2000 AGN FEB 01 I17 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council Meeting of February 1, 2000 TO: Honorable Mayor and City Council A6V`__ APPROVAL: Henry Garcia, City ManagerZ7 FROM: Thomas K. Clarke, Utilities Director*_\_4� SUBJECT: Director's Report, Draft Electric Direct Access Customer Service Policy DATE: Tuesday, January 25, 2000 BACKGROUND California Assembly Bill 1890 provides for customer choice of energy service provider. The City of Colton electric utility has been working toward a phased implementation of customer choice ordirectaccess. Given that our new utility billing system is provided by the City of Azusa, the implementation is taking place in cooperation with them. The target time frame for direct access for the first 10% of the customer base is the summer of this year. ANALYSIS Attached is a draft customer service policy providing rules necessary for direct access. The policy has been reviewed by the Utilities Commission and has their endorsement. Considerable administrative flexibility is provided in this first draft to adjust for the constantly changing conditions in the State regulatory framework for direct access. For example, the California Independent System Operator, operational oversight agency for statewide direct access, has recently submitted the twenty-fourth amendment of its tariff to the Federal Energy Regulatory Commission. The City is taking on a new, costly, complex administrative task by implementing customer choice. Approval of Customer Service Policy No. 27 will establish customer choice in the City of Colton. ALTERNATIVES The City already presents a single aggregated load to the market to maximize it s purchasing power. Direct access will dilute that power. An alternative would be to conduct periodic RFPs as an aggregated City for energy requirements in a few forms that customers could select such as green power, a maximum economy service, standard Power Exchange service, or a maximum customer service option (high responsiveness and reliability, high cost) or other options as the customer base may indicate it would like. p:\council\agndaMt\csp27prelimdraft.doe Item #17