1996 ADJ MIN MAR 20 - Laserfiche WebLink

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load becomes larger in a commercial account, it costs less to serve and this is reflected in the rate design. As we get above certain baseline allowances in energy charges. As we add energy into the system, it is cheaper for us to buy. Conversely, Director Clarke said this did not apply to the residential side. The increase in cost, generally associated with air-conditioning load at peak times during the summer months, is the more expensive power the City has to buy. The baseload is assigned to this, as the City has to buy and have energy under contract when the peak period hits. Discussion had on air- conditioning use. Councilmember Bennett asked for a memorandum -report on how Edison handles their commercial accounts and if they offer similar discounts, Electric Director Clarke said his department had provided a typical, monthly comparison, to Council, within the past week. Director Clarke said he would re -issue the information. Discussion followed on deposits for start-up service charged the residents, specifically Page 47, Policy 27 and Page 25, Policy 15, provision 5. Councilmember Bennett asked that the policy include the provision to allow a resident with A-1 credit to obtain waiver of the deposit or reduction of $25.00 per hook-up. Finance Director Vega said that next Council Meeting she would present a system for checking credit and waiver of deposit. She said It was customer friendly and it had been discussed with the Utilities Commission. In response to what the City has lost on people who do not pay their bills on an annual basis, Director Vega informed that through 1992-93 the City lost $305,000, about 1.6% of actual revenues. Prior to 1992, the average was $150,000. Ms. Jean Hart presented her bill and asked how the PCA charge was calculated. Electric Utility Director Clarke explained that it was based on calculation per kilowatt hour, approximately one- half cent per kilowatt hour. Mr. Charles Jackson asked that if there is a write off of 200,000, what is the recovery? There was discussion on the recovery efforts. Electric Utility Director Clarke remarked that in FY 1994-95, the write-off is $216,244, considered lost income, with anticipated recovery expected at 40%. He pointed out that losses are assessed to other customers, approximately 1/10th of a cent per kilowatt hours, for recovery. Upon inquiry, Director Clarke stated that lien process cannot be used for electric bill recovery. STAFF REPORTS FINANCE DIRECTOR'S REPORTS AND RECOMMENDATIONS: Finance and Cash Flow Analysis Report Discussion had regarding the timing of the financial report. To avoid delay, she suggested continuing the item to the next meeting which would allow timely reports. Mayor Fulp asked inclusion of cash balance information and Finance Director Vega agreed. Mayor Fulp inquired 4 MAR 2 0 1996