Residential Rates

Rate Effective September 1, 2008

1. Applicability

Applicable to customers served under Schedules R-1, A-1, A-2 and A-3 who elect to participate in a program to further the development and usage of renewable generation resources for use in the City of Los Angeles. The rider is available to customers who volunteer to share the cost of such development and usage by selecting a percentage of energy usage from renewable generation resources as specified and paying for such selection via the Renewable Energy Adjustment (REA), as established in the General Provisions.

2. Billing

The REA under this Rider shall be in addition to, not in lieu of, a customer's regular billing under the standard rate schedules established in this Ordinance. Such additional charges shall be determined as follows:

REA    =    A * B * C
                     100
Where,

A =    Renewable Energy Adjustment Factor (REAF) as established in the General Provisions.
B =    Percent of customer's total electrical energy usage chosen from renewable generation resources.
C =    Total energy consumed (kWh) in the billing period.

3. Special Conditions

Renewable Electrical Energy (Green Power)

Green Power is electrical energy derived from, but not limited to, the following sources: wind, solar, geothermal, biomass, waste gas recovery or small hydroelectric. The Department will determine from time to time the mix of available Green Power.

To meet the customer's demand for Green Power, the Department may utilize its existing current Green Power resources, purchase Green Power on a spot basis from the open market, and/or acquire Green Power from newly developed resources either through purchase contracts and/or capital investments in Green Power generating facilities.

The Department may acquire Green Power from these newly developed resources, for sale under this rider, only after 20,000 Department customers have chosen to purchase Green Power. However, if the number of customers choosing to purchase Green Power is less than 20,000, but the aggregate amount of Green Power they have chosen to purchase exceeds 2,000,000 kWh per month, then the Department may acquire Green Power. Purchases of Green Power by the City of Los Angeles will not be used to satisfy these conditions.

The Department may acquire these newly developed Green Power resources subject to the additional constraint that, at any point in time, the total amount of such Green Power acquired by the Department shall never exceed the amount of Green Power purchased by the Department's customers pursuant to this rider.

Pursuant to the authority of Charter Sections 219.4 and 390, the Mayor and the City Council must approve of all Green Power purchase contracts of three years or more in duration and all capital investments in new Green Power generating facilities, or any other types of new generating facilities, which include the purchasing, financing and/or leasing of these facilities, if the investment exceeds five million dollars ($5 million).

4. General Conditions

Customers choosing to participate must do so, in writing, in a form acceptable to the Department. Each customer's commitment to Green Power shall initially be for no less than 12 months at the selected percentage. Thereafter, participation continues month-to-month and may be increased, decreased or terminated upon 15 day's notice.

The Renewable Energy Percentage may be selected by the customer provided that, as a minimum, Residential Service and Small General Service customers select a Renewable Energy Percentage of at least 20 percent; General Service customers select a Renewable Energy Percentage so that their usage of Green Power exceeds 500 kWh per month; and Large General Service customers select a Renewable Energy Percentage so that their usage exceeds 1,000 kWh per month.

The Department is authorized to estimate, based upon the customer's previous bills over a 12-month period, the REA along with the remainder of a customer's bill for the year ahead and offer a customer a uniform payment each billing period to be adjusted on the basis of actual usage at the end of the year.

Electrical energy available from renewable resources is highly contingent on weather and other acts of nature. The Department does not guarantee that the renewable electrical energy supplied will equal the renewable electrical energy demanded in any increment of time or billing period. The Department will use its best efforts using accepted utility practice to meet the demand for renewable electrical energy. Shortfalls in the supply of renewable electrical energy will be met by available electrical energy from the Department. Customers participating in the REO are deemed not to be harmed by any shortfall in renewable electrical energy; nor does the Department have an obligation to said customer in the event of such a shortfall.

Customers who choose the REO will not receive electrical energy from a specific renewable resource delivered directly to their premises. Rather, by choosing the REO, the customer authorizes a particular level of renewable electrical energy to be added to the Department's overall system.

An annual report on the REO will be made available to all customers by March 1 of each year covering REO activities of the preceding calendar year. The report will include, at minimum, information on renewable electrical energy sold, renewable electrical energy supplied, and a full financial disclosure of the REAF.