Board of Public Utilities

Summary

This item recommends excusing the absence of Board Member Avery from the Board of Public Utilities meeting held on January 12, 2026. The Board of Public Utilities is required to officially record whether absences are excused or unexcused. City Charter Section 805 states that an office may be declared vacant if a member is absent from three consecutive regular meetings without permission.

Citizen Impact

This is an administrative matter regarding meeting attendance and has no direct impact on city residents or utility services.

Confidence

high

Summary

The Board of Public Utilities is asked to approve an annual interest rate of 3.91% for customer deposits held by Riverside Public Utilities for the calendar year 2026. This rate is determined annually based on the average of the 1-year U.S. Treasury Yield rates from the previous calendar year, aligning with the City's investment portfolio methodology. Approximately 14% of RPU customers, primarily commercial (73% of total deposits), have deposits totaling over $7.2 million. These deposits are collected from customers with poor credit history or those reconnecting service and are held until service is discontinued or the customer maintains good standing for one year, at which point the deposit and accrued interest are applied to their account or refunded.

Citizen Impact

Customers who provide deposits to Riverside Public Utilities will receive an interest rate of 3.91% on those deposits for calendar year 2026. This rate is determined by a standard formula based on U.S. Treasury yields.

Confidence

high

Summary

The Board of Public Utilities is considering approval of Work Order No. 2206160 for $250,000 to replace deteriorated overhead electric poles and associated distribution facilities. This project is part of Riverside Public Utilities' (RPU) ongoing maintenance and system resilience plan. The need for replacement was identified during a review of a communications company's proposed route, which revealed that several existing poles exceed allowable loading limits under California State General Order 95 (G.O. 95) when considering safety factors. The scope includes replacing eight wooden poles, one transformer, and approximately 600 circuit feet of secondary wire, along with removing two poles. The work will be performed by RPU field forces and is anticipated to start in March 2026 and last approximately 18 days.

Project Location: The upgrades will occur in the area bounded by Mission Inn Avenue, Vine Street, Third Street, and Comer Avenue, as well as along Western Avenue north of Arlington Avenue and Western Hills Drive north of Arlington Avenue.

Fiscal Breakdown:

• Design and Inspection: $49,960 (20%)
• Electrical Work (Labor, Equipment, Materials): $200,040 (80%)

Citizen Impact

This work will improve the reliability and safety of the electric grid in specific neighborhoods. Residents may experience brief, coordinated service disruptions during the 18-day construction period.

Confidence

high

Summary

The City Council is asked to authorize a Memorandum of Understanding (MOU) between the City of Riverside Public Utilities (RPU) and Virginia Polytechnic Institute and State University (Virginia Tech) to participate in the Pipeline Infrastructure Database (PIPEiD) research project. This national project, involving approximately 500 water utilities, aims to collect and analyze water pipeline field performance data to help utilities cost-effectively reduce water loss. RPU will provide existing, non-customer-identifiable pipeline infrastructure data to Virginia Tech for analysis. In return, RPU will receive free access to the PIPEiD analytical tools, models, and reports upon project completion. The MOU term is through December 31, 2028, with an option to extend. There is no fiscal impact associated with this agreement.

Citizen Impact

Participation in this research project will help RPU improve its understanding of water pipeline conditions and performance, potentially leading to more efficient water loss reduction and better prioritization of maintenance and replacement efforts. Residents will benefit from more reliable water infrastructure and potentially reduced water loss.

Confidence

high

Summary

The Riverside Public Utilities (RPU) 2025 Annual Audit and Financial Report received an unmodified (clean) opinion from independent auditors CliftonLarsonAllen LLP. A prior period restatement was necessary to correct beginning net position balances for construction in progress, accumulated depreciation, and customer deposits, primarily due to legacy accounting practices and staff turnover.

Electric Utility: The Electric Utility reported $512.6 million in total revenues (up 12.0% from prior year) and $379.1 million in operating expenses. Retail sales increased by $42.3 million (12.0%) due to approved rate adjustments and higher consumption. Production and purchased power expenses decreased by $13.1 million due to lower energy prices, but the utility recognized a $5.8 million increase in its nuclear decommissioning liability for SONGS. Its Debt Service Coverage Ratio (DSC) improved to 3.20, and it maintains strong credit ratings of AA- (Fitch) and AA- (S&P Global). Unrestricted reserves are in compliance with policy, with $152.6 million in undesignated reserves and $35.0 million available on a line of credit.

Water Utility: The Water Utility reported $110.8 million in total revenues (up 13.3% from prior year) and $76.5 million in operating expenses. Retail sales increased by $15.7 million (21.9%) due to rate adjustments and a 12.7% increase in customer consumption. Its DSC is 2.51, and it holds excellent credit ratings of AA+ (Fitch), Aa2 (Moody's), and AA+ (S&P Global). Unrestricted reserves are also in compliance, with $49.8 million in undesignated reserves and $25.0 million available on a line of credit.

Regulatory & Litigation: Both utilities face significant regulatory mandates, including state goals for 100% clean energy by 2045 for the Electric Utility and long-term water use efficiency for the Water Utility. The Water Utility is actively addressing PFAS contamination in its groundwater basins, with plans for new treatment facilities. Several lawsuits challenging water rates and the General Fund Transfer are ongoing, with one ruling finding water rates violated the California Constitution, potentially requiring a $46.2 million refund to ratepayers.

Citizen Impact

Residents benefit from stable and competitive utility rates, with RPU's electric and water rates being significantly lower than comparable regional providers. The audit confirms prudent financial management of public funds. However, ongoing litigation regarding water rates and the General Fund Transfer could lead to significant refunds for water customers or future adjustments to utility charges. The Electric Utility's efforts towards clean energy and the Water Utility's investments in PFAS treatment will impact future service reliability and environmental quality.

Confidence

high

Summary

The Board of Public Utilities is considering Work Order No. 2124085, a capital expenditure of $2,000,000, for the Hunter Substation 4kV to 12kV Make-Ready for Circuits 21 and 22 Project. This project is part of the Electric System Master Plan to upgrade infrastructure, improve system capacity, and enhance reliability. The scope includes replacing 22 wooden poles, 23 overhead transformers, and approximately 4,983 circuit feet of primary conductors in the area north of Marlborough Avenue and Strong Street, south of Palmyrita Avenue and Nash Street, west of Chicago Avenue, and east of Main Street. The work is scheduled to begin in March 2026 and last for approximately 8 months, performed by RPU field forces. The funds will be drawn from the Public Utilities Electric Capital Account.

Citizen Impact

This project will upgrade aging electrical infrastructure to improve system reliability and safety for residents and businesses served by the Hunter Substation. Customers may experience intermittent service disruptions during construction, with advance notifications provided.

Confidence

high

Summary

This item concerns a closed session meeting for the Board of Public Utilities on February 23, 2026. The purpose is to confer with and receive advice from legal counsel regarding the ongoing litigation: City of Riverside v. Shell Oil Company, et al., Case No. CGC-20-588295, in the San Francisco County Superior Court. The City Attorney will provide a status report on this case. Any decisions made in closed session regarding defending the lawsuit, seeking or refraining from appellate review, or accepting a settlement offer will be reported in open session.

Citizen Impact

This is a procedural item related to ongoing litigation. No direct impact on residents is expected at this stage, as it pertains to legal strategy discussions.

Confidence

high

Summary

This report provides an update on the WA-12 Agricultural Service water rate program as of December 31, 2025. The program, adopted in 2019, currently serves 245 customers. As of the reporting date, $553,306 of the annual program allocation of $684,000 has been utilized. Customers have used approximately 55% of their estimated water allotment for the year, consuming 351,987 hundred cubic feet (CCF) out of an allotted 634,388 CCF.

Citizen Impact

This report details the usage and allocation of a specific water rate program for agricultural services. Residents not involved in agriculture are not directly impacted by this program's specific rates or allocations.

Confidence

high

Summary

This report details the city's electric and water accounts receivable and delinquencies as of December 31, 2025. Total accounts receivable increased by 2% from $34.0 million in December 2024 to $34.6 million on December 31, 2025. More significantly, delinquent accounts receivable saw an 18% increase, rising from $10.4 million to $12.3 million over the same period. Inactive accounts receivable totaled $1.1 million, with residential accounts making up 94% of this amount. Approximately 459 accounts totaling $0.2 million were sent to a collection agency for unpaid utility bills in December 2025.

Citizen Impact

The 18% increase in delinquent utility bills to $12.3 million may indicate financial strain for some residents. This could lead to increased collection efforts or potential service disruptions for those with outstanding balances.

Confidence

high

Summary

This report provides a detailed analysis of water production for the fiscal year 2025-2026 and calendar year 2024, along with historical data and groundwater basin levels. Key figures include total monthly production across various basins (Bunker Hill, WMWD Wheeling From BH, Riverside North, Riverside South, Rialto-Colton) and annual rolling totals. The report also tracks Gallons Per Capita Per Day (GPCD) and R-GPCD, with the highest 12-month average GPCD noted at 106 gallons. Groundwater levels for the Bunker Hill, Riverside North, Rialto-Colton, and Riverside South basins are presented, showing changes from November to December and over the entire December 2024-2025 period. For instance, the Bunker Hill Basin saw a 3.2' decrease from November to December and a 7.7' decrease from December 2024 to December 2025.

Citizen Impact

This report provides essential data on the city's water supply and groundwater levels. Residents can see trends in water usage and the health of local aquifers, which are crucial for long-term water security and resource management.

Confidence

high

Summary

This report details Riverside Public Utilities' power supply for December 2025, highlighting a 1.96% decrease in total wholesale load compared to December 2024. A significant shift occurred with the Intermountain Power Project (IPP) transitioning from coal to natural gas, increasing natural gas generation substantially while eliminating coal generation. Renewable output saw a 26% increase, contributing significantly to the supply. Despite a slight increase in average daily peak temperatures and more days above 80°F, the overall load increase was not sustained. Retail load increased slightly year-over-year, while system load decreased. Emissions-free generation as a percentage of retail load also increased.

Citizen Impact

This report indicates a shift towards more natural gas and renewable energy sources for power generation, potentially impacting future energy costs and environmental factors. Residents may notice changes in the energy mix powering their homes and businesses.

Confidence

high

Summary

This report provides an update on the Riverside Public Utilities (RPU) Water Division Contractor Panel for Paving, as of December 31, 2025. The panel, initially approved by the City Council in 2010, allows for streamlined bidding and execution of time-sensitive paving projects. The Master Agreements with panel members have been amended multiple times, most recently on August 12, 2024, extending the term through October 23, 2028, and increasing the individual project cost limit from $500,000 to $950,000 to account for rising construction costs. This panel is utilized for projects requiring a start within two months of design, costing between $50,000 and $950,000, and exceeding City staff's capacity or expertise. When a project meets these criteria, bids are solicited from panel members who have already executed master agreements.

Citizen Impact

This update on the contractor panel ensures that water infrastructure repairs and routine paving work can be completed efficiently and within budget, minimizing disruptions to residents' water service and local traffic.

Confidence

high

Summary

This report details the Customer Engagement Program updates for Riverside Public Utilities (RPU) through December 2025. Key activities include residential assistance programs like SHARE, which provided $742,008 in electric credits and $62,974 in water credits to 2,305 customers from July to December 2025. The Energy Savings Assistance Program (ESAP) assisted 183 low-income customers with $278,612 in energy efficiency improvements, and the Mobile-Home and Multi-Family Energy Efficiency Program (MHMF) served 66 mobile homes and 575 multi-family units, expending $735,065.85. Commercial programs processed 53 large rebates totaling $225,809.02 and saved 2,647,267 kWh. Education initiatives included developing video newsletters for teachers and hosting Family STEAM Day. Communications efforts involved mailing postcards to 3,300 commercial customers and collaborating on an Electric Vehicle survey.

Citizen Impact

Residents benefit from various assistance and rebate programs for energy and water efficiency, including direct financial aid for past-due bills and no-cost home improvements. These programs aim to reduce utility costs and promote conservation within the community.

Confidence

high

Summary

This document provides a schedule of upcoming meetings for the City Council and the Board of Public Utilities. Key dates include City Council meetings on February 24, 2026, and March 3, 2026, both at 1:00 pm, and a Board of Public Utilities meeting on March 9, 2026, at 6:30 pm. It also notes a past action from January 13, 2026, where the City Council adopted the Fiscal Year 2024-25 Electric and Water Utility Rate Plan update.

Citizen Impact

Residents can stay informed about upcoming public meetings where decisions on utility rates and other city matters will be discussed and potentially made.

Confidence

high

Summary

This document is a glossary of acronyms used by the Riverside Public Utility Electric / Water Utility. It provides definitions for numerous industry-specific terms related to energy, water, and utility operations, such as ACWA (Association of California Water Agencies), kWh (Kilowatt hours), and SCADA (Supervisory Control and Data Acquisition).

This list is intended to clarify technical language for internal and external stakeholders.

Citizen Impact

This is an informational document defining technical terms. Residents will not experience any direct impact as it does not enact policy or change services.

Confidence

high