1996 AGN JUN 18 I06 - Laserfiche WebLink

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CITY OF COLTON ''' AGENDA REPORT FOR COUNCIL MEETING OF JUNE 18, 1996 TO: HONORABLE MAYOR & CITY COUNCIL APPROVAL: NABAR E. MARTINEZ, CITY MANAGER FROM: THOMAS K. CLARKE, ELECTRIC UTILITY DIRECTO SUBJECT: APPROVE RESOLUTION FOR ADDITION TO ELECTRIC UTILITY CUSTOMER SERVICE POLICY OF RATE SCHEDULE R-3, RESIDENTIAL NET METERING DATE: JUNE 10, 1996 BACKGROUND On August 4, 1995, California Senate Bill 656 was chaptered into law. This legislation requires every electric utility in the state to offer a 'net energy metering' rate to residential customers who own and operate a solar electric generating system. 'Net energy metering' in the legislation means, 'using a single, non -demand, non -time differential meter to measure the difference between the electricity supplied by a utility and the electricity generated by an eligible customer -generator and fed back to the utility over an entire billing period'. The purpose of Senate Bill 656 is to encourage private investment in renewable energy resources. On April 18, 1996, the California Energy Commission mailed a packet of materials to electric utilities, including the Colton Electric Utility, on how to comply with Senate Bill 656. Included in the packet was a model net energy metering rate which utilities could adapt to meet requirements of Senate Bill 656. This model electric rate was considered by the Utilities Commission at their May 13, 1996, meeting. The Utilities Commission recommended that the model net energy metering be added to the Electric Utility Customer Service Policy. DISCUSSION/ANALYSIS Staff is not aware of any residential electric utility customer who owns and operates a solar electric generating system and would be impacted by the provisions of Senate Bill 656. However, this legislation states 'Every electric utility in the state, including any privately owned or publicly owned utility municipally owned utility and electrical cooperative that offers residential electrical service, whether or not the entity is subject to the jurisdiction of the commission, shall develop a standard contract or tariff providing for net energy metering ...'. In order to meet this legislative requirement, staff recommends adoption of Rate Schedule R-3, Residential Net Metering, which is the model net energy metering rate provided by the California Energy Commission. Rate Schedule R-3 is Exhibit A in this report. ALTERNATIVES An alternative is to not take action on a net energy metering rate at this time. However, if a qualified residential customer comes forward, an electric rate in compliance with Senate Bill 656 must be offered to the customer within a reasonable time period. FINANCIAL IMPACT - None. ENVIRONMENTAL IMPACT - Not applicable. RECOMMENDATION That the Colton City Council approve the addition of Rate Schedule R-3, Residential Net Metering, to the Electric Utility Customer Service Policy through adoption of the attached resolution. Page 1 of 1 Item No.