04-19-2021 BPU RPT 03 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: APRIL 19, 2021 SUBJECT: IMPLEMENTATION OF THE THIRD YEAR OF THE ELECTRIC RATE PLAN ISSUES: Consider the impacts of a recommendation to City Council to delay the implementation of the third year of the electric rate plan, originally approved for January 1, 2021, and request additional discussion for the impacts of the reduced electric revenue for Fiscal Year 2020/21. RECOMMENDATIONS: That the Board of Public Utilities: 1. Receive a report on utility year-to-date revenues and customer delinquency rates; 2. Consider the impacts of a recommendation to City Council to delay the implementation of the Third Year of the Electric Rate Plan from January 1, 2021 to July 1, 2021, with an estimated electric fund revenue reduction of $4.4M, to meet Fiscal Year 2021/2022 budget assumptions; and 3. Direct staff to return to the Board with additional information and discussion regarding potential mitigation measures to address the estimated electric fund revenue reduction for Fiscal Year 2020/2021 and further delays impacting Fiscal Year 2021/2022 budget funding. BACKGROUND: The Riverside Public Utilities Department (RPU) is responsible for the management of the City- owned water and electric utilities. RPU provides high quality and reliable services to over 111,000 metered electric customers and approximately 66,000 metered water customers throughout the City of Riverside. The electric and water utility funds are self-supporting enterprise funds that provide services for a fee. The Board has the authority to adopt, and the City Council has the authority to approve rate changes when necessary to ensure the continued recovery of costs for services and to secure reinvestment into the system infrastructure for long-term sustainability. On May 14, 2018, the Board conducted a public hearing to receive public input related to the water and electric utility five-year rate proposal. With all members present, the Board unanimously recommended that the City Council approve the 2018-2023 Electric and Water Rules and Rates.