Page 2 - 2017-18_MVU-Road Map

INTRODUCTION

When the City Council established Moreno Valley Utility (MVU) in 2001, their primary goal was to create a utility
that would be used as an economic development tool to help attract businesses and jobs to the community.
MVU provides electric service to new housing and business development, primarily located in undeveloped
areas of the City. The rapid growth of the utility over the last few years has placed MVU in a position to successfully
contribute to the economic development goals of the City, helping to attract world-class customers such as
Amazon, Procter & Gamble, Skechers, Deckers Outdoor, Aldi US, and Karma Automotive. In addition to offering
economic development rate incentives, MVU also offers an award-winning Hire MoVal incentive program that
encourages businesses to hire locally.

Providing service to new development is a business practice that sets MVU apart from other municipal utilities.
The utility is owned and operated by the City, with certain engineering, customer billing, and operations and
maintenance of the distribution system currently being provided through a third-party contractor. The agreement
with the contractor expires at the end of 2020.

Although MVU is unique regarding service to only new development, MVU faces the same challenges
and opportunities as other municipal utilities within California and across the country. These challenges and
opportunities are the result of the industry evolving from fossil-fueled generation to renewable energy sources,
advances in technology, and greater customer choices regarding their electric service.

The combination of the expiration of the agreement with MVU’s contractor and changes in the industry places
MVU at a key point in determining the future success and viability of the utility. MVU will have the opportunity
to explore organizational structures that will benefit both MVU and the community into the future. The evolution
of the electric industry is creating the opportunity for MVU to evaluate potential adjustments to MVU’s business
model and evaluate alternative means to providing reliable electric service to the utility customers and the entire
Moreno Valley community. This Road map will not only provide an alignment of resources to meet the City’s and
utility’s mission, vision, and values, but also provides an alignment of resources on strategic areas of focus aimed
at addressing the opportunities and challenges facing MVU.

The development of this Road map is the result of a collaborative effort between MVU staff and the Utilities
Commission, and is considered a key component to providing MVU the necessary tools to thrive and succeed in
the future.
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