ML13309A433

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Riverside Public Utilities 1995-96 Annual Rept
ML13309A433
Person / Time
Site: San Onofre  Southern California Edison icon.png
Issue date: 06/30/1996
From: Carnahan B
RIVERSIDE, CA
To:
Shared Package
ML13309A430 List:
References
NUDOCS 9707310060
Download: ML13309A433 (54)


Text

-NOTICE THE ATTACHED FILES ARE OFFICIAL RECORDS OF THE INFORMATION &

RECORDS MANAGEMENT BRANCH.

THEY HAVE BEEN CHARGED TO YOU FOR A LIMITED TIME PERIOD AND MUST BE RETURNED TO THE RECORDS & ARCHIVES SERVICES SECTION, T5 C3. PLEASE DO NOT SEND DOCUMENTS CHARGED OUT THROUGH THE MAIL. REMOVAL OF ANY PAGE(S) FROM DOCUMENT FOR REPRODUCTION MUST BE REFERRED TO FILE PERSONNEL.

-NOTICE

-A~om rrovy1995-96 C h oice Annual Report 9 07310060 970728 PDR ADOCK 05000206 PDR

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wvish to fo~rm a colonly of 1Ite iget,/ruutros n

entegr ;i sin;g people, So that each onlc, indulstry) will* help promot/e/(

IIs an(iybbor -interests as well aIs his own."

W"ith the~se lofty ideals, _JohnWel North and D r. -james PE Greves

'solicited Settlers for the Colonyv ofSouthern Calif-ornia at River-side in 1870. For more than 100 years, Riversidec Public Utilities has reSpected this viio Ary la by cont11inuing to pro-vlide q-uality water andI S ctr eviceS to the people Of Rivers'Ide thrloughIl inn1ovati technlology anld Smart financial strategies so they mlay fulfill

Competitive readiness. Those two words probably reflect the pulse of the electric utility industry better than any other at this critical juncture of deregulation.

And with deregulation comes a new set of rules, methods and strategies by which utilities across the nation will chart their futures.

During this transitional period, Riverside Public Utilities is taking strategic steps to ensure we remain your first choice for water and electric services. Strategic plans in the areas of communication, rates, reliability, partnerships, benchmarking, networking and value-added services will serve as Riverside Public Utilities' bridge to a new marketplace.

Numerous internal and external measures, including comprehensive organizational reviews, capital and operating reductions, customer service enhancements and financial strategies, are being implemented to position Riverside Public Utilities for competition. All of these efforts are being undertaken because your business is important to us -

not as just a means ofselfpreservation, butfor the consumer and community benefits generated by Riverside's public water and electric utilities. Lower rates, reliable service, direct public accountability, environmental awareness and valuable city services have been and will continue to be the dividends Riverside Public Utilities returns to its customer-owners.

At Riverside Public Utilities, we're preparing for the future. I firmly believe the strategies we're implementing today will make Riverside Public Utilities the choice of tomorrow.

Bill D. Carnahan Public Utilities Director

Communicating Riverside Public Utilities' competitive strategies to investor services has played a vital role in maintaining a solid financial profile.

Credit reports remain strong with Moody' Investor Service rating water bonds Aa and electric bonds Al, while Standard & Poor's Corporation rated water bonds AA and electric bonds A+.

Communicate Restructuring Issues It is often said education is the key to understanding. As California approaches deregu lation of its electric utility

industry, Riverside Public Utilities believes informing city officials, board members, businesses and consumers about the structure, issues and choices involved in direct access will serve as the foundation for well-rounded plans and intelligent decisions.

California Assembly Bill 1890, which became effective Sept. 23, 1996, is the enabling legislation for a restructured electric industry. Riverside Public Utilities was instrumental in ensuring that legislation Power will be transmitted through transmission lines implementing deregulation did not leave consumer-operated by an entity called the Independent System owned utilities at a disadvantage. Riverside's public Operator (ISO). These two agencies will be operated utilities director, along with several colleagues, independently to ensure open and competitive power participated in various committees applying pressure to supply and transmission markets.

the oversight group to address more than just the As a result of these changes, future electric rates will concerns of the three large investor-owned utilities in be "unbundled" and various service levels offered to California.

customers. Rates will be divided into major components, Under deregulation, most market power will pass such as generation, transmission, distribution, customer through one entity called the Power Exchange (PX).

charges and general fund transfer. Of these services, This exchange will work much like the stock market customers will only have direct access to generation.

where there will be offers from buyers and sellers to Essentially, customers will be able to choose the company consummate power transactions on an ongoing basis.

that generates their power, but the same utility that

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Although Riverside's average electric rates are lower than the investor owned utilities serving surrounding cities, California's electric rates are among the highest in the nation due to stricter regulations, non-economic legislative programs and remote generating locations. Deregulation will open new low cost power generation markets to California consumers.

6.91 cents per kilowatt-hour 8.56 cents per kilowatt-hour 10.38 cents per kilowatt-hour United States Average California Publicly-Owned Utilities:

California Investor-Owned Average 24% Higher than U.S.Average; Utilities: Average 50%

21% Lower than California Investor-Higher than U.S. Average M

Owned Utilities Data fom the Energy Information Administration, US. Department ofEnergy One 100-watt light bulb burningfor 10 hours1.157407e-4 days <br />0.00278 hours <br />1.653439e-5 weeks <br />3.805e-6 months <br /> uses 1,000 watts or one kilowatt-hour (kWh) of electricity.

transmitted and distributed the power to the customer will continue to provide these services.

Understanding and preparing for deregulation will be the difference between success and failure in the new market. Support of Riverside Public Utilities' strategic and financial plans by city officials and the community is vital to Riverside's ability to compete in the future. To further this goal, Riverside Public Utilities has conducted workshops with city officials, initiated personal contacts and correspondence to business customers, and educated residents through a variety of communication avenues.

In April 1996, the City Council approved an overall 11.5 percent increase in water rates to offiet increased operating costs due to inflation and secure an adequate debt service coverage ratio on water bonds. Riverside's water rates still remain the lowest in the region by as much as 120 percent.

Maintain Com etitive Rates t

in Riverside Count

$21.12 Residential Usage

$33.25 Residential Usage Riverside Public Utilities/

Other Regional Water Monthly Average Providers/Monthly Average For Average Monthly Usage of27 ccf One ccf is equal to 748 gallons of water or 100 cubic feet (ccJ of water.

In a market-driven environment, rates are the develop realistic and competitive rate plans, create an primary element in the purchasing equation. As efficient and properly balanced organization, identify Riverside Public Utilities prepares to transition to a new areas of service excellence, and initiate measures to and evolving marketplace, we realize that competitive enhance operations.

rates will be the chief factor in a utility's ability to attract With rates as the first point of separation between and retain customers. By today's standards, Riverside's competitors, intense efforts are underway to achieve a 30 water and electric rates are very competitive. But what percent reduction in overall electric rates. Riverside Public about the future? In order to ensure its competitive Utilities is employing the following measures to strategically stance, Riverside Public Utilities is taking strategic steps reduce its electric rates, power costs and debt:

to maintain competitive rates.

N Implement financial strategies for the early During the past year, Riverside Public Utilities retirement or restructuring of generation debt commissioned studies on its organizational structure, associated with "above market" resources.

operations, service levels, stranded investments and rates.

U Continued reductions in the transfer of electric This comprehensive review has allowed Riverside Public revenue to the city's general fund that mirror levels Utilities to strategically look into the future, forecast and more consistent with other municipal utilities.

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Preserve Reliabilit Riverside Public Utilities' water supply continues to meet or exceed all state and federal drinking water standards.

In 1995-96, more than 8,000 water samples were collected and tested against a stringent set of water quality parameters.

Nearly 90,000 electric customers scenarios in currently deregulated industries, probably not.

and 60,000 water customers rely on According to recent studies, Riverside Public Riverside Public Utilities around the Utilities' customers enjoy significantly higher service clock to supply, transport and reliability than customers of many private utilities. Water distribute the electricity and water and electric system reliability statistics that are near 100 needed to maintain their homes and percent for 1995-96 continue to demonstrate Riverside businesses.

Public Utilities' high regard for performance. To further In a deregulated environment, enhance reliability, Riverside Public Utilities signed buyers of energy will have more several mutual aid assistance agreements during the choices and more risk. So the 1995-96 fiscal year with other California utilities. The question becomes, if a consumer agreements allow member agencies to lend or request chooses another supplier for power personnel, equipment and materials from each other to generation will that company be able provide assistance following major disasters, civil to follow through on its commitment? Will the company disobedience or vandalism. In an emergency, member be held responsible if it doesn't deliver? Judging by past agencies and their customers will benefit by accessing

Providing for future water and electric needs served as the catalyst for completion of the 30" Dufferin Avenue water transmission line to allow water transfers between two reservoirs, and the completion of the Vista-Freeman 69kv electric transmission line and fiber optic cable that enhance power quality and yield new communications capabilities.

Construction of Vista-Freeman 69kv electric transmission line.

pre-established contacts and procedures, greatly reducing the response time to obtain assistance, minimizing disaster recovery expenses, and improving service restoration.

As a nonprofit community-owned utility, Riverside Public Utilities has a vested interest in serving its customer-owners well. Because Riverside Public Utilities is locally owned and operated, customers experience better service levels, notice a higher level of concern for municipal services and neighborhood aesthetics, and muniipa sevice an neghbohoo aethetcsandDufferin Avenue water transmission line construction.

benefit from the accountability that stems from local control.

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