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HomeMy WebLinkAbout19-City Attorney - IR:II CI1Q OF SAN BERNARDI CD - REQUEOr FOR COUNC~~N From: Ralph H. Prince Dept: City Attorney Oaa: February 6, 1987 Subject: opposition to proposed Rate Increase by Southern California Edison Company Synopsis of Previous Council action: At the January 26, 1987 ways & Means Committee meeting, the Committee recommended preparation of a resolution opposing the proposed rate increase of Southern California Edison Company. Recommended motion: Adopt resolution. /&~'I//?~ - / Signature Contact person: william Sabourin Phone: 5055 FUNDING REQUIREMENTS: Amount: None Source: N/A NIA Supporting data attached: Yes Ward: Finance: Council Notes: 75-0262 Agenda Item No. IC( - - o o o o 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO OPPOSING THE PROPOSED RATE INCREASE BY SOUTHERN CALIFORNIA EDISON COMPANY IN 3 APPLICATION NO. 86-12-047. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF 5 SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. Rec i tals. 7 A. Southern California Edison Company ("Edison") has 8 requested rate increases effective January 1, 1988, which will 9 increase rates in 1988 by $301.5 million or 5.4 percent, and in 10 1989 and 1990 by amounts determined prior to the beginning of 11 those years in accordance with current procedures. 12 B. Edison contends that the rate increases are needed to 13 cover (1) the added costs of upgrading existing generation, 14 transmission and distribution facilities and building new 15 facilities, (2) higher anticipated operating and maintenance 16 costs, (3) costs arising from compliance with new and changing 17 laws and regulations, and (4) the cost of obtaining money from 18 investors and lenders. 19 C. In its application, Edison requests the Public utilities 20 Commission ("Commission") to allocate responsibility for payment 21 of the costs of providing electric service among customer groups 22 to more accurately reflect the actual cost of providing electric 23 service to each group. Edison's proposal would, if approved, 24 allocate a larger percentage of future rate increases to the 25 domestic customer group, which could increase the average 26 residential user's rates by approximately 17%, and provide 27 unjustified relief to large power users. 28 SECTION 2. Implementation ~~28/87 o o o o 1 A. The Mayor and Common Council oppose the proposed rate 2 increase request submitted by southern California Edison Company 3 in Application No. 86-12-047, which would allocate a larger 4 percentage of future rate increases to residential users, often 5 the group least able to afford such increases. 6 B. The City of San Bernardino urges the Public Utilities i Commission to consider alternative methods of allocating costs so 8 as to assure that domestic users of electricity shall not be 9 required to bear the brunt of increased costs, but that such incre ses 10 be spread on a reasonable basis based at least in part on ability 11 to pay. Such costs should also be allocated on a formula 12 representing a recognition of which classes of service most needed 13 and which most benefit from, the additional generating capacity 14 to be financed through such increased rates. 15 C. The City Clerk is hereby authorized and directed to 16 transmit a copy of this resolution to the California Public 17 utilities Commission, to Toward utility Rate Normalization 18 (T.U.R.N.), as well as to Southern California Edison company. 19 I HEREBY CERTIFY that the foregoing resolution was duly 20 adopted by the Mayor and Common Council of the City of San 21 Bernardino at a meeting thereof, held on 22 the day of , 1987, by the following vote, 23 to wit: 24 AYES: 25 26 27 28 Council Members NAYS: ABSENT: Clty cle~-------- 1/28/87 -2- 0 0 0 0 1 The foregoing resolution is hereby approved this day 2 of , 1987. 3 thE!CIty Mayor of of San Bernardino 4 5 Approved as to form: 6 /~I/P~ 7 Clty At orney 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1/28/87 -3-