1994 AGN JUN 21 I28 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT (Continued) FOR COUNCIL MEETING OF June 21. 1994 SUBJECT: ADOPTION OF RESOLUTION APPROVING STAFF RECOMMENDED CHANGES TO THE CUSTOMER SERVICE POLICY, INCLUDING PROPOSED RATE CHANGES a. There is no method to verify that those deserving of low income assistance are actually receiving it. Because the program is dependent on income verification, there is a large possibility that abuse of the program could exist and that qualification levels may prohibit a deserving customer from obtaining assistance; b. The imposition of a surcharge to the commercial and industrial customers erodes the competitive position of our rates versus those of the surrounding communities. The surcharge can be counterproductive to new business attraction and current business retention; and, c. There is an overriding equity question of whether it is fair to impose the costs of this type of program on all of the customers when only a portion of them can benefit. The Electric Utility is basing its recommendations on the results of an extensive rate setting exercise. The rates and long-range financial plan were a collective effort between Utility sta.f� and an outside consultant. In addition, the Utility relied on the input and review of the Utilities Commission and comments from the public, including the largest customers, before developing the final recommendations. Following three public meetings, several one-on-one meetings with customers and customer groups, Staf� took these recommendations before the Utilities Commission for one final presenta.tion on June 13, 1994. At that meeting, the Commission concurred by a unanimous vote to endorse the proposed changes and rate plan. ALTERNATIVES The City Council may approve, in part or in whole, with the Staff recommended changes to the Customer Service Policy. This document is what Staff feels is necessary to carry on the efficient operation of the Electric Utility. Where there are modifications noted by the Council, Staff will make the appropriate changes in the final printing of the Customer Service Policy to include the approved portions. Page 3 of 3 Item No.