1986-146-Supporting Time-Of-Use Electrical Rates As A Rate Option For Residential PG&E CustomersRESOLUTION NO. 1986 -146
RESOLUTION OF THE TOWN OF LOS GATOS
SUPPORTING TIME -OF -USE ELECTRICAL RATES
AS A RATE OPTION FOR RESIDENTIAL PG &E
CUSTOMERS
WHEREAS, PG &E is changing its method of allocating the revenue
requirement between its classes of customers; and
WHEREAS, the new methodology more accurately reflects the marginal costs
of providing service to customers, supplying energy (electricity)
and meeting the capacity needs of the customer class; and
WHEREAS, the new method will increase rates for the residential class
by about 15 %, while decreasing rates in other classes by as
much as 16 %; and
WHEREAS, a major reason for the increase is residential rates is due
to the high peak demand (capacity) of residential customers;
and
WHEREAS, residential customers cannot be expected to reduce their high
peak demand under the current standard residential rate
which does not differentiate between expensive peak energy
and inexpensive off -peak energy; and
WHEREAS, residential time -of -use electrical rates more accurately prices
electricity according to the cost of producing it, by charging
less during the off -peak hours, and more during the peak hours;
and
WHEREAS, PG &E has documented that residential time -of -use rate customers
use less peak energy than other residential customers; and
WHEREAS, the residential classes revenue allocation for marginal
capacity costs will be reduced only if the residential class
reduces its peak demand; and
WHEREAS, PG &E is planning to offer residential time -of -use rates to
only 34,000 of its 3.2 million customers over the next three
years; and
WHEREAS, it is not equitable to charge the residential customers and
the residential class for high capacity demands upon the
PG &E system, if PG &E does not concurrently offer residential
time -of -use rates as a rate option to its customers.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 2nd day of
September , 1986 by the following vote:
AYES: COUNCIL MEMBERS Joanne Benjamin, Eric D. Carlson,
Thomas J. Ferrito Brent N. Ventura,
and Mayor Terrence J. Daily
NOES: COUNCIL MEMBERS None
ABSTAIN: COUNCIL MEMBERS None
ABSENT: COUNCIL MEMBERS None
SIGNED:
MAYOR OF TH OF LOS GATOS
E TO
ATTEST:
DEPUTY LT OF THE TOW F LOS GATOS