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1 RiversideCA.gov1
RiversideCA.gov
ELECTRIC UTILITYFIVE-YEAR RATE PLAN PROPOSALCity CouncilJune 27, 2023Public Utilities Department RiversideCA.gov2
PROPOSED RESIDENTIAL 5 YEAR ELECTRIC RATE PLANWATER: $0.15 Per Day ELECTRIC: $0.21 Per Day REFUSE: + $0.09 Per Day $0.45 Per Dayor$13.50 Per Month Average rate increase per year for 5 years
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2 RiversideCA.gov3
PROPOSED RATES$7.97 per month for the average residential customerIn year 1, the rate increase will amount to an additional or the Price ofOne Caffé Latte RiversideCA.gov4
$298 $206 $190 $149 $148 $143 $136 $123 $123 $119 $117 $107 $107 $28 $22 $7 $8 $- $50 $100 $150 $200 $250 $300 $350Current Known Increases - Year 1 Proposed Increase - Year 1ELECTRIC RATE PLAN COMPARISONAverage Residential Monthly Bill at 600 kWh Per Month – Year OneRPU RATES REMAIN LOWRPURPU =112K Service Connections 6/15/2023
3 RiversideCA.gov5
OVERVIEW OF ELECTRIC
Current Rate Plan Expires 12/31/2023112KService ConnectionsRecord Peak Demand (9/7/2022)648 Megawatts Established1895
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OVERVIEW OF ELECTRIC1 of 46Public Power Utilities in CARiverside is one of 46 cities in California that light up homes and businesses with “public power”– electricity that comes from a community-owned and operated utility
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4 RiversideCA.gov7
OVERVIEW OF ELECTRIC
Maintain99.2 MilesTransmission Lines Maintain1,351 MilesDistribution LinesMaintain15Substations RiversideCA.gov8
RPU team members work 24/7 to keep the lights onRPU: ALL DAY EVERY DAY
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ELECTRIC FACILITIESRiverside Energy Resource Center (RERC) Springs
Clearwater(Corona Facility)
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JOINT POWER PARTICIPATIONRenewables•Antelope Big Sky Ranch•Antelope DSR 1•Columbia 2•Kingbird B•Summer Solar•ARP LoyaltonOther Generation•Palo Verde Nuclear Generation Station•Hoover Hydro Power Plant Transmission•Mead-Adelanto Transmission •Mead-Phoenix Transmission •Southern Transmission Systems
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System Average Interruption Comparison with SCEELECTRIC SERVICE PERFORMANCE0501001502002503002018 2019 2020 2021 2022Minutes SCEMinutes RPU00.20.40.60.811.21.42018 2019 2020 2021 2022Number SCENumber RPUNote: SCE data unavailable for 2022 RiversideCA.gov12
POWER SUPPLY CHALLENGES Sustainability Challenges to Riverside Requiring Vital SolutionsRegulatory encroachment/loss of local Control:Challenging to maintain rate affordability in alignment with local needs.Carbon Neutrality:State mandates and Local Carbon reduction goals requiring a rapid transition to 100% clean energy. Increasing Loads and Peak Demands:Driven by Transportation electrification and Building electrification.Increasing Transmission Access Charge: New Transmission investment is needed to integrate regional renewable resources.
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7 RiversideCA.gov13
The use of long-term Power Purchase Agreements and hedging to control and reduce the impact of power cost spiking by ~$13M WHAT’S BEEN DONE TO KEEP RATES LOW RiversideCA.gov14
HISTORY OF ELECTRIC RATESElectricRate Increase1/1/20093.60%1/1/20105.80%1/1/20110%1/1/20120%1/1/20130%1/1/20140%1/1/20150%1/1/20160%1/1/20170%1/1/20180%No Rate Increases from 2011 - 2018 6/15/2023
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HISTORY OF ELECTRIC RATESElectric Rate Increase1/1/20192.95%1/1/20203.00%1/1/20213.00%1/1/20223.00%1/1/20233.00%Due to COVID impacts on the community, the 1/1/2021 rate increase was delayed to 7/1/2021Current Rate Plan Expires 12/31/2023 RiversideCA.gov16
THE WHY0510152025303540452011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023RPU Electric Rate Increases vs CPICumulative Increase in CPICumulative Rate Increase 6/15/2023
9 RiversideCA.gov17
Increased construction/equipment costsCosts for natural gas have doubled over the last two years,due to increased liquid natural gas exports and restricted capacity on western interstate gas pipelines.Costs for CAISO Market energy have gone up 60%-80%, due to increasing natural gas costs and supply-chain challenges delaying the development of new renewable resources.THE WHYINCREASED POWER SUPPLY COSTS RiversideCA.gov18
INCREASED POWER SUPPLY COSTSTHE WHY0.060.0650.070.0750.080.0850.090.0950.115/16 16/17 17/18 18/19 19/20 20/21 21/22$ per kWhFiscal YearCost per kWh 6/15/2023
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THE WHY($100)($50)$0$50$100$150$200$250FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028MillionsUndesignated Reserves WITHOUTRate IncreasesUndesignated Cash BalanceLine of CreditGeneral Fund SubsidyMin Target RiversideCA.gov20
ELECTRIC CUSTOMER STATISTICSNote: As of June 30, 2022, Combined Ag Pumping, Street Lighting, Traffic and Outdoor Lighting with Commercial/Industrial39.7%60.3%ELECTRIC YTD ACTUAL REVENUESResidential - $134,403Commercial/ Industrial-$203,473(In Thousands)Total Electric Revenues - $337,87688.8%11.2%ELECTRIC CUSTOMER COUNTSResidential - 99,731Commercial/ Industrial -12,597Total Customer Count - 112,328 6/15/2023
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PROPOSED RESIDENTIAL ELECTRIC RATE PLAN$0.21Avg Cost per day over 5 years $7.97Average Monthly increase year 1 Customer ClassCustomers Year 1% IncreaseYear 2% IncreaseYear 3% IncreaseYear 4% IncreaseYear 5% IncreaseResidential (3 Tiers)99,718 7.1% 7.1% 7.0% 2.3% 2.4%Dollar values calculated based average monthly usage of 600 kWh RiversideCA.gov22
PROPOSED COMMERCIAL ELECTRIC RATE PLANCustomer Class CustomersYear 1% IncreaseYear 2% IncreaseYear 3% IncreaseYear 4% IncreaseYear 5% IncreaseCommercial Flat (2 Tiers)11,015 2.5% 2.8% 3.0% 3.0% 2.9%Commercial Demand (2 Tiers)988 0.0% 0.0% 0.0% 0.0% 0.0%Industrial TOU (3 periods)622 5.9% 6.6% 6.3% 4.3% 4.3% 6/15/2023
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PROPOSED COMMERCIAL ELECTRIC RATE PLAN$0.43Average Cost Per Day over 5 yearsCustomer ClassAvg kWh Usage (Tier 1)Year 1% IncreaseYears 2-5% IncreaseCommercial Flat Example1,750 2.7% 3.8% $9.12Average monthly increase year 1
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WITHOUT RATE INCREASES($100)($50)$0$50$100$150$200$250FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028MillionsUndesignated Reserves WITHOUTRate IncreasesUndesignated Cash BalanceLine of CreditGeneral Fund SubsidyMin Target 6/15/2023
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WITH PROPOSED RATE INCREASE$0$50$100$150$200$250FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028MillionsUndesignated Reserves WITHProposed 5-Year Rate PlanUndesignated Cash BalanceLine of CreditMin Target RiversideCA.gov26
$298 $206 $190 $149 $148 $143 $136 $123 $123 $119 $117 $107 $107 $28 $22 $7 $8 $- $50 $100 $150 $200 $250 $300 $350Current Known Increases - Year 1 Proposed Increase - Year 1ELECTRIC RATE PLAN COMPARISONAverage Residential Monthly Bill at 600 kWh Per Month – Year OneRPU RATES REMAIN LOWRPURPU =112K Service Connections 6/15/2023
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Income qualification based on 250% of the Federal poverty income guideline and the number of people in the household.LOW INCOME PROGRAMS - ELECTRIC$16.00Current Monthly Electric SHARE Credit$20.00Projected future Monthly Electric SHARE Credit4,880Residential Electric Customers AssistedEstablished1989 Sharing Households Assist Riverside’s Energy (SHARE) Program RiversideCA.gov28
ASSISTANCE PROGRAMSESAPEnergy Savings Assistance Program (ESAP) is designed to help lower monthly bills, while making homes more energy efficient through professional home improvements at no cost to customer UtilicareMedical support program offered to Riverside Public Utilities customers with a full-time resident who regularly use certain medical devices that provides electricity at an adjusted rate structure 6/15/2023
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ENERGY EFFICIENCY PROGRAMSEnergy RebatesRPU offers a wide range of energy efficiency programs to help customers lower their utility bills–Air Conditioning Incentives–Energy Star Rebates on Qualifying Appliances–Pool & Spa Pump–Tree Power –Weatherization RiversideCA.gov30
NEW REPLACEMENT PROJECT
Hunter Substation Replacement ProjectCommissioned in the early 1960’sAverage substation life expectancy is ~50 yearsServes approximately 4,700 customersImprove system reliabilitywitha new Utility Scale distributionsubstation supporting futuredevelopment in the area andmaintaining power reliability.Approximate cost $40MNEW SUBSTATION 6/15/2023
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40WHAT’S NEXTBoard ofPublic UtilitiesJune 12, 2023City CouncilJune 27, 2023Board of Public Utilities Public Hearing and Rate ConsiderationAugust 14 or 28, 2023City Council Public Hearing and Rate Consideration September 19, 2023 RiversideCA.gov32
RECOMMENDATIONSThat the City Council:1. Conceptually approve the electric utility five-year rate plan proposal; and2. Direct the City Manager to prepare all documents necessary for public noticing of the rate proposal, to update proposed rate schedules to reflect changes due to the rate proposal, and to update any other documents necessary for the public hearing to be held before the City Council on September 19, 2023, with new rates effective January 1, 2024.