November 15, 2007 Public Hearing on Proposed New Electric Rate Structure and December 4, 2007 City Council Meeting to Approve New Rate Structure
Riverside Public Utilities (RPU) held a Public Hearing to discuss a new proposed three-year electric rate increase for residential and commercial customers on November 15, 2007.
The Board of Public Utilities reviewed comments and details from this hearing at its meeting on November 16, 2007, and made recommendations for the City Council to review and approve the new rate structures.
The Riverside City Council reviewed the Board of Public Utilities’ recommendations at its scheduled meeting on December 4, 2007 and voted to approve the new rate structure, which will be effective January 1, 2008.
Background
In August 2007, the City Council repealed the tier structure of the electric residential rate increase, previously approved in December 2006. Rate increases for commercial and industrial customers were not repealed.
New Electric Rates
The approved new electric rates will be primarily used to pay for a new power plant, a major new substation, and a second interconnection to the state’s transmission grid, replacement of expiring low-cost power contracts at significantly higher market prices, procurement of “green” power and increases to operating costs (including high voltage transmission, natural gas, coal and nuclear fuel). Riverside Public Utilities needs the new power plant and interconnection to meet customer demand during peak periods and to avoid rolling black-outs.
The approved increases will be (1) new monthly reliability charges for both business and residential customers and (2) increases to and restructuring of existing residential electric rates, which will be divided into winter and summer seasonal tiers. Over the three year plan, the proposed monthly reliability charge for residential customers will range from $4 to $32, based upon service capacity levels. For a majority of commercial customers, such charge will range from $20 to $80, with a higher increase proposed for industrial customers.
Rate impacts to residential customers will vary based upon individual consumption of kilowatt hours (“kWh”) and the seasonality of use. Including the proposed reliability charge, the system average residential customer using approximately 1,000 kwh in the summer and 500 kWh in the winter will see their utility bills increase from a current level of $129.11 to $133.58 and $61.69 to $70.94 for summer and winter consumption, respectively, in year one. Subsequent increases of $4.47 and $2.92 in year 2, and $6.92 and $5.31 in year 3, for summer and winter consumption, respectively, were also approved. |
