-Islanding J.3.b (2) (2) (2)
Non-Export J.3.c (3) (3) (3)
In-rush Current J.3.d - - (4)
Synchronization J.3.f (5) X (5)
Table Notes:
(1) References are to section numbers in either UL 1741 (Inverters, Converters and Charge Controllers for use in Independent Power Systems) or this Rule. References in UL 1741 to “photovoltaics” or “inverter” may have to be adapted to the other technologies by the testing laboratory to appropriately apply in the tests to other technologies. (2) Required only if Non-Islanding designation
(3) Required only if Non-Export designation is desired. (4) Required for Generators that use MVU power to motor to speed. (5) Required for all self-excited induction Generators as well as Inverters that operate as voltage sources when connected to MVU’s Distribution System.

X = Required , - = Not Required
Table J.2 Type Tests Sequence for Interconnection Equipment Certification Test No.

Type Test
1 Utility Voltage and Frequency Variation
2 Synchronization
3 Surge Withstand Capability
4 Utility Voltage and Frequency Variation
5 Synchronization
6 Other Required and Optional Tests
Tests 1, 2, and 3, must be done first and in the order shown. Tests 4 and on follow in order convenient to the test agency.
b. Anti-Islanding Test
Devices that pass the Anti-Islanding test procedure described in UL 1741 Section 46.3 will be considered Non-Islanding for the purposes of these 769
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 97 interconnection requirements. The test is required only for devices for which a Certified Non-Islanding designation is desired. c. Non-Export Test
Equipment that passes the Non-Export test procedure described in Section J.7.a. will be considered Non-Exporting for the purposes of these Interconnection requirements. This test is required only for equipment for which a Certified Non-Export designation is desired.
d. In-rush Current Test
Generation equipment that utilizes MVU power to motor up to speed will be tested using the procedure defined in Section J.7.b. to determine the maximum current drawn during this startup process. The resulting In-rush Current is used to estimate the Starting Voltage Drop.
e. Surge Withstand Capability Test
The interconnection equipment shall be tested for the surge withstand requirement in D.1.c in all normal operating modes in accordance with IEEE Std C62.45-2002 for equipment rated less than 1000 V to confirm that the surge withstand capability is met by using the selected test level(s) from IEEE Std C62.41.2-2002. Interconnection equipment rated greater than 1000 V shall be tested in accordance with manufacturer or system integrator designated applicable standards. For interconnection equipment signal and control circuits, use IEEE Std C37.90.1-2002. These tests shall confirm the equipment did not fail, did not misoperate, and did not provide misinformation (IEEE1547- 5.1.3.2). The location/exposure category for which the equipment has been tested shall be clearly marked on the equipment label or in the equipment documentation. External surge protection may be used to protect the equipment in harsher location/exposure categories.
f. Synchronization Test
This test is applied to synchronous Generators, self-excited induction generators, and inverters capable of operating as voltage-source while connected to MVU’s Distribution System. The test is also applied to the resynchronization Function (transition from stand-alone to parallel operation) on equipment that provides such functionality. This test may not need to be performed on both the synchronization and re-synchronization functions if the manufacturers can verify to the satisfaction of the testing organization that monitoring and controls hardware and software are common to both functions. This test is not necessary for induction generators or current-source inverters. Instead, the ln-rush Current test Section J.3.d shall be applied to those generators.

This test shall demonstrate that at the moment of the paralleling-device closure, all three synchronization parameters in Table J.3 are within the 770
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 98 stated limits.

This test shall also demonstrate that if any of the parameters are outside of the limits stated in the table, the paralleling-device shall not close (IEEE 1547- 5.1.2A). The test will start with only one of the three parameters: (1) voltage difference between Generating Facility and MVU’s Distribution System; (2) frequency difference; or (3) phase angle outside of the synchronization specification. Verify that the Generating Facility is brought within specification prior to synchronization. Repeat the test five times for each of the three parameters. For manual synchronization with synch check or manual control with auto synchronization, the test must verify that paralleling does not occur until the parameters are brought within specifications.

Table J.3. Synchronization Parameter Limits [1]
Aggregate Rating
of Generator Units
(kVA)
Frequency
Difference
(f, Hz)
Voltage
Difference
(V, %)
Phase Angle
Difference
(,)
0-500
> 500-1,500
> 1,500-10,000

0.3 0.2

0.1 10
5 3
20 15
10 [1] – IEEE 1547-5.1.1B
g. Paralleling Device Withstand Test
The di-electric voltage withstand test specified in Section J.1 shall be performed on the paralleling device to ensure compliance with those requirements specified in Section D.1.c (IEEE 1547-5.1.3.3).

4. Production Testing
As a minimum, each interconnection system shall be subjected to the Utility Voltage and Frequency Variation Test procedure described in UL1741 under Manufacturing and Production Tests, Section 68 and the Synchronization test specified in Section J.3.f Interconnection systems with adjustable set points shall be tested at a single set of set points as specified by the manufacturer. This test may be performed in the factory or as part of a Commissioning Test (Section J.5.).

5. Commissioning Testing
a. Commissioning Testing, where required, will be performed on-site to verify protective settings and functionality. Upon initial Parallel Operation of a Generating Facility, or any time interface hardware or software is changed that may affect the functions listed below, a Commissioning Test must be performed. An individual qualified in testing protective equipment (professional engineer, factory–certified technician, or licensed electrician 771
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 99 with experience in testing protective equipment) must perform Commissioning Testing in accordance with the manufacturer’s recommended test procedure to verify the settings and requirements per this Rule.

MVU may require written Commissioning test procedure be submitted to MVE at least 10 working days prior to the performance of the Commissioning Test. MVU has the right to witness Commissioning Test, MVU may also require written certification by the installer describing which tests were performed and their results. Protective Functions to be tested during commissioning, particularly with respect to non-Certified equipment, may consist of the following:
(1) Over and under voltage
(2) Over and under frequency
(3) Anti-Islanding function (if applicable)
(4) Non-Exporting function (if applicable)
(5) Inability to energize dead line
(6) Time delay on restart after utility source is stable (7) Utility system fault detection (if used)
(8) Synchronizing controls (if applicable)
(9) Other Interconnection Protective Functions that may be required as part of the Interconnection Agreement
Commissioning Test shall include visual inspections of the interconnection equipment and protective settings to confirm compliance with the interconnection requirements.
b. Other checks and tests that may need to be performed include:
(1) Verifying final Protective Function settings
(2) Trip test (J.5.f)
(3) In-service tests (J.5.g)

6. Certified Equipment
Generating Facilities qualifying for Simplified Interconnection incorporate Certified Equipment that have, at a minimum, passed the Type Tests and Production Tests described in this Rule and are judged to have little or no potential impact on MVU’s Distribution System. For such Generating Facilities,
it is necessary to perform only the following tests:

7. Protective Function settings that have been changed after Production Testing will require field verification. Tests shall be performed using injected secondary frequencies, voltages and currents, applied waveforms, at a test connection using a Generator to simulate abnormal utility voltage or frequency, or varying the set points to show that the device trips at the measured (actual) utility voltage or frequency.
772
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 100

8. The Non-Islanding function shall be checked by operating a load break disconnect switch to verify the Interconnection equipment ceases to energize MVU’s Distribution System and does not re- energize it for the required time delay after the switch is closed.

9. The Non-Exporting function shall be checked using secondary injection techniques. This function may also be tested by adjusting the Generating Facility output and local loads to verify that the applicable Non-Exporting criteria (i.e., reverse power or underpower) are met.

The Supplemental Review or an Interconnection Study may impose additional components or additional testing.

L. Non-Certified Equipment
Non-certified Equipment shall be subjected to the appropriate tests described in Type Testing (Section J.3.) as well as those described in Certified Equipment Commissioning Tests (Section J.5.c.). With MVU’s approval, these tests may be performed in the factory, in the field as part of commissioning, or a combination of both. MVU, at its discretion, may also approve a reduced set of tests for a particular Generating Facility or, for example, if it determines it has sufficient experience with the equipment.

M. Verification of Settings
At the completion of Commission testing, the Producer shall confirm all devices are set to MVU-approved settings. Verification shall be documented in the Commissioning Test Certification.

N. Trip Tests
Interconnection Protective Functions and devices (e.g. reverse power relays) that have not previously been tested as part of the Interconnection Facilities with their associated interrupting devices (e.g. contactor or circuit breaker) shall be trip tested during commissioning. The trip test shall be adequate to prove that the associated interrupting devices open when the protective devices operate. Interlocking circuits between Protective Function devices or between interrupting devices shall be similarly tested unless they are part of a system that has been tested and approved during manufacturing.

O. In-service Tests
Interconnection Protective Functions and devices that have not previously been tested as part of the Interconnection Facilities with their associated instrument transformers or that are wired in the field shall be given an in-service test during commissioning. This test will verify proper wiring, polarity, CT/PT ratios, and proper operation of the measuring circuits. The in-service test shall be made with the power system energized and carrying a known level of current. A measurement shall be made of the magnitude and phase angle of each
773
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 101 Alternating Current (AC) voltage and current connected to the protective device and the results compared to expected values. For protective devices with built- in Metering Functions that report current and voltage magnitudes and phase angles, or magnitudes of current, voltage, and real and reactive power, the metered values may be used for in-service testing. Otherwise, portable ammeters, voltmeters, and phaseangle meters shall be used.

1. Periodic Testing
Periodic Testing of Interconnection-related Protective Functions shall be performed as specified by the manufacturer, or at least every four years. All Periodic Tests prescribed by the manufacturer shall be performed. The Producer shall maintain Periodic Test reports or a log for inspection by MVU. Periodic Testing conforming to MVU test intervals for the particular Line Section may be specified by MVU under special circumstances, such as high fire hazard areas. Batteries used to activate any Protective Function shall be checked and logged once per month for proper voltage.

Once every four years, the battery must be either replaced or a discharge test performed.

2. Type Testing Procedures Not Defined in Other Standards This Section describes the additional Type Tests necessary to qualify a device as Certified under this Rule. These Type Tests are not contained in Underwriters Laboratories UL 1741 Standard Inverters, Converters and Controllers for Use in Independent Power Systems, or other referenced standards. a. Non-Exporting Test Procedures
The Non-Exporting test is intended to verify the operation of relays, controllers and inverters designed to limit the export of power and certify the equipment as meeting the requirements of Screen 2, Options 1 and 2, of the review process. Tests are provided for discrete relay packages and for controllers and inverters with the intended Functions integrated.
(1) Discrete Reverse Power Relay Test
This version of the Non-Exporting test procedure is intended for discrete reverse power and underpower relay packages provided to meet the requirements of Options 1 and 2 of Screen 2. It should be understood that in the reverse power application, the relay will provide a trip output with power flowing in the export (toward MVU’s Distribution System) direction.

Step 1: Power Flow Test at Minimum, Midpoint and Maximum Pickup Level Settings
Determine the corresponding secondary pickup current for the desired export power flow of 0.5 secondary watts (the minimum pickup setting, assumes 5 amp and 120V CT/PT secondary). Apply nominal voltage with minimum current setting at zero (0) degrees 774
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 102 phase angle in the trip direction. Increase the current to pickup level.

Observe the relay’s (LCD or computer display) indication of power values. Note the indicated power level at which the relay trips. The power indication should be within 2% of the expected power. For relays with adjustable settings, repeat this test at the midpoint, and maximum settings. Repeat at phase angles of 90, 180 and 270 degrees and verify that the relay does not operate (measured watts will be zero or negative).

Step 2: Leading Power Factor Test
Apply rated voltage with a minimum pickup current setting (calculated value for system application) and apply a leading power factor load current in the non-trip direction (current lagging voltage by 135 degrees). Increase the current to relay rated current and verify that the relay does not operate. For relays with adjustable settings, this test should be repeated at the minimum, midpoint, and maximum settings.

Step 3: Minimum Power Factor Test
At nominal voltage and with the minimum pickup (or ranges) determined in Step 1, adjust the current phase angle to 84 or 276 degrees. Increase the current level to pickup (about 10 times higher than at 0 degrees) and verify that the relay operates. Repeat for phase angles of 90, 180 and 270 degrees and verify that the relay does not operate.

Step 4: Negative Sequence Voltage Test
Using the pickup settings determined in Step 1, apply rated relay voltage and current at 180 degrees from tripping direction, to simulate normal load conditions (for three-phase relays, use Ia at 180, Ib at 60 and Ic at 300 degrees). Remove phase-1 voltage and observe that the relay does not operate. Repeat for phases-2 and 3.

Step 5: Load Current Test
Using the pickup settings determined in Step 1, apply rated voltage and current at 180 degrees from the tripping direction, to simulate normal load conditions (use Ia at 180, Ib at 300 and Ic at 60 degrees).

Observe that the relay does not operate.

Step 6: Unbalanced Fault Test
Using the pickup settings determined in Step 1, apply rated voltage and 2 times rated current, to simulate an unbalanced fault in the nontrip direction (use Va at 0 degrees, Vb and Vc at 180 degrees, Ia at 180 degrees, Ib at 0 degrees, and Ic at 180 degrees). Observe that the relay, especially single phase, does operate properly.

Step 7: Time Delay Settings Test
775
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 103 Apply Step 1 settings and set time delay to minimum setting. Adjust the current source to the appropriate level to determine operating time, and compare against calculated values. Verify that the timer stops when the relay trips. Repeat at midpoint and maximum delay settings.

Step 8: Dielectric Test
Perform the test described in IMVU 414 using 2 kV RMS for 1 minute.

Step 9: Surge Withstand Test
Perform the surge withstand test described in IEEE C37.90.1.1989 or the surge withstand capability test described in J.3.e. (2) Discrete Underpower Relay Test
This version of the Non-Exporting test procedure is intended for discrete underpower relay packages and meets the requirements of Option 2 of Screen 2. A trip output will be provided when import power (toward the Producer’s load) drops below the specified level.

Note: For an underpower relay, pickup is defined as the highest power level at which the relay indicates that the power is less than the set level.

Step 1: Power Flow Test at Minimum, Midpoint and Maximum Pickup Level Settings
Determine the corresponding secondary pickup current for the desired power flow pickup level of 5% of peak load minimum pickup setting. Apply rated voltage and current at 0 (zero) degrees phase angle in the direction of normal load current. Decrease the current to pickup level. Observe the relay’s (LCD or computer display) indication of power values. Note the indicated power level at which the relay trips. The power indication should be within 2% of the expected power. For relays with adjustable settings, repeat the test at the midpoint, and maximum settings. Repeat at phase angles of 90, 180 and 270 degrees and verify that the relay operates (measured watts will be zero or negative).

Step 2: Leading Power Factor Test
Using the pickup current setting determined in Step 1, apply rated voltage and rated leading power factor load current in the normal load direction (current leading voltage by 45 degrees). Decrease the current to 145% of the pickup level determined in Step 1 and verify that the relay does not operate. For relays with adjustable settings, repeat the test at the minimum, midpoint, and maximum settings.

Step 3: Minimum Power Factor Test
776
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 104 At nominal voltage and with the minimum pickup (or ranges) determined in Step 1, adjust the current phase angle to 84 or 276 degrees. Decrease the current level to pickup (about 10% of the value at 0 degrees) and verify that the relay operates. Repeat for phase angles 90, 180 and 270 degrees and verify that the relay operates for any current less than rated current.

Step 4: Negative Sequence Voltage Test
Using the pickup settings determined in Step 1, apply rated relay voltage and 25% of rated current in the normal load direction, to simulate light load conditions. Remove phase 1 voltage and observe that the relay does not operate. Repeat for Phases-2 and 3.

Step 5: Unbalanced Fault Test
Using the pickup settings determined in Step 1, apply rated voltage and two times rated current, to simulate an unbalanced fault in the normal load direction (use Va at 0 degrees, Vb and Vc at 180 degrees, Ia at 0 degrees, Ib at 180 degrees, and Ic at 0 degrees).

Observe that the relay (especially single-phase types) operates properly.

Step 6: Time Delay Settings Test
Apply Step 1 settings and set time delay to minimum setting. Adjust the current source to the appropriate level to determine operating time, and compare against calculated values. Verify that the timer stops when the relay trips. Repeat at midpoint and maximum delay settings.

Step 7: Dielectric Test
Perform the test described in IEC 414 using 2 kV RMS for 1 minute.

Step 8: Surge Withstand Test
Perform the surge withstand test described in IEEE C37.90.1.1989 or the surge withstand test described in Section J.3.e. (3) Tests for Inverters and Controllers with Integrated Functions Inverters and controllers designed to provide reverse or underpower functions shall be tested to certify the intended operation of this function.

Two methods are acceptable:

Method 1: If the inverter or controller utilizes external current/voltage measurement to determine the reverse or underpower condition, then the inverter or controller shall be functionally tested by application of appropriate secondary currents and potentials as described in the Discrete Reverse Power Relay Test, Section J.7.a.(1) of this Rule. 777
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 105 Method 2: If external secondary current or voltage signals are not used, then unit-specific tests must be conducted to verify that power cannot be exported across the PCC for a period exceeding two seconds. These may be factory tests, if the measurement and control points are integral to the unit, or they may be performed in the field.
b. In-rush Current Test Procedures
This test will determine the maximum In-rush Current drawn by the Generator. (1) Locked-Rotor Method
Use the test procedure defined in NEMA MG-1 (manufacturer’s data is acceptable if available).
(2) Start-up Method
Install and setup the Generating Facility equipment as specified by the manufacturer. Using a calibrated oscilloscope or data acquisition equipment with appropriate speed and accuracy, measure the current draw at the Point of Interconnection as the Generating Facility starts up and parallels with MVU’s Distribution System. Startup shall follow the normal, manufacturerspecified procedure. Sufficient time and current resolution and accuracy shall be used to capture the maximum current draw within 5%. In-rush Current is defined as the maximum current draw from MVU during the startup process, using a 10-cycle moving average. During the test, the utility source, real or simulated, must be capable of maintaining voltage within +/- 5% of rated at the connection to the unit under test. Repeat this test five times. Report the highest 10-cycle current as the In-rush Current. A graphical representation of the time-current characteristic along with the certified Inrush Current must be included in the test report and made available to MVU. 778
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 106

CHART OF CHARGES AND FEES
Item Charge
Service Initiation Charge
Next Day, Normal Business Hours
Identity Verification Fee
$15.00
$5.00
Additional Charge for Same Day Turn On of Service $30.00 Additional Charge for Weekends and After Hours Turn On of Service $50.00 Deposits
Residential Service – Single Family Twice Average Monthly Bill, minimum $235
Residential Service – Multi-Family Twice Average Monthly Bill, minimum $105
Non Residential Service Twice Maximum Monthly Bill
Reestablishment of Credit Twice Maximum Monthly Bill
Interest on Unauthorized Use Billings 10% Per Annum
Interest on Amortized Repayment Agreements 10% Per Annum Return Check Charge $31.00
Field Notification Charge
Collection Processing Fee
$10.00
$30.00
Meter Test Deposit – (Refunded if Meter Registers within Parameters) Meter Installed without Current or Potential Transformer $20.00 Meter Installed with Current or Potential Transformer $100.00 Late Charge 0.9% per Month of Unpaid
Balance
Utility Users Tax 5.75%
Reconnection Charge
Meter Panel – Next Day $20.00
Meter Panel – Same Day During Working Hours $30.00
Meter Panel – Weekends and After Hours $50.00
Pole / Service Structure – Next Day $60.00
Pole / Service Structure – Same Day During Working Hours $75.00 Pole / Service Structure – Weekends and After Hours
Transformer/Structure Due to Energy Theft
$90.00
$150.00
Damaged Steel Lock-ring $15.00
Damaged Aluminum Lock-ring $5.00
Replaced Damaged Meter Actual cost
(time and material)
$2,000
779
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 107 Rule 21 Application Fee
Rule 21 Supplemental Review Fee
$75.00
$800.00
780
Exhibit B
Resolution No. 2025-XX Date Adopted: December 16, 2025 108

PLAN CHECK, PLAN DEVELOPMENT, AND INSPECTION/TESTING FEES Upon submittal of improvement plan(s) for a project’s electrical distribution system, line extension facilities and/or structures for plan review, the submittal shall be accompanied with a plan check and inspection and testing fee payment according to the fee schedule below. If a developer wishes for MVU to develop the improvement plan(s) for a project, the request shall be accompanied with a plan development and inspection and testing fee payment according to the fee schedule below. Timespans provided below begin upon submission of invoice payment and submission of necessary project documents including but not limited to complete site plans, basemaps (including other associated utilities with the project), and load schedules/meter locations.

Plan Check for Improvement Plans (Review Completed within 4 Weeks) (Total cost of construction)
Off-Site & On-Site
Submittals 1-3 3.0%
4 th and subsequent submittals per sheet $248.00/sheet
or as directed by City Engineer
Expedited Plan Check for Improvement Plans (Review Completed within 2 Weeks) (Total cost of construction)
Off-Site & On-Site 1-3 submittals
Submittals 1-3 4.0%
4 th and subsequent submittals per sheet $248.00/sheet
or as directed by City Engineer
MVU Developed Improvement Plans (Plans Developed within 5 Weeks) (Total cost of construction)
Off-Site & On-Site 3.5%
Expedited MVU Developed Improvement Plans (Plans Developed within 2 Weeks) (Total cost of construction)
Off-Site & On-Site 4.5%
Inspection and Testing
(Total cost of construction)
Off-Site & On- Site 4.5%

781
Report to City Council
ID: 25-0501 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer AGENDA DATE: December 16, 2025
TITLE: PURCHASE OF ENERGY STORAGE SYSTEMS
(REPORT OF: PUBLIC WORKS) (ALL DISTRICTS)
TITLE SUMMARY: Authorization Of A Purchase Agreement with ELM Fieldsight, LLC For The Purchase of Energy Storage
Systems
DISTRICT: All Districts
Recommendation(s)
That the City Council:

1. Authorize the City Manager to enter into a three (3) year Purchase Agreement with ELM Fieldsight LLC with two (2) optional renewal periods of two (2) years each (up to seven (7) years), for the purchase of energy storage system equipment for capital projects and emergency response by Moreno Valley Electric Utility. Funded by the Moreno Valley Electric Utility’s Operating Fund (Fund 6010) and Electric-Restricted Assets Fund (Fund 6011); and

2. Authorize the issuance of purchase orders to ELM Fieldsight, LLC for energy storage systems for capital projects and emergency response as needed in the amount not to exceed a total of $25,076,169 and up to the approved annual budget for Fiscal Years 2025/26 through 2028/29, when the contract has been signed by all parties; and

3. Authorize the City Manager to execute subsequent purchase orders and/or change orders to said purchase order up to the approved annual budget, subject to the approval of the City Attorney.
782
ID: 25-0501 Page 2

4. Authorize the City Manager to execute any subsequent Amendments to the Agreement with ELM Fieldsight, LLC for Fiscal Years 2025/26 through 2032/33 up to the City Council approved annual budgeted amounts, including the authority to authorize the associated purchase orders in accordance with the terms of the agreement, subject to the approval of the City Attorney.

SUMMARY
This report recommends authorizing a purchase agreement with ELM Fieldsight, LLC for the purchase of energy storage systems for Moreno Valley Electric Utility (MVU). The energy storage systems will be used for upcoming electric utility capital projects to install energy storage on MVU’s electric grid. These assets will play a key role in increasing reliability and resilience of MVU’s electric grid and will allow MVU to have more renewable energy in its system.

DISCUSSION
The proposed purchase agreement with ELM Fieldsight, LLC, DBA ELM Microgrid LLC, supports Moreno Valley Electric Utility’s (MVU) long-term strategy to enhance grid reliability, resiliency, and operational flexibility. As MVU continues to expand and modernize its electric infrastructure, the integration of distributed and utility-scale energy storage systems has become a critical component of meeting future energy demands.

These systems will help MVU manage peak load, improve power quality, and reduce dependence on external energy supply during high-cost or high-risk periods. By securing a multi-year procurement pathway, the City ensures that MVU can implement these assets in alignment with its capital improvement plans and operational needs.

Energy storage systems also advance MVU’s efforts to increase renewable energy penetration within the local grid. As solar and other intermittent resources become a larger part of the energy portfolio, storage provides the necessary balancing capability to store excess generation and deliver it when needed. This reduces curtailment, stabilizes fluctuations in supply, and ultimately supports MVU’s commitment to providing clean and reliable service to Moreno Valley residents and businesses. ELM is an experienced provider of storage technologies Fieldsight, LLC, and partnering with them ensures MVU can implement systems that are technically aligned with industry standards and long-term performance expectations.

In addition to supporting planned capital projects, the flexible nature of the agreement allows MVU to utilize these storage systems for emergency response and resilience planning. Energy storage can provide backup power during grid outages, support critical City facilities, and improve MVU’s ability to respond quickly in the event of natural disasters or equipment failures. This multi-use functionality strengthens the City’s preparedness while reducing future procurement delays during emergency situations.

Authorizing the City Manager to execute purchase orders and amendments within approved budgetary limits provides administrative efficiency and ensures timely project delivery. Because these capital improvements span multiple fiscal years, the ability to issue purchase orders up to the annual budgeted amounts allows MVU to align 783
ID: 25-0501 Page 3
procurement with project schedules and market conditions. This approach provides both fiscal oversight and operational flexibility, enabling MVU to manage the deployment of energy storage resources effectively throughout the 2025/26–2032/33 fiscal years. This would cover the initial 3-year term of the agreement, as well as the two optional two-year extension terms if both parties mutually agreed to extend after the initial term.

A Request for Proposals (RFP) for Battery Energy Storage Systems from qualified vendors was posted publicly by MVU on the procurement platform OpenGov. The RFP for the project was advertised in OpenGov on June 18, 2025, and seven (7) responsive proposals were received from the following vendors:

1. ELM Fieldsight, LLC

2. Moment Energy

3. DHC Power, LLC

4. EPC Energy, Inc.

5. EVO Power USA, Inc.

6. LilyPad EV, LLC

7. Nason Huaye Trading, Inc.

The intent of the RFP was to assess the proposals submitted with an intent to award multiple qualified vendors if possible. Awarding to multiple vendors will allow MVU to ensure it has access to multiple solutions in the case of supply chain issues and implement a variety of storage solutions for both small scale and larger scale applications.

Subsequent agreements for other vendors will be brought to the City Council for approval in future council agendas.

ALTERNATIVES

1. Approve and authorize the recommended actions as presented in this staff report.

Staff recommends this alternative to ensure that MVU increases reliability and resilience of the electric grid and will allow MVU to have more renewable energy in its system.

FISCAL IMPACT
Purchases made under this agreement for Fiscal Years 2025/26 through Fiscal Year 2028/29 will be funded by the various projects included in the Adopted FY 2025/26 & 2026/27 Capital Improvement Plan (CIP) and will be funded by the Moreno Valley Utility’s Electric-Restricted Asset Fund (6011) and Operating Fund (6010). There is no impact to the General Fund.

NOTIFICATION
Posting of the agenda.
784
ID: 25-0501 Page 4

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Kamran Aladross, P.E. Melissa Walker, P.E.

Electric Utility Assistant Manager Public Works Director/City Engineer Concurred By:

Jason Niccoli, P.E.

Electric Utility Division Manager

CITY COUNCIL GOALS
Positive Environment: Create a positive environment for the development of Moreno Valley's future.

Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
Objective 1.5: Showcase Moreno Valley’s unique assets.

Objective 4.2: Develop and maintain a comprehensive Infrastructure Plan to invest in and deliver City infrastructure.

Objective 4.5: Explore green/renewable innovations and technologies for new developments such as the World Logistics Center.
785
ID: 25-0501 Page 5
Report Approval Details
Document Title: STAFFREPORT_PW_MVU_BESS.docx
Attachments: - Draft Purchase Agreement - ELM Field Sight.pdf Final Approval Date: Dec 10, 2025
This report and all of its attachments were approved and signed as outlined below:

PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (“Agreement”) is made and entered into this _________ day of October, 2025 (“Effective Date”), by and between the City of Moreno Valley, a municipal corporation, with its principal place of business at 14177 Frederick Street, Moreno Valley, CA 92552, hereinafter referred to as the “City” or “Buyer”), and ELM Fieldsight LLC, a Texas limited liability company, (“Seller”), with Buyer and Seller together sometimes hereinafter referred to as the “Parties.” RECITALS:

WHEREAS, Seller owns Energy Storage Equipment (“Goods”), as described in Exhibit “B,” attached hereto and incorporated herein by this reference; and
WHEREAS, Buyer is in need of the Goods for use within the City of Moreno Valley, California; and WHEREAS, Seller desires to sell, and Buyer desires to purchase, the Goods, upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the covenants, conditions and promises contained herein and for such other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties hereby agree as follows:

Section 1. Recitals
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

Section 2. Purchase, Sale, Delivery of Goods
Seller shall sell and deliver to Buyer at the address mutually agreed in each Purchase Order (“PO”) and Buyer shall purchase from Seller, the Goods, which may vary in selection and quantity of the items listed in Exhibit “B”, for the unit prices listed in Exhibit “B” (“Purchase Price”), throughout the life of the Agreement, and across multiple purchase orders. Pricing in Exhibit B does not include any federal, state or local taxes. All federal, state or local taxes are to be paid by Buyer to Seller and will be included in each PO. This Agreement does not obligate Buyer to purchase any minimum quantity of Goods, and all new purchases shall be subject to annual budget appropriation by the City Council, however, changes to annual budget appropriation will not affect PO’s that have been placed prior to the annual budget appropriation.

At the conclusion of the first contract month, and upon each future contract month, the unit price of each line item listed in Exhibit “B” may be adjusted in accordance with the following formula. Supplier agrees to only apply price increase adjustments if the applicable Adjustment Index Ratio has risen by more than 5% since the last adjustment. Additionally, if the price index falls after an adjustment has been made supplier will reduce prices down accordingly with a floor of the original Bid Price.

𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐏𝐫𝐢𝐜𝐞 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭 = 𝐁𝐢𝐝 𝐏𝐫𝐢𝐜𝐞 x 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭 𝐈𝐧𝐝𝐞𝐱 𝐑𝐚𝐭𝐢𝐨 787
Where,
1) Purchase Price Adjustment is the adjustment to the unit price for the line item throughout the duration of the contract.
2) Bid Price is the original unit price for the line item from the contractor’s bid, to which the Purchase Price Adjustment will be added.
3) Adjustment Index Ratio is determined as follows:
a. For battery-related components, the Producer Price Index (PPI) Segment code PCU335911335911 (Battery Manufacturing), published by the U.S. Bureau of the Labor Statistics, shall apply to the battery module components of the systems b. For non-battery materials, including steel, copper, and other raw materials, the Consumer Price Index (CPI), published by the U.S. Bureau of Labor Statistics, shall apply.

Each index shall be compared to its respective value as of October 2025, as follows:

Adjustment Index Ratio = (Applicable Index (Current)/Applicable Index (October 2025)).

The City shall not accept unit price increases that exceed the formula above. For each line item listed in Exhibit “B”, where two Codes are listed for and, notwithstanding the formula, Seller shall not be required to reduce unit prices below the original Bid Price. PPI and CPI index apply to separate components of the systems being purchased the Code with a lower increase since October of 2025 As necessary, Buyer and Seller shall work together in good faith to adjust the Goods available in Exhibit B to address any new product releases, different configurations of equipment, or updates from Seller or the retirement of a product line. Any such adjustments shall be documented in a written amendment to Exhibit B, signed by both Parties. Seller shall provide at least ninety (90) days' advance written notice to Buyer before discontinuing any product line listed in Exhibit B and shall propose comparable replacement products at equivalent or better pricing and specifications.

Tariff Pricing - The prices shown in Exhibit “B”, as adjusted by the formula above in Section 2 where necessary, are reflective of the base Tariff rates in effect as of the Effective Date of this Agreement and based on the Tariff rate table in Exhibit B. Tariff charges will be passed through as actual on effective portion of the equipment provided by Seller at time of import into the US. Seller will work in good faith to provide estimate of anticipated Tariff rates based on expected shipment dates based on project schedule at time of PO execution. The base tariff rate(s) for unit prices listed in Exhibit “B.” “Tariff” means any lawfully imposed U.S. import duty or surcharge applicable to the Goods (excluding penalties, demurrage, carrier surcharges, brokerage, insurance, and costs caused by Seller). Any Tariffrelated changes that affect an active Purchase Order shall not be invoiced, unless the City gives prior written approval via Change Order, which shall not be unreasonably withheld.

For future Purchase Orders issued after a change in the applicable Tariff rate, unit pricing as listed in Exhibit “B” may increase or decrease at a rate equal to the change in Tariff rate applied to the customs 788
value of the affected Goods. Any request for an increase in pricing related to Tariff rates must include reasonable proof of applicability and calculation (including HTS code(s), legal citation and effective date of the Tariff change, and a calculation showing the incremental increase or decrease). No overhead, profit, or markup may be added to Tariff pass-throughs. The City has a right to credit tariff reductions against accounts payable or future invoices, in an amount equal to the tariff percentage decrease below the base tariff rate upon agreement by Seller, which approval shall not be unreasonably withheld.

Section 3. Invoice, Inspection, Acceptance, Payment
a. Seller shall invoice the Buyer based on the invoice schedule outlined in the corresponding Purchase Order.
b. After delivery, Buyer shall inspect the Goods within a reasonable time not to exceed twenty-one (21) days and provide written notice to the Seller specifying any defects or other objection, unless Buyer intends to accept the Goods in whole, in which case no notice will be necessary. Acceptance of the Goods, whether in whole or in part, shall not be deemed a waiver of any defects identified by the Buyer during such inspection period, nor any defects later discovered by the Buyer, and specified to the Seller in writing. Any defects identified after the twenty-one (21)) day inspection period are subject to Seller’s standard warranty in effect on the product at the time of discovery and notification to Seller. c. After Buyer has inspected the Goods, Buyer shall pay Seller the Purchase Price, in whole or in part as appropriate, for those Goods accepted under this Agreement as set forth in the Payment Terms in Exhibit A attached hereto and incorporated herein by reference. d. Title to Goods or any portion thereof and risk of loss or damage during shipment pass from Seller to Buyer upon delivery to Buyer’s address listed in Section 11 of this Agreement and acceptance thereof by Buyer.

Section 4. IP Rights/Software License/Confidentiality
a. The parties acknowledge and agree to each of the terms set forth in Exhibit C hereto (and incorporated herein by reference) which includes the Software License, Cloud Services, Confidentiality and Non-Disclosure terms for this Agreement.

Section 5. Remedy for Defective Goods
a. Remedy for Defective Goods is subject to Seller’s Standard Warranty (Exhibit D). Seller agrees that if there is any defect in the Goods and upon written notice thereof given to Seller, Seller shall take action to replace the defective Goods per the Standard Warranty within ten (10) calendar days.

Replacement components will be subject to standard industry lead times, however Seller shall prioritize utilization of available inventory from its factory to expedite warranty component replacement.

b. This section does not in any way limit Buyer’s remedies pursuant to Code of Civil Procedure Section 337, or the guarantee on any items for which a longer warranty is specified or on any items for which a manufacturer or supplier gives a longer warranty period. No manufacturer's warranty period shall in any way limit the liability of Seller under the indemnity provisions of this Agreement. 789
Section 6. Term and Termination
a. This Agreement shall remain in effect for three (3) years from the Effective Date, herein referred to as the "Initial Term."
b. Upon the expiration of the Initial Term, both parties may mutually agree, in writing, to extend this Agreement for two (2) subsequent periods of two (2) years each, herein referred to as "Extension Periods." Such extension shall be exercised by the Buyer expressing their intention to extend the term, and the Seller agreeing to the extension, in accordance with the terms and conditions set forth in this Agreement. In the absence of mutual agreement on extension terms, this Agreement shall terminate at the end of the Initial Term.
c. Either Party may terminate this Agreement for convenience upon at least 15 days’ prior written notice. Any Purchase Orders (“PO”) that are active shall survive termination of this Agreement. If Buyer desires to cancel an active PO before delivery of the Goods; Buyer must pay Seller the following termination charges: (A) amounts due for work performed to date; (B) costs of materials and components procured or irrevocably committed (including supplier cancellation charges); (C) reasonable allocable overhead; (D) a 20% restocking/handling fee for standard (non-custom) Goods; and (E) any storage, handling, and freight actually incurred. Custom, made-to-order, or specially configured Goods are noncancellable and non-returnable. If Buyer desires to cancel an active PO after payment of the Purchase Price, the Purchase Price and the purchase of the Goods is subject to Seller’s standard return and exchange policy, and any return requires Seller’s prior written authorization (RMA). Either party may terminate for cause upon written notice describing the breach, subject to a thirty (30) day cure period; (ten (10) day cure period for payment defaults).

Section 7. Seller’s Representations and Warranties
Seller hereby makes the following representations, warranties, and acknowledgments, and agrees that such representations, warranties and acknowledgments shall be true as of the Effective Date:
a. Seller, and the person executing this Agreement on behalf of Seller, has the full right, power and authority to enter into this Agreement and to take all actions required of Seller by the terms of this Agreement.
b. The Goods are subject to the Seller’s Standard Warranty attached as Exhibit D to this Agreement and incorporated herein by reference.
c. All documents executed by Seller pursuant to this Agreement will be duly authorized, executed and promptly delivered to Buyer, and will be legal, valid and binding obligations enforceable against Seller and will not violate any provisions of any agreement to which Seller is a party or to which it is subject.

790
Section 8. Buyer’s Representations and Warranties
Buyer hereby makes the following representations, warranties, and acknowledgments, and agrees that such representations, warranties and acknowledgments shall be true as of the Effective Date:
a. Buyer, and the person executing this Agreement on behalf of Buyer, has the full right, power and authority to enter into this Agreement and to take all actions required of Buyer by the terms of this Agreement.
b. All the documents executed by Buyer pursuant to this Agreement will be duly authorized, executed and promptly delivered by Buyer, and will be legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms, and will not violate any provisions of any agreement to which Buyer is a party or to which it is subject.

Section 9. Indemnification Obligations of Seller

a. Seller will indemnify, hold harmless and defend Buyer, its officers, employees, agents, and officials from and against all losses, claims and defense costs for injury, death, damage to property or other damages arising out of or resulting from a defect in the manufacturer or design of the Equipment supplied hereunder during the standard warranty period or Seller’s gross negligent acts, omissions or willful misconduct.
b. Buyer shall defend, indemnify and hold harmless Seller from and against any and all Losses incurred by or asserted against Seller arising out of, relating to, or resulting from: (a) any Claims for bodily injury or death or damage to property of any person, including employees of Buyer or any person employed by any of them for whose acts any of them may be liable, to the extent caused by the sole negligence, gross negligence, or willful misconduct of the Buyer or any person for whose acts Buyer is responsible; (b) any loss of or damage to property, but only to the extent caused by Buyer’s or Buyer’s Contractor’s sole negligence, gross negligence, or willful misconduct; or (c) any Claims for Losses incurred or Claims associated with fines, penalties, related costs and expenses attributable to any failure of Buyer or Buyer’s Contractor to comply with all Applicable Laws and Permits, but only to the extent such failure is caused by Buyer's or Buyer's Contractor's acts or omissions.

Section 10. Limitation on Liability.
a. Notwithstanding anything to the contrary contained in this Agreement, SELLER SHALL

HAVE NO LIABILITY TO BUYER IN CONNECTION WITH THIS AGREEMENT FOR INDIRECT, SPECIAL,

CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR FOR LOST PROFITS, REVENUE, BUSINESS INTERRUPTION, OR LOSS OF USE, EXCEPT WHERE SUCH DAMAGES ARISE FROM SELLER’S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, FRAUD, OR BREACH OF WARRANTY. SELLER’S AGGREGATE

LIABILITY TO BUYER UNDER THIS AGREEMENT SHALL NOT EXCEED THE AMOUNT PAID UNDER THE PARTICULAR PURCHASE ORDER AT ISSUE. DURING THE TERM OF THIS AGREEMENT, EXCEPT THAT THIS LIMITATION SHALL NOT APPLY TO: (1) SELLER'S INDEMNIFICATION OBLIGATIONS; (2) DAMAGES ARISING FROM SELLER'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR FRAUD; (3) BREACH OF WARRANTY CLAIMS; OR (5) DATA LOSS OR SECURITY BREACHES INVOLVING BUYER'S CONFIDENTIAL INFORMATION.

Section 11. General Provisions
791
a. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter contained herein, and supersedes any prior agreement and understanding, either written or oral, about the subject matter hereof. No agreement, statement, or promise not contained in this Agreement shall be valid or binding. This Agreement may only be modified or amended by a written instrument executed by the Parties. b. Time is of the Essence. Time is of the essence of this Agreement. c. Headings. The subject headings of the sections and paragraphs of this Agreement are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions.
d. Modifications and Amendments. This Agreement may be modified or amended only by a written document executed by both Buyer and Seller and approved as to form by Buyer’s City Attorney. e. Notices.

1. Any notice required to be given under this Agreement shall be in writing and either served personally, sent prepaid, first class mail or sent by email with confirmation of receipt. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

Seller:

ELM Fieldsight LLC
4300 Live Oak Drive
The Colony, TX 75056
Attn: President
Email: [email protected]
City:

City of Moreno Valley
14177 Frederick Street
P.O. Box 88005
Moreno Valley, CA 92552
Attn: Electric Utility Division Manager – Public Works
Email:

2. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail or upon confirmation of receipt if sent by email.
792
f. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Electronic signatures shall be deemed to constitute evidence of the Agreement having been executed. g. Successors and Assigns. Each covenant and condition contained in this Agreement shall inure to the benefit of and be binding on the parties to this Agreement and their respective heirs, executors, administrators, personal representatives, successors and assigns. This Agreement shall be nonassignable without the express written consent of Buyer or Seller. h. Further Assurances. The Parties agree to cooperate with each other and to execute, deliver and record such other agreements and documents and to take such other actions as are reasonably necessary or helpful to more effectively consummate the transaction(s) contemplated under this Agreement and to carry out its purpose and intent. Upon reasonable notice, Seller shall provide Buyer with copies of all non-privileged and non-confidential books and records concerning the Goods as are in Seller’s possession or control.

i. Default. Failure by a party to perform any term, condition or covenant required of the party under this Agreement, shall constitute a “default” of the offending party under this Agreement. In the event that a default remains unaddressed for more than thirty (30) days following receipt of written notice of default from the other party, a "breach" shall be deemed to have occurred. Either Party’s breach of any of its warranties, or the discovery that any representations are not true in every respect, shall also be deemed a breach of this Agreement. Any failure or delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
j. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
k. NonLiability- of Officials and Employees. No member, official or employee of either Party shall be personally liable to the other Party, either individually or jointly, or any of either Party’s successors-in-interest, in the event of any default or breach by either Party for any amount which may become due to the other Party or any of either Party’s successors, or on any obligations under the terms of this Agreement.
l. Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word “including” shall be construed as if followed by the words “without limitation,” where it is contextually appropriate. This Agreement shall be interpreted as though prepared jointly by the Parties.
m. Legal Advice. The Parties represent and warrant to the other party the following: they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel, as to the matters set forth in this Agreement, or acknowledge they have had the opportunity to consult legal counsel; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective 793
agents, employees or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise.
n. Venue. All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in California. o. Force Majeure. Neither Buyer nor Seller will be held liable for failure to fulfill its - obligations hereunder if such failure is due to a Force Majeure Event. A “Force Majeure Event” means, but is not limited to, an act of war; domestic and/or international terrorism; civil riots or rebellions; quarantines, pandemics or epidemics; embargoes, state or national states of emergencies, and other similar unusual governmental actions; or extraordinary elements of nature or acts of God; provided that such Force Majeure Event is beyond the excused Party’s reasonable control, occurs without the excused Party’s fault or negligence, is not caused directly or indirectly by the excused Party and could not have been prevented or avoided by the excused Party’s reasonable diligence. p. Survival. Sections which by their nature should survive (including payment obligations, license and use restrictions, confidentiality/IP, warranties/exclusions, limits of liability, and notices) survive termination or expiration. Without limitation, the following Sections survive termination of this agreement: Sections 3c, 4, 5, 6c, 9, 10, 11, Exhibit A and Exhibit C (sections 1-2 and 4-6).

SIGNATURE PAGE TO FOLLOW
794
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

City of Moreno Valley ELM Fieldsight LLC
BY: BY:

City Manager
TITLE: _____________
__________________________________
Date

INTERNAL USE ONLY
APPROVED AS TO LEGAL FORM:

City Attorney

Date
RECOMMENDED FOR APPROVAL:

Department Head

Date
795

EXHIBIT A

TERMS OF PAYMENT

1. The Seller's compensation shall be determined for each order using the Purchase Price formula listed in Section 2 and Exhibit “B”.

2. The Seller will obtain, and keep current during the term of this Agreement, the required City of Moreno Valley business license. Proof of a current City of Moreno Valley business license will be required prior to any payments by the City. Any invoice not paid because the proof of a current City of Moreno Valley business license has not been provided will not incur any fees, late charges, or other penalties. Complete instructions for obtaining a City of Moreno Valley business license are located at: https://moval.org/departments/financial-mgmt-svcs/svc-biz-license.html

3. The Seller will electronically submit all quotes to the City along with support documentation to Electric Utility staff at [email protected]
a. Accounts Payable questions can be directed to (951) 413-3073. b. Copies of quotes may be submitted to the Electric Utility Department at [email protected] or calls directed to (951) 413-3500.

4. The Seller agrees that City payments will be received via Automated Clearing House (ACH) Direct Deposit and that the required ACH Authorization form will be completed prior to any payments by the City. Any invoice not paid because the completed ACH Authorization Form has not been provided will not incur any fees, late charges, or other penalties. The ACH Authorization Form is located at:
https://moval.gov/city_hall/forms.html

5. The minimum information required on all invoices is:
a. Seller Name, Mailing Address, and Phone Number
b. Invoice Date
c. Seller Quote Number
d. City-provided Reference Number, if applicable (e.g. Project, Activity) e. Detailed billing information that is sufficient to justify the quote amount; single, lump amounts without detail are not acceptable.

6. The City shall pay the Seller for all invoiced, authorized professional services within thirty (30) days of receipt of the invoice for same. Payment shall not be unreasonably withheld or delayed, and any disputes regarding invoiced amounts shall be limited to the disputed portion; undisputed amounts shall be paid when due.

7. Reimbursement for Expenses. Seller shall not be reimbursed for any expenses unless authorized in writing by City.

796
Exhibit B
Equipment Pricing List
ELM Microgrid MG2 MVU Pricing List (314Ah Battery)
ESS
Containers
Max
Power
(kW)
Total
Energy
(kWh)
MVU Cost**
Without Tariff
Additional
Cost for 41%
Tariff
5 year parts(10
years total )
warranty
extension**
10 year parts(15
years total )
warranty
extension**
15 year parts(20
years total )
warranty
extension**
1 415 836 $330,526.00 $15,385.00 $16,526.30 $33,052.60 $49,578.90 2 825 1672 $500,420.00 $30,770.00 $25,021.00 $50,042.00 $75,063.00 3 1250 2508 $670,314.00 $46,155.00 $33,515.70 $67,031.40 $100,547.10 4 1500 3344 $840,207.00 $61,540.00 $42,010.35 $84,020.70 $126,031.05 5 1500 4180 $1,010,102.00 $76,925.00 $50,505.10 $101,010.20 $151,515.30 6 1500 5016 $1,179,995.00 $92,310.00 $58,999.75 $117,999.50 $176,999.25 7 1500 5852 $1,401,813.00 $107,695.00 $70,090.65 $140,181.30 $210,271.95 8 1500 6688 $1,571,707.00 $123,080.00 $78,585.35 $157,170.70 $235,756.05 9 1500 7524 $1,741,601.00 $138,465.00 $87,080.05 $174,160.10 $261,240.15 10 1500 8360 $1,911,494.00 $153,850.00 $95,574.70 $191,149.40 $286,724.10 *MVU Cost Includes
-Standard Warranty: 2 year Workmanship/Material and Five Years Parts Only
-5 Year ELM Silver Monitoring
plan
-Integrated FieldSight Microgrid Site
Controller
-CAB 1000 Storage Inverter
-Main Interface Control Box
(MICB)
-Main Interface Box (MIB) for Systems with 6-12 ESS
Enclosures
-1000 Hour Salt Spray
-Corrosion Resistant Aluminum Outer Structure
-Integrated Fire Safety Design
-UL 9540, UL 1973, UL 9540A, and UL 1741 SB
Certified
**The Warranty Extension is the MVU Cost and is Made in Equal Annual Payments for the Length of the Warranty ***AddOns
CAB1000 C5 Coastal Option -
$17,000
MIB for Systems with 2-5 ESS Enclosures- $52,500
797
Base Tariff Rates Applicable to BESS Units (Battery Modules with China Origin) as currently expected for 2026
Tariff / Duty
Type
Description / Applicability Rate (%) Notes / Effective Details Most-FavoredNation (MFN)
Rate
Standard U.S. import duty applied
under WTO terms

Moreno Valley City CouncilDecember 16, 2025

Moreno Valley City Council
December 16, 2025