Riverside operates its own Public Utilities Department, which offers what it calls Economic Development (ED) rates to provide larger, industrial-size customers with a guaranteed rate. The city's PUC formerly offered the rates for the first two years of users four-year contracts, but the rates have now been extended to include the final two years of the four-year contracts. The utilities department also has made the rates available to a longer list of research, development and technology businesses.David Wright, deputy director of the citys public utilities department, points out that the city's rates are lower than those of Southern California Edison. But relocating or opening a large business is quite costly, Wright adds, so business customers are more likely to incur those costs if they know that the lower rates are guaranteed for a longer period of time. Riverside has offered its ED rate to new or expanding electric customers within the city since May 2000.

Since then, it has signed 15 agreements that have brought over 1,200 additional jobs, an investment of $170 million in taxableproperty, $6 million in annual increased utility revenues, and $540,000 in additional General Fund transfer revenues into the city.

The city initially offered the rates to businesses in seven Standard Industrial Classifications in the technology and research fields but will now offer the rates to an additional six classifications, including motion picture production and related services. The rates are also offered to companies in all other classifications that meet certain standards for projected minimum monthly demand for electrical power.

Riverside's new power plant will be a response to increasing population growth and continued record-breaking energy demand, which prompted the city council recently to unanimously approve building a 100-megawatt power plant and a local transmission line.

The new plant will be called Riverside Energy Resource Center (RERC) will cost $75 million to build. It will be situated near the Santa Ana River east of the wastewater treatment plant near Van Buren Blvd. and Jurupa Ave. ThePublic Utilities Department plans to sell bonds to finance the plant's construction. The city expects to obtain approval for the project by the California Energy Commission by September, with construction to start in October 2004and be finished by May 2005.