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NOTICE IS POSTED IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54954.2(a) OR 54956
I. ROLL CALL
II.ORAL COMMUNICATIONS
Members of the public are invited to address the Commission on any subject not on the agenda. A reasonable time
restriction may be imposed at the discretion of the Chair. State law generally precludes the UAC from discussing or
acting upon any topic initially presented during oral communication.
III.APPROVAL OF THE MINUTES
Approval of the Minutes of the Utilities Advisory Commission Meeting held on October 3, 2018
IV.AGENDA REVIEW AND REVISIONS
V. REPORTS FROM COMMISSIONER MEETINGS/EVENTS
VI.GENERAL MANAGER OF UTILITIES REPORT
VII.COMMISSIONER COMMENTS
VIII.NEW BUSINESS
1.Staff Recommendation that the Utilities Advisory Commission Recommend that the City Action
Council Approve the Continuation of the 2018 Utilities Legislative Guidelines into 2019
2.Discussion of CPAU’s Role in Community Resilience Including Workshop Summary Discussion
and Draft Vision and Goals
IX.UNFINISHED BUSINESS
3.Staff Update on the Green Acres Rebuild and Request for Feedback on Preparation Discussion
of a Utilities Rule and Regulation Governing Community-Requests for Fully
Undergrounded Systems, Including a Procedure for Assessment Funding
4.Selection of Potential Topic(s) for Discussion at Future UAC Meeting Action
NEXT SCHEDULED MEETING: January 9, 2019
ADDITIONAL INFORMATION - The materials below are provided for informational purposes, not for action or discussion
during UAC Meetings (Govt. Code Section 54954.2(a)(2)).
Informational Reports 12-Month Rolling Calendar Public Letter(s) to the UAC
UTILITIES ADVISORY COMMISSION
WEDNESDAY, DECEMBER 5, 2018 – 7:00 P.M.
COUNCIL CHAMBERS
Palo Alto City Hall – 250 Hamilton Avenue
Chairman: Michael Danaher Vice Chair: Judith Schwartz Commissioners: Arne Ballantine, Lisa Forssell, A. C. Johnston, Lauren Segal and Terry Trumbull Council Liaison: Eric Filseth
Utilities Advisory Commission Minutes Approved on: Page 1 of 12
UTILITIES ADVISORY COMMISSION MEETING
MINUTES OF OCTOBER 3, 2018 REGULAR MEETING
CALL TO ORDER
Chair Danaher called the meeting of the Utilities Advisory Commission (UAC) to order at 7:00 p.m.
Present: Chair Danaher, Vice Chair Schwartz, Commissioners Forssell, Johnston, Segal, and Trumbull
Absent: Commissioner Ballantine
ORAL COMMUNICATIONS
Victor Ojakian hoped the UAC would ensure the public was fully informed of any impacts to electric bills
resulting from the current negotiation of the Western Area Power Association contract.
APPROVAL OF THE MINUTES
Vice Chair Schwartz corrected the second paragraph on page 6 of the September 5 minutes to "an industry-
led group facilitated by the DOE has developed a voluntary code of conduct … ."
Commissioner Segal moved to approve the minutes from the August 28, 2018 meeting as presented.
Commissioner Trumbull seconded the motion. The motion carried 5-0 with Chair Danaher, Vice Chair
Schwartz, and Commissioners Forssell, Segal, and Trumbull voting yes, Commissioner Johnston abstaining,
and Commissioner Ballantine absent.
Commissioner Trumbull moved to approve the minutes from the September 5, 2018 meeting as amended.
Chair Danaher seconded the motion. The motion carried 5-0 with Chair Danaher, Vice Chair Schwartz, and
Commissioners Forssell, Johnston, and Trumbull voting yes, Commissioner Segal abstaining, and
Commissioner Ballantine absent.
AGENDA REVIEW AND REVISIONS
None
REPORTS FROM COMMISSIONER MEETINGS/EVENTS
Vice Chair Schwartz advised that she attended a webcast and led a workshop of the Low Income
Community Solar working group, where discussions included ideas described as community solar for
community action, different ways to approach community solar so that it could support other programs,
and ways to make access to solar available to more low and middle-income residents. The City of Palo Alto
Utilities (CPAU) should explore reasons other than cost for residents to participate in community solar. At
the Solar Power International conference, storage and microgrids were a large part of discussions.
Commissioner Trumbull reported Lena Perkins of CPAU was a guest lecturer at his class on September 24.
Based on a limited number of responses to a quiz question asking students to compare the pros and cons of
investor-owned utilities and municipal-owned utilities, students think municipal-owned utilities are better.
DRAFT
Utilities Advisory Commission Minutes Approved on: Page 2 of 12
UTILITIES GENERAL MANAGER REPORT
Ed Shikada, Utilities General Manager, delivered the General Manager’s Report.
October 7-13 is Public Power Week and Public Natural Gas Week, two national campaigns organized to
build awareness of the benefits of public utilities. Our community-owned utility has been empowering Palo
Alto for over 100 years with the electric utility founded in 1900 and followed in 1917 by a natural gas
distribution system. It was the forward thinking of two Stanford University professors, Charles “Daddy”
Marx and Charles Benjamin Wing, that was largely responsible for the emergence of our municipally-owned
utility service. Marx and Wing advocated that the City could provide utility service at rates significantly
below those charged by private companies. City of Palo Alto municipal utility customers benefit from local
control and policy setting, community values-driven programs and services, support for Fire, Police, Library
and other City services, reliable and safe operations, responsiveness and accountability to utility customers,
and competitive rates. Follow us on social media with the hashtag #CommunityPowered and help us spread
the word about the programs and services that make Palo Alto a unique place to live and work.
Home Efficiency Genie House Call Refund - Beginning this month, Palo Alto residents can receive a full
refund on the cost of a Home Efficiency Genie House Call if they complete a qualifying home efficiency
improvement within 90 days of their assessment. The refund will be covered by CLEAResult, the City’s
contractor for the Genie program. This offer is intended to encourage action for energy efficiency upgrades,
in line with the City’s sustainability goals.
New Solar for Palo Alto Unified School District – On Friday, September 29, Utilities joined Palo Alto Unified
School District staff at Nixon Elementary School to talk about newly installed solar photovoltaic arrays at
the school. School District staff arranged two assemblies for students in kindergarten through fifth grades.
Solar will now provide enough electricity to meet all of the school’s electricity needs, equivalent to
powering about 38 average Palo Alto homes. Nixon is one of six school sites in the District installing solar.
Upcoming Events in October - Details and Registration at cityofpaloalto.org/workshops:
• Emergency Preparedness and Crime Prevention Fair - Saturday, October 13, 10 am-noon at the
Lucie Stern Community Center – Utilities will host an informational booth at a neighborhood
emergency preparedness and crime prevention fair. The event will include a presentation from the
Red Cross, demonstrations and displays on public safety, bicycle and traffic safety, and CPR, among
other topics.
• Is an Electric Vehicle Right for You? Tuesday, October 23, 5:30-7:30 pm at the Mitchell Park
Community Center – In partnership with the Stanford Health Improvement Program, Utilities is
sponsoring a panel presentation from long-time electric vehicle owners and experts in the industry.
Get all your questions answered about driving an electric vehicle. For an hour before the class
begins at 4:15 and for 30 minutes after the class ends at 7:30, explore a number of electric vehicles
on-site.
• Irrigation Equipment Upgrades & Landscape Water Use Efficiency - Saturday, October 27, 9 am-
noon at the Palo Alto Art Center Auditorium – This workshop focuses on landscape irrigation
equipment upgrades and rebates for improving outdoor water use efficiency.
Upgrade Downtown – Work on University moved to the next block this week. There are still road closures
on Bryant to Ramona for restoration work, while the fenced off area has moved to the Ramona to Emerson
section. The current plan is to complete the joint trench work up to Emerson by November 16. Work will
continue on the Emerson to High block in the new year. Yesterday’s gas leak appears to be from a
previously cracked PVC gas main and, when the contractor disturbed the soil around the crack, the gas
main began to leak–further evidence to support our risk assessment and prioritization for PVC replacement.
Utilities Advisory Commission Minutes Approved on: Page 3 of 12
COMMISSIONER COMMENTS
In response to Commissioner Johnston's query regarding the Upgrade Downtown project being on
schedule, Ed Shikada, Utilities General Manager, indicated the project is within the contract days but will
not be complete by the Thanksgiving Holidays.
UNFINISHED BUSINESS
ITEM 1: ACTION: Utilities Advisory Commission Recommendation that the Finance Committee Recommend
that the City Council Adopt a Resolution to Approve the 2018 Electric Integrated Resource Plan (EIRP),
Updated Renewable Portfolio Standard Procurement Plan and Enforcement Program, and Related
Documents.
Jonathan Abendschein, Assistant Director of Resource Management, recalled that the Commission first
heard staff's presentation on the EIRP in September. The Commission will have opportunities to discuss
major strategic initiatives described in the EIRP Work Plan in the future.
Jim Stack, Senior Resource Planner, reported CPAU has been planning electric integrated resources (EIR) for
many years, most recently under the framework of the Long-term Electric Acquisition Plan (LEAP), which
was last updated in 2012. In 2015, SB 350 was passed and established new EIR planning requirements for
large utilities like CPAU. SB 350 requires CPAU to submit an Electric Integrated Resource Plan (EIRP) to the
California Energy Commission (CEC) every five years with the first one due in early 2019. SB 350 also
established aggressive statewide targets related to renewables, greenhouse gas emissions, and energy
efficiency. Staff is waiting for the CEC to establish regulations for the requirement to double energy
efficiency levels by 2030. The CEC requires the completion of four standardized tables that will provide
visibility into the actual details of supply and load forecasts to 2030. CPAU is also required to submit an
updated version of its Renewable Portfolio Standards (RPS) Procurement Plan that reflects SB 350 changes
to the renewables requirement. While CPAU is not required to submit an updated RPS Enforcement
Program, staff updated the Enforcement Program and included it in the documentation. The EIRP details
the state of the current (2018) supply portfolio, describes expectations for the 2030 portfolio, and discusses
the major decisions to be made. The primary decision is whether to renew the Western Base Resource
contract in 2025 for an additional 30-year period. The uncertainty around the decision is represented by the
unknown carbon-neutral area of the 2025 portfolio. The EIRP does not discuss energy-efficiency program
planning.
In response to Vice Chair Schwartz's query regarding whether staff was recommending elimination of the
Western contract, Stack explained that the EIRP highlights the Western contract as an upcoming discussion.
The EIRP's default scenario is contract renewal, but alternative options are explored in the EIRP.
Chair Danaher requested staff provide periodic updates on the process, contract issues, and analysis so that
the Commission can be educated as the process moves forward.
Stack continued with the EIRP objective, strategies, and work plan. The EIRP objective is modeled after the
Electric Utility's mission statement. The seven new initiatives listed in the work plan will be undertaken over
the next few years. The California-Oregon Transmission Project (COTP) will return to the City’s portfolio in
2024. Within the initiative for carbon accounting, staff is planning to address City communications with
customers and the public regarding the portfolio's carbon content. CPAU could partner with external
agencies such as Community Choice Aggregation (CCA) organizations.
Vice Chair Schwartz remarked that she could not imagine a partnership with a CCA that would benefit CPAU
and questioned whether partnerships were specific to CCAs. Stack clarified that partnerships could include
CCAs or other agencies. Staff could explore partnerships with CCAs for commodities trading or customer
programs. Abendschein added that staff will look for opportunities to partner with CCAs.
Utilities Advisory Commission Minutes Approved on: Page 4 of 12
Stack continued with next steps of presenting the EIRP and related documents to the Finance Committee
and Council for review; submitting the required documents to the CEC early in 2019; and beginning work on
the new initiatives listed in the work plan. Staff will provide periodic updates to the Commission regarding
progress.
Commissioner Segal appreciated staff including communications to the community in the initiatives.
In reply to Commissioner Johnston's inquiry regarding the meaning of fully deliverable resources, Stack
stated fully deliverable is not the same as dispatchable. Fully deliverable is a term used by the California
Independent System Operator (CAISO) to describe resources that can be delivered reliably to customers
during periods of high demand or congestion on the grid. Other resources can be counted as energy but not
as capacity towards resource adequacy requirements; whereas, fully deliverable resources can be counted
as capacity. In answer to Commissioner Johnston's question regarding the percentage of current supplies
designated as fully deliverable, Stack advised that all resources with the exception of two solar projects are
designated as fully deliverable. Staff is working with the developer to have the two solar projects qualified
as fully deliverable. Commissioner Johnston commented that the supply chart shows the average cost is
5.9¢ per kilowatt hour (kWh) across the portfolio. The only resource below the average is the Western
contract. Removing the Western contract from the portfolio will have a big impact on the overall cost. The
EIRP does not detail portfolio rebalancing and replacing existing resources with resources that more closely
match load. Staff will work on making the Western contract more favorable while concurrently identifying
resources to replace the Western contract. Stack recalled that staff analyzed portfolio rebalancing earlier in
the year and discussed the analysis with the UAC in more detail than was presented in the EIRP. Staff felt
the analysis was not what the CEC wanted in the EIRP and did not include it.
Vice Chair Schwartz did not feel a goal of 90% adoption of electric vehicles (EV) was realistic as CPAU cannot
control residents' behavior. Ed Shikada, Utilities General Manager, explained that the target came from the
Sustainability and Climate Action Plan (S/CAP) and agreed to characterize it as an aspirational goal. Staff's
efforts will focus on facilitating market adoption of EVs. Vice Chair Schwartz believed that the cost of
incentives would be enormous. Chair Danaher noted the projection for the cost of EVs to decrease by 2025.
Vice Chair Schwartz stated the goal is unrealistic even if EV costs decrease. If EV adoption is part of the plan,
then staff has to include incentives or set a realistic goal. Chair Danaher clarified that the goal does not
indicate whether adoption of EVs pertains to new cars or the City fleet. Charging networks are one
component of a plan to incentivize EV adoption. Abendschein advised that the list of goals was taken from
other City documents. When the S/CAP returns for discussion, the Commission can discuss the goal of 90%
adoption of EVs. Stack added that the EIRP assumes 40% of residential customers will adopt EVs. Chair
Danaher commented that 40% was the percentage of new electric and hybrid vehicles in Palo Alto.
Schwartz expressed that a goal of 40% is ambitious without providing incentives.
In answer to Vice Chair Schwartz's query regarding whether the power supply charts reflect actual
purchases, Stack responded no, the charts reflect net purchases, not gross purchases. Vice Chair Schwartz
felt the 2018 chart is misleading in that it reflects no thermal purchases. Stack advised that the carbon
accounting discussion would include the question of how to accurately reflect purchases. Vice Chair
Schwartz suggested the EIRP include a discussion of time-varying rates enabled by advanced metering
infrastructure (AMI) because AMI can provide price signals to incentivize desired behaviors, which would
justify the Finance Committee's support for investing in AMI. Stack reported a discussion of time-varying
rates is included in the Distributed Energy Resources (DER) Plan. Abendschein added that the EIRP pertains
to supply. The distributed resources needed to substitute for electric supply are acknowledged in the EIRP,
but the details are in the DER Plan. Vice Chair Schwartz was referring to varying rates as providing
incentives for people to use less energy. A large portion of the population needs a financial reason to use
electricity at specific times. In reply to Vice Chair Schwartz's inquiry regarding the percentage of the
population participating in the Residential Energy Assistance Program (REAP), Abendschein answered a
fairly low percentage. He could provide the exact percentage at a later time.
Utilities Advisory Commission Minutes Approved on: Page 5 of 12
Vice Chair Schwartz suggested CPAU offers electricity at lower rates than PG&E because 40% of PG&E
customers participate in PG&E's care plan. She wanted to know the resources that could replace Western
hydroelectric power. She wanted staff to explain fully and realistically the idea of carbon-neutral resources
so that the City Council and the public can understand the need for investment.
In response to Commissioner Forssell's suggestion that the EIRP essentially provides a strategy to answer a
set of specified questions, Abendschein concurred that the EIRP is a problem statement, an
acknowledgement of the strategic questions for staff to focus on in the next several years. In reply to
Commissioner Forssell's question of whether the Western contract projections are placeholders for carbon-
neutral energy to be determined rather than a commitment to continue the contract, Stack replied that the
projections are placeholders rather than a commitment. The default scenario assumes the continuation of
the Western contract. Commissioner Forssell commended staff for identifying key issues and questions and
ways to think about them.
Chair Danaher related that the EIRP content is meant to comply with regulatory requirements and to
identify areas of future work. At some point, staff should integrate some of the issues with the
Commission's calendar. Chair Danaher acknowledged Vice Chair Schwartz's point about staff tracking and
reporting fossil fuel purchases.
ACTION: Vice Chair Schwartz moved that the Utilities Advisory Commission (1) finds that the 2018 EIRP
report is not a project as defined in Public Resources Code 21065 and, therefore, California Environmental
Quality Act (CEQA) review is not required and (2) recommends that the Finance Committee recommend
that the City Council adopt a Resolution to approve the 2018 Electric Integrated Resource Plan (EIRP),
Updated Renewable Portfolio Standard Procurement Plan and Enforcement Program, and related
documents. Commissioner Johnston seconded the motion. The motion carried 6-0 with Chair Danaher, Vice
Chair Schwartz, and Commissioners Forssell, Johnston, Segal, and Trumbull voting yes, and Commissioner
Ballantine absent.
NEW BUSINESS
ITEM 2: DISCUSSION: Discussion of Results of Residential Survey on Adoption of Distributed Energy
Resources Technologies.
Christine Tam, Senior Resource Planner, reminded the Commission that the DER Plan was presented in
November 2017. The DER Plan contains five objectives, one of which is to understand the community's
willingness to adopt DER technologies and the community's needs in order to develop programs. To meet
the objective, staff conducted a residential customer survey to assess residential customers' attitudes
toward home energy management; to evaluate residential customers' interest in a number of key DER
technologies; and to understand the barriers to customers' adoption of DER technologies. The City's
consultant, Fairbank, Maslin, Maullin, Metz &Associates (FM3), helped staff design the survey, proposed a
sampling methodology, conducted the survey, and tabulated results.
Jonathan Abendschein, Assistant Director of Resource Management, remarked that the survey results will
inform the Commission's discussion of the DER Plan in November.
Miranda Everitt, FM3, reported the survey was conducted between June 27 and July 10 during which time
period 410 respondents replied via an online survey and 303 respondents replied via phone. The results
were weighted to reflect the distribution of the facts known about consumers. A goal of the survey was to
learn about customers' attitudes toward energy management. The survey found 31% of customers have at
least one smart gadget and 57% have at least one of the listed technologies.
In response to Vice Chair Schwartz's question of an air conditioner being considered smart, Tam explained
that a smart thermostat, which regulates the air conditioning system, is considered home energy
Utilities Advisory Commission Minutes Approved on: Page 6 of 12
management. Everitt clarified that interviewers gave respondents a list of appliances for respondents to
indicate they did or did not own one.
Everitt continued by stating saving money on their bill was the number one priority for 38% of respondents
and number two for 36% of respondents when making decisions about appliances and utility use. Comfort
and convenience was number one for 37% and number two for 27% of respondents. Reducing my carbon
footprint was ranked either one or two by 52% of respondents. These results are consistent with survey
results in other cities. Next, 70% of respondents agreed that they already try to reduce their energy use at
all times of the day; 66% agreed that they would shift their energy use to reduce their carbon footprint;
65% agreed that they would shift their energy use to save money on the utility bill; 37% disagreed and 28%
agreed with the statement that they would not shift their energy use if it reduced their comfort and
convenience; and 47% disagreed with the statement that with their busy schedule, they were not sure they
can make these kinds of adjustments. Next, 15% of respondents reported they currently own or lease an
EV. Homeowners are more likely than renters to report owning an EV. Respondents living in a single-family
home are much more likely to own an EV than an apartment dweller.
In reply to Chair Danaher's question of EV including plug-in hybrid vehicles, Everitt stated the interpretation
of EV was left to the respondent. The interviewer simply stated electric vehicle.
Everitt further explained that a rationale of an EV is better for the environment is by far the top rationale
for respondents owning or renting an EV. The rationale of the convenience of doing less maintenance and
refilling gas tanks came in second. Rationales of a better driving experience, access to the carpool lane, and
trying out new technologies were also important, but they fell well below the concern about the
environment. As to where EV owners usually charge their EV, 72% said at home, and 16% said at work.
Respondents living in single-family homes were more likely to charge at home. That makes sense given how
the technology is implemented.
In answer to Commissioner Segal's request for the meaning of how the technology is implemented, Everitt
indicated chargers are more commonly installed at single-family homes. Vice Chair Schwartz added that
most EV owners need a place where they can charge their EVs for several hours. Chair Danaher commented
that, based on the survey results, providing electrification solutions at multifamily buildings could increase
EV penetration. Everitt noted the survey identified the lack of charging facilities as a barrier for people who
do not live in single-family homes. Abendschein stated the survey results validate the City's program to use
low-carbon fuel standard money to assist with charger installation at multifamily buildings.
Everitt continued her presentation of survey results. Of the respondents who charge their EVs at home,
43% use a standard 110-volt wall outlet, 39% use a Level 2 charger with a 220—240 volt outlet, and 16%
use a smart charger with a 220-240 volt outlet. For the next question, interviewers left the interpretation of
purchasing a second EV to the respondent. 70% of respondents were very or somewhat likely to purchase a
second EV in the next three years, and 25% were not too likely or not at all likely. Of the respondents who
do not own an EV, 37% were somewhat likely or very likely to purchase a second EV in the next three years,
29% were not too likely, and 32% not at all likely. For respondents who do not own an EV, 59% said a major
reason for not purchasing an EV is no need for a new car in the next three years; 30% said a minor reason is
the limited drive distance between charging; but 39% said a major reason is the limited drive distance
between charging. No access to a charging station at home is a major reason for 32% and a minor reason
for 26% of respondents. Needing a larger vehicle is typically not a concern in urban areas. No access to a
charging station at home was the reason 65% of respondents who do not own a single-family home gave
for not purchasing an EV in comparison to half of single-family homeowners.
Vice Chair Schwartz requested a breakdown of biking, public transit, and ride-hailing apps to see if age is a
factor.
Utilities Advisory Commission Minutes Approved on: Page 7 of 12
Everitt further stated the results show a rebate would influence 44% of respondents to purchase or lease
an EV, more public or at-work charging stations would influence 32%, special rates for EV charging would
influence 32%, and assistance with installing charging equipment at home would influence 30%. 7% of
customers reported having rooftop solar at home. Most of those, 93%, said wanting to have a renewable
energy source is a key reason for installing rooftop solar. 76% of customers stated saving money on the
utility bill is a major reason for installing rooftop solar.
Chair Danaher reported rooftop solar does not reduce electric bills in Palo Alto and asked if customers
assumed rooftop solar saves money. Everitt explained that the survey measured customers' perceptions. In
this case, customers' perception of rooftop solar as a means to lower their electric bill may be incorrect.
Vice Chair Schwartz suggested energy independence be added to future surveys as a reason for installing
rooftop solar
In answer to Commissioner Forssell's query regarding the possibility of solar tied to energy storage
providing emergency power , Shiva Swaminathan, Senior Resource Planner, advised that the solar has to be
disconnected from the grid before it will charge the home energy system. In reply to Commissioner
Forssell's question regarding customers having a misguided perception of solar and emergency power,
Abendschein suggested it is either a misguided perception or a plan for the future.
Everitt continued with the survey results of reasons for not having rooftop solar. No access to the roof is a
major reason for 40% of respondents and a minor reason for 53%. Solar economics don't pan out for my
house as a reason fell well behind the no roof access reason. Reasons of no time to look into it, roof not
suitable, reducing carbon in other ways, and electricity supply is already carbon neutral are not barriers to
installing rooftop solar. Of the respondents without rooftop solar, 8% are planning to install it in the next
three years, 12% don't know if they will install rooftop solar, and 80% are not planning to install rooftop
solar. 6% of respondents reported they have energy storage or are considering installing it in the next three
years. Respondents with EV or photovoltaic (PV) are more interested in storage than those without EV or
PV. Next, respondents either read or heard a description of community solar.
Vice Chair Schwartz disagreed with the description stating community solar participants would have the
opportunity to meet up to 100% of their electricity needs with locally generated solar electricity when it is
impossible.
Everitt continued, stating 53% of respondents were extremely or very interested in community solar, 30%
were somewhat interested, and 13% were not too interested. 54% of homeowners and 51% of renters
were extremely or very interested in community solar. 55% of single-family homeowners, 53% of
condo/townhome owners, and 45% of apartment dwellers were extremely or very interested in community
solar. 41% of households with PV and 53% of households without PV were extremely or very interested in
community solar. The next question asked the total additional cost per month respondents were willing to
pay for community solar.
In reply to Chair Danaher's question regarding the average electric bill per household in Palo Alto,
Abendschein indicated the average home electricity bill is in the neighborhood of $70-$80 per month. Vice
Chair Schwartz suggested the survey question use dollar amounts that reflect actual costs. Chair Danaher
suspected the actual additional cost per month would be much greater than $20. The percentage of
respondents interested in community solar would likely decrease substantially after considering the
economics. Swaminathan reported CPAU could provide community solar for approximately $20 per month
in addition to the average $70 bill. Commissioner Forssell questioned whether respondents understood
that the community solar is not intended to meet the respondents' own electricity needs. Vice Chair
Schwartz believed respondents were interested in community solar because they believe it is a positive
program. Tam advised that some of the 7% of respondents with rooftop solar may have misunderstood the
question of rooftop PV versus rooftop solar thermal as only 3.6% utilize the Net Energy Metering (NEM)
Utilities Advisory Commission Minutes Approved on: Page 8 of 12
rate. Everitt concurred that many of the respondents do not understand or do not know the differences in
solar systems, but they do support solar power as having positive benefits.
Everitt further advised that only 11% of respondents answered correctly that 100% of electricity supplied
by CPAU is carbon neutral.
Vice Chair Schwartz did not understand the question because carbon neutral is not the same as 100%
renewable or zero carbon. Everitt explained that the question demonstrates customers' lack of awareness
of CPAU being 100% carbon neutral and customers' lack of understanding of carbon neutral or net zero
emissions. Chair Danaher concurred with the assumption that many customers do not understand the mix
of electricity sources. Tam added that the question demonstrates that customers do not understand CPAU's
carbon-neutral message.
Everitt continued, stating 12% of respondents who plan to install a PV system in the next three years
answered correctly; 54% of respondents extremely or very interested in community solar answered
correctly; and 32% of respondents who cited carbon-neutral electric supply as a reason not to install
rooftop PV answered correctly.
Abendschein noted respondents who understand that CPAU provides 100% carbon neutral electricity do
not cite solar as a renewable resource as a reason for installing solar, but they still want to install solar.
They are more likely to want to pair solar with storage.
Everitt further reported 16% of respondents do not know the type of water heater they have; 69% have gas
tank water heaters, and 2% have electric tankless water heaters. Some respondents do not know where
their water heater is stored. 26% of respondents were very or somewhat familiar with heat pump water
heaters, and 51% were not at all familiar. One-third of respondents are interested in switching to heat
pump water heaters.
In answer to Commissioner Segal's inquiry about the use of ultra-efficient in the description of heat pump
water heaters, Abendschein clarified that staff always wrestles with the amount of explanation provided in
questions. Vice Chair Schwartz added that the use of ultra-efficient introduces a bias that the heat pump
water heater is more efficient than other types of water heaters.
Chair Danaher reported price is the biggest barrier to respondents switching to heat pump water heaters.
EV and PV owners are the likeliest early adopters of DER technologies. Barriers to EV adoption are access to
charging and drive range. Barriers to PV adoption are access to the roof and no suitable roof. Cost is the
main barrier to adoption of heat pump water heaters. A lot of people in Palo Alto want to do the right
thing, even if they do not know what that is. A lot of people may not be aware of the composition of CPAU's
electric supply.
Commissioner Segal commented that there is an opportunity to increase the number of EVs by providing
charging to renters and multifamily housing.
Commissioner Johnston felt it was important for people to understand that CPAU has largely carbon-
neutral electricity because that factor drives some of their decisions.
Vice Chair Schwartz remarked that the percentage of people who are focused on being green is relatively
small but the most vocal. The Commission cannot assume they represent the bulk of customers.
Ed Shikada, Utilities General Manager, reported a primary reason for conducting the survey was to
determine the scalability of issues discussed with the Commission.
ACTION: No action
Utilities Advisory Commission Minutes Approved on: Page 9 of 12
ITEM 3. DISCUSSION: Discussion of Recycled Water Expansion and Other Water Reuse Opportunities.
Karla Dailey, Senior Resource Planner, reported recycled water is a collaborative effort among CPAU, the
Public Works Department, and Santa Clara Valley Water District. The purpose of the discussion is to inform
the Commission of high-level water reuse opportunities, to assess community acceptance, to gauge the
importance of cost versus other evaluation criteria, and to gather feedback on local versus regional reuse.
Palo Alto obtains 100% of its potable water supplies from the San Francisco Public Utilities Commission
(SFPUC) Regional Water System (RWS), 85% of which is taken from the Tuolumne River and 15% from local
reservoirs. The Bay-Delta Plan will almost certainly mean less water for the RWS, particularly in times of
drought. Expanding the use of recycled water in Palo Alto could relieve some pressure on the Tuolumne
River. Recycled water is used at some City facilities. The City has eight emergency water wells. The Water
Integrated Resources Plan looks at many potential water supplies, but the discussion will focus on water
from the Regional Water Quality Control Plant. Once staff understands an ideal portfolio, staff needs to
evaluate alternatives against moving the water to other parts of the county. The S/CAP discusses reducing
the reliance on imported water and developing local drought-proof supplies.
Samantha Engelage, Public Works Senior Engineer, advised that each water reuse opportunity can be
implemented in numerous ways. Each implementation alternative will be presented to the Commission for
consideration. Each water reuse opportunity can be implemented in conjunction with other opportunities
or in a phased approach.
Vice Chair Schwartz requested staff include an indication of cost for each opportunity. Engelage advised
that staff will present cost estimates when the Commission discusses implementation alternatives for each
opportunity. The water reuse opportunities appear to be feasible and comparable in cost.
In reply to Commissioner Johnston's request for the amount of potable water each opportunity would save,
Engelage indicated the impacts to water dependence will be presented shortly.
Engelage continued, stating nonpotable reuse is likely the most familiar reuse opportunity. Nonpotable
reuse is enhanced recycled water that is used for irrigation and commercial uses. Benefits include near-
term implementation and clear regulations for implementing a nonpotable reuse program.
In answer to Commissioner Forssell's query regarding the definition of near-term, Engelage answered 3-5
years.
Engelage further reported the City has a nonpotable reuse program. For purposes of the Strategic Plan,
nonpotable reuse is meant to encapsulate enhanced recycled water, which has a higher quality than
recycled water currently produced at the Regional Water Quality Control Plant. Obstacles for nonpotable
reuse include limited use of it. Indirect potable reuse is recycled water treated to purified standards,
introduced into an environmental buffer, and then connected to the drinking water distribution system.
In response to Commissioner Forssell's question regarding use of nonpotable reuse in conjunction with
indirect potable reuse, Engelage advised that both can be implemented simultaneously without
contamination.
Engelage continued the presentation, reporting that indirect potable water is comparable to potable water,
in that it can be used for showers, pools, and drinking. It has the potential to use a great deal of water from
the Regional Water Quality Control Plant and to impact the amount of water reused in the City.
In answer to Chair Danaher's query regarding pumping the water into the aquifer, Engelage explained that
the water would be purified and then injected into the aquifer where it mixes with groundwater. Next,
water would be extracted through groundwater wells and inserted into the potable system. Following
extraction, the water can be treated for taste and odor, but that adds to the cost.
Utilities Advisory Commission Minutes Approved on: Page 10 of 12
In reply to Commissioner Forssell's inquiry regarding energy usage for additional purification, Phil Bobel,
Public Works Assistant Director, reported the cost of treating the water is significant. The cost of injecting
the water into the aquifer is unknown.
Engelage further stated one of the obstacles for indirect potable reuse is increased use of groundwater.
Direct potable reuse is similar to indirect potable reuse with the exception of the environmental buffer.
Without the environmental buffer, direct potable water requires additional treatment.
In answer to Commissioner Trumbull's question regarding indirect potable water's compliance with water
quality standards, Engelage advised that regulations for direct potable water are not fully developed.
Because of this regulatory uncertainty, implementation of direct potable reuse is a long-term option.
In response to Commissioner Forssell's query regarding standards for purification of direct potable reuse,
Carrie Del Boccio, Woodard and Curran, indicated purification standards are not known because regulations
have not been developed for direct potable reuse. The State's feasibility study required redundant
purification processes.
Engelage continued, explaining that direct potable reuse could utilize a great deal of water from the
Regional Water Quality Control Plant. Public acceptance of direct potable reuse is an obstacle, for which
feedback is requested.
In answer to Commissioner Segal's inquiry regarding public acceptance of both indirect and direct potable
reuse, Engelage related that public acceptance is an obstacle for both. Direct potable reuse may be more of
a concern because regulations have not been developed, it has not been implemented in the United States,
and the reference to it as toilet-to-tap water is unappealing. Indirect potable reuse has been implemented
in Southern California. Vice Chair Schwartz added that public acceptance could depend on the amount of
direct potable water customers are asked to drink. The concept of replenishing the aquifer by Injecting
water into it could increase public acceptance. Bobel reported studies have shown that the environmental
buffer removes a significant amount of pollutants.
In reply to Commissioner Forssell's query regarding reverse osmosis, Engelage explained that reverse
osmosis provides 0.8 gallon of purified water for every gallon subjected to the process. The remaining 0.2
gallon has to undergo further treatment or be discarded as waste. Del Boccio added that ocean
desalinization can provide 1 gallon of purified water for every 2 gallons used. In response to Commissioner
Trumbull's question about reverse osmosis purifying sewage water to the level of drinking water, Engelage
related that reverse osmosis does purify sewage water to the level of drinking water. The constraint on
direct potable reuse is cost rather than purity.
Engelage requested Commissioners comment regarding the community's willingness to accept the use of
groundwater and the implementation of direct potable reuse.
Vice Chair Schwartz recommended staff conduct community outreach. Dailey remarked that public
outreach for a project 20 years in the future is difficult. Vice Chair Schwartz felt this was a good opportunity
to involve school children.
Commissioner Trumbull was optimistic about the ability to change public opinion. He supported staff
proceeding with all but direct potable reuse as the other options sell the same concept as direct potable
reuse but not as directly.
Commissioner Segal was interested in whether public acceptance increased or decreased with a discussion
of cost and tradeoffs.
Utilities Advisory Commission Minutes Approved on: Page 11 of 12
Commissioner Forssell believed part of community acceptance is the odor and taste of water and requested
staff comment on the odor and taste of water from indirect and direct potable reuse. Engelage explained
that the final water quality depends on the beginning water quality. Concerns about groundwater are a
mineral taste or a musky odor. Commissioner Forssell felt that would result in community pushback. If
those concerns are eliminated with direct potable reuse, it could be an attractive alternative following
robust community education. Bobel added that indirect potable reuse would result in water containing a
high mineral content. In direct potable reuse, the reverse osmosis process can be adjusted to produce
water that is very similar to Hetch Hetchy water.
In reply to Commissioner Johnston's query regarding any other city utilizing direct potable reuse, Engelage
reported direct potable reuse has not been implemented in the United States. Bobel stated Southern
California would be the first to implement direct potable reuse. The City's partners in the Regional Water
Quality Control Plant may find many ways to utilize recycled water.
Commissioner Johnston commented that implementation in other cities would help alleviate Palo Alto
residents' concerns. Randy Raines, Woodard and Curran, shared the experiences of the City of San Diego in
developing recycled water. Currently, the City of San Diego is planning direct potable reuse. Commissioner
Johnston noted only the four potable reuse alternatives result in a savings of Hetch Hetchy water. Water is
a scarce resource, and any actions should result in a savings of potable water.
Vice Chair Schwartz felt the concept of recycling water is appealing to people. This is an opportunity to
engage CPAU customers in environmental awareness.
Chair Danaher concurred that the taste and odor of water is important to consumers. The alternatives
could potentially impact the demand for potable water. There may be other contributors to the solution.
Engelage requested Commissioners provide feedback regarding staff reserving a portion of the City's
wastewater or recycled water for City of Palo Alto use or exploring a long-term contract for transferring
water outside the City. Currently, the Santa Clara Valley Water District is preparing a countywide Water
Reuse Master Plan to evaluate methods for wastewater treatment plants in Santa Clara County to provide
water to different areas of the county. Under a regional transfer, the City of Palo Alto would transfer a
portion of its treated wastewater or recycled water to the Santa Clara Valley Water District for use
elsewhere in the county. A regional transfer would utilize a large amount of water from the Regional Water
Quality Control Plant and could occur in the next 5-10 years. If a regional transfer occurs, the amount of
water available for use in the City would be restricted for the life of the contract.
Chair Danaher noted the decision is quantitative; however, staff provided no data. Bobel advised that staff
will preserve 50% of the amount of water produced by the Regional Water Quality Control Plant for local
use. The amount is based on conservative estimates of the amount of water needed over the next ten
years. It is difficult to predict the need for water beyond ten years. Staff is communicating the local need
estimate to Santa Clara Valley Water District. The questions are should staff preserve more than the
estimate; should staff estimate water needs for the next 60 years, which is the length of a contract; and
should staff pursue a contract with a term of less than 60 years. Dailey clarified that the 50% amount would
include the full potential of local nonpotable reuse. Adding indirect potable reuse or direct potable reuse
to the conversation results in a clash between keeping water in the City and transferring it. The south part
of the county needs water, and the Santa Clara Valley Water District wants water; therefore, the water
would be put to good use. Giving up a resource for a long period of time can be risky.
In answer to Commissioner Forssell's question about payment for the water, Dailey indicated the City
would sell the water.
Commissioner Johnston questioned whether the City could negotiate different contract terms. Receiving a
return on water would be helpful while the City develops technology to use the water. Ensuring the City has
Utilities Advisory Commission Minutes Approved on: Page 12 of 12
sufficient water reserved for its use over the next 20 or 30 years is logical. Bobel advised that staff would
need to consider the length of a contract, the amount of water provided under a contract, and conditions
for terminating and renegotiating a contract. While the Santa Clara Valley Water District does not object to
the concept of conditions, it may object to some specific conditions.
Chair Danaher remarked that 40 or 60 years is a long time given climate uncertainty. A much shorter time
period or very strong conditions would be logical.
In response to Commissioner Trumbull's query regarding the role of the Regional Water Quality Control
Plant partners in negotiations, Bobel reported the City of Mountain View, as the largest partner, is playing a
major role. , Mountain View is comfortable with an agreement between the City of Palo Alto and the Santa
Clara Valley Water District, and staff is providing details of the negotiations to Mountain View. The Santa
Clara Valley Water District understands that one of the necessary conditions is the City of Palo Alto making
good faith efforts to secure agreements with its partners in the Regional Water Quality Control Plant within
two years of executing a contract with the Santa Clara Valley Water District.
Commissioner Forssell opined that a transfer of water is worth exploring if there is a good use for the
water.
ACTION: No action
ITEM 4. DISCUSSION: Discussion of CPAU's Role in Community Resilience Including Workshop Summary and
Draft Vision and Goals.
Chair Danaher announced this item is continued to the next meeting.
ACTION: No action
ITEM 5. ACTION: Selection of Potential Topic(s) for Discussion at Future UAC Meeting.
None
ACTION: No action
NEXT SCHEDULED MEETING: November 7, 2018
Meeting adjourned at 9:34 p.m.
Respectfully Submitted,
Rachel Chiu
City of Palo Alto Utilities
Page 1 of 2
1
MEMORANDUM
TO: UTILITIES ADVISORY COMMISSION
FROM: UTILITIES DEPARTMENT
DATE: December 5, 2018
SUBJECT: Staff Recommendation that the Utilities Advisory Commission Recommend
that the City Council Approve the Continuation of the 2018 Utilities Legislative
Guidelines into 2019
______________________________________________________________________________
REQUEST
Staff requests that the Utilities Advisory Commission (UAC) recommend that the City Council
approve the continuation of the 2018 Utilities Legislative Policy Guidelines into 2019.
BACKGROUND
The utility industry is a high-profile and heavily regulated industry subject to continuous
legislative action at both the state and federal levels. Such legislation can influence, among
other things, customer data, commodity procurement practices, program and rate design, and
activities and costs associated with climate protection.
At the state level, hundreds of bills focused on the utility industry can be introduced each year.
The number of bills introduced, the pace at which bills change, and the speed at which bills
receive a legislative vote requires staff and elected officials to respond quickly if the City is to
have any influence on the resulting legislation. Often, a response to an amended bill is required
in a matter of a day or two. These timing constraints preclude a return to the UAC and Council
for approval each time a response is required.
Therefore, staff annually develops a document identifying guidelines to be applied when
evaluating and responding to legislation. While the guidelines are used by staff for evaluating
legislation, any advocacy positions taken in alignment with these guidelines will be subject to
the approval of the Utilities General Manager or his designee. Although it is impractical to
return to the UAC for approval each time staff wishes to act in a timely, sometimes, very quick
manner, the issues under debate are known to the UAC and Council through written and verbal
updates from the Utilities General Manager or staff.
DISCUSSION
The 2018 Utilities Legislative Guidelines were discussed and approved by the UAC on November
1, 2017, and approved by the City Council on January 22, 2018. The approved guidelines have
worked well for staff and, pending UAC discussion, no changes are recommended. The current
guidelines are contained in Attachment A.
Attachment B provides a summary of key legislation from 2018. In the presentation, staff will
review legislative highlights from the current year and speak to potential items for next year.
Staff returns to the UAC annually to discuss legislation and the efficacy of the current guidelines.
Staff therefore proposes that, if adopted, the 2019 guidelines remain in effect from the date of
Council's adoption until the next approved update.
RESOURCE IMPACT
There is no direct resource impact associated with adoption of the legislative guidelines.
However, actions taken that support the efficient use of the City's assets and resources will help
control costs, implement the Council's policies and goals, and protect the interests of utility
customers.
ENVIRONMENTAL REVIE
The UAC's consideration of the legislative guidelines does not meet the California
Environmental Quality Act's definition of a "project" under Public Resources Code Section
21065.
ATTACHMENTS
A. Legislative Guidelines B. Summary of Key 2018 Legis
PREPARED BY:
REVIEWED BY:
DEPART ENT HEAD:
at on
HEATHER DAULER, Senior Resource Planner
DEBRA LLOYD, Acting Assistant Director, Utilities
Engin ig
ED SHIKADA
Assistant City Manager/Utilities GeneralManage
Page 2of2
Attachment A
Approved by City Council on ___________, 2019
2019 Utilities’ Legislative Policy Guidelines
City of Palo Alto Utilities Department (CPAU) staff will use the below guidelines as well as
the City’s guidelines to help determine any advocacy position or action on Utilities-related
issues. Formal advocacy requires the approval of the Assistant City Manager/Utilities
General Manager or his designee.
1. Seek to preserve local government flexibility, discretion, accountability, and oversight of
matters impacting utility programs, services, and rates. Oppose action that could reduce the
authority or ability of local government to determine how best to effectively operate local
programs, services, and activities.
2. Where possible, seek funding and program incentives.
3. Advocate for reasonable government action with minimal customer impact that allows for
flexibility and implementation feasibility.
4. Advocate for locally-designed conservation or efficiency programs. Support reasonable State
conservation or efficiency requirements that consider local populations, environment, and
resources.
5. Inform state and federal policymakers about CPAU’s current programs, services, goals, and
reporting requirements.
6. Oppose unnecessary, unreasonable, impractical, or costly rates or mandates.
7. Collaborate with and support the efforts of regional agencies and associations whose goals
align with ours.
8. Advocate for fair cost allocation and support the principle of beneficiary pays.
9. Support efforts to maintain or improve the security and reliability of our infrastructure.
10. Support government action that cost effectively reduces greenhouse gas emissions.
11. Promote locally-designed residential and commercial electrification programs.
12. Support government action allowing CPAU to maintain customer confidentiality.
13. Educate key accounts about significant policy actions that could affect their business.
Status Report
Monday, November 19, 2018
ENERGY
AB 813 (Holden D) Multistate regional transmission system organization: membership.
Current Text: Amended: 8/24/2018 html pdf
Desk Policy Fiscal Floor Desk Dead Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
This bill begins the process of expanding California's grid administrator (CAIOS) into a regional entity.
Issue Area: ENERGY
AB 893 (Garcia, Eduardo D) California Renewables Portfolio Standard Program.
Current Text: Amended: 8/28/2018 html pdf
Desk Policy Fiscal Floor Desk Dead Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Requires retail electricity sellers, including POUs, to procure a proportionate share of electricity products
from a statewide total of 4,250 megawatts of qualified renewable energy resources, defined by the bill
as (1) a subset of eligible renewable energy resources that consists of certain geothermal energy
resources with high performance relative to capacity, and (2) certain solar and wind energy resources
that are eligible for specified federal tax credits. The bill would require portions of that 4,200
megawatts to be procured from specified qualified renewable energy resources. POUs must develop a
plan for complying with the procurement mandate by June 30, 2019.
Issue Area: ENERGY
AB 2450 (Quirk D) Electrically conductive balloons.
Current Text: Chaptered: 9/5/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Requires manufactures of Mylar balloons to place on the balloons a statement warning of the
dangerous risk of fire if the balloon comes in contact with an electrical power line. Any violation is civil in
nature. Palo Alto has experienced multiple outages due to balloon contact, as recently as July 2, 2018.
Issue Area: ENERGY
SB 100 (De León D) California Renewables Portfolio Standard Program: emissions of greenhouse gases.
Current Text: Chaptered: 9/10/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Increases the 2030 Renewables Portfolio Standard target from 50% to 60%. Creates the policy of
planning to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon
resources by December 31, 2045, for a total of 100% clean energy.
Issue Area: ENERGY
SB 782 (Skinner D) Energy data transparency.
Current Text: Chaptered: 9/22/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Requires an electrical or gas utility to provide to the owner of a property containing two or more
buildings on a single parcel, or adjacent parcels with five or more active utility accounts, in aggregate,
residential or nonresidential, upon request of the owner, aggregate energy usage data on all such
Page 14
ATTACHMENT B
buildings.
Issue Area: ENERGY
SB 901 (Dodd D) Wildfires.
Current Text: Chaptered: 9/21/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
This bill is the result of the work of an ad-hoc, joint conference committee focused on wildfires and
electric utilities. For POUs, this bill, by January 1, 2020 and annually thereafter, requires us to prepare a
wildfire mitigation plan and to contract with a qualified independent evaluator to review and assess the
comprehensiveness of the plan.
Issue Area: ENERGY
SB 1339 (Stern D) Electricity: microgrids: tariffs.
Current Text: Chaptered: 9/19/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
For POUs, requires that within 180 days of the first request from a customer or developer to establish a
microgrid, we make available a a standardized process for the interconnection of a customer-supported
microgrid, including separate rates and tariffs, if necessary.
Issue Area: ENERGY
SB 1369 (Skinner D) Energy: green electrolytic hydrogen.
Current Text: Chaptered: 9/19/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Specifies that green electrolytic hydrogen is an energy storage technology to be targeted for increased
use. Requires the CPUC, CEC, and CARB to consider green electrolytic hydrogen an eligible form of
energy storage, and to consider other potential uses of green electrolytic hydrogen.
Issue Area: ENERGY
ENVIRONMENTAL
SB 881 (Wieckowski D) Flood control: County of Santa Clara: South San Francisco Bay Shoreline Project.
Current Text: Chaptered: 9/22/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Authorizes the state to provide funding to the Santa Clara Valley Water District for the South San
Francisco Bay Shoreline Project for flood control in areas along the South San Francisco Bay in Santa
Clara County.
Issue Area: ENVIRONMENTAL
WATER
AB 2370 (Holden D) Lead exposure: child day care facilities: family day care homes.
Current Text: Chaptered: 9/22/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Page 2/4
Requires a licensed child day care center that is located in a building that was constructed before
January 1, 2010, to have its drinking water tested for lead contamination. Water systems like Palo Alto
may be responsible for the testing.
Issue Area: WATER
AB 3206 (Friedman D) Water conservation: water meters: accuracy and performance standards.
Current Text: Amended: 6/28/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Dead Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Would require the State Energy Resources Conservation, on or before January 1, 2020, to the extent
that funding is available, to adopt regulations setting standards for the accuracy of water meters that,
on or after the effective date of those regulations, are installed by a water purveyor or manufactured
and sold or offered for sale in the state.
Issue Area: WATER
SB 623 (Monning D) Water quality: Safe and Affordable Drinking Water Fund.
Current Text: Amended: 8/21/2017 html pdf
Desk Dead Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Unofficially dead with major provisions in SB 845.
Issue Area: WATER
SB 845 (Monning D) Safe and Affordable Drinking Water Fund.
Current Text: Amended: 8/22/2018 html pdf
Desk Policy Dead Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
By January 1, 2020, requires a community water system with 200 or more service connections afford an
opportunity for each customer to provide a voluntary remittance as part of the customer’s regular
water bill. Monies collected will go to communities with failing water systems.
Issue Area: WATER
SB 966 (Wiener D) Onsite treated nonpotable water systems.
Current Text: Chaptered: 9/28/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Requires the State Water Board to develop standards for onsite nonpotable water treatment and
reuse and authorizes local jurisdictions to adopt programs to permit onsite nonpotable water
treatment and reuse using those standards. Requires a local jurisdiction, as defined, that elects to
establish a program for onsite treated nonpotable water systems to, among other things, adopt,
through ordinance, a local program that includes the risk-based water quality standards established by
the state board.
Issue Area: WATER
SB 998 (Dodd D) Discontinuation of residential water service: urban and community water systems.
Current Text: Chaptered: 9/28/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Imposes many restrictions on water utilities desiring to terminate residential service to non-paying
customers. Requires all public water systems with more than 200 connections to have a written policy
on discontinuation of residential water service, provide that policy in multiple languages, include
provisions for not shutting off water for certain customers that meet specified criteria, prohibit the
shutoff of water service until the bill has been delinquent for 60 days, and caps the re-connection fees
Page 3/4
for restoring water service.
Issue Area: WATER
SB 1422 (Portantino D) California Safe Drinking Water Act: microplastics.
Current Text: Chaptered: 9/28/2018 html pdf
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary:
Requires the State Water Board to adopt requirements for four years of testing of the amount of
microplastics in drinking water. Requires the State Water Board to, on or before July 1, 2020, adopt a
definition of microplastics in drinking water. It's anticipated that water systems like Palo Alto will be
responsible for the testing.
Issue Area: WATER
Total Measures: 16
Total Tracking Forms: 16
Page 4/4
2
MEMORANDUM
TO: UTILITIES ADVISORY COMMISSION
FROM: UTILITIES DEPARTMENT
DATE:
SUBJECT:
December 5, 2018
Discussion of CPAU’s Role in Community Resilience Including Workshop
Summary and Draft Vision and Goals
______________________________________________________________________________
RECOMMENDATION
This report is provided for discussion by the Utilities Advisory Commission (UAC). Feedback is
requested on: 1) the preliminary resilience vision and goals for the Utilities Department
identified during the August 28, 2018 Special UAC Resilience Workshop; and 2) plans for a
second workshop focused on topics to inform solutions.
EXECUTIVE SUMMARY
The purpose of this report is to summarize key findings from the August 28 workshop, present a
draft proposal of a resilience vision and goals for the Utilities Department for the UAC’s review
and feedback, and discuss next steps. Draft minutes of the workshop are included as
Attachment A, and the draft Initial Framework as Attachment B.
A couple of common themes emerged from the group discussions: creating resilient community
hubs with infrastructure, supplies, and materials to support the ability of residents to stay in
place or return quickly to their community after an emergency; and assisting local businesses to
survive and recover. From the discussions the following key areas of focus for the Utilities
Department started to emerge:
•Develop a roadmap to Smart grid / Smart Utility
•Manage critical utility facilities
•Help support Community Emergency Response Training (C.E.R.T.) and neighborhood
emergency volunteers
•Develop and manage a technical utility volunteer group (possibly assist with service
shut downs)
•Communication about what to do after utility outages. E.g. “What to turn on first”
and “what not to turn on”
DISCUSSION
The UAC hosted a community workshop on August 28, 2018 to better understand how the
community’s resilience goals, community priorities, and needs relate to utility services and
improving resilience. Approximately 80 community members, city staff, and commissioners
attended the meeting. The context and purpose of the meeting was to better understand what
aspects of resilience are important to the community and to begin framing the role of the
utilities in achieving the community’s vision. To help establish a common understanding of
resilience and start the conversation, a panel of experts gave presentations covering regional
resilience efforts, the potential economic impacts of disasters, and an overview of alternative
energy approaches to address some resilience issues. This was followed by speakers from the
City specific to the risks in Palo Alto.
The video HayWired (USGS video depicting a 7.0 earthquake and the cascading impacts) was
shown followed by a large group discussion of “What does resilience mean to Palo Alto?” The
video and discussion helped to set up a small group break out conversation on the impacts and
vulnerabilities that the Utility should prioritize with the question in mind of “What are the
problems we need to address?” The small groups reported back on top priorities and focus
areas for the Utility. Mindy Craig, BluePoint Planning (consultant), facilitated and graphically
recorded the meeting.
Resilience and Palo Alto: “What Does Resilience Mean to Palo Alto?”
Following the HayWired video, there was a group discussion on what resilience means for Palo
Alto. The following is a summary of the comments, concerns and questions raised:
• Resilience means that my family is self-sufficient
• Is my home “safe” after a disaster?
• Disaster plans need to be vetted by Devils’ Advocate (someone to ask the hard
questions)
• Critical facilities need to be available
• Want to be able to shelter at home - stay in the neighborhood
• Community needs to be self sufficient
• Community survivability
o The community needs to be resilient to work together to build and recover and
stay in Palo Alto. Surviving together
o Community organization and leadership. Have a known plan - Not ad hoc
• Social Equity – All economic levels/ communities have access to services
• Schools are safe and functional after a disaster
• Streets are “clear” – supplies are able to be brought in
• Communications
o Organized internal communications
o Partner with companies like Google to create a pilot program for cell phone
backup
• Are there reasonable investments the City can make to mitigate disasters within hours/
days not months?
o Bounce back ASAP
• Charging stations
• Conducting emergency drills
• Neighbors knowing each other which can create networks
• Creating decentralized hubs for action
Small Group Report Back - “What are the problems we need to address?”
The attendees broke into small groups of about 10 people per group and discussed which
earthquakes impacts and vulnerabilities the Utility should prioritize in dedicating resources,
funding, and staff. Each group had a table facilitator, a Palo Alto map, and a scenario to
consider and responded to questions regarding the following assets.
• People & Community
• Critical Services
• Built Environment
• Economy
• Natural Environment
The small groups reported back to the large group their top priorities. Below is a summary of
the top areas of focus/priority for the Utility.
People & Community
• Worker Housing
o Need affordable housing. Work with hotels for affordability
o Need workforce housing to give to city workers
o Staff retention
• City workers (who live outside Palo Alto) should be considered part of the community
and integrated into planning.
• Track of senior centers / at risk community members
• Encourage Community Emergency Response Training (C.E.R.T.) and neighborhood
emergency volunteering
• Resource maps distributed indicating resilience hubs. Include special needs population
• Utility services volunteers
o Train residents with technical backgrounds to help volunteer in specialized
utility areas in emergencies
• Schools should be to be open to support parents (ties with Economy category so
parents can work)
Critical Services
• Develop a plan/hierarchy for maximizing utility resilience and planning
resource/infrastructure projects:
o Electricity – for emergency services i.e: water pumps, 911, police and fire,
hospitals
o Water – for fire suppression then drinking water
o Communications
• Address the critical items to keep the city moving. A hierarchy created for each utility
• Location of the utilities needs to be considered. All are within the liquefaction zone. The
infrastructure of the Utilities needs to be on a secured location
• Fuel Reserves are important (backup generators, Tesla batteries…)
Built Environment
• Open/clear roads are needed
• Fault detection to mitigate damage
• Community “Hubs”
o Identify locations for community services /shelters
Schools, community centers, etc., hotels?
o “Hubs” have supplies
Water, power, food, etc.
• Keep water supply available and pumps powered (well water can be pumped
indefinitely as long as there is power)
• Building codes
o There could be some unintended consequences. i.e. sprinklers using too much
water needed for fire trucks
• Keep the mantra of “Surviving as a Community”
o Create safer housing: bolting foundations
o Building “safe” places to go. Build in resilience at the community “Hubs”
o Offer neighborhood bulk ordering for battery backups, food/water drums,
bolting of foundations
Economy
• Keep services available to high priority retail that support the community
o Hardware stores, gas, grocery, pharmacy, big box retail
o How will you know if they are open? Have electricity? Enough water? Enough
employees?
• Large Headquarter companies can work remotely if internet is available
• Need schools in service/open so parents can work and provide the needed
services/retail
• What will be used for money if ATM’s down or credit card machines do not work?
• Need highway recovery (clear roads) “delivery systems” so supplies/goods can be
brought in
Natural Environment
• Seasonal concerns: Summer - fire (Foothills) Winter - flood (king tides, storms)
o Impacts in both concerns to creeks (debris), landslides, wildlife (possibly more
wildlife brought into the City looking for food, sick, etc.)
• Use parks as gathering places
o “Housing” for people displaced from homes
o Provide key resources: health, etc.
o Potential for disease then parks could be used as a quarantine area
• Management of natural areas
• Manage and protect the natural infrastructure
• Water supply
• Communications
• Electricity and power
NEXT STEPS
Workshop #2. Review and Refine Framework and Scenarios
The second workshop will be designed to refine and establish a working Resiliency Framework
and Guiding Principles. This second workshop will be more solution orientated and may include
scenarios such as developing a second transmission line and/or developing a robust Distributed
Energy Resources network. The workshop may be incorporated into the regular UAC meeting in
November or December.
Implementation of identified resiliency efforts
In addition to new efforts identified through the workshops, CPAU has the following ongoing
activities related to resiliency:
• An assessment of the City’s electric distribution system ability to accommodate
Distributed Energy Resources (DER) growth;
• A community DER survey to assess residential customers’ interests, issues, concerns,
priorities, and preferences to inform CPAU’s DER Plan development. The purpose of the
survey is to identify the various attitudinal and/or behavioral characteristics within each
customer segment toward different home energy investment options and more broadly,
their interest in energy and water use issues;
• Evaluation of a second transmission line to provide redundant (backup) connection of
the City’s electric distribution system to the California electric grid;
• Water reservoir study, which, when the system model is complete, can be used to
analyze the City’s ability to maintain water delivery under a number of disaster/system
failure scenarios;
• Recycled water strategic plan: while the purpose of this is to look at long-term options
for alternative water sources, it may also provide insight for short term emergency
supplies;
• Smart grid applications that may enhance trouble-shooting capability to more efficiently
detect and fix faults and resume service, and also increase customer control over their
energy use and allow customers to respond in the event the utility requests reductions
in load use; and
• Day-to-day maintenance and infrastructure replacement plans designed to keep our
utility systems safe and reliable.
RESOURCE IMPACT
Funds of $12,310 for this work are included in the FY 2018 budget. Staffing resources to
manage the consultant and to finalize the work product have also been identified within
existing staff. Funding for projects identified for implementation will be subject to Council
approval in subsequent years.
POLICY IMPLICATIONS
This recommendation sets no new Council policy and is consistent with the Council-approved
2011 Utilities Strategic Plan’s strategy objectives for reliable supply of utility resources.
ENVIRONMENTAL REVIEW
Discussion of workshops to develop a framework and principles for resiliency planning and
efforts does not meet the definition of a project, pursuant to Section 21065 of the California
Environmental Quality Act, thus noenvironmental review is required.
ATTACHMENTS
A. Draft minutes of August 28, 2018 Special UAC Resilience V1 orkshop
B. Draft Initial Framework
PREPARED BY:
REVIEWED BY:
DEPARTMENT HEAD:
DEBRA LLOYD, Acting Assistant Director, Utilities Engineering
EAN BATCHELOR, Chief Operating Officer, Utilities
ED SHIKADA
General Manager of Utilities
Utilities Advisory Commission Minutes Approved on: Page 1 of 4
UTILITIES ADVISORY COMMISSION MEETING
MINUTES OF AUGUST 28, 2018 SPECIAL MEETING
CALL TO ORDER
Ed Shikada, Utilities General Manager, called the meeting of the Utilities Advisory Commission (UAC) to order
at 4:03 p.m.
Present: Chair Danaher, Vice Chair Schwartz, Commissioners Ballantine, Forssell, Segal, and Trumbull
Absent: Commissioner Johnston
ORAL COMMUNICATIONS
None
RESILIENCE WORKSHOP #1: DEFINE RESILIENCE, VISION AND GOALS
A. Introductions and Meeting Objectives
Ed Shikada, Utilities General Manager, explained that the workshop is intended to identify aspects of
resilience that are important to the community and to explore the roles of the Utilities Department and
utilities in general in a new and evolving vision of community resilience. During the update of the Strategic
Plan, stakeholders related that resilience is an important dimension of utility services. Shikada shared
definitions of resilience provided by stakeholders. Given the range of concepts, staff decided to engage the
UAC and community in a discussion to understand community assets, potential hazards, and resilience needs
related to utility services. Utility investments in infrastructure are typically large and long-term; thus,
changing the priorities and practices for utility investments is difficult to effect quickly. Questions for
consideration are how should the City of Palo Alto Utilities' (CPAU) role in building public infrastructure be
balanced with encouraging private investment and development on individual properties; what investments
should be prioritized for resilience while continuing to meet other City needs; how is resilience impacted by
staffing strategies and human resources; and other similar questions.
Mindy Craig, facilitator, advised that the intent of the workshop is to develop a common vocabulary, to learn
about CPAU activities, and to begin to establish goals, priorities, and a vision for resiliency. A future workshop
will explore solutions. A panel of experts will provide broad perspectives, and then staff will share CPAU
projects and studies. Hopefully, a video presentation will create a sense of urgency that resiliency is important
because of the many things that can impact CPAU. Participants will talk about what resilience means to the
City of Palo Alto, and small groups will identify details of resilience. Lastly, participants will identify priorities
and next steps.
B. Resilience Experts Panel
Corinne Bartshire, Urban Areas Security Initiative (UASI), related the background of UASI. One of UASI's tasks
is to prepare a Threat and Hazard Identification and Risk Assessment (THIRA), which is a tool for looking at
threats and risks across the Bay Area. The THIRA does take into account the interconnections of utilities and
transportation. UASI manages several working groups that facilitate conversations throughout the Bay Area.
The Emergency Management Work Group has focused on large special event planning and sharing law
DRAFT
ATTACHMENT A
Utilities Advisory Commission Minutes Approved on: Page 2 of 4
enforcement and security; commodity points of distribution; and on local agency capabilities for care and
shelter. An upcoming area of focus is critical transportation. UASI materials are available to the public on
UASI's website.
Josh Schellenberg, Nexant, reported on the difficulties of assessing the risk of a resilience investment for an
electric system. The focus on assessing risk has increased because of the increasing frequency and severity
of significant disasters. The Department of Energy, Lawrence Berkeley National Laboratory, and Nexant will
publish reports that provide guidance and recommendations for assessing the costs and benefits of resilience
investments. Nexant has conducted many studies of the value of grid resiliency and the direct and indirect
costs to businesses. Electricity is highly valued due to the high level of business productivity in the Bay Area.
The cost of a long-duration power outage is highest for small and medium businesses because they cannot
easily shift production from one time period to another. Methodological debate and challenges continue
around understanding the economic impacts of disasters. Based on information obtained in prior studies, a
power interruption lasting multiple weeks in the Bay Area could cost billions of dollars. The impacts to critical
infrastructure may require a separate assessment for the potential of a micro grid or grid islanding
capabilities.
Benson Joe, ABB Enterprise Software, summarized regulations to increase renewable energy standards and
to reduce carbon emissions. The California Independent System Operator (CAISO) power supply queue
includes 8,000 megawatts (MW) of solar power, 3,000 MW of wind power, and 12,000 MW of energy storage.
CAISO has to ensure the instantaneous supply of generation matches the instantaneous demand for
generation. As the amount of renewable energy in the power system increases, the reliability of the system
decreases. As a solution, adding more rooftop solar can be challenging in that too much generation without
sufficient load can damage equipment. Another solution is a micro grid, but the business proposition must
be considered. A discussion of grid resiliency has to include the question of what is the acceptable duration
of a power outage.
In response to questions from participants, Schellenberg advised that a great deal of research into everyday
outages has been conducted. The billions of dollars in cost applies to outages lasting multiple weeks. The cost
of a single-day outage is closer to $100 million. Joe added that there are tradeoffs to increasing the resilience
of existing infrastructure and building a micro grid for islanding during short-term outages. Mindy Craig,
facilitator, remarked that the benefit of resilience includes having a better community or better resources as
well as recovering from an outage. Schellenberg indicated most businesses believe that insurance would
cover only physical damages caused by an outage. Business interruption insurance or another type of
insurance probably would not cover the high cost of an extended outage. In many ways, investment in
infrastructure could be considered insurance. Joe likened insurance for an outage to an extended warranty
for a consumer product. The business has to compare the cost of a replacement product amortized over its
lifespan to the annual cost of an extended warranty. Bartshire reported the regional THIRA identifies risks
and resources but not action steps to respond to and recover from threats, which is the role of local
jurisdictions, cities, counties, etc. A local THIRA identifies actions and implementation. Sharing and witnessing
the effects of disasters has led to community preparedness. Schellenberg indicated a survey of Palo Alto
businesses could provide a fiscal analysis of resilience, but existing research can be extrapolated to Palo Alto.
Craig reported the community should help CPAU understand the qualitative values.
C. Community Risks and Resources for a Resilient Palo Alto
Kenneth Dueker, City of Palo Alto Office of Emergency Services Director, reported the City of Palo Alto is one
of the only local jurisdictions to have a THIRA. The City's THIRA addresses natural disasters such as
earthquakes and floods, accidents, and human-caused events. Resilience is the ability to suffer an event and
return to a reasonable level of functionality. Public safety's mission is to prepare for, prevent when possible,
mitigate, respond to, and recover from hazards. Following the airplane crash into the transmission line in
2010, the City considered spending millions of dollars to mitigate risks. However, the City has only identified
options for mitigating risks.
Utilities Advisory Commission Minutes Approved on: Page 3 of 4
Karla Dailey, CPAU Senior Resource Planner, noted the City of Palo Alto Comprehensive Plan and other City
documents address resilience. Specifically, the Comprehensive Plan addresses cooperative planning with
other agencies, community awareness, and long-term resilience for water and energy, community safety,
and CPAU infrastructure. The City completed its Emergency Water Supply Plan by refurbishing five wells and
developing three new wells. Along with the Santa Clara Valley Water District, staff is exploring an expansion
of local resilient water supplies.
Debra Lloyd, CPAU Acting Assistant Director of Utility Engineering, remarked that a loss of water would be
catastrophic on a long-term basis. Communications is a vital part of resilience and emergency planning. With
respect to local distribution, resiliency means prevention, recovery, and survivability. Water, wastewater,
and gas pipes are being replaced with pipes made of materials that are amenable to liquefaction. Electric
systems are not loaded to capacity so that supply can be switched among systems. Vegetation management
is important for the electric utility. Prevention strategies include installing barriers, elevating equipment,
relocating equipment and infrastructure, and increasing security. Staff is investigating battery storage and
smart grid pilot programs. Recovery plans, on-call field staff, and the outage management system aid in
recovering from a disaster. Survivability strategies include battery backups at substations, natural gas
generators to power low-voltage electronics, and communications to the community.
In reply to questions from participants, Dailey advised that lines for recycled water (purple pipes) are not
being installed city wide. Romel Antonio, Senior Project Engineer, reported generators have been installed at
El Camino Park and the Mayfield Pump Station to pump water, and three portable generators can be
transported to facilities as needed. The City can provide 9 million gallons of water per day from ground wells
if electricity is available. A participant suggested CPAU consider long-term power for cell towers and a rebate
program for homeowner purchase of Tesla wall packs. Dueker agreed that City staff need to live in or near
Palo Alto in order to provide manpower during an emergency situation.
D. Resilience and Palo Alto
The video HayWired (a USGS video depicting a 7.0 earthquake and the cascading impacts) was shown
followed by a large group discussion of “What does resilience mean to Palo Alto?”
Participants offered their definitions of resilience, including self-sufficiency and organization, continuation of
critical facilities, sheltering in home, the community working together, people of all income levels having
access to resources, safe and functional schools, clear roadways, pre-planning to ensure recovery in hours or
days, communications and charging of cell phones, and neighbor networks.
E. Small Group Exercise: What are the Problems We Need to Address?
Participants met in small groups to discuss the impacts and vulnerabilities that the Utility should prioritize
with the question in mind of “What are the problems we need to address?” and then reported back their top
priorities and focus areas for utilities. Each group had a scenario to consider and responded to questions
focusing on one of five asset categories: Critical Services; Economy; Natural Environment; People &
Community; or Built Environment.
• The critical services group identified a hierarchy of critical services, i.e., electric service for water
pumps, public safety, and communications; water for fire suppression, drinking, and medical
services; and communications for emergency responders and individuals. They also discussed the
location of utility infrastructure and risks of being in liquefaction zones.
• The economy group identified high priority retail services of hardware stores, pharmacies, gas
stations, and grocery stores and the need for utilities and employees at those businesses.
Employees may be able to work remotely if data centers and internet providers are operational.
Daycares and schools will be needed for employees to return to work in physical locations. A barter
system will be needed to replace cash and credit cards for purchases. The group also discussed the
need for highway recovery as “delivery systems” so that supplies can be brought in.
Utilities Advisory Commission Minutes Approved on: Page 4 of 4
• The natural environment group considered impacts on flora and fauna by season. People displaced
from their homes could camp in parks, in which case health, safety, and utility resources will be
needed in parks. Parks could be used as quarantine spaces to prevent the spread of disease. A
second natural environment group considered priorities of natural infrastructure, wildlife, parks
and recreation areas, and protecting and preserving the water supply, communications, and
electricity.
• The people and community resources group identified priorities of housing for workers, integration
of workers into the community, care facilities, and at-risk residents. Community Emergency
Response Team (CERT) and Palo Alto Neighborhood Disaster Activities (PANDA) volunteers and
resource maps will be needed. A second people and community group identified workforce housing
for City staff and staff retention and recruitment as priorities. Volunteers could be trained to
substitute for utility workers in the event of an emergency. Neighborhood leaders could compile
information regarding residents with special needs to ensure they have the resources they need.
• The built environment group identified priorities of minimizing and mitigating damage, converting
buildings to housing for displaced residents, and meeting Building Code and Code enforcement
needs. A second built environment group, guided by the importance of surviving a disaster as a
community, identified the priorities of safe housing, buildings, churches, schools, and water supply
and distribution.
F. Wrap Up and Next Steps
Participants identified needs for a roadmap to a secure smart grid for electricity, water, and gas; waste
disposal; secure CPAU infrastructure; decentralized operations for community hubs; meaningful support of
emergency volunteers; utility volunteers; a list of appliances and products to be turned off when electric
service resumes; and micro grids for community hubs that are distributed around Palo Alto.
Ed Shikada, Utilities General Manager, reported staff will provide information from the workshop to the UAC
so that the UAC can direct staff.
Meeting adjourned at 7:05 p.m.
Respecfully Submitted
Rachel Chiu
City of Palo Alto Utilities
Utilities Advisory Commission
Initial Resilience Vision and Goals
Prepared by BluePoint Planning September 14, 2018
Preliminary Vision
Support Palo Alto Community Resilience by advancing the City’s Utilities to become “Smart”
Utilities, able to assist the City prepare, respond, support, and rebound from manmade and
natural disasters.
Goals
1. Assist the City in ensuring that residents can stay in place or return as soon as possible in
the event of a disaster or emergency.
- Establish Community Resilience Hubs that provide residents access to power, water,
communications, and other critical supplies.
- Provide educational materials related to managing utilities when a disaster occurs.
- Support Community Emergency Response Training (CERT) and neighborhood
volunteers.
- Work with City Zoning to determine if codes support resilience and avoid unintended
consequences.
2. Support Community resilience by prioritizing utility services and infrastructure support to
critical facilities and retail establishments.
- Prioritize improvements and updates of utility services to critical facilities such as
hospitals, emergency providers, transportation, etc. to enable effective (and fast)
response and recovery.
- Evaluate and establish adequate power and water supplies (could be time specific – 1
week? 24 hours?) for these facilities.
3. Enhance the City’s Utilities to ensure their overall resilience.
- Develop Workforce Management and Support Plan
- Strengthen Utility Facilities and Infrastructure to better withstand disasters – consider
replacement, relocation, and upgrades
- Build partnerships with community and surrounding businesses to support the City’s
Utilities when needed.
ATTACHMENT B
Page 1 of 7
3
MEMORANDUM
TO: UTILITIES ADVISORY COMMISSION
FROM: UTILITIES DEPARTMENT
DATE: DECEMBER 5, 2018
SUBJECT: Staff Update on the Green Acres Rebuild and Request for Feedback on
Preparation of a Utilities Rule and Regulation Governing Community-Requests
for Fully Undergrounded Systems, Including a Procedure for Assessment Funding
______________________________________________________________________________
REQUEST
Staff requests that the Utilities Advisory Commission (UAC) receive an update on the
Underground Utility District 15 (“UUD 15” or “Green Acres I”) Rebuild and provide feedback on
staff’s preparation of a Utilities Rule and Regulation governing community-requested fully
undergrounded systems, including a procedure for assessment funding.
EXECUTIVE SUMMARY
City of Palo Alto Utilities’ (“CPAU”) endeavors to build and maintain a safe, reliable, and cost-
effective electric system that will minimize the risk of injuries and outages, and keep electric rates
as low as possible. In service of this goal, the Rules and Regulations currently require that
transformers and associated equipment in underground utility districts be pad-mounted. While
it is possible to install this equipment in underground vaults, such an installation is substantially
more expensive than a standard pad-mounted installation, and—in the view of CPAU staff—is
likely to be less reliable and more costly to maintain and operate.
CPAU needs to replace the 45-year old transformers and cables in Green Acres I because that
equipment is at the end of its service life. CPAU would normally use electric funds to replace the
existing equipment with a standard pad-mounted installation. However, the existing Green Acres
I equipment is fully undergrounded, and a number of residents have strongly opposed the
installation of any new equipment that is not fully undergrounded.
In order to avoid burdening other system ratepayers with the added costs associated with a fully
undergrounded system, it has been suggested that Green Acres I property owners may be willing
to pay for the additional cost of a fully undergrounded system via a voter approved assessment.
Existing Rules and Regulations do not provide for this option, which, if implemented, ultimately
would require all property-owners in Green Acres I to pay for a more expensive system that is
supported by some (but likely not all) property owners. Staff requests guidance from the UAC
Page 2 of 7
regarding the possible preparation of a Utilities Rule and Regulation that would permit such an
assessment.
BACKGROUND
Underground Utility District 15 (“UUD 15”), the area bounded by Arastradero Road, Pomona
Avenue, Glenbrook Drive, and Los Palos Avenue (also known as Green Acres I), was constructed
and completed in 1973. To maintain reliability of the electric system, CPAU needs to replace the
45-year old transformers and cables, and bring the system up to current design standards. In
1973 UUD 15 was constructed using all subsurface equipment in concrete vaults. CPAU‘s current
standard for underground construction is to install pad-mounted equipment (above ground
equipment sitting on a concrete pad) with only the cables installed below ground. This design
aligns with CPAU’s responsibility to build a safe, reliable, and cost effective electric system that
will minimize the risk of injuries and outages, and keep electric rates as low as possible. The
proposed design using pad-mounted equipment met with opposition from a significant number
of residents in Green Acres I, who expressed concerns over aesthetics, safety and property
values. Staff presented a report at the August 1, 2018 UAC meeting explaining the safety,
reliability and cost justifications for CPAU’s standard for pad-mounted equipment. At this
meeting the UAC also heard comments from Green Acres I community members. The UAC
requested that CPAU staff work with residents on design alternatives to accommodate aesthetics
and safety.
DISCUSSION
Over the last three months CPAU staff have presented a design alternative to residents and
attempted to answer residents’ questions. Please refer to Frequently Asked Questions (FAQs)
shown in Attachment A: “FAQs Green Acres Underground Rebuild”, which addresses Green Acres
specific questions, and Attachment B: “FAQs Utilities Undergrounding and Rebuilds”, which
addresses more general FAQs about undergrounding and rebuilds. Staff recognizes that the
Green Acres community and UAC members have asked for studies about relative safety of pad-
mounted vs. subsurface transformers, but such studies have not been found. Staff can attest to
the fact that pad-mounts are the industry standard and the number of manufactures supplying
subsurface transformers has subsequently declined in recent years. Staff has provided residents
information about staff’s experience of subsurface equipment explosions in Palo Alto, but we
cannot extrapolate this experience to large scale statistics given the City’s small sample size and
the fact that the City’s subsurface equipment tends to be older.
Staff did propose an alternative plan for the pad-mount transformers that reduced the number
of those transformers from nine to six and placed them in more discrete locations. We presented
the new concept to three of the Green Acres I Association (GAIA) Board Members for review and
feedback, and offered to work with property owners on landscaping if a transformer was to be
placed somewhere near their property. We also offered to place sample cabinets (the
transformer housing) in the proposed locations so that residents could more easily visualize the
impact. Finally, we offered to participate in another community meeting to answer further
questions. The feedback we have had from community representatives is that any pad-mount
Page 3 of 7
equipment is not an acceptable solution and they want to work with us on a fully undergrounded
system.
In response to Green Acre I resident questions, staff provided cost estimates to show the
difference in costs between the standard pad-mounted design and the community requested
design with all equipment installed below ground in subsurface boxes. The estimate is shown in
Attachment A with a modified version shown in Figure 1.
As equipment standards have evolved since 1996, current functional and safety requirements
cannot be met by simply reusing existing vaults in the Green Acres I neighborhood. Putting aside
the safety and reliability justification for pad-mounted equipment, CPAU’s current construction
and safety standards require installing no more than one piece of equipment in a vault; multiple
pieces of equipment in a single vault results in reduced clearances and increases the chances of
disruption of the equipment. As a result, in the Green Acres I neighborhood, simply maintaining
the existing load serving capacity would still require extensive subsurface construction to
relocate transformers to separate vaults from secondary connections, hence the cost component
for new vaults. These engineering estimates are based on recent quotes for equipment and labor
costs. This is not the full project cost as it only compares the components that would change
between the two designs; the replacement of electrical cables will be a similar scope under both
designs. In the Fiscal Year 2019 budget, the estimated construction budget for the UUD 15
rebuild was just over $500,000, with the cable replacement component comprising about
$180,000 of the total budget.
Staff’s current estimate is that the additional costs associated with the non-standard installation
would be approximately $413,000 (see Attachment A and Figure 1). This number is preliminary,
and may need revision upon additional engineering study. This amounts to a likely cost in the
range of $4,000-$5,000 per customer serviced by the Green Acres I system.
Page 4 of 7
Figure 1: Cost Comparison Provided in FAQs for Green Acres Neighborhood
Unit Cost Estimates for Above Vs. Below Ground Equipment and Installation
(A)
Above ground
Pad-mount
Equipment
(Transformers
& Loadbreaks)
(B)
Above ground
Pad-mount Loop
Feed
Transformers (No
Loadbreaks)
(C)
Below ground
Submersible
Equipment
Transformer $ 1,854 $ 4,170 $ 5,719
Switch $ 1,277 $ - $ 536
Misc. Equipment $ 2,748 $ 1,056 $ 956
Pads/Vaults $ 5,312 $ 1,075 $ 12,552
Substructure Installation $ 23,571 $ 10,355 $ 23,571
Equipment Installation $ 15,478 $ 9,594 $ 15,478
Total Unit Cost $ 50,240 $ 26,250 $ 58,812
Cost Differential Between the Two Green Acres Designs
Design Description Cost
Components Total Cost
Five Transformers with
Loadbreakers = 5 x (A) $ 251,200
Four Transformers without
Loadbreakers = 4 x (B) $ 105,000
Nine Below Ground Submersible
Equipment = 9 x (C) $ 529,308
Special Facilities Fee* $ 239,993
Cost Differential between Padmount and Submersible Equipment 413,101$
* Special Facilities Fee is the present cost of ownership (maintenance, operation)
Rule & Regulation #20 Section J https://www.cityofpaloalto.org/civicax/filebank/documents/8208
Note that the Special Facilities fee is an estimate for what may be allocated for such a project as is in
the Green Acres I neighborhood. At this time we do not have a precise fee for the situation in which a
group of property owners request facilities that differ from the utility’s standards. The purpose of the
fee is to collect the ongoing operations and maintenance costs of the special facilities.
Material and Labor Unit Costs
Materials
Labor
Utility
Standard
(Above
Ground)
356,200$
769,301$
Home-
owner
Requested
(Below
Ground)
Page 5 of 7
The calculation of the proposed Maintenance and Operations (Special Facilities Fee) component
is illustrated in Figure 2
Figure 2: Proposed Maintenance and Operations Fee Calculation
Potential Cost-sharing for Fully Undergrounded System
Section B(3) of City of Palo Alto Rule and Regulation 3 (Attachment C) requires that “all new
equipment in underground areas required to provide electric service to a Customer shall be pad-
mounted.”
However, Rule and Regulation 3 also provides that:
The Utilities Director, or his/her designee, may authorize…an exception to the
above provisions when, in his/her opinion, a pad-mounted equipment installation
in any particular instance would not be feasible or practical….
This sort of exceptional or non-standard installation is considered a “Special Facility” as defined
in Rule and Regulation 20 (Attachment D). Pursuant to Regulation 5 (Attachment E), the applicant
requesting service is responsible for costs associated with the non-standard installation of a
Special Facility.
The typical application of this exception occurs, for example, when (as occurs in downtown
University Avenue) a new development has zero lot line building construction and would require
pad-mounted equipment to be installed in alleys, sidewalks or streets obstructing pedestrians
and vehicles.
A full undergrounding in Green Acres I would not fall under the exception to Rule and Regulation
3 because it is feasible and practical to install pad-mounted equipment in Green Acres I.
Furthermore, it is unlikely that 100% of the approximately 100 customers in Green Acres I will
Item No.Description
Materials 96,708$
Labor 76,400$
Other -$
1 Estimated Job Cost Differential 173,108$
Annual Cost of Ownership Factor 0.067
Annual Cost of Ownership 11,598$
Term 30
Discount Rate 3%
2 Present Value of Annual Cost of Ownership $227,331
3 Present Value of Annual Energy Losses 12,662$
4 SPECIAL FACILITIES FEE (2+3)$239,993
Differential Cost Between
Standard and Requested
Facilities
Page 6 of 7
support the fully undergrounded installation. Rule and Regulation 3 is not typically used to
impose a charge upon an existing customer to fund additional costs associated with a non-
standard installation that the City does not consider infeasible or impractical.
Consequently, if it is desired that Green Acres I property owners be able to request a fully
undergrounded installation that will be funded through a levy on all property owners served by
the installation, it will be necessary to amend the Rules and Regulations to provide a procedure
governing such a request. Staff recommends that, if such a procedure is adopted, it require that
the request be signed by owners of not less than 75% of the parcels served by such a system.
Furthermore, the formal mechanism for imposing the levy would likely be the imposition of a
real-property assessment. Under state law, such an assessment can only be levied if the City (i)
prepare an engineers’ report, and (ii) conducts a property owner mail ballot proceeding—which
is essentially a property owner election. Costs associated with the report and proceedings,
roughly estimated to be at least $20,000, would be added to the assessment amount. The report
preparation and balloting would take several months.
Staff recommends that the procedure provide that the engineer’s report and ballot proceeding
not be commenced until after the City has received the required request from property owners.
Staff also recommends that there be a strict time limit placed on the period in which signatures
for the request are collected, in order to ensure that the process, if unable to gain sufficient
support, does not cause additional substantial delay to the installation of the pad-mounted
option.
NEXT STEPS
After receiving the UAC’s feedback, staff will take a recommendation to Council, which could
result in the adoption and implementation of a rule governing community requests for fully
undergrounded systems. A revised schedule will be set once an approval process is determined.
RESOURCE IMPACT
The resource impact will depend on the allocation of the incremental installation and
maintenance costs, and the costs of creating a system to administer and allocate the expense of
proceeding with subsurface equipment in Green Acres I.
POLICY IMPLICATIONS
A Council decision to adopt a Rule governing community requests for fully undergrounded
systems, including a method of assessing a levy upon property owners, would require changes to
Rule and Regulation 3 and 20.
ATTACHMENTS:
A. FAQs Green Acres Underground Rebuild
B. FAQs Utilities Undergrounding & Rebuilds
C. Rule 03 effective 6-27-2016
D. Rule 20 effective 6-27-2016
E. Rule 05 effective 2016-06-27
Page 7 of 7
PREPARED BY: Debbie Lloyd, Assistant Director, Utilities Engineering
REVIEWED BY: Dean Batchelor, Chief Operating Officer, Utilities
DEPARTMENT HEAD: ______________________________
Ed Shikada, Assistant City Manager/Utilities General Manager
Frequently Asked Questions (FAQs)
City of Palo Alto Utilities (CPAU) Underground District Rebuild Projects
Green Acres Neighborhood
1)General FAQs about utilities underground district projects.
2)Why is the City planning to rebuild the utilities underground equipment in the Green Acres
neighborhood?
a.The wires and equipment in Green Acres are 45 years old and past their life expectancy. It is
next on the list of older underground systems that require a rebuild based on age of
equipment. This is in line with CPAU’s policy of proactive infrastructure replacement before
equipment fails.
3)Have any switches and transformers or other underground electrical equipment in the Green Acres
underground district been replaced or repaired? If so, when and where?
a.CPAU has not performed any major infrastructure work to replace transformers and
switches in the Green Acres neighborhood, with the exception of replacing a lid on one of
the utility boxes. However, repair or replacement of smaller components (such as a
corroded elbow) frequently occur during inspections as part of CPAU’s basic maintenance
procedures and are typically not recorded.
4)When is the last time the City opened the grates/utility boxes in the Green Acres neighborhood to
inspect the condition of the underground utilities equipment?
a.Full inspection occurs every three years for underground equipment. Operators open
subsurface structures/grates, clean out debris, pump out and dispose of liquids, inspect and
repair or replace components as needed.
b.“Walk-by” inspections occur annually. The last detailed inspection in Green Acres was
November 2015 and the last walk by visual inspection was November 2017. This year’s
inspection will be a full detailed inspection.
5)When other underground districts have been rebuilt, has the equipment remained below the
surface or was it relocated aboveground?
a.Underground districts #6 and 7 were recently rebuilt. When rebuilt, the subsurface
equipment was relocated to aboveground pad-mounted equipment, per the City’s standard
requirements.
6)What are the dimensions of pad-mounted equipment required for an underground rebuild project?
a.The size of pad-mounted transformer enclosures, or cabinets, depends on the type of
equipment installed, but the largest cabinet size CPAU proposes is 38” (height) x 48” (width)
x 39” (depth). CPAU has installed smaller cabinets at about 35” H x 37” W x 35” D. Note that
the installed cabinet size will depend on final design and availability of cabinet inventory in
the market. Staff is investigating options for the smallest feasible cabinets for installation in
ATTACHMENT A
utilities undergrounding rebuilds. Currently, CPAU staff have identified available cabinet
sizes of approximately 36” H x 40” W x 36” D.
b. The concrete pad may add 2-3” but depending on gradient may be able to set flush with
ground.
7) Are there any alternatives to the aboveground containments that might be used other than the
proposed transformer enclosures?
a. Staff are exploring alternatives to the proposed transformer enclosures, in response to
residents’ concerns that the aboveground padmount transformers are large and intrusive.
The original proposal for padmount transformer enclosures, or cabinets, was for the largest
cabinet size possible, to provide the greatest electrical system capacity in this neighborhood.
However, staff have agreed to evaluate the feasibility of installing smaller cabinets during
the design phase of this project and work with residents to identify a mutually-agreeable
solution.
8) What is the electrical capacity of the existing underground equipment in the Green Acres
neighborhood and what percentage of that capacity does Green Acres currently use? What capacity
would the new transformers and switches provide?
a. The current system load is about 70 percent of total capacity, however there are 4-5
transformers that are either operating at full capacity or are overloaded. Through this
utilities underground rebuild, the City has the ability to double the total capacity of the
system.
9) How much additional capacity will pad-mounted equipment provide?
a. It is estimated that pad-mounted equipment can provide an additional 50 percent to 100
percent power capacity.
10) What is the comparative cost estimate of aboveground pad-mounted equipment vs. subsurface
equipment?
a. The following table provides current engineering estimates based on recent quotes for
equipment and labor costs. This is not the full project cost as it only compares the
components that would change between the two designs.
Unit Cost Estimates for Above Vs. Below Ground Equipment and Installation
(A)
Above ground
Pad-mount
Equipment
(Transformers
& Loadbreaks)
(B)
Above ground
Pad-mount Loop
Feed
Transformers (No
Loadbreaks)
(C)
Below ground
Submersible
Equipment
Transformer $ 1,854 $ 4,170 $ 5,719
Switch $ 1,277 $ - $ 536
Misc. Equipment $ 2,748 $ 1,056 $ 956
Pads/Vaults $ 5,312 $ 1,075 $ 12,552
Substructure Installation $ 23,571 $ 10,355 $ 23,571
Equipment Installation $ 15,478 $ 9,594 $ 15,478
Total Unit Cost $ 50,240 $ 26,250 $ 58,812
Cost Differential Between the Two Green Acres Designs
Design Description Cost
Components Total Cost
Five Transformers with
Loadbreakers = 5 x (A) $ 251,200
Four Transformers without
Loadbreakers = 4 x (B) $ 105,000
Nine Below Ground Submersible
Equipment = 9 x (C) $ 529,308
Special Facilities Fee* $ 291,472
Cost Differential between Padmount and Submersible Equipment 464,580$
* Special Facilities Fee is the present cost of ownership (maintenance, operation, replacement).
Rule & Regulation #20 Section J https://www.cityofpaloalto.org/civicax/filebank/documents/8208
Note that the Special Facilities fee is an estimate for what may be allocated for such a project as is in
the Green Acres neighborhood. At this time we do not have a precise fee for the situation in which a
group of property owners request facilities that differ from the utility’s standards. The purpose of the
fee is to collect the ongoing operations and maintenance costs of the special facilities.
Material and Labor Unit Costs
Materials
Labor
Utility
Standard
(Above
Ground)
356,200$
820,780$
Home-
owner
Requested
(Below
Ground)
11) How will the Green Acres neighborhood underground rebuild project be funded?
a. Based on current standards, CPAU is proposing to rebuild the Green Acres underground
equipment by installing aboveground pad-mounted equipment. In this proposal, CPAU will
cover the full costs of the rebuild project through funding from the electric utility enterprise.
b. Funding for any additional subsurface work or below ground equipment installation at the
request of property owners is still to be determined. The City is evaluating funding scenarios
in which residents may need to pay for such additional work if it is outside of the scope of
the City’s current standards for rebuilding utilities equipment in underground districts.
Page 1 of 6
Frequently Asked Questions
City of Palo Alto Utilities Undergrounding & Underground District Rebuild Projects
1)What is a “utilities undergrounding” project?
a.Utilities undergrounding involves relocating overhead electrical, telephone and
cable TV wiring and equipment to below-ground vaults and/or aboveground
padmounts to house the equipment.
2)How is the City of Palo Alto involved in utilities undergrounding?
a.Since 1965, the City of Palo Alto Utilities (CPAU) has administered an ongoing
program to convert overhead utility lines, including electric, telephone, and cable TV
facilities, to underground. This staff report provides some historical background on
the City’s undergrounding program.
3)Who approves an underground district?
a.City Council creates an underground district by passing an ordinance which amends
the Underground District into Municipal Code. This occurs after a Public Hearing to
take comments from the public.
4)Are there different types of underground districts?
a.Yes. There are 3 types of underground districts: 1) General Public Interest and
Benefit district where CPAU pays for all construction in the Public Right-of-way; 2)
Primarily for Local Public Benefit district where the construction costs in the Public
Right-of-way are shared equally between the utility and the residents; and 3)
Insufficient Public Benefit, where the requester pays at least 75% of the cost of the
undergrounding in the Public Right-of-way.
5)What type of districts have been formed in the City?
a.Over the years, each type of underground district has been formed and constructed.
However, the overwhelming majority of the districts have been General Public
Interest and Benefit districts.
6)When will my neighborhood be undergrounded?
a.The City prepares a 5-year budget each year. This document shows the next several
planned underground districts. Planning is not done beyond the 5-year planning
horizon. This is because the decision to underground is based, in part, on the
condition of the electric system which constantly changes due to renovations and
new construction.
ATTACHMENT B
Page 2 of 6
7) How long will it take to underground the entire City?
a. At the current rate of undergrounding it will take in excess of 50 years to complete
the entire city.
8) Can the program be sped up?
a. The rate at which undergrounding can be accomplished is dependent upon the
financial participation of our joint partners (telephone and cable TV providers). The
telephone company is regulated by the California Public Utilities Commission on how
much it must spend on underground projects. Any acceleration of the program
would have to be coordinated closely with telephone regulations.
9) How much does the electric utility spend on undergrounding each year?
a. Approximately 1% of the electric revenues are spent on undergrounding each year.
This level of funding will underground approximately 100 homes per year.
10) How much of the undergrounding costs do I pay?
a. If it is a General Public Interest and Benefit district, the homeowner pays the $3,000
and $8,000 to make the home ready for underground service. In other types of
districts, the homeowners pay a greater share of the costs.
11) Is there a program to help customers with the cost of converting their service to
underground?
a. The City has a 10-year loan program where a lien is placed against the property for
the amount of the loan and the loan payments are collected on the property tax bill.
12) How much does it cost to underground the electric facilities in front of my home?
a. The portion of the work performed by CPAU has averaged a cost to the City of
between $10,000 and $15,000 per home. In most cases the underground district is
determined to be of “General Public Interest and Benefit” where CPAU pays for all
construction in the Public Right-of-way, but there are cases where the benefits are
more local and the homeowners share some of this cost. In addition to CPAU’s cost,
the homeowner can spend from $3,000 to $8,000, or more in some cases, to make
their home ready for underground service. The actual cost a homeowner incurs is
due to a variety of factors such as the distance from the City's electrical service box
in the sidewalk or street to the homeowner's meter panel, whether the trenching
work is under a paved walkway or driveway versus in the yard, the variations in price
provided in written bids from licensed electricians or contractors, and which installer
is selected by the homeowner.
b. These FAQs on Homeowner Service Conversions provide more details on what is
required on the part of the property owner.
Page 3 of 6
13) How do I select a contractor to do the undergrounding of my home service?
a. To be certain that your money is well spent, we recommend spending some time
before you start your project by asking friends for personal recommendations of
contractors they have liked, getting written bids from contractors, checking their
references, obtaining a written contract for the terms and work agreed to, and
monitoring the project and contractor as the work progresses. A great source of
thorough information and free publications about selecting a contractor in our area
is the Contractors' State License Board, Northern Region. Visit their website at
http://www.cslb.ca.gov or their office at (916) 255-4027 in Sacramento. Complaints
can also be registered through this oversight board.
14) Do I have to participate in the underground district?
a. City Council creates an underground district by passing an ordinance which amends
the Underground District into Municipal Code. This occurs after a Public Hearing to
take comments from the public.
15) If I do not want to participate in an underground district before it is formed what should I
do?
a. During the formation of the underground district, you will receive a survey to
determine interest in the underground district. You should respond that you are not
interested in forming a district. In addition, you may write to the City Council letting
them know your concerns. You may also attend the Public Hearing for the
underground district and speak directly to Council with your concerns.
16) What is the life expectancy or replacement rate for such utilities equipment that has been
undergrounded?
a. The life expectancy of subsurface cables and equipment is approximately 30 years.
After that point, the equipment is deemed a risk of failure and therefore needs to be
replaced.
17) Why does the City need to rebuild an existing underground district?
a. Vaults that hold subsurface equipment tend to accumulate water and runoff which
includes oils, pesticides and general debris. Oils and corrosives react negatively with
the metal shell of the equipment, breaking it down over time. Accumulated debris
creates an additional layer of insulation on the equipment, which prevents heat
from escaping. This further contributes to the deterioration of the equipment. CPAU
has a proactive infrastructure replacement program, which is scheduled around
replacing equipment before it fails to support reliability of our utility services.
Page 4 of 6
18) What is involved in a utilities underground rebuild project?
a. Utilities underground rebuild projects involve the redesign of the underground
electric system to current design practices. This includes replacement, where
necessary, of cables, switches, transformers, and associated equipment, as well as
conversion of the primary voltage from 4,160 Volt (V) to 12,470 V.
b. Per City policy, Section B (3) of City of Palo Alto Rule and Regulation 3 (Description of
Utility Services), aboveground padmount equipment is required for all new
underground electric construction. Where possible, submersible equipment will be
replaced with padmount equipment which is more reliable, safer to operate, and
more easily maintained.
19) What is the reason for installing aboveground pad-mounted electrical equipment?
a. Since 1996, the City’s utility standards have required aboveground pad-mounted
equipment that is demonstrated to be safer to operate, provides greater reliability
and operational flexibility. Pad-mounted equipment is the industry standard for
underground utilities construction.
20) Is it possible to replace the existing equipment with new subsurface equipment?
a. Yes, it’s possible. However, as equipment standards have evolved since 1996,
existing functional and safety requirements cannot be met by reusing existing vaults.
Subsurface equipment poses a significant safety hazard to personnel, is highly
susceptible to adverse operating conditions, has a lower life expectancy, reduces
system flexibility, is more costly to install and maintain.
21) Is there data on the health or safety risks of aboveground vs. below ground equipment?
a. There are no published studies, but based on operating experience and results, it is
now accepted as industry practice to install aboveground pad-mounted equipment
for all electric system equipment. See example from San Diego Gas and Electric and
Pacific Gas and Electric utilities.
22) Have there been any dangerous subsurface transformer-related incidents reported in Palo
Alto?
a. Since 1994, a review of incidents attributed to underground equipment identified 30
exploded subsurface transformers and switches. There have been two similar
incidents for aboveground pad-mounted transformers. A few reports from CPAU’s
Electric Operations team related to outages on subsurface transformers include:
i. Transformer explosion causing damage to cables.
ii. Transformer case rusted through, oil leaked, transformer exploded.
iii. Street light transformer exploded in an underground vault, causing damage
to the vault and iron plate; leaked oil.
Page 5 of 6
iv. A 25 kilovolt-amp (kVA) transformer supplying power for a water pressure
pump in the hills blew up, causing the power line to trip. Three men were
injured.
v. A 25 kilovolt-amp (kVA) exploded, causing a feeder breaker to relay to
lockout, leak oil.
23) What statistics can CPAU provide about the reliability or failure rate of below ground versus
aboveground electrical utility equipment?
a. Based on review of CPAU’s power outage data, 264 outages have been reported on
the underground system since 1994. Incidents specific to transformers in subsurface
vaults are responsible for 71 outages, while 17 outages are associated with
aboveground pad-mounted transformers.
24) Are there other Palo Alto neighborhoods with below ground installations that have been
retrofitted with aboveground installations?
a. Underground Districts #6 (2003) and #7 (1995) were rebuilt and retrofitted with
aboveground installations. (Link to Utilities Underground Districts map)
25) In Underground Utility District #47 (Charleston/Arastradero/El Camino Real), it appears
electrical wires and transformers have been fully undergrounded.
a. Underground District 47 was constructed with all new equipment installed
aboveground. Nearby, a district adjacent to 47 that was constructed before the
current standards were adopted had most equipment installed subsurface. In
District 47, CPAU converted the existing overhead wiring and equipment to
underground, with all new equipment pad-mounted aboveground.
26) Is it possible that the City can connect to previously constructed underground districts and
install subsurface equipment?
a. As the City expands an underground conversion project, we at times will connect to
a previously undergrounded system. If that undergrounding occurred prior to 1996
and has not yet been rebuilt it will have below ground equipment. An example of
current practices can be observed in Underground Districts #6 and #7 which have
both been rebuilt with aboveground pad-mounted equipment.
27) How often are subsurface equipment inspected compared to above ground pad mounted
equipment?
a. Full inspection occurs every three years for underground equipment compared
to every five years for above ground pad-mounted equipment. At least every
three years, operators open subsurface structures/grates, clean out debris,
pump out and dispose of liquids, inspect and repair or replace components as
needed. Walk by inspections occur annually for all equipment.
Page 6 of 6
28) Is the City considering technologies that provide built-in flexibility, so that the electrical
system can be upgraded over time with minimal disturbance?
a. In the next five years, the City is planning to deploy advanced-metering
infrastructure which will improve CPAU’s ability to identify the location of electric
faults causing power outages, quickly repair failed equipment, and shorten system
recovery times. Rebuilding an underground district can increase capacity and
improve system flexibility.
29) What other technological changes does CPAU expect to occur in the future that might
require additional electrical capacity and what improvements would they bring?
a. Continued electrification of transportation mechanisms, such as through electric
vehicles, and shifting away from natural gas uses is expected to increase electricity
consumption and loading on feeders. The benefits are that costs may come down
over time as technologies improve. Conversely, the increased demand and stress on
the electrical system may exacerbate the probability of equipment failure and
outages if the system is not sufficiently sized to carry an increased load.
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 1
A. GENERAL
Rule and Regulation 3 describes Services that are offered within the jurisdictional boundaries of
the City of Palo Alto. For Rules specific to each type of Service, please refer to the following
Rules and Regulations:
Rule and Regulation 20 – Special Electric Utility Regulations
Rule and Regulation 21 – Special Water Utility Regulations
Rule and Regulation 22 – Special Gas Utility Regulations
Rule and Regulation 23 – Special Wastewater Utility Regulations
Rule and Regulation 24 – Special Refuse Service Regulations
Rule and Regulation 25 – Special Storm and Surface Water Drainage Utility Regulations
Rule and Regulation 26 – Special Fiber Optics Utility Regulations
B. ELECTRIC SERVICE
1. BASIS OF SERVICE
a.Unless otherwise provided in a Rate Schedule or contract, CPAU’s Electric rates
are based upon the furnishing of Electric Service to Customer Premises at a single
Point of Delivery at a single voltage and phase classification. Unless specified
otherwise, each Point of Delivery shall be metered and billed separately under the
appropriate Rate Schedule. Any additional Service supplied to the same
Customer at other Points of Delivery or at a different voltage or phase
classification shall be separately metered and billed.
b.The type of distribution Service (voltage, Secondary, Primary) available at any
particular location may be determined by inquiry to a CPAU Engineering
representative.
c.If the Customer, for his or her convenience, requests Secondary or Primary
Services at an alternate Point of Delivery other than the normal Point of Delivery
as determined by CPAU, the Customer is responsible for all cost of providing
Secondary or Primary Services at such alternate location.
d.CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment
downstream of the Utility Meter.
ATTACHMENT C
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 2
e. See Rule and Regulation 20. "Special Electric Utility Regulations" regarding
special Service requirements.
2. LOCATION OF POINT OF SERVICE
a. SECONDARY SERVICE
1. OVERHEAD SERVICE AT SECONDARY VOLTAGES
The Point of Service for Overhead Service at secondary voltages will normally be
located at a power pole on the perimeter of the parcel to be served, which is, in
CPAU’s judgment, most conveniently located and in compliance with CPAU
standards and specifications and applicable building and electrical codes.
2. UNDERGROUND SERVICE AT SECONDARY VOLTAGE
The Point of Service for Underground Service at secondary voltages will
normally be located at the Secondary connectors of the transformer serving the
Customer’s Load, or in the Secondary hand hole, if available.
b. PRIMARY SERVICE
The Point of Service for Primary Service will normally be at the point near the
property line of the premises to be served which is, in CPAU’s judgment, most
conveniently located with respect to CPAU’s transmission or distribution
facilities.
c. EXCEPTIONS
If several buildings are occupied and used by one Customer in a single business or
other activity, CPAU may, at its discretion, furnish Service for the entire group of
buildings through one Service connection at one Point of Service.
3. EQUIPMENT REQUIREMENTS
All new equipment in underground areas required to provide electric service to a
Customer shall be pad-mounted. In addition, any three-Phase electric service connection
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 3
and any electric service connection rated at 400 Amps or greater which is located either
in an underground or overhead area must be served from a pad-mounted transformer.
The Utilities Director, or his/her designee, may authorize: 1) an exception to the above
provisions when, in his/her opinion, a pad-mounted equipment installation in any
particular instance would not be feasible or practical or 2) installation of electric service
equipment in locations with limited access by utility equipment. Such installations will
be considered “Special Facilities” as defined in Rule and Regulation 20, and the
Applicant will be responsible for the costs described in that rule and outlined in the
Service Contract as described in Rule and Regulation 5.
If the Applicant wants a Point of Delivery other than at the location determined by
CPAU, CPAU will work with the Applicant to assist in the selection of the alternate Point
of Delivery location for the electric service equipment within the boundaries of the
Applicant’s property. When the Applicant chooses a Point of Delivery location other
than the location which has been determined by CPAU, the Applicant must acknowledge
that such an alternate Point of Delivery location will cause CPAU personnel to incur
delays when performing repairs or service restoration during emergencies. In addition to
being responsible to pay for the initial cost of installation of such electric service
equipment in an alternate location, the Applicant shall also be responsible to pay for any
future additional labor, equipment, and material costs incurred by CPAU necessary to
facilitate replacement, removal, or relocation of any electric service equipment which has
been installed in an alternate Point of Delivery location at the Applicant’s request.
Any installation intended to assist in “screening” of electric service equipment by
landscaping or structures must be constructed in a manner which meets all of CPAU’s
clearance standards. The plans for such screening must be approved by the City of Palo
Alto and CPAU prior to beginning work on the screening installation.
The Applicant shall provide a Public Utility Easement in recordable form for installation
of such facilities within the boundaries of the property. All pad-mounted equipment will
be subject to CPAU’s aesthetic guidelines.
4. EMERGENCY AND STANDBY SERVICES
CPAU may provide back up Emergency, and other Standby Service to Customers as
Special Facilities. See Rule and Regulation 20 "Special Electric Utility Regulations"
regarding special Service requirements.
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 4
5. SERVICE DELIVERY VOLTAGE
The following are the standard Service voltages normally available. Not all standard
Service voltages are available at each Point of Delivery. These Service voltages are
available in locations that already have this Service voltage and have sufficient capacity,
as determined by CPAU, to serve the new Load. Any equipment installed on 120/240, 3
wire or 240/120, 4-wire Services shall have the capability of converting to a 120/208, 3
wire or 208 Y/120, 4-Wire Service.
a. DISTRIBUTION OF VOLTAGE
Alternating-current Service will be regularly supplied at a nominal frequency of
approximately 60-Hertz (cycles per second).
Single-Phase Three-Phase Three-Phase
Secondary Secondary Primary
120/240, 3 -wire 240/120, 4-wire* 12,470, 3-wire
120/208, 3-wire 240, 3-wire*
208 Y/120, 4-wire
480 Y/277, 4-wire
*Only available in special conditions as determined by the Electric Engineering
Manager.
b. All voltages referred to in this Rule and appearing in some Rate Schedules are
nominal Service voltages at the Point of Delivery. CPAU’s facilities are designed
and operated to provide sustained Service voltage at the Point of Delivery, but the
voltage at a particular Point of Delivery will vary within satisfactory operating
range limits.
c. In areas where a certain standard Secondary voltage is being delivered to one or
more Customers, CPAU may require an Applicant for new Service in such areas
to receive the same standard voltage supplied to existing Customers.
d. CPAU may change the voltage at which Service is delivered, including converting
existing 4160 volt Primary Service to 12,470 volt Service. If CPAU notifies the
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 5
Customer that a Service voltage change is necessary, the Customer will be
required to provide Service equipment capable of accepting the new voltage and
meeting other CPAU requirements. Costs to provide suitable Customer’s Service
entrance equipment and any other associated equipment to receive Service at the
new voltage shall be borne by the Customer.
6. VOLTAGE AND FREQUENCY CONTROL
a. Under normal Load conditions, CPAU’s distribution circuits will be operated so
as to maintain Service voltage levels to Customers within plus or minus 5 percent
of the nominal Service voltage at the Point of Delivery. Subject to the limitations
above, CPAU will maintain the voltage balance between phases as close as
practicable to 2.5% maximum deviation from the average voltage between the
three phases.
b. Voltages may be outside the limits specified above when the variations:
1. arise from Service interruptions;
2. arise from temporary separation of parts of the system from the main
system;
3. are minor momentary fluctuations and transient voltage excursions of
short duration which may occur in the normal operation of CPAU system;
4. are beyond CPAU’s control.
c. Due to conditions beyond the control of CPAU, the Customer, or both, there will
be infrequent and limited periods when voltages will occur outside of the nominal
Service voltage ranges. Utilization equipment may not operate satisfactorily
under these conditions, and protective devices in the equipment may operate to
protect the equipment.
d. Where the operation of the Customer’s equipment requires stable voltage
regulation or other stringent voltage control beyond that supplied by CPAU in the
normal operation of its system, the Customer, at its own expense, is responsible
for installing, owning, operating, and maintaining any special or auxiliary
equipment on the Load side of the Service delivery point as deemed necessary by
the Customer.
e. The Customer shall be responsible for designing and operating its Service
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 6
facilities between the Point of Delivery and the utilization equipment to maintain
proper utilization voltage at the line terminals of the utilization equipment.
f. The Customer shall not impose a Load on CPAU’s system that will cause the
voltage limits in this section to be exceeded for an adjacent Service delivery point.
g. When there is reasonable indication of a problem, CPAU shall test for excessive
fluctuations at its own expense. Voltage checks requested by the Customer more
than once in any twelve month period shall be paid by the Customer, unless
CPAU determines that excessive voltage fluctuation exists.
h. CPAU may institute measures to prevent the continuous operation of equipment
detrimental to Service to other Customers or may discontinue Electric Service to
the offending Customer. (See Rule and Regulation 20, Special Electric Utility
Regulations).
i. Customers are responsible for protecting their connected Loads, audio, video, and
electronic equipment, including computers, from sudden voltage or frequency
fluctuations outside nominal Service and frequency ranges. Such protection may
include, but is not limited to, surge protectors.
7. GENERAL LOAD LIMITATIONS
a. SINGLE-PHASE SERVICE
1. Single-phase Service normally will be 3-wire, 120/240 volts (or 3-wire,
120/208 volts at certain locations as now or hereafter established by
CPAU) where the size of any single motor does not exceed 7-1/2
horsepower (10 horsepower at the option of CPAU). For any single-phase
Service, the maximum Service size shall be 400 ampere, unless approved
by the Utilities Director or his/her designee. If the Load exceeds the
capability of a 400 ampere single phase Service the Service shall be three-
phase.
2. In locations where CPAU maintains a 120/208 volt secondary system, 3-
wire single-phase Service normally shall be limited to that which can be
supplied by a main switch or Service entrance rating of 200 amperes.
Single-phase Loads in these locations in excess of that which can be
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 7
supplied by a 200 ampere main switch or Service entrance rating normally
will be supplied with a 208Y/120 volt, three-phase, 4-wire Service. b. THREE-PHASE SERVICE (480 VOLTS OR LESS) Minimum Load Maximum Demand
Normal Voltage Requirements Load Permitted
240/120 5 hp, 3-phase connected 400 Amperes
240 5 hp, 3-phase connected 400 Amperes
208Y/120 Demand Load 75 kVA 500 kVA
480Y/277 Demand Load 112 kVA 2,500 kVA (See Note 1)
Note 1. Applicants or existing Customers with a planned or existing single or
multiple building development having a maximum Demand in excess of 2500
kVA, as determined by CPAU, will be required to take delivery at the available
primary voltage and are required to provide their own primary switchgear and
transformer(s). Determination of maximum Demand and Service voltage will be
made by CPAU and the decision of the Electric Engineering Manager will be
final.
1. Where three-phase Service is supplied, CPAU reserves the right to use
single-phase transformers, connected open-delta or closed-delta, or three-
phase transformers.
2. Three-phase Service will be supplied on request for installations
aggregating less than the minimum listed above, but not less than 3
horsepower (hp), three-phase Service, where existing transformer capacity
is available. If three-phase Service is not readily available, or for Service
to Loads less than 3 hp, Service shall be provided in accordance with
CPAU’s applicable Rule 20 on Special Power Service requirements.
3. Residential customers requesting three-phase service shall be responsible
for all labor and material costs required to provide service, including the
cost of the transformer. These installations are not considered “Special
Facilities” as described in Rule and Regulation 20.
4. An Applicant or existing Customer requiring Service with a maximum
Demand in excess of 1000 kVA, as determined by CPAU, shall be served
by a padmount transformer. No submersible or vault-installed
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 8
transformers in excess of 1000 kVA will be installed by CPAU. Where an
existing underground Service must be upgraded beyond 1000 kVA, the
Customer shall be required to provide adequate space for installation of
the padmount transformer. In the event the Customer is unable to provide
adequate space for the padmount transformer, then the Customer shall
make arrangements at his or her expense to receive Service at primary
voltage.
c. THREE-PHASE SERVICE (OVER 2,000 VOLTS)
The following three-phase primary voltage may be available as an isolated
Service for a single Applicant; and where that Applicant’s Demand Load justifies
such voltage. The determination will be made by CPAU.
Minimum Demand Maximum Demand
Normal Voltage Bank Installed Load Permitted
4,160 500 kVA 3,600 kVA
12,470 1,000 kVA 11,000 kVA
Note: 4,160 volt Services will not be furnished for new Services.
8. TEMPORARY SERVICE
Temporary Service is Electric Service which, in CPAU’s opinion, is of an indefinite
duration at the same location, or for operations of a speculative character or of
questionable permanency, or any other Service which is estimated to last less than one
year. CPAU will furnish Temporary Service if the furnishing of such Service will not
create undue hardship for CPAU, or its Customers, and the following conditions are met:
a. The Applicant for such Temporary Service shall apply for Service on an
Application form provided by CPAU Engineering and shall pay to CPAU in
advance the cost of installing and removing any facilities necessary in connection
with the furnishing of such Service by CPAU.
b. Each Applicant for Temporary Service shall prepay a Temporary Service Fee in
accordance with Electric Service Connection Fees Rate Schedule E-15.
c. Nothing in this Rule and Regulation shall be construed as limiting or in any way
affecting the right of CPAU to collect from the Customer an additional sum of
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 9
money by reason of the Temporary Service furnished or to be furnished or
removed hereunder.
d. If the Temporary Service connection time exceeds one-year, the Applicant shall
apply for an extension of the Temporary Service. The Director of Utilities or
his/her designee will determine if the Service should be reclassified as a
permanent Service.
9. SERVICE DOWNSTREAM OF METER
CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment downstream of
the Utility Meter.
C. FIBER OPTIC SERVICE
Fiber Optic Service includes the custom construction and licensing of single mode Fiber routes
between points within the City of Palo Alto. It is the Customer’s responsibility to establish all
electronic devices and networks required to pass data over their licensed CPAU Dark Fiber
routes.
1. LICENSING SERVICES
All Dark Fiber routes are licensed in accordance with the currently approved Dark Fiber
Rate Schedules, and in compliance with the Utilities Rules and Regulations. See Rule and
Regulation 26, “Special Fiber Optic Utility Regulation,” regarding special Service
requirements. All CPAU fibers terminate within the jurisdictional boundaries of the City
of Palo Alto.
2. OTHER SERVICES
CPAU offers custom Dark Fiber construction and ancillary Services such as Fiber Optic
cable splicing, engineering feasibility studies, and when specifically requested by the
Customer, multimode Fiber cable installations.
3. QUALITY
Dark Fiber routes in the City of Palo Alto comprised of single mode Fiber comply with
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 10
generally accepted industrial standards and specifications. All construction is done using
industry accepted techniques and procedures. All constructed routes are Performance
Tested to assure the industry quality standards are met.
D. WATER SERVICE
1. SOURCE OF SUPPLY
CPAU’s primary source of Water is the Hetch Hetchy aqueduct system, managed by the
San Francisco Public Utilities Commission (SFPUC). CPAU wells also provide
Emergency supply. See Rule and Regulation 21, “Special Water Utility Regulation”
regarding special Service requirements.
2. QUALITY
Hardness generally varies between 1 and 4 grains per gallon depending on the source.
An analysis of the mineral content of the Water is available upon request from CPAU
Engineering.
3. PRESSURE
Water pressure varies from 30 to 125 pounds per square inch. CPAU maintains an
average of 50 pounds per square inch, with the maximum and minimum pressures being
experienced at the lower and higher elevations of the Distribution System. CPAU
assumes no responsibility for loss or damage due to lack of Water pressure but agrees to
furnish such pressures as are available in its general Distribution System. If low Water
pressure occurs due to additional on-site development, it shall be the responsibility of the
property owner to replace the existing Water Service with a new Water Service designed
for the current site. All costs of the required new Service upgrade shall be borne by the
property owner.
4. TREATMENT
CPAU currently does not treat Water supplied by the SFPUC. The pH of the Water
supplied is adjusted by the SFPUC to reduce its corrosive action.
5. SERVICE DOWNSTREAM OF METER
CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment downstream of
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 11
the Utility Meter.
E. GAS
1. TYPES OF SERVICES
CPAU provides Gas supply, transportation, and Distribution Services.
2. KIND AND HEATING VALUE
CPAU purchases Gas from several/various Gas suppliers. The heating value of Gas
supplied varies. The average monthly heating value in British Thermal Units (Btu)-dry
basis per cubic foot of the Gas served may vary within the limits of 750 to 1150 Btu.
This average heating value is converted to a Therm factor for use as one of the factors
used in calculating a composite multiplier for billing purposes. The Therm factor will be
based upon the heat factor used by CPAU’s supplier of Gas for the preceding month.
Gas is supplied by CPAU either at standard “low pressure” or at “medium pressure”.
Low pressure Service is available at all points where Gas is supplied. Where available
from existing high pressure mains, at the option of CPAU, high pressure Service may be
supplied. However, CPAU reserves the right to lower the pressure or to discontinue the
delivery of Gas at high pressure.
The standard pressure for low pressure is seven inches of Water Column (WC), which is
approximately 1/4 pound per square inch (psi) above atmospheric pressure. In limited
circumstances, increased pressure may be provided for domestic use at 14” Water
Column. This increased pressure will only be provided for domestic use if the houseline
size required is greater than 2” diameter, or CPAU determines, based upon satisfactory
information from the manufacturer, provided by the Customer, that an appliance to be
located in the residence requires increased pressure at the inlet that cannot be obtained by
resizing or relocating the houseline. Increased pressure may be provided for commercial
uses only if the use of the houseline size required is greater than 4” diameter, or evidence
as described above establishes that equipment on the site requires increased pressure at
the inlet that cannot be obtained by resizing or relocating the houseline. For commercial
uses, the available pressures are 7” WC, 14” WC (approximately 1/2 psi), 1 psi, 2 psi and
5 psi.
All increased pressure above 7”WC requires review and approval of the Engineering
Manager, a plumbing permit and testing of the existing Gas piping with a building
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 12
Inspector present in accordance with the latest adopted version of the California
Plumbing Code
See Rule and Regulation 22, “Special Gas Utility Regulations” regarding special Service
requirements.
3. DETERMINATION OF THERMS TO BE BILLED
The unit of measure for billing is the Therm. Gas Meters measure volume of Gas in ccf
at ambient temperature and pressure conditions. Therms are derived from the metered
data by subtracting the Meter reading for the previous reading cycle from the current
reading. The difference (uncorrected ccf) is multiplied by the pressure factor required to
convert the measured consumption volume to a standard volume (at standard temperature
and pressure conditions). This standard volume, in pressure-corrected ccf, is then
multiplied by the Therm factor (a variable determined by periodic analysis of CPAU’s
Gas supply) to produce the final number of Therms billed. The composite correction
factor (the product of the Therm factor and the pressure correction factor) is shown on
bills under the heading “multiplier.”
4. SERVICE DOWNSTREAM OF METER
CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment downstream of
the Utility Meter.
F. WASTEWATER COLLECTION AND TREATMENT
1. COLLECTION
CPAU operates and maintains a Wastewater Collection System separate from the storm
and surface Water Collection System. A connection to the Wastewater Collection
System is required for all water users where wastewater service is available.
For the disposal of Wastewater from basements and floors below ground level, it will be
necessary for the Customer to provide pumps or ejectors for satisfactory drainage, as
approved by the Water-Gas-Wastewater Engineering Manager. If the elevation of the
basement floor is above the rim elevation of the next upstream manhole, Applicant shall
provide a survey by a licensed Civil Engineer indicating the elevations of the basement
floor and the rim elevation of the next upstream manhole. Submission of this survey and
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 13
approval by the Engineering Manager is required for exemption from the pump/ejector
requirement.
2. REGULATION
Chapter 16.09 of the Municipal Code regulates the discharge into the Wastewater
Collection System of substances other than domestic Wastewater. See Rule and
Regulation 23, “Special Wastewater Utility Regulations” regarding special Service
requirements.
3. TREATMENT
The collection system transports the Wastewater to the Palo Alto Regional Water Quality
Control Plant for treatment. At this tertiary treatment plant, the City of Palo Alto
processes the Wastewater from Mountain View, Los Altos, Los Alto Hills, Stanford
University, and East Palo Alto Sanitary District, as well as its own. The treatment is
performed in accordance with the National Pollution Discharge Elimination Permit issued
by the San Francisco Bay Area Regional Water Quality Control Board before the treated
water is discharged into the San Francisco Bay Estuary.
4. LIMITATION OF SERVICE
CPAU reserves the right to limit the size of connection and the quantity of wastes
disposed and to prohibit the use of the sewer for disposal of toxic or hazardous wastes
detrimental to the Wastewater system or treatment plant.
G. REFUSE SERVICE
1. REGULATION
All Refuse Services are governed by Chapter 5.20 of the Palo Alto Municipal Code,
regulations promulgated by the City Manager pursuant to Chapter 5.20, these Rules and
Regulations and the contract between the City and the City’s Collector. See Rule and
Regulation 24, “Special Refuse Service Regulations” regarding special service
requirements.
2. REFUSE COLLECTION
Refuse Service is provided to all Customers by the City’s Collector. Customers shall
subscribe and pay for Refuse Service and for a number of containers to hold all Solid
Waste created, produced or accumulated at or on their Premises during a one-week
period, unless a different frequency for a collection schedule has been approved or
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 14
directed by Public Works. Each Customer shall receive collection Services on a specified
day of each week and use the City Collector’s provided Containers for service.
Customers wanting to supply their own container must check with the City Collector to
ensure compatibility with the collection vehicles. The automatic standard service for
Solid Waste Service Charge is one 32-gallon container for Residential Service and one
64-gallon container for Commercial Service. All customers may change service levels to
meet their refuse needs as specified above.
Solid Waste in excess of the Service Charge subscribed by the Customer will be removed
by the City’s Collector for an additional Charge upon Customer request or notification.
Customers exceeding their subscribed Service are required to subscribe to additional
collection Services at the City-established rates.
H. STORM AND SURFACE WATER DRAINAGE
1. RESPONSIBILITY AND PURPOSE
The City of Palo Alto Public Works Department is responsible for all Drainage Facilities
in the street and public right of way that collect storm and surface Water and convey it to
the major channels and creeks within the jurisdictional boundaries of the City of Palo
Alto. Examples include curbs and gutters, catch basins, pipelines, culverts, street,
channels and pumping stations. The purpose of the Storm and Surface Water control
facilities is to improve the quality of control, or protect life or property from any storm,
flood or surplus waters. See Rule and Regulation 25, “Special Storm and Surface Water
Drainage Regulations,” regarding special Service requirements.
2. STORM DRAINAGE FEE
A Storm Drainage fee shall be payable to the City monthly by the owner or occupier of
each and every developed parcel in accordance with Rule and Regulation 25.
(END)
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No. 1
A. GENERAL
In addition to the general requirements outlined in Rule and Regulation 18 for Utility Service
Connections and Facilities on Customers’ Premises, the following is required:
B. ELECTRIC SERVICE CONNECTION REQUIREMENTS
1. FACILITIES ON CUSTOMER PREMISES
a.The Customer is responsible for installing and maintaining all substructures on the
Customer’s Premises for CPAU to provide Electric Service. This will be at the
Customer’s expense and in accordance with the requirements, standards, and
specifications of CPAU. This substructure shall be owned and maintained by the
Customer for exclusive use by CPAU. The Customer shall be responsible for
repairing or replacing the substructure for any reason, including deterioration to the
extent that the existing conductors/cables cannot be removed.
b.The Customer is required to provide all substructure between the Customer’s Service
entrance equipment and the nearest available Point of Service connection, as
determined by CPAU. This Point of Service is typically a splice box located near
the street and may be in the Public Right-of-Way. In the case of rear easements, this
point is typically at a splice box or at the base of a pole riser.
c.Upon approval by CPAU of the substructure installed on the Customer’s Premises,
CPAU will install Primary Electric Service conductors and a transformer, if needed.
The Applicant/Customer is responsible for the cost of installation in accordance with
the applicable sections of CPAU’s Electric Service Connection Fees (Rate Schedule
E-15). CPAU will determine the type and size of the conductors to be installed by
CPAU.
d.CPAU will assume ownership and responsibility for maintenance of the underground
Electric Service lateral conductors, as defined in the National Electric Code Article
100, installed by the Customer if the Service meets CPAU specifications and it has
been approved and accepted by the Electrical Engineering Manager or his or her
designee. Where bus duct or extra flexible cable is required and used, CPAU’s
maintenance responsibility for conductors ends at the transformer secondary
ATTACHMENT D
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No. 2
terminals. The bus duct or extra flexible cable is considered to be the Service
entrance conductor for which CPAU assumes no responsibility.
2. MISCELLANEOUS SERVICE EQUIPMENT
a. CUSTOMER’S EQUIPMENT
1. All service switches, fuses, Meter sockets, Meter and instrument transformer
housing and similar devices, irrespective of voltage, required in connection
with Service and Meter installation on the Customer’s Premises shall be
furnished, installed, owned and maintained by the Customer in accordance
with CPAU requirements.
2. The “service disconnect” is defined by the National Electric Code.
3. Applicant will provide a suitable means for CPAU to place its seal on covers
of service enclosures / troughs and instrument transformer enclosures which
protect un-metered live circuits installed by the Applicant. Such seals shall
be broken only by authorized CPAU representatives. Detailed information
will be furnished by CPAU on request.
b. CPAU’S EQUIPMENT
1. CPAU will furnish and install the necessary instrument transformers, test
facilities and Meters.
C. SERVICE CONFIGURATIONS
1. OVERHEAD OR UNDERGROUND
a. The standard Service to single family Residential homes in existing overhead areas
shall be overhead. The Director of Utilities or his/her designee can require an
underground Service for single family Residential Service in areas where system
design requires underground Service, or would otherwise require the addition of
poles to the system.
b. All new Electric Utility Services to Commercial/ Industrial
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No. 3
Customers and new subdivisions shall be provided by underground facilities on
the Customer’s Premises. The on-site underground Electric Utility lines shall be
provided by the Customer at their expense and shall meet CPAU specifications.
2. NUMBER OF SERVICES PER BUILDING
Only one Electric Service line is allowed for a building or other Premises, except for
commercial properties where:
a. Two or more Electric Service Drops or laterals may be extended to a single building
provided all wiring, other than metering conductors, supplied for each Service has no
common raceway, connection, or service area with wiring supplied by any other such
Service. Approval by the Utilities Director, or his/her designee, is required and
Special Facilities fees may apply.
b. Two or more sets of Electric Service entrance conductors may be extended to a single
switch gear for the purpose of providing additional capacity or for backup protection.
Special Facilities and/or reserve capacity fees may apply.
3. SERVICES FOR TWO OR MORE COMMERCIAL BUILDINGS ON ONE PARCEL
Only one Electric Service line is allowed on a parcel with multiple commercial buildings
except where the Applicant requests CPAU to install multiple Service Lines, and CPAU
agrees to make such an installation. The additional costs, as estimated by CPAU, shall be
borne by the Applicant, including such continuing ownership costs as may be applicable.
See Special Facilities section below.
4. NUMBER OF ELECTRIC SERVICE PERISCOPES PER SERVICE DROP
Not more than two service periscopes may be served from a single overhead Service Drop.
Overhead service connections will not be installed where the Applicants main switchboard is
larger than 400 amp.
D. PROTECTIVE DEVICES
1. 1. The Applicant is responsible for furnishing, installing, inspecting and keeping in
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No. 4
good and safe condition at Customer’s own risk and expense, all appropriate protective
devices of any kind or character, which may be required to properly protect the
Applicant’s facility. CPAU shall not be responsible for any loss or damage occasioned or
caused by the negligence, or wrongful act of the Applicant or any of the agents, employees
or licensees of the property owner in omitting, installing, maintaining, using, operating or
interfering with any such protective devices.
2. The Applicant is responsible for installing and maintaining approved protective devices as
may be necessary to coordinate properly with CPAU’s protective devices to avoid exposing
other Customers to unnecessary Service interruptions.
3. Applicants who request Primary voltage Service shall install, at a minimum, circuit breakers
with over-current and ground fault relays. Applicants must submit their planned protection
scheme to the City for approval prior to installing any equipment.
4. The Applicant is responsible for equipping three-phase motor installations with appropriate
protective devices, or using motors with inherent protective features, to completely
disconnect each motor from its power supply. Particular consideration must be given to the
following:
a. Protection in each set of phase conductors to prevent damage due to overheating in
the event of overload.
b. Protection to prevent automatic restarting of motors or motor-driven machinery
which has been subject to a service interruption and, because of the nature of the
machinery itself or the product it handles, cannot safely resume operation
automatically.
c. Open-phase protection to prevent damage in the event of loss of voltage on one
phase.
d. Reverse-phase protection where appropriate to prevent uncontrolled reversal of motor
rotation in the event of accidental phase reversal. Appropriate installations include,
but are not limited to, motors driving elevators, hoists, tramways, cranes, pumps, and
conveyors.
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-16
Sheet No. 5
5. The Applicant is responsible for installing and maintaining service equipment rated for the
available short-circuit current at the Point-of-Delivery. This value varies from one location to
another, and can change over time. The Customer shall consult CPAU for the short-circuit
current at each Point-of-Delivery.
6. Any non-CPAU-owned Emergency standby generation equipment shall be installed by the
Applicant with suitable protective devices to prevent Parallel Operation with CPAU’s
system. The design must be fail-safe, such as with the use of a double-throw switch to
disconnect all conductors. Any exception must include a written agreement or service
contract with CPAU permitting such parallel operation.
7. Unprotected Service entrance conductors within a building must terminate at a disconnect
switch immediately after entering the building. Installation must comply with the National
Electrical Code section 230-70 concerning the location of the disconnect switch and section
230-6 for the definition of conductors considered outside a building.
E. INTERFERENCE WITH SERVICE
1. GENERAL
CPAU reserves the right to refuse to serve new Loads or refuse to continue to supply existing
Loads of a size or character that may be detrimental to CPAU’s operation or to the Service of
its Customers. Any Customer who operates or plans to operate any equipment such as, but
not limited to pumps, welders, saw mill apparatus, furnaces, compressors or other equipment
where the use of Electricity is intermittent, causes intolerable voltage fluctuations, or may
otherwise cause intolerable Service interference, must reasonably limit such interference or
restrict the use of such equipment upon request by CPAU. The Customer is required to
provide and pay for whatever corrective measures are necessary to limit the interference to a
level established by CPAU as reasonable, or avoid the use of such equipment, whether or not
the equipment has previously caused interference.
2. HARMFUL WAVEFORM
Customers shall not operate equipment that superimposes a current of any frequency or
waveform onto CPAU’s system, or draws current from CPAU’s system of a harmful
waveform, which causes interference with CPAU’s operations, or the service to other
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-16
Sheet No. 6
Customers, or inductive interference to communication facilities. Examples of harmful
waveform include, but are not limited to:
a. Current drawn with high harmonic currents causing transformer or conductor
overheating, even if root-mean-square (RMS) loading is within normal limits.
b. Current drawn causing voltage distortion adversely affecting CPAU or other CPAU
Customers.
c. Harmonic currents which exceed the harmonic current distortion limits set in the
most recent IEEE Standard 519. In most cases, this equates to a maximum limit of
4% harmonic current on any individual odd harmonic or 5% total harmonic current.
3. CUSTOMER’S RESPONSIBILITY
Any Customer causing service interference to others must take timely corrective action.
Otherwise, CPAU, without liability and after giving five (5) days written notice to Customer,
will take corrective action. Corrective action could include discontinuing Electric Service
until a suitable permanent and operational solution is provided by the Customer, at
Customer’s expense.
4. MOTOR STARTING CURRENT LIMITATIONS
a. The starting of motors shall be controlled by the Customer as necessary to avoid
causing voltage fluctuations that will be detrimental to the operation of CPAU’s
distribution or transmission system, or to the Service of any of CPAU Customers.
b. If motor starting causes or is expected to cause detrimental Service to others, a
suitable means must be employed, at the Customer’s expense, to limit voltage
fluctuations to a tolerable level.
F. PHASE BALANCING
It is the Customer’s responsibility to maintain a balanced Load, as nearly as practical, between
supplied circuit phases. In no case shall the Load on one side of a three-wire single-phase service be
greater than twice that on the other. In no case shall the Load on any one phase of a polyphase
service be greater than twice that of any other.
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-16
Sheet No. 7
G. POWER FACTOR CORRECTION
The Customer is required to provide, at Customer’s own expense, Power Factor correction
equipment. This equipment must be sized to improve the average Power Factor to at least the level
set forth in the applicable Rate Schedule with respect to avoiding a Power Factor penalty.
H. SERVICE DISCONNECT AND METER TEST DEVICES
1. All service disconnects and similar devices, irrespective of voltage, required by Law in
connection with a Service and Meter installation on Customer’s Premises must be furnished,
installed and maintained by the Customer. A “Service-disconnecting means”, as defined in
the NEC, must be installed adjacent to the meter(s). Metering equipment must be located on
the exterior of the building, unless approved by the Electric Engineering Manager.
2. When instrument transformers are required by CPAU as part of the Meter installation, CPAU
will install a Meter test bypass block on a mounting plate that must be furnished by the
Customer. When instrument transformers are not required by CPAU, the Customer is
responsible for providing the Meter test bypass block. Meter test bypass blocks furnished by
the Customer must be approved by CPAU in conjunction with Applicant’s plan submittal.
I. SPECIAL POWER SERVICE REQUIREMENTS
1. GENERAL
Where a Customer requires voltage control with less variance than what is specified in Rule
and Regulation 3, the Customer must reimburse CPAU for its cost to provide any special or
additional equipment to meet the Customer’s special needs.
2. NONSTANDARD OR EXCESSIVE CUSTOMER REQUIREMENTS
a. In order to prevent damage to CPAU’s equipment and impairment of its service, the
Customer shall give CPAU notice before making any additions to the connected Load
so that CPAU, at its option, may provide such facilities as may be necessary for
SPECIAL ELECTRIC UTILITY REGULATIONS
RULE AND REGULATION 20
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-16
Sheet No. 8
furnishing the increased service.
b. If a Customer’s Load is of sufficient magnitude that it exceeds the capacity of
CPAU’s Distribution System, the Customer may be required to shift peak loading to off-peak periods and/or
receive service from CPAU’s 60 kilovolt sub-transmission system.
J. SPECIAL FACILITIES
1. Special Facilities are facilities requested by an Applicant in addition to or in substitution for
standard facilities which CPAU would normally provide. Standard facilities are for delivery
of Service at one point, through one Meter, at one voltage class under its Rate Schedules.
2. CPAU normally installs only those standard facilities which it deems are necessary to
provide regular service in accordance with the Rate Schedules. Where the Applicant requests
CPAU to install Special Facilities and CPAU agrees to make such an installation, the
additional costs thereof, as estimated by CPAU, shall be borne by the Applicant, including
such continuing ownership costs as may be applicable. These costs will be calculated by
CPAU based on the net present value, and shall be paid by the Applicant in advance of
installation unless alternative payment arrangements are approved by the Director of
Utilities.
3. Unless otherwise provided by CPAU’s Rate Schedules, Special Facilities will be installed,
owned and maintained by CPAU as an accommodation to the Applicant only if acceptable
for operation by CPAU and the reliability of service to CPAU’s other Customers is not
impaired.
4. Installation of Special Facilities will require a contract between the Applicant and the City of
Palo Alto.
(END)
SERVICE CONTRACTS
RULE AND REGULATION 5
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6-27-2016
Sheet No 1
A. TYPES OF SERVICE CONTRACTS
For all Utility Services provided, the City may require a written agreement for new or existing
Customers. Contracts may apply to standard, custom, or special Service offerings. The
following is an illustrative list of special Services that may be the subject(s) of a contract.
Additional Services may require contracts not listed here, at the discretion of the Director of
Utilities.
1.Line Extensions
2.Temporary Service
3.Special Facilities
4.Utility Service to special districts and institutions
5.Work performed for other agencies at their expense
6.Special Metering and/or Billing Services
7.Special Energy Services
8.Long-term Service agreements greater than 3 years
9.Loans and leases to finance efficiency improvements at a Customer’s site
10.Loans and leases to improve power quality or reliability at a Customers’ site
11.Standby Service
12.Purchase, lease, installation, connection or maintenance of on-site or distributed
generation
13.All Fiber Optic Services
14.Reserve Electric Capacity
B. CONTRACT APPLICATION PROCEDURES
1.Customers shall complete and execute applicable form(s) or letter(s), as necessary.
2.Depending on the type of Service contract and at the request of CPAU, Customers shall
request consideration for a special contractual agreement in writing to the Director of
Utilities and/or the Director of Public Works specifying their objectives, including the
desired terms and conditions of the contract.
3.Customers shall pay all applicable fees and deposits in accordance with the terms of the
contract.
4.Customers shall comply with the City’s insurance requirements.
(END)
ATTACHMENT E