07-20-12 BPU RPT 11 - Laserfiche WebLink

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W A T E R E N E R G Y i i F F RIVERSIDE PUBLIC UTILITIES L3 69& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: July 20, 2012 ITEM NO: 11 SUBJECT: PROPOSED TEMPORARY ECONOMIC DEVELOPMENT ELECTRIC RATE SCHEDULE ISSUE: Consideration of a new Temporary Economic Development (TED) rate schedule to encourage new businesses within Riverside Public Utilities' (RPU) Electric service territory. RECOMMENDATION: That the Board of Public Utilities direct staff to set a Public Hearing for consideration of the proposed Temporary Economic Development Rate (Electric Rate Schedule TED). BACKGROUND: In the Mayor's State of the City Address in 2010, RPU was requested to provide assistance with a green economic development plan and to continue to take steps for Riverside to become the model solar city in Southern California. 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 multi-faceted plan developed by staff promoted economic development while still being environmentally responsible. 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 assist in economic development by expanding the eligibility under the current Economic Development Rate Schedule to include certain businesses identified in the City's Seizing our Destiny/Economic Development Action Plan. RPU proposes to continue participation in the City's Seizing our Destiny/Economic Development Action Plan by creating a new Temporary Economic Development rate schedule (Schedule TED) that provides discounts of 30%, 20%, and 10% for new qualifying electric customers through December 31, 2013, 2014 and 2015, respectively. Rate discounts would apply from the Otherwise Applicable Tariff. New customers must be a new commercial entity to the City and have a projected minimum monthly demand equal to or exceeding 20kW, but are not otherwise limited by business type. The Board of Public Utilities and City Council have the ability to address the current local economic conditions by creating the Temporary Economic Development rate and continuing to provide rate certainty and predictability for new small and mid-sized businesses in the community. Approximately 40 new customers located in Riverside would have qualified under the proposed TED rate schedule. The existing Economic Development rate (Schedule ED) will continue to be used to attract larger commercial and industrial customers.