title
ECONOMIC DEVELOPMENT INCENTIVE RATE RIDER PROGRAM (B)
Ordinance No. 130576
An ordinance of the City of Gainesville, Florida, amending the Code of Ordinances relating to the electric utility, by amending section 27-21 by creating a new definition for "economic development incentive rate rider program," by creating a new section 27-38 titled "economic development incentive rate rider program"; providing directions to the codifier; providing a severability clause; providing a repealing clause; and providing an immediate effective date.
recommendation
The City Commission adopt the proposed ordinance.
explanation
GRU ENERGY AND BUSINESS SERVICES DEPARTMENT
STAFF REPORT
Currently, the City has one existing utility-based economic rate incentive, titled the "Retained, Expanded or Attracted Load (REAL) service rider". This program offers new, expanding or at-risk-to retain customers a 13% discount over a four-year term. Funding for the REAL discount is provided by a reduction in general fund transfer (GFT) to the City.
At its meeting on December 19, 2013, the City Commission heard a presentation from GRU staff where staff recommended the adoption of an additional economic rate incentive to be funded from utility revenue related to system growth rather than GFT funds. The "Economic Development Incentive (EDI) rate rider program" would target larger electric customers and incentivize local growth. The EDI rate rider program could be used in conjunction with the REAL rider.
The EDI rate rider program is designed to attract the increased revenue that comes from serving larger customers without impacting other GRU customers. Increased revenue helps offset fixed costs, which benefits all customers in the form of reduced electric rate pressure.
As proposed, both new and existing General Service Demand and Large Power electric customers would be eligible for the EDI rate rider program. New customers would need to demonstrate a minimum metered electric usage o...
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