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CI. OF SAN BERNARD. - REQU.T ,FOR COUNCIL AC.ON
From: Ralph H. Prince
Subject: Application of Southern California
Edison Company for Rate Increase
Dept: City Attorney
Date: March 27, 1986
Synopsis of Previous Council actio'n:
3/17/86
The City ~ttorney was directed to prepare a resolution
of protest relative to Southern California Edison Company's
application for increase in rates.
Recommemled motion:
Adopt resolution.
/?~C~
,,' r~ /~c-('___
t> Signature
Contact person: Allen R. Briqqs
Phone:
5256
Supporting data attached: Yes
Ward:
City Wide
FUNDING REOUIREMENTS:
Amount:
None
Source: N/A
Finance:
Council Notes:
75.0262
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Agenda Item No.1i
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RESOLUTION NO.
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RESOLUTION OF THE CITY OF SAN BERNARDINO REQUESTII1G THE
PUBLIC UTILITIES CO~~ISSION TO GRANT ONLY THOSE RATE INCREASES I~
:1 ITHF. MJ\T'I'CP OF THL APPLICATION OF' SOUTHERN CALIFORNIA EDISON
iICO~PANY, APPLICATIO~ NO. 86-02-034, AS ARE DETERMINED TO BE JUST,
411 NECESSARY, I.ND R::.~SONABLF: 11'\ SOllTHER!' CALI FOR!,!? EDISO!, COMPANY'S
I' mn;ING, OPERATING Arm MAINTAINING or PALO VERDE NUCLEAr<
r, iGPTF'''l''!'~ <'"'fTI"!'
. ,I 'h' ;";~'; '~r>.. .I. 'd. ..:;J... I \.... , ..
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BE n RESOLVED BY THE MI.YOR A/;']) COM~lON COUNCIL OF' THE CITY
or SAN BERMRDINO AS FOLLOWS:
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SECTION 1. B~itals.
A. Southern California Edisor. Company, hereinafter
"Edison", owns a 15.8% share of the Palo Verde Nuclear Generating
11 Station located approximately 50 miles west of Phoenix, Arizona.
12 B. Generating Unit No. 1 of that facility is already in
13 commercial operation, and Unit No. 2 of that facility is
14 expected to be placed in commercial operation late in 1986 or
15 early in 1987, at which time Edison will be permitted to recover
16 in rates its reasonable costs of owning, operating and
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maintaining both such units of the facility.
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C. Edison filed its Application No. 85-05-144 with the
19 Public Utilities Commission, hereinafter "Commission", to request
20 authorization to change Edison's rates to recover Edison's share
21:!of the costE of owning, operating, and maintaining Palo Verde
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f)l) ,
..~ I u~,it No.1 no" that the unit has achieved commercial operatiord
23 Proceedings concerning that Application are currently pendin9
24 before the Commission.
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D. Edison now claims that Palo Verde Unit No. 2 is nearing
26 completion, and will soon be placed in commercial operation.
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E. Edison's customers have not yet paid any of the costs of
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] Palo Verde, and will not be required to do so as to any
2 individual generating unit until the unit is completed and
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~I,producing electricity in regular commercial operation.
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41: f. API.}icct io!". r-:(,_ 8(j-C::~.C<~~ !€'q\..~(;rt~ auth(\rizatic);" froT:"
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~:th( Com~iSEior tc ~~~{ chLnoer to EdiEon's rater to reCOVE. whet
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r." Ld' t
. . c r.r' ~.'.,... 0"" c.
'ii' ".>~.. rep.e,." .
tc bE its sh~re of the costs of owning.
7 operating, and maintaining Palo Verde Unit No.2, such rates to
8 become effective when that unit of the nuclear generating plant
9!ibeginE commelcie] operation.
10 SECTION 2. Imolementation.
11 A. The Mayor and Common Council of the City of San
12 Bernardino hereby request that the Commission thoroughly review
13 all costs claimed to be associated with the construction of the
14 Palo Verde Nuclear Generating Station, as to each of the units
15 thereof, and make a determjnat~on as to which of those costs and
16 expenses represent a reasonable investment and thus are entitled
17 to be included in Edison's rate base. Reasonableness of
18 investment should consider all aspects of claimed construction
19 costs and a careful and thorough inquiry into the cost overruns
20 incurred and the reasonableness of the investment from the
2] standpoint of present and future needs.
22,i E. The Mayor and Common Council further urge the Commission
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23' to carefully review all expenses booked, estimated and projected
24 by Edison, and disallow any which are not fully supported by the
25 evidence as reasonable and necessary, and that the Commission
26 approve for inclusion in rates only those expenses incurred and
27 to be incurred which are in fact reasonable.
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1 SECTION 3. ~12n. The City Clerk is hereby authorized an6
2 directed to send a copy of this Resolution to the Commission and
3 to Edison as evidence of the City's concern in this matter.
.111 J HEJ.:iT:Y cun If)" that thE foregoing ref-olution waE d~Jy
:'!Iadopted by the Mcyor an0 Comni0r; CounciJ of thE City of Sat;
(j II , . h f h Id
'[IBerncrolllo at a _______..________ meetlng t ereo, c O~,
7 the
, 1986, by the
day of
8 following vote, to wit:
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17 of
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AYES:
NAYS:
ABSBRT:
City Clerk
The foregoing resolution is hereby approved this
, 1986.
day
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Mayor of the City of San Bernardino
Approved as to form:
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