Chapter 13.10
ELECTRICITY
Sections:
13.10.020 Establishment of electric utility.
13.10.030 Establishment of electric enterprise fund.
13.10.040 Scope of electric service.
13.10.050 Utility rate resolution.
13.10.060 Rules and regulations.
13.10.070 Special conditions of service.
13.10.090 Rates and billing for residential service.
13.10.100 Rates and billing for commercial service.
13.10.105 Rates and billing for industrial service.
13.10.120 Payment for service.
13.10.140 Surplus electricity—Sale outside city.
13.10.010 Definitions.
As used in this chapter, unless the context otherwise clearly indicates:
(a) “Customer” shall mean the person in whose name service is rendered as evidenced by the signature on the application, contract, or agreement for such service, or, in the absence of a signed instrument, by the receipt and payment of bills regularly issued in the name of such person regardless of the identity of the actual user of the service.
(b) “Electricity section” or “section” shall mean that certain section of the city of Cerritos within the department of public works, which manages and directs the activities of the electric utility.
(c) “Electric utility administrator” shall mean the person within the department of public works designated by the city manager to have charge of the supervision and administration of the electricity section of the city of Cerritos.
(d) “Premises” shall mean all of the real property and apparatus employed in a single enterprise on an integral, undivided parcel of land to which electricity service is provided. (Ord. 861 § 2 (part), 2003)
13.10.020 Establishment of electric utility.
(a) An electric utility is hereby established that shall be responsible for the provision of electric service to customers of, or to premises within, the city of Cerritos. The scope of such service shall be approved by city council resolution and may include, but not limited to, the planning, development, production, purchase, transmission, distribution and sale of electricity and the acquisition, operation and maintenance of all related facilities.
(b) An electricity section of the city of Cerritos within the department of public works is hereby established for the purpose of managing and directing the activities of the electric utility.
(c) The electricity section shall have an electric utility administrator who shall be responsible for the supervision and administration of the section. The electric utility administrator shall be appointed by the city manager, and shall be under the general supervision of the deputy city manager/public works.
(d) The electricity section shall conduct its activities in accordance with the various sections of the municipal code, this chapter, any subsequent ordinances and resolutions of the city council, and direction received from the city manager, deputy city manager/public works or electric utility administrator.
(e) The electricity section shall be operated independent of other divisions, except insofar as the deputy city manager/public works determines that the use of services from employees or facilities of other divisions is advisable and economical, in which case expenses incurred from the shared use of employees or facilities shall be equitably prorated among the applicable divisions. (Ord. 861 § 2 (part), 2003)
13.10.030 Establishment of electric enterprise fund.
(a) Separate funds and accounts shall be kept by the city of Cerritos for the electricity section.
(b) An electric enterprise fund is hereby established to account for the provision of electricity to the city of Cerritos and to customers of the city of Cerritos. All revenue derived from the sale of electricity (or otherwise associated with the electric utility) shall be deposited into the electric enterprise fund and all activities necessary to provide electric services are to be accounted for in this fund including, but not limited to, administration, operations, maintenance, financing and related debt service. The electric enterprise fund shall include any funds established by the city manager or his designee for specific purposes of the electricity section. After providing for the payment of all contractual and other obligations of the electricity section, including but not limited to payments due under the Magnolia Power Project power sales agreement, the city council may approve the transfer of any or all surplus funds in the electric enterprise fund to the city’s reserve fund or general fund.
(c) The Magnolia operating reserve account is hereby established within the electric enterprise fund to provide an account dedicated solely to the payment of amounts due under the Magnolia Power Project power sales agreement in the event that (and only in the event that) revenue in the electric enterprise fund is not sufficient for any month to pay the amount due for such month. (Ord. 861 § 2 (part), 2003)
13.10.040 Scope of electric service.
The establishment of an electric utility shall not be deemed to constitute an expression of the city’s ability and willingness to provide electric service to all customers within the city of Cerritos. At the direction of the city manager, the electric utility administrator shall specify in a resolution the extent and scope to which electric service shall be provided to customers within the city of Cerritos, and the characteristics of such service. The initial resolution setting forth the extent and scope of electric service provided by the city of Cerritos, and any future amendments thereto shall become effective upon approval by the city council. (Ord. 861 § 2 (part), 2003)
13.10.050 Utility rate resolution.
All fees, penalties, refunds, reimbursements, and charges of any kind collected by the city pursuant to the provisions of this chapter shall be specified in the utility rate resolution, as adopted and amended by the city council from time to time. Whenever applicable throughout this chapter, reference shall be made to the utility rate resolution in lieu of any reference to specific fee amounts. (Ord. 861 § 2 (part), 2003)
13.10.060 Rules and regulations.
The electric utility administrator may prescribe, from time to time as he/she deems necessary or desirable, rules and regulations, not in conflict with this chapter, relating to conditions of service and application, administration, and interpretation of rates in the utility rate resolution and the provisions set forth in this chapter. Such rules and regulations shall become effective upon approval by the city council by resolution. Upon any failure to comply with the rules and regulations of the electric utility administrator, or to pay rates or to pay any fee, charge, or penalty prescribed by this chapter or as may be provided in the utility rate resolution, electric service provided by the city of Cerritos may be terminated until the rules and regulations have been complied with and all appropriate fees, charges, or penalties have been paid. (Ord. 861 § 2 (part), 2003)
13.10.070 Special conditions of service.
The electric utility administrator may establish and enforce reasonable charges for furnishing and supplying electrical energy and service to any customer or premises of a character not specifically provided for in this chapter, provided that such charges shall not exceed the full cost as determined by the electricity section for providing such energy and service. (Ord. 861 § 2 (part), 2003)
13.10.080 Metering.
For the purpose of computing charges, each meter upon the customer’s premises shall be considered separately, and readings of two or more meters will not be combined as equivalent to measurement through one meter except where:
(1) Combinations of meter readings are specifically provided for in the utility rate resolution; or
(2) The maintenance of adequate service or where the electricity section’s operating convenience shall require the installation of more than one meter upon the customer’s premises. (Ord. 861 § 2 (part), 2003)
13.10.090 Rates and billing for residential service.
If and when the city of Cerritos extends service to residential customers pursuant to a resolution adopted under Section 13.10.040, the rates to be charged and collected by the electric utility administrator for furnishing and supplying electrical energy and service for residential lighting and household purposes to residential customers within the city of Cerritos and the terms and conditions respecting such rates shall be as set forth in the utility rate resolution. (Ord. 861 § 2 (part), 2003)
13.10.100 Rates and billing for commercial service.
If and when the city of Cerritos extends service to commercial customers pursuant to a resolution adopted under Section 13.10.040, the rates to be charged and collected by the electric utility administrator for furnishing and supplying electrical energy and service for general commercial lighting and/or power purposes to commercial customers within the city of Cerritos, and the terms and conditions respecting such rates, shall be as set forth in the utility rate resolution. (Ord. 861 § 2 (part), 2003)
13.10.105 Rates and billing for industrial service.1
If and when the city of Cerritos extends service to industrial customers pursuant to a resolution adopted under Section 13.10.040, the rates to be charged and collected by the electric utility administrator for furnishing and supplying electrical energy and service for industrial lighting and/or power purposes to industrial customers within the city of Cerritos, and the terms and conditions respecting such rates, shall be as set forth in the utility rate resolution. (Ord. 861 § 2 (part), 2003)
13.10.110 Customer’s deposit.
(a) The electric utility administrator, pursuant to the provisions of Section 13.10.050 of this chapter, shall require any applicant for electric service to furnish a cash deposit in the probable amount as established by the city council for the electricity to be supplied by such service as estimated by the electric utility administrator, or in such amounts and under such terms and conditions as may be specified in the utility rate resolution.
(b) If any bill for electricity sold, furnished or supplied to such customer shall not be paid on or before fifteen days after the same is due as provided in this chapter, the amount of such bill may be deducted from the deposit made by such customer. Upon the discontinuation of any service, any balance of such deposit then remaining after all bills for electric service and related penalties, if any, have been paid, shall be returned to the person by whom such deposit was made. On the failure of any customer to comply with the terms of this chapter regarding the payment of bills and where the deposit has been refunded, the electric utility administrator may require the customer to re-establish his credit in the manner specified in this section for original service.
(c) Where electric service has been terminated for nonpayment of bills, it shall not be renewed for or furnished to the same customer except upon payment of the entire amount of the bill for electricity previously furnished. The account of any customer whose service is terminated for nonpayment of charges or other noncompliance with the provisions of this chapter or rules and regulations adopted pursuant thereto shall be charged an amount as specified in the utility rate resolution to cover all costs necessary to terminate the service. (Ord. 861 § 2 (part), 2003)
13.10.120 Payment for service.
Bills, except as may otherwise be provided for in the utility rate resolution, are due and payable on presentation and become delinquent fifteen days after presentation. After a bill is delinquent the electric utility administrator may issue a termination notice by mail or other delivery, and the customer’s electric service may be terminated without further notice. (Ord. 861 § 2 (part), 2003)
13.10.130 Rate review policy.
(a) The electric utility must remain self-supporting from a financial standpoint and requires rates sufficient to maintain its financial health. Because costs can change suddenly and materially, periodic review of rates and charges is necessary. A periodic review will provide the city with the information needed to maintain adequate rates and charges.
(b) The electric utility administrator, either on his/her own initiative or at the direction of city council, may prepare a report on the utility’s rates and charges. This shall include:
(1) An assessment of the utility’s revenue requirements utilizing a generally accepted regulatory approach.
(2) Recommended modifications to existing rates or charges.
(3) Any other matter concerning the utility the electric utility administrator or the city council deems appropriate.
(c) The electric utility administrator will present the report to the city council. The city council may then direct the electric utility administrator to prepare revised rates, description of service, and charges for inclusion in the utility rate resolution. (Ord. 861 § 2 (part), 2003)
13.10.140 Surplus electricity—Sale outside city.
The city council does hereby determine and declare that if the city, in its operation of its electric utility, has developed an excess of electricity over and above the amount which is necessary for the use of the city of Cerritos and its customers, the city council may, and it is authorized and empowered to, sell and distribute any excess electricity outside the corporate limits of the city, on such terms as may be established and prescribed by the city council, or proposed by the electric utility administrator and approved by the city council. (Ord. 861 § 2 (part), 2003)
Code reviser’s note: Ordinance 861 adds these provisions as Section 13.10.100. The section has been editorially renumbered to prevent duplication of numbering.