1996 AGN NOV 05 I04 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF NOVEMBER 5, 1996 TO: HONORABLE MAYOR & CITY COUNCIL APPROVAL: MALIK FREEMAN, INTERIM CITY MANAGER ��/ FROM: THOMAS K. CLARKE, ELECTRIC UTILITY DIRECTOR `' SUBJECT: APPROVE AND ADOPT THE ATTACHED RESOLUTION FOR EXECUTION OF THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF COLTON AND HENWOOD ENERGY SERVICES, INC., FOR A RETAIL ELECTRIC RATE STUDY DATE: OCTOBER 21, 1996 The attached agreement between the City of Colton and Henwood Energy Services, Inc., will result in the development of electric rates and policies designed to improve Colton Electric Utility's position in a competitive electric utility environment. Such rates and policies will be brought to Council for consideration. The last electric retail rate study for the City of Colton was conducted in 1993. Conditions in the Electric Utility have changed significantly since that time. Assembly Bill 1890, signed by Governor Wilson this Summer, allows electric users to select their electric utility starting in 1998. Competition among California electric utilities for customers will be occurring and utilities are positioning their rates (prices) well before 1998 to prepare for the competition. The City of Colton and the City of Azusa (also a municipally -owned electric utility city) issued a joint Request for Proposals for professional services to conduct a five-year retail rate study. The purpose of the joint issuance was to potentially reduce costs as a result of economies of scale for the contractor if both Cities selected the same firm. Staff held interviews with three fines responding to the Request for Proposals and selected Henwood Energy Services, Inc. DISCUSSION/ANALYSIS The attached agreement includes all the components of a detailed retail rate analysis. Staff will be working closely with the consultant to bring to the Council rate options which make sense for the local community. ALTERNATIVES The alternative of not performing an in-depth rate study could potentially result in inadequate preparation in responding to pricing challenges of other electric service providers in a competitive market. Page 1 of 2 Item No.