CC/RDA/CUA SPE MIN SEP 13 - Laserfiche WebLink

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The following bullet points were presented to give members present a complete understanding of the results of the survey by Navigant: » Short Course on Electric Utility Revenue Requirement & Development Electric Rates » Costs Included in Revenue Requirement » The Next Steps in the Analysis » The Final Steps in the Analysis » What are the Facts » FY2005-2006 Budget » FY2005-2006 Revenue Requirement » Colton's Current Electric Rates Will Not Recover FY2005-2006 Revenue Requirement » Which Customer Classes Are Paying Their Fully Allocated Net Revenue Requirement » Conclusion & Recommendations » What is the Revenue Requirement is Not Met » Colton "Current" Electric Rates Compared to Surrounding Utilities » Colton's "Proposed" Electric Rates Compared to Surrounding Utilities Discussion, questions, and comments by councilmembers, commissioners, and staff included: • The types of business that are paying their fully allocated net revenue. • Explanation of a business that would be under contract, types & differences. • Contract rate was a negotiated rate done in 1998. • Explanation of the percentage amount as outlined. • Explained the average rate. • Clarification as to who is affected by the increase & who is not. Utility staff provided the budget data. • Time frame for study calendar year not fiscal year. • Since the analysis began the Colton Utility has a joint gas venture with SCPPA and access to gas well with a fixed rate which has reduced cost in getting electricity but only a portion. • Increased rates do not mean higher revenues. • The need to educate the customer. • Alternatives for low income users. • Assurances that increase rates to meet the revenue requirement will mean no additional increase for a certain period of time. • The affects if small changes made to the rate at this time and with continue changes over period of time. Concluding remarks related to the completion of the electric allocation study that should be included as part of the information in the rate design. The electric fund should not be subsidizing the general fund, however, this council will support past councils for not taking action sooner as to increasing rated but what this council does not want is for the actuals to come back incorrect and the increase needs to be larger than what is being recommended. ADJOURNMENT: At 8:05 P.M. Mayor Bennett and Chairperson Wright declared the Special Meeting adjourned. n ,? Olivia R. Flores Chief Deputy City Clerk 2