§ 13.04.176. Stranded investment surcharge.

A.

Consistent with the provisions of Section 96-03 of the Public Utilities Code of the state of California, there is established a nonbypassable charge to be known as the "stranded investment surcharge." The purpose of this surcharge shall be to fund collection of stranded investment as defined in subsection B of Section 13.04.175.

B.

The amount of the surcharge shall be $0.0137 per kWh delivered to the customer.

C.

This surcharge shall not be subject to any taxes or surcharges imposed pursuant to the Pasadena Municipal Code.

D.

This surcharge shall not be included as gross income for purposes of calculating the light and power fund transfer under Sections 1407 and 1408 of the Charter.

E.

All moneys collected pursuant to this surcharge shall be deposited in the reserve for stranded investment and used exclusively to pay down stranded investment as defined in Section 13.04.175.

F.

This surcharge shall not be operative on and after July 1, 2002.

G.

The general manager of the water and power department may enter into contracts with customers taking service under Schedules G-l, G-2, P and T for payment of the stranded investment surcharge at a different time than ordinarily due and payable; provided, that such contract payments are calculated to make the light and power fund financially indifferent to their timing. All such contracts shall commit the customer to remain a Pasadena energy requirements customer for a period of not less than their term. All such contracts shall be approved as to form by the city attorney and shall require the customer to furnish payment security and a payment plan acceptable to the director of finance.

(Ord. 6739 § 1, 1998; Ord. 6732 § 7, 1997)