1994 AGN JUN 21 I28 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT (Continued) FOR COLJNCIL MEETING OF June 21, 1994 SUBJECT: ADOPTION OF RESOLUTION APPROVING STAFF RECOMMENDED CHANGES TO THE CUSTOMER SERVICE POLICY, INCLUDING PROPOSED RATE CHANGES a. Inclusion of the existing Power Cost Adjustment in the General Provisions and a change in the surcharge from zero to a positive $.00558 per kWh. Expansion of the action limits of the balancing account to a positive $400,000 and a negative $100,000; and b. Main breaker positioning for energization or reenergization of services in Policy No. 4; and c. Provisions for third party notification regarding delinquent bills in Policy No. 17; and d. The esta.blishment of a$5 charge for delivery of a 48-hour termination notice; and, e. The swimming pool pump off peak credit program is proposed for termination. 3. Changes to the electric Rate Schedules which reflect the Sta.ff recommended 3.5% base rate revenue increase applied to all rate classes but having varying effects on the classes and customers within the class depending of the electricity requirements, to become effective for all service rendered on and after July 1, 1994, and in accordance with the overall rate and financial plan developed as part of the rate setting process, an additional 3.5% base rate increase to become effective July 1, 1995, and changes in rate design necessary to bring retail rates closer to the calculated cost of service; and, 4. At the recommendation of the Utilities Commission, the Electric Utility included in the rate study the appropriateness of a low income rate assistance program. Under this type of plan, customers meeting low income guidelines would be eligible for a 15% discount of the retail electric rate. The revenue shortfall created by the discount would be shifted to the remaining customers in the form of surcharge on the utility bill. Upon review of the study results and the comments of the Commission, Staff has not included in the Customer Service Policy any provision for low income rate assistance in this rate plan. This type of program, though well intended, creates some circumstances which may not be in the best interest to the Utility and the majority of the customers. To illustrate: Page 2 of 4 Item No.