2001 CC/CUA REG MIN Jan 02 - Laserfiche WebLink

Browse Search

ratification of employee appointment to two full-time positions, Sewer Line maintenance Supervisor and Sewer Line Maintenance Worker II, in the Utility Department. (8) CUA/Pegg Systems, Inc. - Approved selection of sole source for repairs to the Wastewater treatment Plant's three blowers for Plants Nos. 1 and 2 to Pego Systems, Inc., in the amount of $9,514.94. STAFF REPORTS: UTILITY DIRECTOR'S REPORTS AND RECOMMENDATIONS: Deregulation Utility Director Clarke provided an update that included a chronology of events and milestones on deregulation: September 1996: Gov. Wilson signed A131890, expected to cut utility bills by 10% for residential and small businesses. March 1998: Law goes into effect resulting in creation of power exchange (PX) and the independent systems operator (ISO). IOUs ordered to divest themselves of inefficient and uneconomical power plants. Retail prices are frozen to rates charged in 1996. June of 2000: Price fights hit the unregulated market in amounts of upward to $750 per MW or 75 cents per KWH. The Colton utility recovered approximately 10.5 cents on average from all of its retail customers in Colton. December 7, 2000: ISO declared the State's first, stage three alert, when power reserves dropped, and the State prepared for rolling blackouts. December 9,2000: ISO removed price caps and lowered them to 250 from the 750 level to stimulate sales into California; however, prices go even higher. Wall Street downgraded most of the debt for the investor-owned utilities. The power market declined to sell power stating the California utilities were a credit risk and worried about getting paid for the power they were selling into the market. December 13, 2000: In an unprecedented action and under the power of the Federal Power Act, Energy Secretary Bill Richardson ordered electric suppliers to sell energy into California at what was called a fair price, to be determined later. On December 20, 2000, the executive order was extended for an additional week. December 21, 2000: SCE and PG&E filed for rate relief in the range of 30% with the CPUC. The matter was set for special hearing on December 28 and 29. Utility Director Clarke anticipated that some rate relief would be granted in that order. City Council Mins Jan 2, 2001 3