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.
(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)
