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Council directs staff to revise nonprofit electric discount funding, consider expanding eligibility
Summary
Council directed staff to change the funding source for the electric-utility Community Benefits Incentive Discount (CBID) from ratepayer charges to the utility's public-benefits fund and to revise eligibility so nonprofits serving low-income/disadvantaged populations can demonstrate qualification.
The Lodi City Council on Oct. 15 directed staff to pursue changing how the municipal electric utility funds a 30% community-benefit discount for certain nonprofit customers and to revise eligibility criteria to better reach nonprofits that serve low-income and disadvantaged communities.
Assistant Electric Utility Director Melissa Price told council the CBID, adopted in 1996, provides a 30% monthly discount to qualifying 501(c)(3) organizations that have been Community Development Block Grant (CDBG) recipients within the last two years. Price said roughly 14 utility accounts (representing 9 entities) currently receive the discount and the annual cost is about $30,000.
Price warned that Proposition 26 raises legal concerns about a ratepayer-funded subsidy and presented three options: shift the program’s funding to the utility’s public-benefits fund, broaden and clarify eligibility with a self-certification process for nonprofits serving low-income populations, or eliminate the discount. She recommended changing the funding source and refining eligibility.
Council discussed expanding the CBID beyond strict two-year CDBG recipients so organizations that demonstrate service to disadvantaged communities could qualify. One council member suggested a short self-certification process and staff said the public-benefits fund is legally appropriate if awards benefit low-income or disadvantaged communities.
A motion directing staff to pursue Option 1—shifting funding to public-benefits funds and revising eligibility criteria to allow demonstration of service to low-income/disadvantaged communities—was made, seconded and passed. Staff said ordinance changes to rate-class definitions would be required and could be implemented by year-end with public notice and a hearing.
Next steps: Staff will draft code changes to shift funding and set objective eligibility criteria, return to council with an ordinance amendment and a public hearing, and coordinate outreach to possible nonprofit applicants.
