TITLE
Recommendation to adopt resolution authorizing City Manager to implement Gas Rate Schedules 1 through 5, 7, 9 and special conditions and incentives in Exhibits A and B. (Citywide)
DISCUSSION
The Long Beach Gas and 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 (SoCaIGas) 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 a daily service charge, a transmission charge, and a Cost of Gas charge. The daily service and transmission charges are compared against the other gas utilities' rates. The Cost of Gas component fluctuates monthly as it is a pass-through of LBGO's actual monthly cost of gas commodity. SoCalGas recently revised some of its service and transmission charges applicable to many of its customer categories.
After completing a detailed rate analysis, City staff recommends revising certain gas charges for all residential and non-residential customers, effective for service received beginning May 1, 2008. The current difference in rates between LBGO and those charged by SoCalGas are minor, with LBGO's rates slightly lower than those of SoCalGas.
The proposed rate changes impact the transmission rates of certain customer categories but do not impact the service charge or commodity portions of the gas rates. The commodity charges for all classifications will continue to reflect the actual fluctuating market price of natural gas paid by the City.
The proposed gas rate adjustments result in slight changes in all rate categories, as reflected in the attached table (Attachment 1). These changes mirror those rates implemented by SoCalGas and approved by the California Public Utilities Commission.
In addition to adjustments in the gas rate schedules, Exhibits A and B concerning special co...
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