The electric switchover process involves the city disconnecting its electric facilities and the connecting utility installing and/or purchasing or leasing electric facilities to serve a customer’s consuming facility that is located in territory that is certificated by the public utility commission of the state both to the city and to the connecting utility (“dually-certificated territory”). If a city electric utility customer whose consuming facility is located in dually-certified territory and has not completed a switchover within the past 12 months requests in writing that its electric service be switched from the city electric facilities to the electric facilities of the other dually-certified utility and those selling electric service through those facilities, this policy shall apply.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1031)
Prior to disconnection, the requesting customer shall sign and submit to the city manager a written notice of intent, provided by the city, to switch electric services and facilities from the city to the services and facilities of the other dually-certified utility. Said notice must include the name of the account holder, the mailing address of the account holder, the address of service, and the account number. Upon receipt of the written notice, the account holder must sign and deliver to the city manager an agreement, provided by the city, in a form and on terms and conditions that the city, in its judgment and discretion, determines reasonably effectuate the city’s electric switchover policy. The agreement shall include a description of the payment of the nonrefundable switchover fee provided for herein, payment of outstanding electric service charges, payment of fees associated with the termination of electric services, and provision of a new or increased security deposit for electric service charges that customer may continue to incur for electric service from the city until the switchover is completed. The city shall have no obligation to begin the switchover process until the city receives the signed agreement from the account holder. Upon receipt of the signed agreement by the account holder, the city shall send to the customer an invoice within 10 business days. The invoice shall include all charges, fees, and credits associated with the completion of the switchover. The requested switchover will have a lower priority than the elimination of electric outages for existing customers and requests for electric service to consuming facilities that do not have such service. The city will nevertheless use reasonable control to perform the switchover as soon as reasonably possible, and coordinate with the dually-certified utility to try to minimize any outages related to making the switchover.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1032)
The switchover fee consists of a charge per meter and an idle facilities charge, as set forth below. The charges shall be the amounts either set forth below or as calculated by the city, in its judgment and discretion, in accordance with the following:
(1) 
Charge per meter.
The charge per meter is designed to include the cost of the disconnection, removal, and testing/recalibration of each meter through which the customer’s consuming facility is served, the cost of disconnection and removal of the service drop line used to serve the consuming facility, and the general and administrative expenses reasonably attributable or related to switching the customer. Such costs are designed to include the labor charges for removing facilities, including a reasonable estimate of the direct labor cost (salary, insurances, pension, payroll taxes, etc.) for the time of persons needed to remove the facilities, an allocation of overhead for any necessary supervisory or engineering labor specific to the removal of the facilities, and any costs incurred for outside services necessitated by the switchover request. The charge per meter shall be as set forth in the fee schedule in appendix A of this code.
(2) 
Idle facilities charge.
The idle facilities charge, if applicable, will include the net book value of the city’s facilities that are used to serve the consuming facility being switched, as well as the easements for these facilities, including the costs, or a portion of the costs, pertaining to common facilities that are used, installed, or designed to serve more than one consuming facility, which are made idle as a result of the switchover request. Net book value is the original cost of facilities, less any contributions in aid of construction that apply to those facilities, less accumulated depreciation calculated using the depreciation rates that are currently used to book depreciation, and less any salvage value net of any salvage costs. In the event that net book value cannot be reasonably estimated, the city shall rely on the methods of determining the value of idle facilities as laid out in PUC substantive rules 25.27(f)(1)(B)(ii). The removed meter and removed drop line will not normally be considered idled facilities, on the presumption that those can be used elsewhere on the city’s electric system within a reasonable period of time. However, they may be included in those circumstances in which the city manager determines [that such equipment] cannot reasonably be used elsewhere on the city’s electric system within a reasonable period of time.
(3) 
Account closing fee.
The account holder shall pay an electricity services account closing fee for costs associated with closing the electricity services portion of the account. The account closing fee shall be as set forth in the fee schedule in appendix A of this code.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1033; Ordinance adopting 2019 Code)
To reasonably and conservatively protect the city from financial loss that would arise from nonpayment of such for electric service charges that the customer may continue to incur for electric service from the city until the switchover is completed, the customer must pay to the city in advance of the switchover, and by the time the utility bill is due, a new or increased security deposit in an amount equal to two times the average monthly billings rendered to the customer by the city for electric service during the last twelve months, as calculated by the city, in its judgment and discretion.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1034)
The calculation of switchover fees and security deposit may involve the making of estimates. To the extent that there is a range of estimates for a particular calculation or calculation component, the estimate shall be that which the city, in its judgment and discretion, determines is a reasonable estimate that fairly compensates and protects the city and fairly limits the fee paid by the customer to the costs of the city which the switchover creates on a cost-causation basis.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1035)
If, in connection with any requested switchover subject to this policy, the purchase or lease of any idle and/or common facilities, either by the dually-certificated utility or by the requesting customer, is necessitated or requested, (i) in the case of a purchase, the price shall be the amount that the city, in its judgment and discretion, determines is the replacement cost new for the idle facilities and the common facilities in question, and (ii) in the case of a lease the rental shall be the amount that the city, in its judgment and discretion, determines is a fair market rental for the idle facilities and the common facilities in question. In determining replacement cost new, the city shall consider the new cost of like facilities for which information is available, plus the cost of acquiring easements for the facilities as if the easements were obtained at the time of the switchover requests. In the event of such a purchase or lease, the idle facilities charge component of switchover fee calculation shall not include the purchased or leased idle and/or common facilities. The purchase or lease of any such idle and/or common facilities shall be effected through agreements and other documentation that the city, in its judgment and discretion, determines is reasonably necessary to effect such purchase or lease transactions and to reasonably effectuate the city’s electric switchover policy, including indemnifying the city from liability for the facilities after the purchase or lease of the facilities. Before a customer can purchase or lease the facilities, it must prove to the city, in its judgment and discretion, that the customer has the financial resources to protect the city from liability risks resulting from the sale or lease. In instances where the sale or lease of facilities idled by the switchover are not purchased or leased to the customer or utility, the city may relocate or sell the facilities, in its judgment and discretion.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1036)
Within 14 days of the date of the invoice, the customer may challenge the reasonableness of any of the amounts set forth in the invoice without prejudice regarding switchover. The challenge must include in writing all of the contentions for challenging the amounts set forth in the invoice along with any supporting information or documents. The challenge shall be sent to the city manager. Within 30 days of receipt of the challenge, the city manager will issue a letter rejecting the challenge in whole or in part. The customer may appeal in writing the decision made by the city manager to the city council within 30 days of receipt of the manager’s letter by serving the mayor and council with its appeal.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1037)
Within 60 days of receipt of the appeal, the city council shall hear the appeal. The customer will be notified of the time and date for the appeal. The customer shall present whatever evidence it feels is necessary, not to exceed one hour, to support whatever adjustments it wishes to make to the city manager’s letter. The city attorney may present whatever evidence the attorney feels is necessary for the council to consider, not to exceed one-half hour. The city council shall issue a written ruling within 14 days following the hearing indicating which adjustments it accepts or rejects.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1038)
The customer shall pay the costs set forth in section 13.05.063 to the city within 14 days of the date of the initial invoice. Failure to pay the entire invoice within 14 days will result in a forfeiture of the switchover for a 12-month period. Should either the city manager or the city council deem any charges included in the initial invoice excessive, the city shall refund the over-collected charges, in whole, to the account holder.
(Ordinance 1119 adopted 3/19/13; 2004 Code, sec. 13.1039)