08-02-2013 BPU RPT 01 - Laserfiche WebLink

Home

W A T E R E N E R G Y L RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: August 2, 2013 ITEM NO: 1 SUBJECT: PUBLIC HEARING — PROPOSED ADOPTION OF THE ELECTRIC DOMESTIC TIME-OF-USE TIERED TARIFF AND CLOSE THE EXISTING ELECTRIC DOMESTIC TIME-OF-USE TARIFF ISSUE: The issue for Board of Public Utilities consideration is approval of the adoption of a new, optional Electric Domestic Time-of-Use Tiered Rate (Schedule D-TOU-Tiered) and to close the existing Electric Domestic Time-Of-Use Rate (Schedule D-T-O-U), as outlined in this report. RECOMMENDATIONS: That the Board of Public Utilities: 1. Conduct a Public Hearing to receive input on the proposed Schedule D-TOU—Tiered Rate for residential customers and close the existing Schedule D-T-O-U; 2. Adopt a Resolution establishing the proposed Schedule D-TOU-Tiered Rate and close the existing Schedule D-T-O-U; and 3. Recommended that the City Council adopt the appropriate resolution approving the above. BACKGROUND: Electric Domestic Time-Of-Use Tiered Rate Domestic time-of-use rates improve an electric utility's system efficiency by incentivizing residential customers to shift their energy usage from on-peak periods when the demand for electricity is highest to the off-peak periods. Domestic time-of-use rates also provide residential electric vehicle owners the option of taking advantage of lower energy rates by charging their electric vehicles in off-peak periods. Staff recommends offering a new, optional Schedule D-TOU-Tiered Rate to allow customers that choose to shift their energy usage to off-peak periods to reduce their monthly energy bills. As Riverside's energy demand is expected to increase, it's necessary to provide incentives for customers to shift load to off- peak periods in order to reduce peak energy prices and stress placed on the distribution system. Also, as ownership of electric vehicles is expected to continue to grow, providing incentives for customers to charge their vehicles off-peak further reduces exposure to peak energy prices and distribution system stress, and provides environmental support by reducing vehicle emissions. The proposed Schedule D-TOU-Tiered Rate will provide measurable savings to residential customers that shift portions of their weekday energy usage to off-peak. Customers will have the ability to reduce their monthly electric bill by approximately 10%-12% as compared to the standard domestic rate. Customers that also charge their electric vehicles in the off-peak periods can further reduce their monthly electric bill. Conversely, customers on this rate that don't shift their usage to off-peak (as this rate is designed) will experience no savings and in most cases will have a higher monthly electric bill.