05-13-2019 BPU RPT 11 - Laserfiche WebLink

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P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: MAY 13, 2019 ITEM NO: 11 SUBJECT: PROPOSED CHANGES TO TIME PERIODS USED TO CALCULATE OVERCHARGES AND UNDERCHARGES FOR CUSTOMER BILLS IN ELECTRIC RULE 6 AND WATER RULE 6 ISSUES: Adopt a resolution and recommend that the City Council adopt a resolution establishing the changes to Electric Rule 6 and Water Rule 6 which include reducing the time periods used to calculate billing of undercharges for non-residential accounts from three (3) years to six (6) monthly billing periods, changing the terminology of the time period used to calculate overcharges from one (1) year to twelve (12) monthly billing periods, and changing the time period used to calculate billing of overcharges for fast meters to be consistent with the monthly billing period for general overcharges. RECOMMENDATIONS: That the Board of Public Utilities: Adopt a resolution establishing the changes to Electric Rule 6 and Water Rule 6 that include reducing the time periods used to calculate billing of undercharges for non-residential accounts from three (3) years to six (6) monthly billing periods, changing the terminology of the time period used to calculate overcharges from one (1) year to twelve (12) monthly billing periods, and changing the period used to calculate billing of overcharges for fast meters to be consistent with the monthly billing period for general overcharges; and 2. Recommend that the City Council adopt a resolution approving the same changes as described in recommendation 1 to Electric Rule 6 and Water Rule 6. CITY COUNCIL ACTION On April 16, 2019, the City Council conceptually approved changes to Electric Rule 6 and Water Rule 6 which include reducing the time periods used to calculate billing of undercharges for non-residential accounts from three (3) years to six (6) monthly billing periods, changing the terminology of the time period used to calculate overcharges from one (1) year to twelve (12) monthly billing periods, and changing the period used to calculate billing of overcharges for fast meters to be consistent with the monthly billing period for general overcharges. The City Council also approved the application of these changes to the pending Electric Rule 6 appeals filed by Fusion Sign and Design and Microflex Film Corporation, which would reduce the time period of the undercharges for each company from three (3) years to six (6) monthly billing periods. However, the City Council did not approve the portion of the proposed Electric Rule 6 and Water Rule 6 changes, which increased the undercharge calculation for residential customers from four (4) to six (6) monthly billing periods, and requested that the Board of Public Utilities reconsider making such a change so as to avoid unduly burdening residential customers.