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HomeMy WebLinkAbout44-City Attorney --- - - . , 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 / Agenda Item No.1i ---- - . - ----.-..-- ___._____n____ ____ ____ _ II . . . I RESOLUTION NO. 2 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 \.... , .. Ii c;: BE n RESOLVED BY THE MI.YOR A/;']) COM~lON COUNCIL OF' THE CITY or SAN BERMRDINO AS FOLLOWS: 7 8 I , ~, ! 101 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 17' maintaining both such units of the facility. 18 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 ., 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. 2& D. Edison now claims that Palo Verde Unit No. 2 is nearing 26 completion, and will soon be placed in commercial operation. 27 28 E. Edison's customers have not yet paid any of the costs of 1 . n " , . . . ] Palo Verde, and will not be required to do so as to any 2 individual generating unit until the unit is completed and I ~I,producing electricity in regular commercial operation. " I 41: f. API.}icct io!". r-:(,_ 8(j-C::~.C<~~ !€'q\..~(;rt~ auth(\rizatic);" froT:" Ii ~:th( Com~iSEior tc ~~~{ chLnoer to EdiEon's rater to reCOVE. whet ! 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 I 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. 28 2 . c. I . . . 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: n 10 11 12 13 14 15 16 17 of 18 19 AYES: NAYS: ABSBRT: City Clerk The foregoing resolution is hereby approved this , 1986. day 20 Mayor of the City of San Bernardino Approved as to form: 21 /7 221 23 24 25 26 27 28 )- :T'.' ,'-. ,"; . .-;'" ~ ,.(?~-c 3