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W A T E R I E N E R 5 Y , L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: April 16, 2010 ITEM NO: 7 SUBJECT: APPROVAL OF STANDARDS AND GUIDELINES AND AGREEMENT FOR APPLICATION OF THE ECONOMIC DEVELOPMENT RATE FOR NEW AND EXPANDED LOAD CUSTOMERS,AND BUSINESS RETENTION RATE FOR EXISTING CUSTOMERS ISSUES: Adopt standards and guidelines, and approve an Agreement for Application of the Economic Development Rate (Schedule ED)for new or expanded load industrial customers and Business Retention Rate(Schedule BR) for existing industrial customers. RECOMMENDATIONS: That the Board of Public Utilities recommend that City Council: 1. Approve the proposed ED Rate Agreement (Schedule ED) and the Business Retention Rate Agreement (Schedule BR) (samples of which are attached) for customers of Riverside to whom Schedule ED and Schedule BR applies; 2. Authorize the General Manager of Riverside Public Utilities (RPU) to execute the Electric Rate Schedule ED Agreements and Electric Rate Schedule BR Agreements with customers to whom the rate is applicable under Electric Rate Schedule ED and Electric Rates Schedule BR; and 3. Adopt the appropriate resolution approving standards and guidelines for use by the General Manager of Riverside Public Utilities in determining applicability of Electric Rate Schedule ED and Electric Rates Schedule BR. BACKGROUND: On January 12, 2010, the City Council approved the re-opening of Economic Development Rate (Schedule ED) - for new or expanded load industrial customers and the adoption of the Business Retention Rate (Schedule BR) for existing industrial customers. Schedule ED requires a four-year commitment from the customer that includes rate reductions of forty percent (40%) in the first year and a 20 percent (20%) in the second year, with the customer paying their otherwise applicable rates for years three and four. Schedule BR provides a two-year rate incentive for mid- and off-peak energy usage under the customer's otherwise applicable rate tariff. The customer shall receive a discount for mid- and off-peak energy usage charges of twenty-five percent (25%) in the first year and fifteen percent (15%) in the second year. Standard ED and BR Rate Agreements This item is for the approval of a standard agreement format that will be used in securing contracts with customers who are eligible for and are approved for the Economic Development or Business Retention Rates. 1