TITLE
Recommendation to adopt resolution authorizing City Manager to implement Gas Rate Schedules 1 through 5, 7 and 9, and special conditions and incentives in Exhibits A and B. (Citywide)
DISCUSSION
The Long Beach Gas & Oil Department (LBGO) periodically reviews its gas utility rates and submits recommendations to the City Council to reflect similar rates charged by the Southern California Gas Company (SoCalGas) and other surrounding gas utilities pursuant to Long Beach Municipal Code Section 15.36.100 and City Charter Section 1502. The various components of a customer's gas bill include charges for daily service, transmission, and cost of natural gas. The daily service and transmission charges are compared to other gas utilities to ensure that LBGO is in compliance with the Municipal Code and City Charter. The commodity charges for all customer classifications reflect the actual fluctuating market price of natural gas along with any associated costs of receiving that gas. SoCalGas recently revised the transmission charges applicable to many of its customer categories.
After completing a detailed analysis, City staff recommends revising transmission rates for all residential and non-residential customers, effective for service received beginning October 1, 2008. The current difference in rates between LBGO and those charged by SoCalGas are minor, with LBGO's rates slightly higher than those of SoCalGas. Along with matching the transmission rates currently charged by SoCalGas, LBGO is also requesting an additional $0.005/therm reduction in rates in anticipation of an October 1, 2008 SoCalGas rate reduction based on their new Firm Access Rights (FAR) program. The $0.005/therm revenue reduction will be offset by a comparable cost savings, which LBGO will receive in discounted transmission rates as part of the FAR program.
At the request of the California Public Utilities Commission, SoCalGas is implementing a FAR program effective October 1, 2008. Under the...
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