1997 AGN DEC 16 I24 - Laserfiche WebLink

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A CITY OF COLTON AGENDA REPORT For the Council Meeting of December 16, 1997 TO: Honorable Mayor and City Council APPROVAL: Len Wood, Interim City Manager FROM: Thomas K. Clarke, Utility DirectorCC--� SUBJECT: Residential Rate Redesign DATE: December 9, 1997 BACKGROUND Several City Council members have asked theElectricUtility to consider the feasibility of modifying the residential rate design that would change the lifeline allowance. DISCUSSION / ANALYSIS The designs of electric rates undergo a number of tests to ensure that the rates are: 1) just and reasonable; and, 2) ensure that proper revenues are collected in an equitable manner. The rate design that is in place has undergone these tests and has demonstrated that a change could be made but not without some give and take in the final design. However, to arbitrarily make a change without making all the proper adjustments for equity and function, can be severely detrimental to the customer and/or the Utility. ALTERNATIVES The alternates for rate design are almost infinite. As long as the concepts addressed above are adhered to, any one of the possible designs could be deemed acceptable. FINANCIAL IMPACT Two different groups will be financially impacted by a rate design change. Obviously the consumer will be affected. If the rate design is not implemented in a conscientious manner, certain customers will benefit and others will be penalized. In addition, the Utility, and the General Fund, could be impacted because of the change in revenues. ENVIRONMENTAL IMPACT None. RECOMMENDATION That the City Council approve the existing rate design for the residential class and instruct staff to continue to monitor class usage to determine if alternative designs would be beneficial in the future. Attachments: Colton / SCE rate comparisons Page 1 of 1 Item 4 24