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04-20-12 BPU RPT 07
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04-20-2012 BPU AGENDA
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W A T E R E N E R G Y I. I F E <br /> RIVERSIDE PUBLIC UTILITIES <br /> Board Memorandum <br /> PUBLIC UTILITIES <br /> J <br /> BOARD OF PUBLIC UTILITIES DATE: April 20, 2012 <br /> ITEM NO: 7 <br /> SUBJECT: HIGH VOLTAGE ELECTRIC SERVICE AGREEMENT BETWEEN RALPHS GROCERY <br /> COMPANY (RALPHS)AND THE CITY OF RIVERSIDE <br /> ISSUE: <br /> That the Board of Public Utilities consider approval of a three-year High Voltage Electric Service Agreement at <br /> a fig kV level with Ralphs Grocery Company, which includes a new adjusted rate schedule. <br /> RECOMMENDATION: <br /> That the Board of Public Utilities recommend that the City Council approve a three-year High Voltage Electric <br /> Service Agreement at a 69 kV level between Ralphs Grocery Company and the City of Riverside. <br /> BACKGROUND: <br /> Ralphs Grocery Company (Ralphs), with six supermarkets located throughout Riverside and its distribution <br /> center located at 1500 Eastridge Avenue, is one of Riverside Public Utilities' (RPU) largest customers. Ralphs <br /> operates the nearly one million square foot grocery distribution facility, which distributes dry goods, perishable <br /> products and dairy products for its stores located throughout Southern California. The facility includes a <br /> refrigerated warehouse that covers approximately half of the building. <br /> Ralphs has requested service at the high voltage level through this Electric Service Agreement. A High <br /> Voltage Electric Service Agreement is limited to large industrial customers that RPU determines can take <br /> delivery of their electricity directly from a substation at the fig kV level in accordance with RPU Electric Rules <br /> and Rates. Furthermore, to qualify for the High Voltage rate, such large industrial customers must be located <br /> within suitable physical proximity of an existing substation as determined by RPU. The power is then <br /> transmitted from the substation through a line-specific, leased portion of the transmission system owned and <br /> operated by the City of Riverside and transmitted to the customer's facilities. This type of service is cost <br /> beneficial for only the few largest RPU customers who are billed for power at this wholesale rate. Ralphs <br /> currently receives delivery of their electricity from a 69 kV level substation. Their suitable proximity to the <br /> Springs Substation located within the Sycamore Canyon Business Park is the primary factor for a cost effective <br /> rate under this agreement for 69 kV service. <br /> Ralphs entered into a High Voltage Electric Service Agreement with the City of Riverside in June 2000. The <br /> contract expired on May 1, 2009. Ralphs subsequently entered into a three-year High Voltage Electric Service <br /> Agreement with the City of Riverside effective May 1, 2009 through April 30, 2012. RPU staff is proposing <br /> entering into a new three-year contract with Ralphs effective May 1, 2012 and expiring on April 30, 2015. The <br /> rate schedule was structured from the result of a recent Cost-of-Service study and includes Time-of-Use rates. <br /> Rates are calculated based upon cost components unique to each specific customer. <br /> FISCAL IMPACT: <br /> RPU recovers all costs required to serve this customer. <br />
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