City Council Agenda Report
Meeting Date: August 19, 2025
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Senior Management Analyst
Subject
Green Power (GP) Electric Rate Schedule
Recommendation
Adopt Resolution No. 2025-020 Approving a Voluntary Electric Rate Schedule No. GP (Green Power) regarding electrical rates to be charged for electrical energy distributed and supplied by the City within its boundaries.
Background
In response to inquiries from local businesses about corporate sustainability, City staff held several internal meetings during 2024 and 2025 to develop a new Green Power electric rate schedule for Vernon Public Utilities (VPU). This proposed Green Power (GP) electric rate schedule aims to support various corporate sustainability objectives for its commercial and industrial customers. This initiative seeks to enhance the utility’s renewable energy portfolio beyond the requirements set by the state and aligns with two strategies outlined in the Utility’s strategic road map.
According to the plan, strategy E1-a focuses on procuring and delivering more renewable electricity to the grid, while strategy E1-b aims to enable businesses and residents to adopt carbon-free options.
VPU’s proposed GP electric rate schedule allows customers to voluntarily pay an additional fee of five (5) cents per kilowatt hour (kWh) for a fixed amount of renewable energy purchased by the City of Vernon specifically for them. This initiative goes beyond the state-mandated clean energy goals. Both current and new customers can opt into this program by adding the five (5) cent fee to their utility bills. The revenue generated will enable the City to purchase more renewable energy, thereby enhancing the utility’s power resource mix. When a VPU customer chooses to enroll in the optional GP electric rate schedule, they agree to purchase a predetermined amount of renewable energy that will not exceed their annual energy consumption. Customers must also commit to remaining enrolled in the program for an entire year, which runs from January 1st to December 31st.
The proposed GP electric rate schedule provides utility customers with the opportunity to access renewable energy without the need to install solar photovoltaic systems on their property. This offering can be particularly beneficial for commercial tenants who do not own the property, as well as for properties with older roofs or other limitations that make it impractical to support a solar photovoltaic system.
On August 7, 2025, a public notice was published in the Los Angeles Wave (Huntington Park Bulletin) regarding the proposed adoption of the Resolution for the GP Electric Rate Schedule.
In accordance with Vernon Municipal Code (VMC) Section 13.26.020, “any change in rates to be charged and collected for energy supplied by the Vernon electric system from and after July 29, 1982, shall be set by resolution of the City Council.” Therefore, VPU staff is seeking to adopt the Electric Rate Schedule No. GP regarding electrical rates to be charged for electrical energy distributed and supplied by the City within its boundaries.
The proposed resolution has been reviewed and approved by the City Attorney’s Office. If approved, the proposed schedule will become effective on August 19, 2025. Electric rate schedules can be found on the City’s website in the Public Utilities section under the Rates & Fees tab.
Fiscal Impact
The recommended electric rate adjustment has been included by VPU in the Electric Fund, Customer Service, Sale of Electricity, Account No. 055-450-575-450010 for the current fiscal year and will be budgeted in subsequent years.
Attachments
1. Resolution No. 2025-020
2. Public Notice