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CITY OF COLTON <br />AGENDA REPORT <br />For the City Council Meeting of February 3, 1998 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />APPROVAL: HENRY T. GARCIA, CITY MANAGER fr <br />FROM: THOMAS K. CLARKE, UTILITY DIRECTOR si <br />�- <br />SUBJECT: PUBLIC BENEFIT CHARGE CREDIT FOR LOW-INCOME CUSTOMERS <br />DATE: TUESDAY, JANUARY 20, 1998 <br />BACKGROUND: <br />State Assembly Bill 1890 requires municipal electric utilities to collect revenues for the <br />following Public Benefit Programs: <br />(1) Cost-effective demand-side management services to promote energy - <br />efficiency and energy conservation; (2) New investment in renewable energy <br />resources and technologies consistent with existing statutes and regulations <br />which promote those resources and technologies; (3) Research, development <br />and demonstration programs for the public interest to advance science or <br />technology which is not adequately provided by competitive and regulated <br />markets; (4)Services provided for low-income electricity customers, including <br />but not limited to, targeted energy efficiency service and rate discounts. <br />On December 2, 1997, the City Council approved Resolution R-123-97, authorizing the <br />collection of the Public Benefit Charge at a rate of $.0029/Kilowatt-Hour, effective January 1, <br />1998. <br />DISCUSSIONIANALYS`IS: <br />In earlier workshops, staff proposed that customers who currently qualify for an exemption <br />from the Utility tax also be effectively exempt from the Public Benefit Charge by receiving a <br />credit on their bill in the same amount as the Charge. Such a mechanism provides for the <br />proper collection and accounting of the charge as required by AB1890. The proposed <br />program benefits qualifying customers in an -equitable and administratively straightforward <br />manner. <br />Page 1 of 2 <br />uacarmen4ord\city counci1\agendas\1998\february 3\pub1benfchrgcredit.doc <br />Item# 9 <br />