Breaking News: Needles, CA: Needles City Council and Needles Public Utility Authority votes in majority to approve a 5% cost-of-living increase in electric, water and wastewater rates.

By: Zachary Lopez (ZachNews):

Source: City of Needles (Information):

Needles, California: Members of the Needles City Council and Needles Public Utility Authority have voted in majority to approve a 5% cost-of-living increase in electric, water and wastewater rates during their regular meeting that occurred on Tuesday, September 14th, 2021 inside the Needles City Council Chambers.

The vote was 6-1 with Needles City Council Member Donald Wade Evans II voting “No” well all of the other members of the Needles City Council and Needles Public Utility Authority voting “Yes.”

*** Regarding Electric: ***

According to the City of Needles, the Statement of Policies, revised August 2018, provides that power rates will be designed to provide for operation and maintenance, bond payments, purchase payments, taxes, fair share allocation, trustee fee, mandated (but unfunded) state or federal program (conservation program), the asset replacement fund, and the actual costs to purchase power.

The calculated rate will consist of two components: power purchase costs, and non-power purchase costs.

The CPI for the USDLS U.S. West — Size Class B/C for June 2020 indicates a 6% cost of living increase, The policy sets a cap at 5%.

The attached spreadsheets are in accordance with the revised Statement of Policies and will set the new rates as follows:

** Current rates were $0.1279 effective August 1, 2021. The rates calculated above incorporate the recently adopted PCA formulas, CPI and inflation increase and provide adequate revenues to support the FY 22 budget and adjustments in power purchase expenditures.

Fiscal impact is increase in revenues for COLA adjustment to counteract current inflation rates.

The recommended action is move to approve a 5% cost-of-living (COLA) increase in electric rates as of October 1, 2021; an Over-hydro rate of $0.1285 effective October 1, 2021; and approve the methodology to calculate the annual electric base rate and the power cost adjustment rate based on the rate calculation spreadsheets

The Board of Public Utilities approved the recommended action on September 7, 2021.

*** Agenda Packet Information (Unless otherwise noted, all downloadable agenda packets that are posted here are in a PDF file format so please make sure to have a PDF file reader or viewer): ***

cc-15-091421

*** Regarding Water and Wastewater: ***

According to the City of Needles, Resolution No.s 2020-66 and 2020-67 adopted by the Needles City Council/NPUA on October 13, 2020, provided for annual cost-of-living adjustments to the basic service charge and usage charges in both water and wastewater in order to recover annual increases in the cost of providing those services to the customer.

A cost-of-living adjustment (COLA) shall be added to all rates on October 1st of each year and shall be automatically adjusted by using the then rates plus the consumer price index (CPI) published by the U.S. Bureau of Labor Statistics U.S. West — Size Class B/C CPI based on the June value of the appropriate price index OR the last twelve (12) months actual expenses plus the CPI, whichever is lower; however, in no circumstances shall any increase exceed five percent (5%).

The attached spreadsheets are in accordance with Resolution No.s 2020-66 and 2020-67 and will set the new rates.

Fiscal impact is increase in water and wastewater rates to counteract current inflation rates.

The recommended action is move to approve a 5% cost-of-living (COLA) increase in water and wastewater rates as of October 1, 2021.

The Needles Board of Public Utilities approved the recommended action on Tuesday, September 7, 2021.

Submitted By: Rainie Torrance, Assistant Utility Manager.

The Board of Public Utilities approved the recommended action during a special meeting on Friday, September 10, 2021.

*** Agenda Packet Information (Unless otherwise noted, all downloadable agenda packets that are posted here are in a PDF file format so please make sure to have a PDF file reader or viewer): ***

cc-16-091421

The presentations along with the discussions and votes by members of the Needles City Council and Needles Public Utility Authority on the 5% cost-of-living increase in electric, water and wastewater was broadcast live at ZachNews on Facebook.

https://www.facebook.com/ZachNews

For more information, please contact Dale Jones, City Clerk at the City of Needles at: 1 (760) 326-2113.

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