2005 AGN JAN 18 I16 - Laserfiche WebLink

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CITY OF COLTON Item #16 AGENDA REPORT FOR COUNCIL MEETING OF JANUARY 18, 2005 TO: HONORABLE MAYOR AND CITY COUNCIL (� FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Approval of Contract Electrical Rate with West Valley Water District DATE: January 6, 2005 BACKGROUND: The City of Colton Electric Utility Department is authorized by resolution No. R-74-94 to develop contract rates with customers whose loads exceed 150 kW. Rates shall be designed to meet the electric utility's revenue requirements, encourage growth, and to provide mutual benefits to both the electric utility and its customers. DISCUSSION/ANALYSIS: On January 9, 2004 West Valley Water District will become a customer of the Colton Electric Utility Department as part of the acquisition of Southern Califomia Edison's distribution system along West Valley Blvd. The well operated by West Valley Water District has an average annual demand of 228 kW and consumes approximately 110,000 kWh during the winter months and 125,000 kWh during the summer months. At the request of the customer, a rate analysis was performed and a rate developed that reflects the cost to serve this customer while allowing them to maintain expenses near the current level. The term of this contract is for one (1) year. West Valley Water District's account will be re-evaluated at that time to determine if the proposed rate is still appropriate. FINANCIAL IMPACT: Revenue is estimated to be $7,000 less during the winter months and $12,000 less during the summer months. ALTERNATIVES: Do not approve the contract rate with West Valley Water District. The customer has indicated that it will operate the well less, resulting in both short and long term loss of energy sales and revenue. ENVIRONMENTAL IMPACT: None. CONFLICT OF INTEREST: None Staff recommends approval of Contract Rate with West Valley Water District.