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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES IV- W& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: June 1, 2012 ITEM NO: S SUBJECT: RIVERSIDE PUBLIC UTILITIES ELECTRIC RATE FREEZE ISSUE: That the Board of Public Utilities consider approval of continuing the Riverside Public Utilities Electric Rate Freeze through January 31, 2014. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council extend the Riverside Public Utilities Electric Rate Freeze through January 31, 2014. BACKGROUND: In the Mayor's State of the City Address in 2010, Riverside Public Utilities (RPU) was requested to provide assistance with an economic development plan and to continue to take steps for Riverside to become a sustainable "green" City. The RPU Electric Environmental and Economic Effectiveness (E4) Plan, approved by City Council in July 2010, was created to assist Riverside in continuing to be at the forefront of sustainability and developing a green economy while creating a market segment that can provide jobs and local economic development. The plan included components for energy efficiency, renewable energy, green jobs, economic development, low income assistance, and an electric rate "freeze"through the end of 2012. An eighteen month update of the E4 Plan and RPU's participation in the City's Seizing our Destiny/Economic Development Action Plan was presented to the Board of Public Utilities on March 2, 2012 and the City Council on March 6, 2012. The update of the E4 Plan included RPU's ability to keep electric rates low by extending the rate freeze beyond December 31, 2012 to provide predictable rates to business and residential customers. The E4 Plan was incorporated into the City Manager's Economic Development Action Plan. That Plan continues to improve economic development, business retention, job creation, and efficiency and sustainability by having economic development benefits and incentives such as low cost water supply, low electric rates and business programs such as the Economic Development Rate, Business Retention Rate, and rebates and efficiency programs. RPU proposes to continue participation in the City's Seizing our Destiny/Economic Development Action Plan by extending the Electric Rate Freeze through January 31, 2014. The Board of Public Utilities and City Council have the ability to address the current local economic conditions by extending the Electric Rate Freeze and continuing to provide rate certainty and predictability for business and residential customers. FISCAL IMPACT: There is no fiscal impact associated with continuing the Electric Rate Freeze. Ail impacts of the plan are within Riverside Public Utilities Strategic Planning Goals and can be responsibly borne by the existing rate plan.