1997 AGN DEC 02 I17 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR THE CITY COUNCIL MEETING OF DECEMBER 2, 1997 TO: Honorable Mayor and City Council APPROVAL: Len Wood, Interim City Manager FROM: Thomas K. Clarke, Utility Directdf;_M.,— SUBJECT: Electric Customer Education Program, Proposed Bill Stuffer Language DATE: Tuesday, November 25, 1997 BACKGROUND The Electric Utility is receiving an increasing number of inquiries from customers regarding their opportunity to select an alternate electric energy provider. By passing the Competition Transition Charge, the City Council has made possible, but not certain, that customers in Colton could exercise such a choice as early as mid-May of 1998. The exact date, if any, for direct access is up to the; City Council. The following language for a bill stuffer is offered for review and possible action. ELECTRIC UTILITY RESTRUCTURING AND THE CITY OF COLTON Dear City of Colton Utility Customer: You may have noticed new advertising about buying electricity from new suppl',iers and a 10% rate cut for all residential and small commercial customers. Your City is also 'planning to open its electricity service to competition from others beginning in May of 1998. Our rates for residential customers will still be lower than those for investor owned utility residential customers, even after the 10% rate cut. However, we, your publicly owned electric utility, also believe that you want the same options that other electricity customers in California have, namely, the power to choose who you buy energy from. If you choose another energy supplier, the appearance of your bill will change. The charge for electric service will be broken down into separate line items or charges as follows: Distribution Charge — this is to maintain the wires and other facilities in the City of Colton that bring electric energy to you. Transmission Charge — this is to cover the cost of bringing energy from an outside generator to the City's Distribution System. Energy Charge — this is the cost for the electricity itself. If you buy electricity from another supplier, this money will go to that supplier. \\server\utim\council\restructbillstufferagendarep. doc Item # 17