AGENDA TITLE:
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Adopt a Resolution Authorizing and Adopting Revision 5 to Rule 16 of Lodi Electric Utility Rules and Regulations (EU)
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MEETING DATE:
January 15, 2025
PREPARED BY:
Hasan Shahriar, Engineering & Operations Manager
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing and adopting Revision 5 to Rule 16 of the Lodi Electric Utility Rules and Regulations.
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BACKGROUND INFORMATION:
On March 22, 1989, the City Council approved Resolution 89-29 adopting the Lodi Electric Utility (LEU) Rules and Regulations, attached as Exhibit A, which set forth how the utility will furnish electric service to premises within the LEU service territory.
With continuous changes in the electric utility industry including economic growth, technological advances, and local requirements, periodic revisions to the LEU Rules and Regulations are needed. Staff recommends approval and adoption of Revision 5 to Rule 16 to reflect changes in LEU’s invoice processes and address the challenges related to limited capacity for serving new electric loads until the 230 kV Project is completed.
The proposed revisions include an updated note regarding payment of estimated project costs. This change is intended to streamline the current process of issuing cost estimates for new projects. Under the existing process, LEU provides only one estimate of cost after a project’s design is complete. However, many of these projects are later abandoned, resulting in uncompensated engineering design time and effort. To address this issue, the proposed process will involve two stages:
• Initial Estimate and Invoice: LEU will collect an engineering design labor estimate upfront, along with an initial invoice to begin the design process.
• Final Invoice: Upon completion of the design, a follow-up invoice will be issued to cover the estimated costs for materials and construction.
This new two-step process aims to minimize the time spent on designing projects that are ultimately not pursued or reimbursed by ensuring that customers are more financially committed before design work begins.
The second proposed change addresses LEU’s limited capacity to serve new electric loads until the completion of the 230 kV Project. Given this constraint, the update specifies that LEU will allocate existing capacity on a first come, first served basis. This approach ensures fairness and transparency in how LEU manages the limited resources available during this transitional period. By prioritizing capacity allocation in this manner, LEU can better manage growth while preparing for future expansion with the completion of the 230 kV Project.
Staff recommends approval of the proposed revisions as outlined above to improve operational efficiency and ensure fair and equitable allocation of limited resources. These revisions are critical to maintaining effective service delivery during this period of constrained capacity and improving the utility's overall design and construction process.
STRATEGIC VISION:
2A. Economic Development: Develop long-term economic development strategy.
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
These revisions will ensure all staff time associated with preliminary design is reimbursed for customer projects.
FUNDING AVAILABLE:
Not applicable.
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Jeff Berkheimer
Electric Utility Director
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Scott R. Carney
City Manager