AGENDA TITLE:
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Receive Information and Update of Lodi Electric Utility Economic Development Rate Discount Program (EU)
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MEETING DATE:
September 4, 2024
PREPARED BY:
Astrida Trupovnieks, Key Accounts and Customer Programs Specialist
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RECOMMENDED ACTION:
Receive information and an update of the Lodi Electric Utility (LEU) Economic Development Rate (EDR) Discount Program.
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BACKGROUND INFORMATION:
LEU offers its commercial and industrial customers a discount on monthly energy charges ranging from two to eight percent depending on the number of net, new full-time positions added annually.
Known as the EDR Discount Program, this incentive decreases the cost of doing business by lowering power costs, and increases business competitiveness of Lodi-based businesses - both effective economic development tools for the City and LEU. The program is fully funded and administered by LEU.
Each year, businesses provide staff with a list of net, new full-time funded positions compared to the previous year. The information is verified by LEU's Key Accounts and Customer Programs Specialist who provides the business with program requirements and an application form. Businesses receiving the discount must undergo an audit of the number of net, new full-time positions funded six months from the start of the annual EDR Discount Program year. The number of net, new full-time positions must not fall below the number of positions which qualified the business at the start of the EDR Discount Program year.
The current standard EDR Discount Program offers a discount for a period of one year based on the table below:
2 percent
1-3 new jobs
4 percent
4-6 new jobs
6 percent
7-9 new jobs
8 percent
10 or more new jobs
In 2021, City Council approved expansion of the discount to increase incentives for businesses adding more than 20 new positions. While the discount remains at eight percent, the EDR Discount Program established in 2021 quali...
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