RESOLUTION NO. 2022-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO MAKE CERTAIN LIMITED ADJUSTMENTS TO CUSTOMER POWER GENERATION RATES FOR POMONA CHOICE ENERGY WHEREAS, the City Council (“City Council”) of the City of Pomona (“City”) adopted Ordinance No. 4256 declaring its intent to establish Pomona Choice Energy (“PCE”) pursuant to the community choice aggregation (“CCA”) provisions of California law; and WHEREAS, the City Council approved an implementation plan (“Implementation Plan”) for PCE, and the California Public Utilities Commission certified the Implementation Plan on March 4, 2019; and WHEREAS, pursuant to section 8.4 of the Implementation Plan and applicable law, the City Council established initial power generation rates for PCE customers and has thereafter established such rates as part of the City’s regular budget adoption and review process; and WHEREAS, in order to address fluctuations in operating costs and ensure sufficient revenue, the City Council has determined that PCE rates may require adjustment from time to time and prior to the City Council’s next regularly scheduled budget adoption or review; and WHEREAS, the Power Charge Indifference Adjustment (“PCIA” or “exit fee”) is a fee charged and retained by Southern California Edison and is only applicable to PCE customers; and WHEREAS, the PCIA can be increased or decreased, resulting in a change to the effective rate charged to PCE customers; and WHEREAS, subject to the terms and conditions of this Resolution, the City Council desires to grant to the City Manager of the City (“City Manager”) the power and authority to periodically make certain minor adjustments to PCE rates; and WHEREAS, prior to implementation of any rate adjustment, the City Manager shall bring the proposal to City Council for informational purposes.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Pomona as follows:
Section 1. The foregoing recitals are true, correct and constitute a substantive part of this Resolution.
Section 2. The City Manager shall have the power and authority to increase or decrease PCE customer power generation rates to the extent he or she reasonably determines necessary for PCE to avoid an operating deficit or surplus. The City Manager’s power and authority pursuant to this Resolution shall be subject to the following conditions, limitations and requirements:
(a) Prior to implementing a rate adjustment, the City Manager shall have reasonably determined the rate adjustment is (i) necessary for PCE to avoid an operating deficit or surplus, (ii) consistent with applicable law, and (iii) consistent with PCE’s Implementation Plan and other governing documents and policies; (b) Notice of the rate adjustment, which shall include a brief explanation of the City’s reason(s) for the rate adjustment, shall be made available to customers via PCE’s website and Pomona’s normal public notice process; and (c) On March 1, 2022, PCE generation rates shall be adjusted to the rates shown on Exhibit 1, which is approximately 97 percent of the power generation rate charged by Southern California Edison. For comparison purposes, the PCE power rate shall include the PCIA as determined by the annual Energy Resource Recovery Account proceeding approved by the California Public Utilities Commission. (d) If after March 1, 2022, SCE again changes its generation rate, the City Manager is authorized to change PCE generation rate, so long as the rates charged by PCE do not exceed 103 percent of the SCE rate. For comparison purposes, the PCE rate shall include the PCIA as determined by the annual Energy Resource Recovery Account proceeding approved by the California Public Utilities Commission. (e) If the City Manager changes PCE rates per the Resolution, the rates will be brought back to City Council for discussion purposes.
Section 3. Future resolutions establishing or modifying PCE rates, as well as all related notices and rate schedules, shall include a notation that the rates established therein are subject to adjustment pursuant to this Resolution. No specific language is required for such notation and failure to include the notation shall not impact the effectiveness of this Resolution (including the power and authority granted herein) or the effectiveness of any notice, rate schedule or resolution approved by the City Council.
Section 4. This Resolution shall be effective immediately upon approval by the City Council and remain in full force unless and until expressly repealed.
PASSED, APPROVED, AND ADOPTED THIS 24TH DAY OF JANUARY 2022.
CITY OF POMONA:
Tim Sandoval
Mayor
APPROVED AS TO FORM: ATTEST:
Sonia Carvalho Rosalia A. Butler, MMC
City Attorney City Clerk
I, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Pomona at a regular meeting thereof held on January 24, 2022, by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
Rosalia A. Butler, MMC
City Clerk
Resolution No. 2022-06
January 24, 2022
ATTACHMENT NO. 1