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 (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 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, LBGO recommends revising transmission rates for all residential and non-residential customers effective for service received beginning March 1, 2009. The difference in transmission rates between LBGO and those charged by SoCalGas are minor. LBGO's core-customer transmission rates are currently lower than rates charged by SoCalGas, while non-core transmission rates are higher. The proposed rates, which affect all customer categories, mirror those charged by SoCalGas as reflected in the attached table (Attachment 1).
The proposed rate changes only impact the transmission rates for all customer categories. The commodity charges for all customer classifications will continue to reflect the actual fluctuating monthly market price of natural gas along with any associated costs of receiving that gas. In addition to adjustments in the gas rate schedules, Exhib...
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