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CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.19.1 Anaheim, CA 92805 RULE NO. 19 RATE STABILIZATION ACCOUNT ISSUED BY: Effective: 02-01-14 by Resolution No.: 2014-001 Dated: 01-07-14 Dukku Lee Superseding Resolution No.: 88R-4 Dated: 01-05-88 General Manager A. PURPOSE The Rate Stabilization Account is established as a means of providing more stable retail electric rates to the customers of the Electric Utility. B. FUNDING MECHANISM Collections from Schedule RSA - Rate Stabilization Adjustment, will be the primary mechanism to fund the Rate Stabilization Account. The Rate Stabilization Account will also be funded by other miscellaneous credits and revenue. The Rate Stabilization Account will be a regulatory credit account established in accordance with Governmental Accounting Standards Board (GASB) Statement No. 62. C. ACCOUNTING All accounting procedures under this rule will be in compliance with GASB Statement No. 62. D. OPERATION OF RATE STABILIZATION ACCOUNT The Public Utilities Department will draw on Rate Stabilization Account funds to maintain financial performance indicators and goals specified in bond covenants and monitored by financial rating agencies. Included among these indicators and goals is the maintenance of a strong debt service coverage ratio and maximum Rate Stabilization Account balance of approximately three months of Electric Utility revenue.