1999 AGN MAY 18 I16 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council Meeting of May 18, 1999 TO: Honorable Mayor & City Coun'I APPROVAL: Henry T. Garcia, City Manage FROM: Timothy C. Trewyn, P.E., Assistant Electric Utility Director SUBJECT: Addition to Customer Service Policy — Approval of Schedule PR - Electric Rate pp for Monthly Service to Packet Radios DATE: Monday, May 10, 1999 BACKGROUND: The City Council recently approved a non-exclusive franchise agreement with Metricom, Inc. Metricom provides wireless Internet Access Service using packet radios typically deployed on streetlights. It is impractical to separately meter each installation. Therefore, a new Rate Schedule PR is proposed to provide for the annual cost of electric service to the radios. At its December 14, 1998, meeting the Utilities Commission voted to forward this addition to the Customer Service Policy to Council for approval. DISCUSSION/ANALYSIS: The attached Power Consumption Report provides the detailed analysis of the individual radio energy use. It is proposed that the energy charged be based on Schedule G-1, the City's General Service Rate A, which typically applies to small commercial installations. A copy of this rate schedule is also attached. The Power Cost Adjustment must to be added to the rate schedule, calculated as follows: Rate A Energy Charge for First 1500 kWh $0.1159 per kWh Power Cost Adjustment $0.00858 per kWh Total Energy Charge $0.1245 Given that no meter reading and only one annual billing is required, it is proposed that there be no additional fixed customer charge for the service. The City, under the franchise agreement, also receives an annual attachment fee of $60.00 per radio. Metricom anticipates approximately 80 radio installations will be made in the City. ALTERNATIVES: The Council may recommend some other rate level. FINANCIAL IMPACT: The Electric Utility budget will obtain approximately $2,500 in new revenues each year. The annual marginal cost to serve the radios will be about $995. The net revenues shall be applied to the system's fixed annual costs. RECOMMENDATION: That the City Council approves the addition to Customer Service Policy - Schedule PR — Electric Rate for Monthly Service to Packet Radios. m # 16 Page 1 of 1 (w/attachments)