HomeMy WebLinkAboutRESO 5735.. , \. • ORIGINAL
RESOLUTION NO. 5735
RESOLUTION OF THE COUNCIL OF 'htE CITY OF PALO ALTO
PROVIDING AUTHORITY TO THE CITY MANAGER TO EFFECT
CERTAIN CHANGES IN GAS UTILITY RATES (SCHEDULE G-1)
(A.""IENDING RESOLUTION NO. 5688)
WHEREAS, recently the California Public Utilities Commission
heard and granted several wholesale gas rate increases to Pacific
Gas & Electric Company as "offsets" and 11 tracking"; and
WHEREAS, said offsets include fluctuations in the cost of gas
to Pacific GaP & Electric Company from certain producing companies,
tax ~.aw changes, exchange rate changes, and similar items affecting
the cost of gas to Pacific Gas & Electric Company; and
WHEREAS, in addition to offsets, other increases, camnonly
known as "tracking," are authorized to be effective in the future
when and if the F~deral Power COlllllission grants requested rate in-
creases to gas produceTs; and
WHEREAS, it is desirable for the City of Palo Alto to adjust
its gas rates promptly upon commencement of an increase from Pacific
Gas & Electric Company in order to avoid loss of revenue; and
WHEREAS. previous Council resolution set a 20% lim.i t on such
offset authority but now a 35% limit is necessary;
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
SECTION 1. Until December 31, 1979, the City Manager is hereby
authorized to adjust the gas rates of the City of Palo Alto contained
on Schedule G-1 of the City of Palo Alto Utilities Rates and Charges
to produce revenue that is equal to the wholesale gas rate increase.
The adjustment shall be an automatic pass through of actual
wholesala increases not to exceed the maximum thirty-five percent
(35%) authorized by this resolution; the action of the City Manager
shall be nondiscretionary.
The Palo Alto Gas Rate Schedule G-1 will substantially conform
with those zate~ contained on Pacific Gas & Electric Company General
Service Rate G-1, applicable to the East Bay, Peninsula-Sac Jose,
and Sacrameuto geographical areas. The ef fee ti ve date of said ad-
justments to Schedule G-1 shall be the same date on wh:L·~h the whole-
sale rate increases from Pacific Gas & Electric Company become
effective for the City.
SECTION 2. Sai~ rate adjustments may be made by the City
Manager to conform with offset and tracking increases granted. pre-
viously granted, or which may be f~~ted and placed into effect
during said period and shall be 1 "ted to a maximum of thirty-
five percent (35%) over the existing rates currently contained in
Schedule G-1 of the Palo Alto Utilities Rates and Charges. This
resoluti.on shall not affect any increase granted to Pacific Gas & ElP.ctric Company in its rate of return or in rates and charges
to produce its existing authorized rate of return, other than as
offset or tracking increases. The City Manager shall report any
change in gas rates authorized by this resolution to the City
Council as soon as practicable.
.. . , ..
• • •
SECTION 3. The Council of the City of Palo Alto finds that
the revenue dP.rived from the authorized adjustment of said gas
rates by the City Manager shall be used only for the purposes set
out in the Palo Alto City Charter, Article VII, Section 2, entitled
"Public Utilities Revenue." Therefore, the adoption of this
resolution and the future adjustments of said gas rates by the
City Manager as authorized herein are specifically exempted under
Public Resources Code Section 21080(b)(8) from the requirements
of CEQA.
INTRODUCED AND PASSED: September 17, 1979
AYES: Brenner, Eyerly, Fazzino, Fletcher, Henderson, Levy, Renzel, Sh2r
NOES: None
ABSTENTIONS: None
ABSENT: Witherspoon
ATTEST: APPROVED:
a-M~~ a..~~ Mayor
~
ty ttorney
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