12/6/2022 Item
City Council
Item 7
CITY OF RTC 22-1231: Adoption of a
Resolution Amending Rate
Schedules for Electric
1852
Service
THE MISSION CIT
December 6, 2022
1 City of
Santa Clara
The Center of What's Possitle
Public Outreach - 2022
• October & November - Notification to Schools and State Agencies • November - Posts to Social Media - Twitter, Facebook, Nextdoor • Inside Santa Clara article - Fall/Winter edition
• November - Notified SVP Key Accounts
• November - Sent notification on City's email platform, GovDelivery • Posted the December 6th Council Meeting Details - Monitoring Social Media for questions and comments
2 2
POST MEETING MATERIAL
1 City of
Santa Clara
The Center of What's Possible
Need for Increase
• Maintenance and operations of the Utility
• Purchase and produce the power to meet the City's needs • Proactive maintenance of the generation (power plants) and distribution and transmission system (poles and wires) to maintain SVP's high reliability.
• Continue to meet the State renewable energy requirements • Continued drought reduces hydroelectric output
• Balance the Utility Budget to account for increase costs SVP does not control
3 3
City of
Santa Clara
The Center of What's Possible
Reasons for Increase
• The historic 40-year high Consumer Price Index
05.535 HS.451 L5.928 C5.933 - 0.012 (-0.7049
that affects prices for materials, construction, fSt 185 10.00) maintenance, operations, etc.
2,030
• Increase natural gas commodity costs - at one
8.000
time up 150% and remain 50% higher than at the
2.00 end of last year
Increases to Transmission Access Charges (TAC)
- 31% Increase for low voltage and ~22% for high
5,000
voltage
1,020
Gas Transportation rates and access charges -
36% increase 3,000
OCME Group
Higher renewable energy costs - we are seeing rally Teargin 2,000 2315 2019 2020 2021
15% to 20% higher costs for current offered
Power Purchase Agreements Gas Prices
2 City of
Santa Clara
The Center of What's Possible
Proposed Rate Increase
• Proposed Rate Increase
- 8% increase effective January 2023
- Higher increases then the last few years but there have been similar increases in the past
- Rate increase is slightly below inflation even with
significant double digit percent increases on some of
SVP costs
- Lowest residential rates for any California Utility with more than 10,000 customers
- Residential rates are 57% lower than PG&E
- Average residential electric bill will increase by
approximate $4.44 per month
5 City of
Santa Clara
The Center of What's Possitle
Rate Comparison with 8% rate increase
SVP vs PG&E Average* Rates
VP AVG Rate PG&E Average Total
s of 01/01/ Rate as of 06/01/22 SVP Lower SVP lower PG&E Higher PG&E Higher Class of Service ($/kwh) *** ($/kwh) (%) ($/kwh) (%)
Residential D-1 E-1
$0.144 $0.338 $0.194 57% $0.194 135%
Small Commercial C-1 B-1
$0.214 $0.325 $0.112 34% $0.112 52%
Large Commercial CB-1 B-10S
$0.157 $0.302 $0.145 48% $0.145 92%
Small Industrial B-19S
$0.262 $0.105 40% $0.105 67%
Largo Industrial CB-3 B-20P
$0.142 $0.220 $0.079 36% $0.079 56%
Very Large Industrial CB- B-20P
$0.126 $0.220 $0.094 43% $0.094 74%
• pend on ras apised or sand led forecasts, including surcharges. Average rates are provided for general referanco, and individual customer's avorage rate wil * This comparison does not factor in the additional user tax charge levied in most PG&E service jurisdictions (typically 5%). Santa Clara customers are not charged 3 those aditional fees.
6 3
City of
Santa Clara
Tho Centerof What's Possible
Monthly Bill Comparisons
2023 Residential Customer
Low User (300 kWh) Average (420 kWh) High User (1,000 kWh) Before $39.31 $55.61 $134.38
Proposed $42.44 $60.05 $145.10
Increase
$3.13 $4.44 $10.72
2023 Commercial/Industrial Customer
Large Commercial/Small Large Industrial CB-3
Small Business C1
Industrial CB-1 (2,000,000 kWh)
(1,000 kWh) (500,000 kWh)
Before $72,604 $266,775
$201.77
Proposed $217.88 $78,398 $288,082
Increase
$16.11 $5,794 $21,307
7 City of
Santa Clara
The Center of What's Possible
Support for Customers
• SVP applied and received funding from the California Arrearage Rate Assistance Program
- SVP received $1.3 million
- Provided support for almost 8000 residential customer - Average amount was $164
• Increasing our Rate Assistance Programs - currently a 25% reduction up to 800 kWh
- Financial Rate Assistance Program (FRAP) - 35% rate discount for first 300 kWh, 25% rate discount from 300-800 kWh
- Low Income Home Energy Assistance Program (LIHEAP) - 40% rate discount for first 300 kWh, 25% rate discount from 300-800 kWh • Energy Efficiency Rebates and Programs still available 8 4
City of
Santa Clara
The Centerof What's Possible
Recommendation
Adopt a Resolution amending Rate Schedules for Electric Services to Increase Electric Rates and Charges in Each Rate Schedule by Eight Percent (8%), effective January 1, 2023.
9 City Council
Item 7
RTC 22-1231: Adoption of a
Resolution Amending Rate.
Schedules for Electric
1852
Service
THE MISSION GIN
December 6, 2022
10 5