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HomeMy WebLinkAboutStaff Report 254-05CMR:254:05 Page 1 of 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES ATTENTION: FINANCE COMMITTEE DATE: MAY 19, 2005 CMR:254:05 SUBJECT: UTILITIES ADVISORY COMMISSION RECOMMENDATION TO APPROVE A RESOLUTION ADOPTING AN ELECTRIC RATE INCREASE RECOMMENDATION The Utilities Advisory Commission (UAC) and staff recommend that the City Council adopt the attached resolution to increase the electric base revenue of FY 05-06 by approximately $14.1 million or 19.5 percent, to be effective July 1, 2005. DISCUSSION This rate increase proposal has two objectives: 1) to maintain Supply Rate Stabilization Reserve (SRSR) balance in line with the guidelines approved by the Council, which take into consideration all the uncertainties related to regulatory issues and market prices, and 2) to meet the high wholesale commodity prices which are expected for Fiscal Year 2005-06, as well as future years. BOARD/COMMISSION REVIEW AND RECOMMENDATIONS The UAC reviewed this recommendation and approved it on a unanimous vote (4-0, Dahlen absent) at the May 4, 2005 meeting. RESOURCE IMPACT Approval of this proposed rate increase will raise the Electric Fund base sales revenues by approximately $14.1 million for FY 05-06. ATTACHMENTS A: Resolution B. Electric Rate Schedules E-1, E-1-G, E-2, E-2-G, E-4, E-4-G, E-4-TOU, E-7, E-7-G, E-7- TOU, E-14, E-16, E-18, and E-18-G BUDGET ‘05 – CMR:254:05 Page 2 of 2 C: Minutes of the UAC meeting of May 5, 2004 PREPARED BY: Lucie Hirmina _____ Utilities Rates Manager Tom Auzenne _____ Assistant Director of Utilities, Administrative Services DEPARTMENT HEAD: _________________________________ JOHN ULRICH Director of Utilities CITY MANAGER APPROVAL: _________________________________ EMILY HARRISON Assistant City Manager