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I RESOLUTION NO. 2010-01 2 A RESOLUTION OF THE BOARD OF PUBLIC UTILITIES OF THE CITY 11 OF RIVERSIDE, CALIFORNIA, (1) ADOPTING THE ECONOMIC 3 DEVELOPMENT RATE (SCHEDULE ED) AND THE BUSINESS RETENTION RATE (SCHEDULE BR); (2) MAKING RELATED FINDINGS 4 OF FACT; AND (3) RECOMMENDING CITY COUNCIL APPROVAL THEREOF 5 6 WHEREAS, the City of Riverside ("City" or "Riverside") by and through its Public 7 Utilities Department ("RPU") is obligated to (1) serve its electric customers safe, reliable and 8 equitably priced electricity, (2)operate its Electric Utility in an efficient and economical manner, 9 and(3)operate, maintain and preserve its Electric Utility in good repair and working order; and 10 WHEREAS, on May 2, 2000, the City Council approved the adoption of rate Schedule 11 ED, "Economic Development" ("the ED rate"). This rate enhanced the City's ability to attract 12 and retain new or expanded load industrial customers who provide significant increases in 13 electric revenues. On October 17, 2000, the City Council adopted Resolution No. 19784, which 14 restricted the application of the rate to those customers who not only met the rate requirements, 15 but also covenanted to either create at least 20 jobs, invest at least $1,000,000 in capital 16 improvements or annually generate at least$5,000,000 in taxable sales; and 17 WHEREAS, the City Council closed this rate in 2006 when RPU began to experience 18 increased load growth that, together with the City's internal generation, could have exceeded 19 existing import capability at the Vista substation during peak periods. Due to the economic 20 downturn, load growth has not reached expected levels. The reduced load growth, coupled with 21 RPU's construction of an additional 96 MW of internal generation (Riverside Energy Resource 22 Center Units 3 and 4) scheduled for commercial operation in fall 2010, now allow for the re- 23 introduction of an economic development rate incentive to encourage business growth; and 24 WHEREAS, the ED rate is targeted towards larger, industrial-sized customers as their 25 large electric-loads assist in reducing overhead costs to all utility customers. Smaller customers 26 are already included in the City's power planning process, and do not bring unanticipated load or 27 revenues that provide meaningful benefits to other utility customers; and 28 WHEREAS, in general, RPU delivers electricity to customers through distribution and CITY ATTORNEYS OFFICE 3900 MAW SFREET RIVERSID4 CA 92522 (951)826-5567 1