06-12-2023 BPU RPT 11 - Laserfiche WebLink

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W A T"E'R I EHE -R G Y I L I'F E 5 RIVERSIDE PUBLIC UTILITIES Board Memorandum P U 8 L 1 C U T I L I TIE S BOARD OF PUBLIC UTILITIES DATE: JUNE 12, 2023 SUBJECT: ELECTRIC UTILITY FIVE-YEAR RATE PLAN PROPOSAL ISSUE: Consider a recommendation to the City Council proposing the establishment of a five-year rate plan for the electric utility and direct staff to prepare all documents necessary for a public hearing to be held at City Council on September 5, 2023 upon approval of the City Council. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Conceptually approve the electric utility five-year rate plan proposal; and 2. Direct the City Manager to prepare all documents necessary for public noticing of the rate proposal, to update proposed rate schedules to reflect changes due to the rate proposal, and to update any other documents necessary for the public hearing to be held before the City Council on September 5, 2023, with new rates effective January 1, 2024. BACKGROUND: The Riverside Public Utilities (RPU) electric utility is one of 46 public power utilities in California and provides high quality and reliable service to over 112,000 service connections and a population of 317,847 in the City of Riverside. RPU recently recorded its highest peak demand of 648 megawatts in the summer of 2022. The electric utility maintains and operates three generation facilities with a capacity of 260 MW, 15 substations, 99 miles of transmission lines, and 1,351 miles of distribution lines. The electric utility is also a joint power participant in the Palo Verde Nuclear Generation Station, the Hoover Hydro Power Plant, and three transmission system projects. RPU also has renewable energy resources consisting of solar, wind, geothermal and biomass projects delivered to Riverside through the State bulk high-voltage electric system. Operating and maintaining 99 miles of transmission lines, 1,351 miles of distribution lines, and 15 substations takes highly skilled and talented employees. Unlike most municipal operations, the electric grid is monitored 24 hours a day, 7 days a week. RPU electric rates are among the lowest in Southern California. Maintaining low rates is important to our customers and helps the City of Riverside maintain a competitive advantage when compared to other utilities like San Diego Gas & Electric (179% higher), Southern California Edison (78% higher) and Los Angeles Department of Water and Power (15% higher), as depicted in Table 1 below.