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Item: 1. <br />Staff Report <br /> <br />Meeting Date: April 21, 2026 <br />To: City Council <br />From: Bill Smith, City Manager <br />Prepared By: Charles Berry, Electric Utility Director, Tom Miller, Interim Assistant Director <br />Item Name: Electric Utility Integrated Resource Plan (IRP) Report - Receive and File the <br />Electric Utility Integrated Resource Plan (IRP). <br /> <br />Recommended Action: <br />Receive report. <br /> <br />Background: <br />Integrated Resource Planning (IRP) is not solely a regulatory or compliance-oriented exercise; it <br />is a core governance function that directly informs rate stability, financial planning, and long- <br />term risk management. For the City of Colton Electric Utility (CEU), the application of IRP <br />principles is essential to ensuring that resource decisions are aligned with California’s clean <br />energy mandates and the City’s fiduciary obligations to its customers. <br />From a rate-setting perspective, disciplined resource planning is one of the primary mechanisms <br />available to maintain rate stability. By evaluating multiple resource portfolios under varying <br />market and operational conditions, CEU can proactively identify long-term cost drivers, <br />particularly those associated with wholesale energy procurement, capacity requirements, and <br />infrastructure investment and position the utility to mitigate upward rate pressure over time. This <br />forward-looking approach supports predictable, competitively priced rates and reduces the <br />likelihood of abrupt or unplanned adjustments. <br />These planning efforts are also central to prudent financial management. As a publicly owned <br />utility, CEU is entrusted with managing enterprise resources in a manner that is financially <br />disciplined, transparent, and aligned with cost causation principles. Incorporating structured <br />planning and scenario-based analysis into decision-making ensures that resource investments are <br />evaluated not only for compliance with policy objectives, but also for their long-term financial <br />impact on the utility and its customers. This approach reinforces sound budgeting practices, <br />Page 8 of 355