1997 AGN NOV 04 I17 - Laserfiche WebLink

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ALTERNATIVES As encumbrances of retained earnings permit, it may be possible to designate a portion or all of retained earnings to satisfy the revenue requirements for public goods. Staff is concerned that such a use of retained earnings will reduce the City's ability to otherwise respond to the challenges of competition. The Council could delay enactment of the Public Benefit Charge to the date that the City enacts direct access. There is a risk of litigation by taking this course of action, but the City could argue that AB1890 is not specific with respect to local publicly owned utilities in this matter. The City could also point out that the program is designed to promote activities that might not otherwise occur in a direct access environment, and that such conditions do not exist in the City of Colton until the City enacts direct access. The Utilities Commission has reviewed this issue over the span of several meetings, including a workshop held on September 22, 1997, that focused on the subject. The Commission recognizes this measure as mandated by the State, and approves of the measure in that context. Staff points out that the Commission may add specific modifications to their general recommendation at their meeting of October 14, 1997, which were not avalble at the time this report was written. That information will be available to the Council and the public shortly after the 'Commission meeting and well before the Public Hearing. FINANCIAL IMPACT On average, system customers will experience a 2.85% increase in their electricity costs. Thomas K. Clarke Utility Director RECOMMENDATION That the Cit ,y Council set a Public Hearing for November 18, 1097, to enact a Public Benefits Charge of $0.0029 (2.9 mils) per Kilowatt -Hour on all Kilowatt -Hours sold to all retail customers served by the Colton Electric Utility, effective January 1, 1998 and thereafter as long as required by State law. Said charge to be adjusted onan annual basis for each new fiscal year to obtain the revenue required by State law.