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.
Following a review of our current rates and recent customer suggestions, LBGO recommends minor revisions to the terminology in Residential Rate Schedule 1, and the rate structure for Compressed Natural Gas Rate Schedule 5 effective for service received beginning October 1, 2009.
City residential utility bills combine gas, water, refuse and sewer service charges. Residential Rate Schedule 1 terminology would be revised to provide a more consistent presentation on customer utility bills by defining the baseline rate as Tier I and non-baseline as Tier II. This agrees with the terminology currently used by the Water Department.
Compressed Natural Gas (CNG) service is applicable to sales of natural gas to customers who use CNG as a motor vehicle fuel. The rate structure for CNG Rate Schedule 5 would be revised to offer customers the option of receiving both CNG and Residential service through an existing Residential meter at an intermediate rate. The CNG Rate Schedule 5 change would help sup...
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