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IE 'green' businesses to get break from bills

ABC7 Eyewitness News HD covering Los Angeles and Southern California.

January 14, 2010 12:00:00 AM PST
Businesses that move to Riverside could receive a 40-percent break on their electricity bills in the first year of operation under the terms of a new plan approved by the Riverside City Council Tuesday.Businesses would be eligible for a 20-percent rate reduction in the second year. The plan requires a four-year commitment from the companies. The so-called economic development rate structure also extends new benefits to high-technology and "green" businesses that choose to locate in Riverside.

"This is really going to provide strong incentives for companies to locate in Riverside and for existing companies to stay here," said David Wright, general manager of Riverside Public Utilities, in a news release.

City officials say the reductions are concentrated in the first two years to ensure new businesses receive the maximum benefit early, when their relocation, permitting and start-up costs are highest.

The economic development rate is scheduled to take effect in October. The city also approved a business retention rate. It calls for a 25-percent reduction in the first year and a 15-percent reduction in the second year of the four-year program.