09-11-2012 CC RPT 09 - Laserfiche WebLink

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Schedule TED and Schedule BR—Page 4 Schedule BR helps mitigate additional impacts from the prolonged economic downturn to existing customers that could result from a potential relocation of an existing large load business outside of the electric service territory. Departure or relocation of large load customers could have severe negative impacts to other existing customers, RPU and the City as this loss of load would reduce the customer rate base to allocate and collect fixed generation, transmission and distribution costs. Schedule BR is for existing large customers with a monthly demand of at least 150 kW that execute an affidavit that "but for" the economic development retention rate incentives, in combination with other city-sponsored-incentives, such customer would relocate outside of the City's electric service territory. Schedule BR provides a two year rate incentive for mid and off peak energy usage under the customer's otherwise applicable rate tariff. Program participation is limited to a maximum level of 20 megawatts at any given time. The Schedule BR rate reduction for mid- and off-peak energy usage is as follows: Year 1 — 25% and Year 2 — 15%. Offering the discount on mid-peak and off-peak energy usage does not impact existing customers as the RPU typically has excess energy during these periods under its existing base load generation contracts. Appeals Process The General Manager's denials of the application of rate incentives offered under Schedule BR and Schedule TED can be appealed to the Public Utilities Board no later than 30 days after Riverside notifies the customer of the General Manager's decision. Customer shall file a written appeal with the Riverside City Clerk setting forth the grounds on which the appeal is based. The Riverside Board of Public Utilities shall consider the appeal within 30 days after receipt of the written appeal, and shall affirm, modify or reverse the decision of the General Manager. Board of Public Utilities Approval On August 17, 2012, after conducting a public hearing, the Board of Public Utilities unanimously adopted a Resolution approving RPU's proposed Schedule TED and the extension of the Schedule BR agreement deadline, and unanimously recommended the City Council approve the proposed TED Rate Agreement and authorize the General Manager to execute the TED Rate Agreements with customers eligible for Schedule TED. Public Hearing and Community Awareness The proposed adoption of Schedule TED, the TED Rate Agreement, the revised Schedule BR and the recommendation to authorize the General Manager to execute the TED Rate Agreements were presented to the public and reviewed by the Public Utilities Board during a public hearing held on August 17, 2012. The hearing was advertised in the Press-Enterprise on August 2, 2012 and August 9, 2012, satisfying the legal requirements to notice the public hearing. Additionally, the RPU website was updated with information regarding the public hearing. Kevin Milligan, RPU Assistant General Manager Interim Finance and Administration, provided a presentation outlining the issues and staff recommendations. As a result of the publication notices one member of the public signed the Attendance List at the public hearing and offered comments for consideration by the Board in favor and support of Schedule TED. Prior to the 9-4