HomeMy WebLinkAboutA002 - Council Action Form dated April 21, 1987 R ITEM #
DATE: April 21, 1987
COUNCIL ACTION FORM
SUBJECT: Electric Rate Revision
BACKGROUND:
At its March 17, 1987 meeting the Council approved discontinuing the "special"
general power rate and directed that a rate adjustment to be implemented July
1, 1987 be an "across-the-board" reduction.
A favorable new coal supply agreement and rail transportation agreement will
result in a lower average unit cost of energy effective July 1, 1987. This
lower energy cost will result in a reduction of $0.005 per KWH to all electric
rates. This reduction is consistent with the adopted budget for FY 1987-88.
ALTERNATIVES:
1. Approve the reduction of all electric rates by $0.005 per KWH, discontinue
the "special" general power rate, and change the base fuel cost to $0.0195
per KWH.
2. Reject the proposed reduction of electric rates by $0.005 per KWH and seek
revisions.
EUORAB endorsed Alternative No. 1 at its meeting on April 16.
MANAGER'S RECOMMENDED ACTION:
The City Manager recommends that the Council adopt Alternative No. 1.
The City Attorney has prepared an Ordinance (copy attached) to implement the
changes of Alternative No. 1.
It is recommended that the Council approve the Ordinance on its first reading.
The second reading to be May 5 and the third reading to be May 19.
COUNCIL ACTION: