HomeMy WebLinkAbout2023-06-07 Utilities Advisory Commission Agenda PacketUTILITIES ADVISORY COMMISSION
Regular Meeting
Wednesday, June 07, 2023
Council Chambers & Hybrid
6:00 PM
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the
option to attend by teleconference/video conference or in person. To maximize public safety
while still maintaining transparency and public access, members of the public can choose to
participate from home or attend in person. Information on how the public may observe and
participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if
attending in person. The meeting will be broadcast on Cable TV Channel 26, live on
YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96691297246)
Meeting ID: 966 9129 7246 Phone: 1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an
amount of time determined by the Chair. All requests to speak will be taken until 5 minutes
after the staff’s presentation. Written public comments can be submitted in advance to
UACPublicMeetings@CityofPaloAlto.org and will be provided to the Council and available for
inspection on the City’s website. Please clearly indicate which agenda item you are referencing
in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to UACPublicMeetings@CityofPaloAlto.org at least 24 hours prior to the meeting. Once
received, the Clerk will have them shared at public comment for the specified item. To uphold
strong cybersecurity management practices, USB’s or other physical electronic storage devices
are not accepted.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Commission reserves the right to use more or less time on any item,
to change the order of items and/or to continue items to another meeting. Particular items may
be heard before or after the time estimated on the agenda. This may occur in order to best
manage the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER 6:00 PM ‐ 6:05 PM
AGENDA CHANGES, ADDITIONS AND DELETIONS 6:05 PM ‐ 6:10 PM
The Chair or Board majority may modify the agenda order to improve meeting management.
PUBLIC COMMENT 6:10 PM ‐ 6:25 PM
Members of the public may speak to any item NOT on the agenda.
APPROVAL OF MINUTES 6:25 PM ‐ 6:30 PM
1.Approval of the Minutes of the Utilities Advisory Commission Meeting Held on May 3,
2023
UTILITIES DIRECTOR REPORT 6:30 PM ‐ 6:45 PM
NEW BUSINESS (10 minute break will be imposed during this section)
2.Staff Recommends that the Utilities Advisory Commission Recommend the City Council
Adopt the 2023 Annual Water Shortage Assessment Report (Action 6:45 PM – 7:25
PM) Staff: Lisa Bilir
3.Staff Recommends the Utilities Advisory Commission Accept and Approve the 2023
Wildfire Mitigation Prevention Plan as Presented (Action 7:25 PM – 7:50 PM) Staff: Jim
Pachikara
4.Discussion and Presentation of the Update of the Grid Modernization (Discussion 7:50
PM – 8:50 PM) Staff: Tomm Marshall
COMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTS
FUTURE TOPICS FOR UPCOMMING MEETING July 5, 2023
ADJOURNMENT
SUPPLEMENTAL INFORMATION
The materials below are provided for informational purposes, not for action or discussion during UAC Meetings (Govt. Code
Section 54954.2(a)(3)).
INFORMATIONAL REPORTS
5.Informational Report on the FY2021 Demand Side Management Report
12‐Month Rolling Calendar Public Letter(s) to the UAC
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments m a y b e s u b m i t t e d b y e m a i l t o
UACPublicMeetings@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below to access a Zoom‐
based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
3. Spoken public comments using a smart phone will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions B‐E above.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 966 9129 7246 Phone:1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
1 Regular Meeting June 07, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
UTILITIES ADVISORY COMMISSIONRegular MeetingWednesday, June 07, 2023Council Chambers & Hybrid6:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96691297246)Meeting ID: 966 9129 7246 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toUACPublicMeetings@CityofPaloAlto.org and will be provided to the Council and available forinspection on the City’s website. Please clearly indicate which agenda item you are referencingin your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to UACPublicMeetings@CityofPaloAlto.org at least 24 hours prior to the meeting. Oncereceived, the Clerk will have them shared at public comment for the specified item. To upholdstrong cybersecurity management practices, USB’s or other physical electronic storage devicesare not accepted.TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Commission reserves the right to use more or less time on any item,
to change the order of items and/or to continue items to another meeting. Particular items may
be heard before or after the time estimated on the agenda. This may occur in order to best
manage the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER 6:00 PM ‐ 6:05 PM
AGENDA CHANGES, ADDITIONS AND DELETIONS 6:05 PM ‐ 6:10 PM
The Chair or Board majority may modify the agenda order to improve meeting management.
PUBLIC COMMENT 6:10 PM ‐ 6:25 PM
Members of the public may speak to any item NOT on the agenda.
APPROVAL OF MINUTES 6:25 PM ‐ 6:30 PM
1.Approval of the Minutes of the Utilities Advisory Commission Meeting Held on May 3,
2023
UTILITIES DIRECTOR REPORT 6:30 PM ‐ 6:45 PM
NEW BUSINESS (10 minute break will be imposed during this section)
2.Staff Recommends that the Utilities Advisory Commission Recommend the City Council
Adopt the 2023 Annual Water Shortage Assessment Report (Action 6:45 PM – 7:25
PM) Staff: Lisa Bilir
3.Staff Recommends the Utilities Advisory Commission Accept and Approve the 2023
Wildfire Mitigation Prevention Plan as Presented (Action 7:25 PM – 7:50 PM) Staff: Jim
Pachikara
4.Discussion and Presentation of the Update of the Grid Modernization (Discussion 7:50
PM – 8:50 PM) Staff: Tomm Marshall
COMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTS
FUTURE TOPICS FOR UPCOMMING MEETING July 5, 2023
ADJOURNMENT
SUPPLEMENTAL INFORMATION
The materials below are provided for informational purposes, not for action or discussion during UAC Meetings (Govt. Code
Section 54954.2(a)(3)).
INFORMATIONAL REPORTS
5.Informational Report on the FY2021 Demand Side Management Report
12‐Month Rolling Calendar Public Letter(s) to the UAC
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments m a y b e s u b m i t t e d b y e m a i l t o
UACPublicMeetings@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below to access a Zoom‐
based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
3. Spoken public comments using a smart phone will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions B‐E above.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 966 9129 7246 Phone:1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
2 Regular Meeting June 07, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
UTILITIES ADVISORY COMMISSIONRegular MeetingWednesday, June 07, 2023Council Chambers & Hybrid6:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96691297246)Meeting ID: 966 9129 7246 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toUACPublicMeetings@CityofPaloAlto.org and will be provided to the Council and available forinspection on the City’s website. Please clearly indicate which agenda item you are referencingin your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to UACPublicMeetings@CityofPaloAlto.org at least 24 hours prior to the meeting. Oncereceived, the Clerk will have them shared at public comment for the specified item. To upholdstrong cybersecurity management practices, USB’s or other physical electronic storage devicesare not accepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Commission reserves the right to use more or less time on any item,to change the order of items and/or to continue items to another meeting. Particular items maybe heard before or after the time estimated on the agenda. This may occur in order to bestmanage the time at a meeting or to adapt to the participation of the public.CALL TO ORDER 6:00 PM ‐ 6:05 PMAGENDA CHANGES, ADDITIONS AND DELETIONS 6:05 PM ‐ 6:10 PMThe Chair or Board majority may modify the agenda order to improve meeting management.PUBLIC COMMENT 6:10 PM ‐ 6:25 PMMembers of the public may speak to any item NOT on the agenda.APPROVAL OF MINUTES 6:25 PM ‐ 6:30 PM1.Approval of the Minutes of the Utilities Advisory Commission Meeting Held on May 3,2023UTILITIES DIRECTOR REPORT 6:30 PM ‐ 6:45 PMNEW BUSINESS (10 minute break will be imposed during this section)2.Staff Recommends that the Utilities Advisory Commission Recommend the City CouncilAdopt the 2023 Annual Water Shortage Assessment Report (Action 6:45 PM – 7:25PM) Staff: Lisa Bilir3.Staff Recommends the Utilities Advisory Commission Accept and Approve the 2023Wildfire Mitigation Prevention Plan as Presented (Action 7:25 PM – 7:50 PM) Staff: JimPachikara4.Discussion and Presentation of the Update of the Grid Modernization (Discussion 7:50PM – 8:50 PM) Staff: Tomm MarshallCOMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTSFUTURE TOPICS FOR UPCOMMING MEETING July 5, 2023ADJOURNMENTSUPPLEMENTAL INFORMATIONThe materials below are provided for informational purposes, not for action or discussion during UAC Meetings (Govt. CodeSection 54954.2(a)(3)).
INFORMATIONAL REPORTS
5.Informational Report on the FY2021 Demand Side Management Report
12‐Month Rolling Calendar Public Letter(s) to the UAC
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments m a y b e s u b m i t t e d b y e m a i l t o
UACPublicMeetings@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below to access a Zoom‐
based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
3. Spoken public comments using a smart phone will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions B‐E above.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 966 9129 7246 Phone:1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
3 Regular Meeting June 07, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
UTILITIES ADVISORY COMMISSIONRegular MeetingWednesday, June 07, 2023Council Chambers & Hybrid6:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96691297246)Meeting ID: 966 9129 7246 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toUACPublicMeetings@CityofPaloAlto.org and will be provided to the Council and available forinspection on the City’s website. Please clearly indicate which agenda item you are referencingin your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to UACPublicMeetings@CityofPaloAlto.org at least 24 hours prior to the meeting. Oncereceived, the Clerk will have them shared at public comment for the specified item. To upholdstrong cybersecurity management practices, USB’s or other physical electronic storage devicesare not accepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Commission reserves the right to use more or less time on any item,to change the order of items and/or to continue items to another meeting. Particular items maybe heard before or after the time estimated on the agenda. This may occur in order to bestmanage the time at a meeting or to adapt to the participation of the public.CALL TO ORDER 6:00 PM ‐ 6:05 PMAGENDA CHANGES, ADDITIONS AND DELETIONS 6:05 PM ‐ 6:10 PMThe Chair or Board majority may modify the agenda order to improve meeting management.PUBLIC COMMENT 6:10 PM ‐ 6:25 PMMembers of the public may speak to any item NOT on the agenda.APPROVAL OF MINUTES 6:25 PM ‐ 6:30 PM1.Approval of the Minutes of the Utilities Advisory Commission Meeting Held on May 3,2023UTILITIES DIRECTOR REPORT 6:30 PM ‐ 6:45 PMNEW BUSINESS (10 minute break will be imposed during this section)2.Staff Recommends that the Utilities Advisory Commission Recommend the City CouncilAdopt the 2023 Annual Water Shortage Assessment Report (Action 6:45 PM – 7:25PM) Staff: Lisa Bilir3.Staff Recommends the Utilities Advisory Commission Accept and Approve the 2023Wildfire Mitigation Prevention Plan as Presented (Action 7:25 PM – 7:50 PM) Staff: JimPachikara4.Discussion and Presentation of the Update of the Grid Modernization (Discussion 7:50PM – 8:50 PM) Staff: Tomm MarshallCOMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTSFUTURE TOPICS FOR UPCOMMING MEETING July 5, 2023ADJOURNMENTSUPPLEMENTAL INFORMATIONThe materials below are provided for informational purposes, not for action or discussion during UAC Meetings (Govt. CodeSection 54954.2(a)(3)).
INFORMATIONAL REPORTS
5.Informational Report on the FY2021 Demand Side Management Report
12‐Month Rolling Calendar Public Letter(s) to the UAC
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments m a y b e s u b m i t t e d b y e m a i l t o
UACPublicMeetings@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below to access a Zoom‐
based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
3. Spoken public comments using a smart phone will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions B‐E above.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 966 9129 7246 Phone:1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
4 Regular Meeting June 07, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
Item No. 1. Page 1 of 2
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: June 7, 2023
Staff Report: 2305-1460
TITLE
Approval of the Minutes of the Utilities Advisory Commission Meeting Held on May 3, 2023
RECOMMENDATION
Staff recommends that the UAC consider the following motion:
Commissioner ______ moved to approve the draft minutes of the May 3, 2023 meeting as
submitted/Amended.
Commissioner ______ seconded the motion.
Item #1
Packet Pg. 5
Item No. 1. Page 2 of 2
ATTACHMENTS
Attachment A: 05-03-2023 DRAFT UAC Minutes
AUTHOR/TITLE:
Jenelle Kamian, Program Assistant I
Item #1
Packet Pg. 6
Utilities Advisory Commission Minutes Approved on: Page 1 of 14
UTILITIES ADVISORY COMMISSION MEETING
MINUTES OF MAY 3, 2023 REGULAR MEETING
CALL TO ORDER
Chair Segal called the meeting of the Utilities Advisory Commission (UAC) to order at 6:06 p.m.
Present: Chair Segal and Commissioners Croft, Forssell, Mauter, Metz, Phillips, and Scharff
Absent:
AGENDA CHANGES, ADDITIONS AND DELETIONS
None
PUBLIC COMMENT
None
APPROVAL OF MINUTES
Chair Segal invited comments on the March 1, 2023 UAC draft meeting minutes.
Commissioner Scharff moved to approve the draft minutes of the March 1, 2023 meeting as presented.
Commissioner Forssell seconded the motion.
The motion carried 4-0 with Chair Segal and Commissioners Forssell, Metz, and Scharff voting yes.
Commissioners Croft, Mauter and Phillips abstained.
Chair Segal invited comments on the April 12, 2023 UAC draft meeting minutes.
Commissioner Croft moved to approve the draft minutes of the April 12, 2023 meeting as presented.
Commissioner Phillips seconded the motion.
The motion carried 7-0 with Chair Segal and Commissioners Croft, Forssell, Mauter, Metz, Phillips, and
Scharff voting yes.
UTILITIES DIRECTOR REPORT
Dean Batchelor, Utilities Director, delivered the Director's Report.
Rebates for High Winter Energy Costs: City of Palo Alto Utilities (CPAU) residential customers will see a
Winter Rebate automatically credited on their April or May utility bills, depending on their meter reading
Item #1
Packet Pg. 7
Utilities Advisory Commission Minutes Approved on: Page 2 of 14
and billing schedule. City Council approved rebates of $70 to $100 for gas and $20 to $65 for electric.
Additional rebates of $100 for electric and $100 for gas were available to residents in the Rate Assistance
Program (RAP) or with past due balances greater than 180 days. CPAU calculated the rebate based on
customers’ January electric and/or gas utility bills. CPAU decided to use General Fund dollars instead of
Utility dollars because rebates were only for residential customers, to avoid using monies from
commercial rates for residential rebates. Supplemental assistance was available to residents who do not
qualify for RAP but have experienced financial hardship.
Utilities Rates Update: Staff will address proposed utilities rates in more detail under New Business. Staff
will present the capital and expense budgets to Finance on May 9. Finance passed the proposed electric
and gas utilities rates. The water and wastewater rates required Proposition 218 notification. Staff will
present the final financial plans and proposed utilities rate changes to City Council on June 19, which if
approved by Council would become effective July 1. The projected bill change for an average residential
customer with six utility services was around $11/month. CPAU will inform customers of the rate changes
and the reasons for the rate increases. This outreach would include conversations with local media as well
as direct communication with customers through utility bill inserts, email newsletters, website, social
media, and business groups. The main reasons for rate increases this fiscal year are due to the City’s delay
of utility rate increases during the pandemic, reserves falling below minimum guidelines, aging
infrastructure, as well as inflation and cost increases for construction, operations, energy and water
supplies. CPAU will inform customers of the many programs and resources available to use energy and
water efficiently to keep utility bill costs low. For more information, visit cityofpaloalto.org/ratesoverview.
Electric Hydro Supply Update: Due to the recent rise in temperatures, snowfall received during the past
winter was starting to melt and flow into our reservoirs that generate our hydroelectric power. This led
to a significant increase in hydro generation this spring and our hydro projections for the next couple years
are much higher. As of May 1, precipitation totals in Northern California and Central California are about
are 25% and 60% above average, respectively. The overall snowpack level was more than twice the
average amount for this time of year. The City's hydro resources will produce approximately 104% of the
long-term average level of output in Fiscal Year (FY) 2023 and 122% in FY 2024.
Drought Update: On April 11, Palo Alto’s water supplier, San Francisco Public Utilities Commission
(SFPUC), rescinded the Water Shortage Emergency Declaration but kept the voluntary San Francisco
Regional Water system-wide 11% water use reduction until the State’s emergency regulation expires in
June. At that time, staff anticipated that Palo Alto would lift the watering restriction of two days per week.
The State would likely continue restrictions on watering within 48 hours after a rain event and ban
irrigating non-functional turf with potable water at commercial customer sites.
Full-Service Heat Pump Water Heater Program: The program provided customers two alternatives:
$2,700 upfront or $1,500 upfront plus $20/month for five years added to their residential bill. This
program generated a lot of community interest. More than 450 residents were awaiting assessments.
There have been six water heater installations. Staff worked together with our vendors to identify and
implement process improvements to decrease the backlog.
Earth Month Events: There were two electric vehicle (EV) workshops, two EV expos and a sold-out e-bike
test ride event at Mitchell Park in April. CPAU staff participated in two Earth Day community events. One
event was at Stanford Hospital’s celebration. Attendees could spin a wheel and staff gave out fun facts
about various electric appliances and clean energy sources. The second event was at the Rinconada
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Library, which included a garden tour and staff spoke about water conservation and the Full-Service Heat
Pump Water Heater Program.
Upcoming Events:
This weekend is the 99th May Fete Parade at 10 a.m. If anybody was interested in walking, you are
welcome to meet at Emerson and University at 9:30 a.m.
May 3, 7-8:30 p.m.: Tree Selection, Watering, and Care
May 13, 10 a.m.-noon: Goodbye Gas, Hello EVs! EV expo
May 15: EV 102
May 31, 5-6 p.m.: EVs for Backup Power
NEW BUSINESS
ITEM 1: ACTION: Approval of UAC Chair and Vice Chair to Serve a Short Term of May 3, 2023 to March 31,
2024
Commissioner Forssell opined that Chair Segal did a great job and nominated her for a second term.
ACTION: Commissioner Forssell moved to approve UAC Chair Segal to serve a short term of May 3, 2023
to March 31, 2024.
Seconded by Commissioner Scharff.
Motion carried 7-0 with Chair Segal and Commissioners Croft, Forssell, Mauter, Metz, Phillips and Scharff
voting yes.
Commissioner Forssell nominated Commissioner Scharff as Vice Chair because he was a senior
commissioner and very experienced.
ACTION: Commissioner Forssell moved to approve Vice Chair Scharff to serve a short term of May 3, 2023
to March 31, 2024.
Seconded by Chair Segal.
Motion carried 7-0 with Chair Segal, Vice Chair Scharff and Commissioners Croft, Forssell, Mauter, Metz,
and Phillips voting yes.
ITEM 2: ACTION: Approval of UAC Budget Subcommittee Members to Serve a Short Term of May 3, 2023
to March 31, 2024
ACTION: Commissioner Croft, Commissioner Phillips, and Vice Chair Scharff volunteered to be on the
Budget Subcommittee to serve a short term of May 3, 2023 to March 31, 2024.
ITEM 3: DISCUSSION: Discussion and Presentation of Utilities Strategic Plan Implementation
Public Comments: None
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Dean Batchelor, Utilities Director, stated that Council and the UAC approved CPAU’s current five-year
strategic plan in 2018. Tonight, CPAU will present the updated strategic plan for the next five years, which
was composed of four high-priority focus areas.
Dave Yuan, Strategic Business Manager, discussed the technology priority. The strategies for this priority
included a five-year roadmap to guide technology investments and customer programs, citywide AMI
deployment, enhance customer interaction via MyCPAU customer portal and the outage management
system (OMS). Mobile applications and paperless forms will improve field operations. CPAU will provide
training to employees on existing and new technologies. MyCPAU had an adoption rate of about 78%
(over 24,000 customers), which was high for a customer portal. About 55% of our utility bill payments
come through the portal. Given its popularity, CPAU is investing more into this portal.
Initiatives for the coming year include planning and deployment of advanced metering infrastructure
(AMI). There have been about 1200 AMI meters deployed and another 1000 more meters will deploy by
the end of this summer. Residential will be complete by the end of 2024 and commercial by mid-2025.
The new OMS will be deployed by the end of this summer or beginning of winter. It will notify customers
when there is an outage and provide a status update every 30 or 60 minutes during outages.
Commissioner Croft queried what software would interface with AMI that we could recommend to
residents. Mr. Yuan replied that staff could discuss internally if they would provide recommendations. The
AMI meter provided next-day interval data. If a customer wanted real-time reads, a home device could
connect with a ZigBee radio attached to their smart meter. Staff was designing time-of-use rates to
incentivize people to charge EVs and use other appliances off-peak, usually after 9 p.m.
Commissioner Phillips inquired if AMI installation required physical access to someone’s property and if
anybody had resisted. Mr. Yuan responded yes, they need access to the property. Customers were notified
at least two or three times, an email or letter was sent one week in advance, a door hanger was left a
couple days in advance, and a knock on their door on the day of installation. Most meters were outside
the gate. Staff would schedule an appointment if a meter were behind a locked gate. Customers could opt
out of AMI. A couple customers were on the opt-out list.
Commissioner Phillips asked if there needed to be 100% residential installation of AMI before using time-
of-use pricing. Mr. Yuan stated that time-of-use pricing was still in the design phase. Staff would like to
pilot it for the early installers if there were an opportunity.
Commissioner Mauter suggested thinking about how the customer was likely to interface with AMI and
how CPAU can use AMI data to establish time-of-use pricing signals across the utilities, how workflows
might be established for collecting and disseminating data from AMI, and using AMI data in strategic
planning and operational decisions. An AMI roadmap would help derive the greatest value from this new
technology. Mr. Yuan commented that they would do parallel bill testing to make sure our manual meter
reads and AMI reads were the same. They were targeting electrification homes to obtain better data on
transformer loads at different times of the day. If anybody wanted to be part of the early phase of AMI,
let staff know. Commissioner Forssell thought it would be great to include the entire Commission, unless
somebody was not interested. Mr. Yuan replied he could accommodate them in the next rollout of 1000
meters.
Commissioner Forssell asked what features OMS would provide that we currently do not have. Anna
Vuong, Senior Business Analyst, is the project manager for outage management. OMS would provide
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notifications to customers. If a customer called to report their power is out, they could request a call back,
text or email notifications on the outage status,. There was a possibility of posting to Twitter. Mr. Yuan
added that the system stored up to five phone numbers for each household. If your phone number were
not in the system, you would need to call to request a call back. You would be notified automatically if
your phone number were in the system. Staff was gathering contact information from customers for
automated outage notifications. Currently, Catherine or Jordan manually post messages to the City’s
Twitter feed. Mr. Batchelor noted the OMS had a notification feature to call in advance of planned
outages. Currently, staff dropped off flyers at each home to notify customers. Ms. Vuong clarified that the
portal would accept two phone numbers, so you have to call Customer Service if you wanted to add more
than two phone numbers.
Commissioner Metz did not see technology initiatives for the electric grid or in the roadmap. Mr. Yuan
replied that they would discuss the plan in the CIP budget section and they were applying for grants.
Commissioner Croft commented on the unmet 90% KPI for paperless tools by 2019. Mr. Yuan remarked
that customers could elect paperless. There was an initiative to move more customers to paperless by
promoting or defaulting future customers to only paperless and converting ones who were currently
selecting both options to only paperless. Engineering’s maps were larger documents and difficult to put
on a tablet or phone. He thought the new platform they would have in a couple years could zoom in on
maps better. Operations transferred most of their paper into paperless with our mobile apps.
Chair Segal asked if there was a communications plan for paperless customers to see the information they
would have received in their mailers. Mr. Yuan responded there was a bill insert website but it was not
obvious to find, so staff will try to promote it better and put it on MyCPAU as well. Chair Segal suggested
emailing the bill inserts. Mr. Yuan agreed it was a good idea and maybe the bill insert could be included
with the bill notification email.
Chair Segal thought the outage map was a nice tool and wondered if it would be more precise after the
upgrade. Mr. Yuan replied that that the goal was to have the outage map be more precise. It needed a lot
of data cleanup and surveying in the field, which was why it had taken longer than planned.
Catherine Elvert, Utilities Communications Manager, noted that information found on bill inserts was
available electronically. Customers’ email notifications include a link to the bill insert webpage.
Next, Ms. Elvert addressed the UAC regarding collaboration. Community focus was one area of the
collaboration priority. Staff was very proud of the Heat Pump Water Heater Program. It was a key priority
in the Sustainability and Climate Action Plan (S/CAP) in order for us to meet our greenhouse gas emissions.
We have contract approval and began work with a marketing consultant last fall to roll out an outreach
campaign to meet our goals. You will start to see some of those marketing materials soon.
Staff was working with the Public Works Department to identify electrification potential at City facilities.
Other initiatives include collaborating with regional agencies on climate change, such as government
agencies, nonprofits, environmental organizations, Northern California Power Agency (NCPA) and
California Municipal Utilities Association (CMUA) as well as establishing regional contracts to take
advantage of economies of scale to roll out programs across the region.
Close to 70% of our surveyed customers would very likely recommend CPAU energy and water efficiency
programs. The most successful survey responses were among residents who participated in our Home
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Efficiency Genie. We do not have comparison benchmarks because we do not have access to data from
our previous vendor. CPAU will work with a new vendor through CMUA to survey our business and
residential customers yearly. In our business survey, about 80% of customers were very happy with CPAU.
We want to continue to drive improvement in this area. Staff will look at other municipal utilities and
investor-owned utilities in the region to see what metrics they were setting.
Commissioner Croft asked if we benchmarked ourselves against other cities and shared information with
each other. Ms. Elvert responded that we participate in a number of regional committees that include
cities, special districts in the county, nongovernmental organizations and environmental organizations.
The Reach Codes team is a statewide initiative where we share best practices and lessons learned. Palo
Alto was progressive in our S/CAP goals. Our goals were higher than the State. We have contracted with
NCPA within the last few years to offer regional programs. We are involved with the energy efficiency
group through NCPA. Mr. Batchelor added that there were 14 cities in the Association and directors
usually met twice a year to talk about initiatives and KPIs.
Commissioner Phillips wanted to know if staff tracked objective KPIs on complaints, if it was or was not
resolved to the customer’s satisfaction and the length of time until satisfaction. He suggested identifying
patterns in the reasons for customers not being happy.
Regarding the success with instant permitting for the Heat Pump Water Heater Program, Commissioner
Mauter wondered if there were other instant permitting opportunities to ease the transition to new
technology adoption. Ms. Elvert responded that the City reduced the length of time required to receive a
permit for solar but it was not instantaneous because of logistical and safety reasons. Staff will continue
to evaluate other opportunities to reduce the length of time for permitting.
Commissioner Mauter asked if CPAU engaged with local colleges and universities for summer internships
and if so, could commissioners help advertise the internship program. Ms. Elvert replied that she recruited
an administrative intern through work with NCPA. The requisition went out to a variety of colleges
including Stanford, San Jose State and Santa Clara. Our resource management group recruits interns
throughout the summer. Through Climate Fellows and educational institutions, we look for people who
can help us on an ongoing basis or for special projects.
Jonathan Abendschein, Assistant Director of Utilities Resource Management, addressed the Commission
on Sustainability, Finance and Infrastructure. This priority had shifted its focus since the initial adoption
of the Strategic Plan, in part due to completion of certain strategies within the priority and partially due
to a refocusing of strategic needs. The name had changed from Finance and Resource Optimization to
Sustainability, Finance, and Infrastructure. The previous five strategies had been replaced with seven new
strategies, some of which included elements of the previous five. The first new strategy involved
maintaining a focus on infrastructure replacement and maintenance. The second and third strategies
involved evaluating the community’s future water supply needs and examining the City’s energy supply
plans. In 2024, the City needs to decide how it wants to move forward with its federal hydropower
contract. The City previously assigned its share in the California-Oregon transmission project, but that will
return to the City in 2024 and staff will need to evaluate what role that transmission line may play in the
City’s long-term energy portfolio. Staff is determining how to manage the load growth associated with the
transition to an electrified community, strategy four. It is not only increasing capacity to accommodate
electrification but also modernizing the grid to handle new technologies such as solar smart panels and
the ability to provide price signals for customers to manage their loads to run during times when it saves
cost and reduces emissions on the grid.
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This will impact the gas utility. Managing a utility through declining sales was complicated and required
planning, which was embodied in strategy five. Part of Utilities’ role in the S/CAP will involve assessing
this transition from a financial standpoint, the funding mechanisms needed and the impact on utility rates.
Staff has had early discussions on a plan for agas infrastructure transition study. The grid modernization
study was completed.
Staff was developing a work plan to present to Council in May. Several other programs were in the work
plan, including whole-home electrification, commercial rooftop HVAC, and partnerships with major facility
owners to help them reduce emissions from their facilities as well as commuters.
Strategy was is the S/CAP funding study. The draft scope was ready but there was a funding issue. There
will be discussions in May with the Finance Committee on the budget and funding for this study.
Staff was preparing for modernization of the first neighborhood under the electric grid modernization
plan. Commissioner Forssell asked if the completed grid modernization study was available to the public
or commissioners. Mr. Abendschein replied they were internally discussing how and when to provide an
update. Mr. Batchelor did not have a timeline for releasing the study, if they chose to make it public. He
was concerned with the community asking questions that the high-level study did not address.
Commissioner Metz inquired when the UAC will see the plans referenced on Packet Page 62, Presentation
Page 24, particularly S2, S3, S4 and S5. Mr. Abendschein responded that the UAC had already had initial
meetings on the electric integrated resource plan and One Water Plan (S2 and S3). Karla Dailey, Acting
Assistant Director, Utilities Resource Management, added that the One Water Plan had a delay because
of staffing but they hoped to get it to Council by the end of this calendar year and the UAC would see it
late summer. Mr. Abendschein stated that for S4 and S5, they addressed the grid modernization study.
The electric reliability and resiliency strategic plan did not have a timeline because Council assigned it to
the S/CAP Committee as a work item. S4 included infrastructure work needed to accommodate the
community transition, including grid modernization, building capacity to accommodate electrification,
retirement of the gas system as well as the order and method in which those would be done. The first
budgets for grid modernization are in the FY 2024 capital budget and our rate plan factored in the funding.
Chair Segal commented on S3, the One Water plan. She wanted to add language that reflected the UAC’s
discussion on efficient, sustainable, clean water supply. Ms. Dailey remarked that they would only
consider water that was clean and drinking water quality. Mr. Abendschein agreed to add the language.
Anna Vuong, Senior Business Analyst, addressed the Commission on workforce. Staff developed a training
template for classifications in water, gas and wastewater engineering to let our employees know what it
takes to get to the next step in their career. Staff was refining the template to use it in other divisions. The
City was exploring daycare options after surveying our employees about their daycare needs. The City will
continue exploring retention options. The turnover rate was 13% but the KPI was less than 10%. The KPI
for positions filled annually was 90% but we were at 77%.
Vice Chair Scharff asked about the employee satisfaction survey results and lessons learned. Ms. Vuong
replied that about 50% filled out the survey. They need to perform analysis of the responses.
In response to Vice Chair Scharff querying if our hiring and workforce was compared to other publicly
owned utilities such as Santa Clara and Alameda, Ms. Vuong answered they had not. Vice Chair Scharff
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encouraged comparisons to determine if we had more problems hiring than our peers or if our salaries
were competitive. Mr. Batchelor remarked that SEIU received a new contract and the comp study included
Alameda, Santa Clara, Roseville, Anaheim and Long Beach. For full benefitted positions, we were behind
Santa Clara but above Alameda and well above Long Beach. The issue with SEIU was explaining to their
other 400 members why Utilities had a separate cost rate than Public Works or CSD. Utilities received a
larger increase than the General Fund workers did but we still have difficulty attracting people to work for
Palo Alto in critical positions. Santa Clara started their first apprenticeship program because they were
losing linemen and were not able to replace them. They have four linemen classifications open that they
will fill with apprentices. Alameda is down one. Lodi was down two. Roseville was full. Being further away
from the Bay Area has helped because of cost of living.
Commissioner Mauter asked if there was a deficit in the number of applications or the number of qualified
applicants. Tabatha Boatwright, Utilities Administrative Assistant, is an HR liaison (HRL). They have seen a
rise in applications but there was a lot of attrition. People who have worked for the City for a few decades
were leaving, so we promoted other employees, therefore leaving a position open. Once we fill the open
position, somebody retires. As soon as we hire someone, someone else leaves. The line crew was a difficult
position to fill. We have a much larger crew. We need 12 people, so you have to consider that when you
compare our vacancies with other cities that have smaller crews. We have three trained linemen. Mr.
Batchelor added that they had not seen applications for linemen or engineering. Staff visited Sacramento
State and San Luis Obispo because they were the only two schools in California with power engineering
programs.
Commissioner Phillips inquired if this was a problem in 2018 or if it was a post-COVID problem. Ms.
Boatwright explained that for linemen it was a consistent issue. Many linemen come from far away and
return to their hometown when they finish our four-year apprenticeship. City Hall closed during COVID
and many people enjoyed working from home. Once we reopened, some employees feared coming back
and they resigned to find a job that allowed them to work permanently from home. The City has a work
schedule of two days in the office and three days at home. We lost a number of people in engineering
because they chose to consult from home.
City Council Member Ed Lauing advised having a consultant perform a departmental analysis of what else
we could do. He asked if people were turning down our offers and why. Ms. Boatwright replied that there
were three positions that people turned us down based on salary. Council approved salaries and
negotiated with unions. Council Member Lauing suggested being more aggressive with the HR
department. Ms. Boatwright, with the Director of HR and the City Manager’s permission, had a digital
billboard outside Ikea for three months that invited people to come work for Palo Alto. Two different
advertisements ran for 8 seconds every 60 seconds. We do not know if it had any impact because HR
asked applicants how they heard about us but the billboard was not one of the options.
Commissioner Forssell heard about the new Palo Alto School Board policy to allow City employees’
children to attend Palo Alto Schools and wanted to know if it would be helpful in recruitment and
retention. Ms. Boatwright opined it was a huge deal because some employees had a long commute to
and from their children’s school. Deputy City Manager Chantal Gaines was promoting the new policy in
our recruitment posts. Mr. Batchelor added that PAUSD was willing to do this because their schools
started to have low attendance.
In response to Commissioner Croft’s query if we needed more people to work on the hiring process, Ms.
Boatwright answered that Utilities does not control that because HR is their own department. CPAU paid
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the salary for one full-time dedicated HR recruiter for Utilities. We created three HRLs to help with
recruitments and they meet weekly but they were limited in how much they could do because HRL tasks
are in addition to their regular jobs. HR was recruiting for two recruiters but it was a difficult position to
fill because many recruiters prefer to work from home.
ACTION: None
The UAC took a break at 8:15 p.m. and returned at 8:26 p.m.
ITEM 4: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend the City
Council Adopt the Proposed Operating and Capital Budgets for the Utilities Department for Fiscal Year
2024
Alexandra Harris, Senior Business Analyst, delivered a slide presentation on the preliminary budget that
will be proposed to the Finance Committee next week. HR, OMB and the City Manager’s Office reviewed
the budget change requests. Staff released the proposed budget packet to the public. Workshops are
scheduled between the Finance Committee and Council before Council adopts the budget on June 19.
Grant opportunities would enable the City to accelerate some large infrastructure investments necessary
to meet our S/CAP initiatives. There have been ongoing discussions about what was needed to upgrade
the City’s electric grid system. Potentially, a second study would help determine and mitigate load impacts
from EV and solar usage as well as evolving technologies. There will be a pilot program continuing through
Fiscal Year (FY) 2024 to rebuild secondary networks and install transformers to increase capacity to about
500 homes within Embarcadero, Louis and Amarillo. The plan was to complete a design by December 2023
and construct the first 10% of the system in spring 2024.
The FTTP project will provide broadband internet to the community. The contract amendment approved
on Monday (Report #2303-1215) will provide program management for the construction of the backbone
and Phase 1 of FTTP, network ops, tech support and electric make-ready engineering work. Staff planned
to return to Council with a summer update and possible RFPs.
Staff was aggressively pursuing grant opportunities from the bipartisan infrastructure bill passed a couple
years ago. One recent application was for approximately $11M for the smart grid AMI project and
currently we are applying for a 50% match grant of $100M to $150M for the grid modernization project.
Our gas team is actively pursuing a gas grant of about $9M. The budget does not presume we win these
grants.
Commissioner Phillips queried if receiving the grants would allow us to reduce our rates. Jonathan
Abendschein, Assistant Director, Utilities Resource Management, pointed out that our reserves were $8M
to $10M below the minimum guideline. Any additional revenue would go toward replenishing reserves.
Receiving one-time grant proceeds would not allow us to lower rates because they are one-time cost
savings as opposed to ongoing cost savings. If we won multiple grants, it might replenish reserves enough
to allow us to phase in some of the later year rate increases over a longer period.
These are federal grants. The grid modernization grants were from the Department of Energy (DOE). In
reply to Commissioner Mauter inquiring if CPAU was aware of a California cost share program that added
$1M to federal grants, Ms. Harris answered no. Commissioner Mauter explained that you need to apply
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to CPUC prior to applying to DOE and CPUC would provide an extra $1M automatically if DOE awarded
the grant.
Ms. Harris stated they had new information that affected the water rates but the table did not reflect the
change. Water rates were comprised of distribution and commodity costs. We pass through commodity
costs to the customers based on SFPUC rates. We anticipate those rates will change from 11.6% to 9.6%.
This change would slightly reduce the water rates, decreasing from 6% to 5%, from $5.90 down to $5.21
in the estimated monthly bill.
See links in Staff Report #2302-0949 for the preliminary electric fund budget. The first five links were for
a preliminary view of the capital budget organized by fund and included a detailed budget summary table
and details per project. The last link was a preliminary view of the Utilities operating budget organized by
fund, starting with an overview, various budget summary tables and ending with a detailed reconciliation
from the prior year budget to this year’s 2024 budget.
Construction started recently to increase the physical security at our electric substations. Staff will
continue their efforts to apply for grants and explore any alternative funding resources, work on the
electric grid modernization plan, complete a new electric cost of services analysis and launch the new
outage management system.
Commissioner Metz wanted to understand what was included in the electric fund grid modernization. Ms.
Harris explained that the budget presented to the UAC was very high level and contained preliminary cost
estimates. A more in-depth study and further details were forthcoming, such as the numbers of
transformers needing upgrade.
Electric fund reappropriations from one year to the next were for projects postponed to align with grid
modernization efforts, limited engineering resources, supply chain issues or difficulty procuring
transformers. The electric fund FY 2024 revenues were approximately $265M, about $80M more than the
adopted FY 2023 budget. In addition to the increases in retail sales, it also reflected the debt financing for
the grid modernization project to help fund it through bonds. There was one-time $24M revenue from
the lawsuit we won in FY 2023 but originally anticipated it for 2024 so it’s still reflected in FY 2024 in this
preliminary budget. FY 2024, expenses were about $260M and were mostly comprised of capital
improvement expenses and commodity purchases.
A slide was shown comparing CPAU’s electric bill with PG&E and Santa Clara. Although CPAU was lower
than PG&E, we were slightly higher than Santa Clara because they generate their own electric power.
Commissioner Metz requested further explanation of the rate increase. Mr. Abendschein explained that
electric revenues were about 20% below costs, so reserves were very low in the electric utility. The $24M
we received from the settlement from the federal hydropower project was used to replenish our reserves
and repay an outstanding internal loan to our electric special project reserves. We use a reserve to balance
our hydroelectric from year to year and our reserve target is about $19M. As of the end of last year, the
reserve balance was $400,000, so some of the money from that settlement went toward replenishing that
reserve. A lot of the revenue from the strong hydro generation this year will go toward replenishing the
hydroelectric stabilization reserve. Customers will see an average decrease of 5% in their bills with
removal of the hydroelectric rate adjustor (HRA) and 21% base rate increase. Staff could improve the HRA
design. The HRA managed the variability associated with hydroelectric generation. Increases in our core
continuing costs and long-term increases in the cost of energy drove the base rate increase. There was an
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overall 11% increase this year in the median residential bill but the previous two years had 1% increases.
When you annualize it over those three years, the increases were about 4%. Utility costs and utility rates
nationwide were increasing above inflation because of investments in aging infrastructure.
Commissioner Croft noted the increase from 2022 to 2023 in electric demand from $2.9M to $8.3M and
a similar demand bump on the gas budget. Mr. Abendschein remarked that a lot of it was related to S/CAP.
He believed the cost of the Advanced Heat Pump Water Heater Pilot Program was $5.7M. The multifamily
electric vehicle charging program had a significant budget. The money was for cutting emissions and doing
energy efficiency work.
Ms. Harris stated that they would add two new dedicated fiber employees (dark fiber engineering and a
market analyst). Some upcoming fiber initiatives included plans to add fiber in the foothills, continue
searching for alternative funding sources and to issue construction bids and proposals related to the fiber
backbone and FTTP projects.
The anticipated fiber fund FY 2024 revenues were $4.6M from our existing dark fiber business. Most of
the $36.75M was comprised of capital improvement costs for the fiber backbone and the FTTP project.
Other major expenses were salary and benefits as well as allocated charges for internal overhead costs
such as IT or HR support. The City contracted Magellan to support the next phases of the fiber project.
Dave Yuan, Strategic Business Manager, addressed Commissioner Forssell’s questions regarding the
difference between the FTTP Phase 1 and the initiative to add fiber in the foothills. FTTP Phase 1 is more
in town and the City would be the ISP. Adding dark fiber in the foothills was due to the community wanting
to form their own ISP for internet access.
Chair Segal asked how much it cost us to make the $4.6M revenue. Mr. Yuan replied that the cost was
minimal, only for salaries and benefits because the infrastructure was paid for 20 years ago and was very
low maintenance. Fiber paid about $1.5M toward the University Avenue upgrade project.
Anna Vuong, Senior Business Manager, delivered a presentation on the gas, water and wastewater funds.
About 3700 sewer laterals need to be inspected for cross bores. One initiative is to complete construction
work on Gas Main 24B. There will be a gas decommissioning study in 2024 to evaluate the approach for
downsizing the gas system and identify any potential locations for proof of concept. Due to the spikes in
last winter’s gas prices, staff will evaluate winter hedging strategies to mitigate future price spikes. Staff
will apply for federal grants for gas. Gas preliminary capital budget expenses for FY 2024 are about $7M,
including reappropriations of about $300,000. Gas revenues will increase about $19.6M compared to the
FY 2023 adopted budget.
A slide showed a comparison table of monthly residential bills. CPAU’s median residential bill was about
11% below PG&E.
Wastewater fund initiatives include construction of Wastewater Collection Replacement Project 31. A
sewer master plan study will be done in 2024 (last done in 2004) to help determine our present and future
capacity for wastewater collection as well as future areas for replacement projects. There will be
replacement of 39 monitoring units for sewer sanitary overflow throughout various areas of the city,
which have been helpful in bringing down our overflow numbers because it alerts us before it overflows.
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Chair Segal noted that almost half of the wastewater operating budget expenses was for Utility Purchase
and asked what that encompassed. Mr. Yuan explained that it was not a commodity purchase. Utility
Purchase was the treatment charges for the regional water quality demand, meaning that is how much
they charge us to clean our wastewater. The City shares about 32% of the treatment plant with four or
five partners but we are doing an assessment to see if that was the correct percentage.
Ms. Vuong stated that the expenses in the wastewater capital budget did not reflect some recent changes.
The adopted budget will reflect the replacement rate increase from 1 or 1½ miles to 2½ miles per year.
The spike starts in FY 2026, increasing from $5.2M to about $11M for our replacement project.
The wastewater collection fund anticipated revenues increased about $2.1M due to the rate increase.
Expenses increased $700,000 for treatment plant charges. There may be incremental increases over the
next 7-10 years for the $300M rehabilitation project. Although the $300M is outside of the five-year plan,
it was included in the financial forecast. There will be bond financing for most of that money, so we are
only repaying the 30% debt service.
A slide showed of a comparison table of residential and nonresidential sewer bills. CPAU was 28% below
comparison cities for residential customers, 7% higher for commercial customers, and 12% lower for
restaurant customers. CPAU had a flat rate for residential customers. For commercial customers, the rate
was based on their water usage.
Commissioner Mauter asked if there was a data-driven plan or ranking for when and where to replace
sewer mains. Ms. Vuong responded yes, this year’s sewer master plan would provide information on the
age and deterioration of the pipes.
Chair Segal was curious why Hayward was one of the comparison cities. Mr. Abendschein remembered
that Hayward was across the bay from us and had similar water supplies but he would need to ask Lisa
Bilir if she remembered why they were included as a comparison.
Chair Segal inquired when the study would determine our percentage obligation for the plant. Mr. Yuan
replied that Water Quality led that endeavor, so Public Works would hire a consultant to check all the
cities’ flows.
Ms. Vuong stated an assessment would be completed by June 2023 to determine whether to replace or
rehabilitate Park Reservoir. Then, they will design and construct Park Reservoir. Complete construction of
Water Main Replacement Project 28 and beginning Project 29 will happen in FY 2024.
For FY 2023, $27M was in the adopted budget, about $14.4M will be spent and $12.6M will be
reappropriated, the bulk of that for Park Reservoir. In FY 2024, the water fund CIP is $26M, including the
$12.6M reappropriation. For the water system supply improvements project, there was an initiative to
replace security cameras as well as install generators at our booster stations and pump stations.
For the water fund, staff anticipated an increase of $3M in revenues based on a 6% rate increase. For the
adopted budget, staff will propose a 5% rate increase. Expenses increased about $13M, which included
capital improvement reappropriations from 2023, Water Main Replacement 29, and an SFPUC commodity
rate increase of 11% (but now it changed to 9.6%).
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Utilities Advisory Commission Minutes Approved on: Page 13 of
14
A slide showed a comparison table of single-family residential and commercial water bills. CPAU
residential water bills were about 14% above the comparison city average. We have proactive investment
in our infrastructure. We are 100% Hetch Hetchy. Some of the comparison cities may have groundwater
sources. CPAU commercial water bills were about 5% above the comparison city average.
Vice Chair Scharff commented on why we used Hayward as a comparison. He thought it was BAWSCA and
they get Hetch Hetchy water. Many cities do not do their own sewer. Fremont, Newark and Union City
belong to Alameda County Water District. He thought Oakland and most other North Alameda cities
belong to East Bay MUD.
Commissioner Phillips noted a $21M gap between water fund revenues and expenses. Mr. Yuan explained
that part of it was reappropriation of $10M encumbered in 2023 but moved to 2024. Water will still have
healthy reserves because revenues were higher than projected due to people working from home during
COVID.
Commissioner Croft commented on the difference between 2024 proposed budget expenses of $470M
and revenues of $413M. There were very large differences with expenses much higher than revenues in
2022 and 2023. Mr. Yuan replied that part of those expenses were reappropriation dollars, he guessed
around $20M for 2024. Budget expenses reflected the amount authorized to spend but normally they do
not spend everything. For CIP, 25% to 50% of our budget is spent. We have a 20% vacancy, resulting in
less money spent on salaries. We spend about 60% to 75% of authorized expenses. Mr. Abendschein
added that when they reappropriate things from one year to another, money from the rates for those
expenses then goes to the reserves and drawn down the following year. The practice was to spend more
on CIP in some years and less in other years; for example, doing a main replacement project every other
year to have a larger project, get more bids and manage staff capacity issues. Every year, staff brings a
business plan and financial plan to the UAC for each utility that includes all these year-to-year variances
and maps them against the reserves and rates to confirm the utilities are in a good financial position. He
offered to forward the information to Commissioner Croft.
Ms. Vuong presented a staffing chart showing 57 vacancies, representing a 22% vacancy rate and 34 active
recruitments. In Calendar Year 2022 and the first three months of 2023, there were 30 new hires, 23
promotions, 5 retirements and 31 separations, for a net loss of 6 FTEs.
There were alignments of 10% to the market rate and they will continue their efforts to reach market rate
or be more competitive. A flexible remote work schedule is in place for certain positions. There are new
apprenticeship programs. As part of the post AMI transition project, there was a training program to
provide opportunities to our meter readers within the department. One meter reader went to customer
service and another went to water transmission. The new contract with SEIU included hiring and retention
bonuses. Another staffing recruitment strategy is career fairs. For FY 2024, regular FTEs will increase by
4.5 positions (mostly in the new Palo Alto Fiber division).
ACTION: Vice Chair Scharff moved to approve Staff Recommendation that the Utilities Advisory
Commission Recommend the City Council Adopt the Proposed Operating Budgets for the Utilities
Department for Fiscal Year 2024
Seconded by Commissioner Croft.
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Utilities Advisory Commission Minutes Approved on: Page 14 of
14
Motion carried 7-0 with Chair Segal, Vice Chair Scharff and Commissioners Croft, Forssell, Mauter, Metz,
and Phillips voting yes.
ACTION: Commissioner Phillips moved to approve Staff Recommendation That the Utilities Advisory
Commission Recommend the City Council Adopt the Proposed Capital Budgets for the Utilities
Department for Fiscal Year 2024
Seconded by Commissioner Forssell.
Motion carried 6-1 with Chair Segal, Vice Chair Scharff and Commissioners Croft, Forssell, Mauter, and
Phillips voting yes. Commissioner Metz voted no due to the absence of specifics on grid modernization.
COMMISSIONER COMMENTS and REPORTS from MEETINGS/EVENTS
Commissioner Forssell asked for any commissioners serving on the S/CAP committee to bring information
to the UAC. Chair Segal remarked that there were no UAC commissioners on S/CAP with the change in
mayorship and City Council. Mayor Kou will have a meeting with Commission chairs this month or next
month and maybe that could be brought up then.
Vice Chair Scharff asked to see the COTP report. Mr. Batchelor explained that it was an informational
report in tonight’s packet but staff could bring it back next month for discussion because a decision
needed to be made on whether to lay off this asset or examine it further. Staff was determining if there
were financial resource impacts to us. We have close to $1M if we kept it but staff was researching what
we might be able to get and solicit some bids if we want to lay it off. Commissioner Metz inquired what
the carbon intensity was of the electricity coming from COTP because it was important input to the
decision. Commissioner Phillips would like to hear if it was Bonneville Power. Vice Chair Scharff thought
there was an issue with liability of fires on the transmission line and would like to know how that affected
the City of Palo Alto.
FUTURE TOPICS FOR UPCOMING MEETING
Commissioner Croft expressed interest in residents’ experiences with AMI. Chair Segal thought the UAC
would receive regular reports after AMI rolled out.
NEXT SCHEDULED MEETING: June 7, 2023
Commissioner Forssell moved to adjourn.
Commissioner Mauter seconded the motion.
The motion carried 7-0 with Chair Segal, Vice Chair Scharff, and Commissioners Croft, Forssell, Mauter,
Metz, and Phillips voting yes.
Meeting adjourned at 9:45 p.m.
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Item No. 2. Page 1 of 8
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: June 7, 2023
Staff Report: 2304-1275
TITLE
Staff Recommends that the Utilities Advisory Commission Recommend the City Council Adopt
the 2023 Annual Water Shortage Assessment Report
RECOMMENDATION
Staff requests the Utilities Advisory Commission (UAC) recommend the City Council adopt the
2023 Annual Water Shortage Assessment Report.
EXECUTIVE SUMMARY
Beginning in 2022, every urban water supplier in California must conduct an Annual Water Supply
and Demand Assessment as required by California Water Code Section 10632 (a). Each urban
water supplier must also submit an Annual Water Shortage Assessment Report to the
Department of Water Resources (DWR) on or before July 1, as required by California Water Code
Section 10632.1. The City’s Annual Water Shortage Assessment Report (Tables 1-5 below) shows
that there is no water shortage anticipated for Fiscal Year 2024. On April 17, 2023, the San
Francisco Public Utilities Commission (SFPUC), Palo Alto’s water supplier, provided Palo Alto with
the Water Supply Availability Update indicating for this upcoming water year, to-date
precipitation has been above average and snowpack is at record-breaking levels; additionally,
SFPUC indicated its 11% regional voluntary reduction request will expire at the same time the
State Board’s drought emergency regulation expires on June 10th, 2023 (unless the State Board
rescinds the drought emergency regulation earlier). Palo Alto’s water use for the period July 1,
2022 through March 31, 2023 was 13% below the base year of July 1, 2019 through March 31,
2020. The City of Palo Alto encourages continued water conservation efforts and the City’s
website contains more information about available water conservation programs1 and latest
water conservation and drought updates.2
1 https://www.cityofpaloalto.org/Departments/Utilities/Sustainability/Ways-to-Save
2 https://www.cityofpaloalto.org/Departments/Utilities/Sustainability/Water-Conservation-and-Drought-Updates
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Item No. 2. Page 2 of 8
DISCUSSION
To prepare the 2023 Annual Water Shortage Assessment Report, staff followed the procedures
outlined in its Water Shortage Contingency Plan, contained in Section 7 of the City’s 2020 Urban
Water Management Plan (UWMP). Palo Alto’s 2023 Annual Water Shortage Assessment Report
uses the DWR-developed Optional Annual Assessment Tool format. This format includes the 5
tables shown below. Staff will submit the standard tables to DWR by July 1, 2023. “Table 1. Annual
Assessment Information” (Table 1) provides required overview information. The remaining tables
project water supply and demand for FY 2024 under dry conditions, as required, and finds that
there is no projected water shortage.
After Palo Alto and other urban water suppliers report to DWR on the 2023 Annual Water
Shortage Assessment Reports, DWR will prepare a summary report on its review of the Annual
Water Supply and Demand Assessment results and provide it to the State Water Resources
Control Board (State Board) by September 30. The DWR report will include water shortage
information at the supplier level, as well as regional and statewide analysis of water conditions
as required by California Water Code Section 10644 (c)(1)(B).
Potable Water
Palo Alto receives 100% of its potable water supply from the SFPUC Regional Water System and
staff used the SFPUC's April 17, 2023 Water Supply Availability Update to determine water
supply.
•“Table 2: Water Demands” (Table 2) provides a demand projection for each month of FY
2024;
•“Table 3: Water Supplies” (Table 3) notes that there is sufficient supply to meet Palo Alto’s
demand and projects supply equal to the demand projection since there is no projected
water shortage;
•“Table 4(P): Potable Water Shortage Assessment” (Table 4(P)) compares projected FY
2024 demand with supply and illustrates that there is no shortage projected for FY 2024;
•“Table 5: Planned Water Shortage Response Actions” (Table 5) shows no triggered water
shortage actions.
On March 24, 2023, Governor Newsom issued Executive Order (N-5-23) which eliminated his
directive that agencies implement Stage II of their water shortage contingency plans as well as
lessened the drought emergency restrictions presented in his previous Executive Order (N-7-22),
while not eliminating all actions completely. On April 11, 2023, the SFPUC approved the
rescindment of the Water Shortage Emergency that was declared on November 23, 2021. This
action removes the voluntary system wide cutback of 11% (Resolution No. 22-0098), effective
when the State Board’s order expires on June 10, 2023 (unless the State Board takes an earlier
action). The City of Palo Alto’s temporary drought water use restrictions expire at the same time
as SFPUC’s voluntary water use restriction and the State Board’s drought emergency regulations.3
Palo Alto’s eight permanent water use regulations will remain in effect (see Palo Alto Municipal
3 See Resolution 10054, adopted June 20, 2022: https://www.cityofpaloalto.org/files/assets/public/city-
clerk/resolutions/resolutions-1909-to-present/2022/reso-10054.pdf
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Item No. 2. Page 3 of 8
Code Section 12.32.010). Staff will continue to monitor drought actions and requirements at the
SFPUC and State level and provide updates to the UAC and to the public through the City’s
website described above.
Non-Potable Water
For non-potable recycled water, Table 2 provides the demand projection and Table 3 notes that
there is sufficient supply to meet Palo Alto’s non-potable recycled water demand. For that
reason, the supply is set to equal demand and there is no shortage of non-potable water
projected in Table 4(NP), “Non Potable Water Shortage Assessment”.
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Item No. 2. Page 4 of 8
Table 1. A nnual Assessment Information
Annual Assessment Information (Required)
Year Covered By This Shortage Report
Start: July 1,2023
End: June 30,2024
Supplier's Annual Assessment P lanning Cycle
Start Month:July
End Month:June
Data Reporting Interval Used: MONTHLY
Volume Unit for Reported Supply and Demand:
(Must use the same unit throughout)AF
Water Supplier's Contact Information
Water Supplier's Name:City of Palo Alto
Contact Name:Lisa Bilir
C ontact Title:Senior Res ource Planner
Street Addres s:250 Hamilton Avenue, Palo Alto
Z IP Code:94301
Phone Number:(650)329-2543
Email Addres s:l isa.bil ir@ci tyofpaloalto.org
Report Preparer's Contact Information
(if different from above)
Preparer's Organization Name:
Preparer's Contact Name:
Phone Number:
Email Addres s:
Supplier's Water Shortage Contingency Plan
W SCP Title 2020 Water Shortage Contingency Plan of the City of Palo Alto
WSCP Adoption Date 6/7/2021
Other Annual Assessment Related Activities
(Optional)
Activity Timeline/ Out comes / Links / Notes
Annual Ass es s ment/ Shortage Report Title:Optional
Annual As s es s ment / Shortage Report Approval Date:6/12/2023
Other Annual As s es sment Related Activities:
The 2020 Water Shortage Contingency Plan of the C ity of Palo Alto
s tates that Palo Alto will utilize the BAWSCA Regional Reliability
Model to evaluate water s upply availability, however, the plan als o
permits the City to use SFPUC data s ince SFPUC is the City's sole
s upplier. Specifically, the 2020 Water Shortage Conting ency Plan
s tates: "Becaus e Palo Alto relies on only one potable water s upply
s ource, SFPUC RWS water, the Annual Ass es s ment will rely on key
data inputs from the SFPUC." Palo Alto us ed the SFPUC's April 17th
2023 Water Supply Availability Update to determine water s upply.
(Add rows as needed)
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Item No. 2. Page 5 of 8
= From prior tables
= Auto calculated
Use Type Start Year:2023 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total by Water
Demand Type
All Demands 1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182
0
0
0
0
0
0
0
0
0
1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182
All Demands Tertiary 54 53 35 22 11 2 2 11 9 24 42 50 315
0
0
0
0
54 53 35 22 11 2 2 11 9 24 42 50 315
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
0
0
0
0
Three years ago total demand
Four years ago total demand
Optional (for comparison purposes)
Last year's total demand
Two years ago total demand
Table 2: Water Demands1
Projected Water Demands - Volume3
Total by Month (Non-Potable)
1Projections are based on best available data at time of submitting the report and actual demand volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When opting to provide other than monthly volumes (bi-monthly, quarterly, or annual), please see directions on entering data for Projected Water Demand in the Table Instructions.
Notes: Potable unconstrained customer demand determined using the end-use model described in the 2020 UWMP Section 4. Non-potable unconstrained customer demand determined
based on 2020 UWMP projection.
Total by Month (Potable)
Additional
Description
(as needed)
Level of
Treatment
for Non-
Potable
Supplies
Drop-down
list
Drop-down list
May select each use multiple times
These are the only Use Types that
will be recognized by the WUEdata
online submittal tool
(Add additional rows as needed)
Demands Served by Potable Supplies
Demands Served by Non-Potable Supplies
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Item No. 2. Page 6 of 8
= From prior tables
= Auto calculated
Water Supply Start Year:2023 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Total by
Water
Supply Type
Purchased/Imported Water
San Francisco
Public
Utilities
Commission
Regional
Water
Supply
System
1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182
0
0
0
0
0
0
0
0
0
1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182 0
Recycled Water
Recycled
Water from
the Regional
Water
Quality
Control Plant
54 53 35 22 11 2 2 11 9 24 42 50 315
0
0
0
0
54 53 35 22 11 2 2 11 9 24 42 50 315 0
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
0
Potable Supplies
Non-Potable Supplies
eAR Reported Total Water Supplies
Optional (for comparison purposes)
1Projections are based on best available data at time of submitting the report and actual supply volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When opting to provide other than monthly volumes (bi-monthly, quarterly, or annual), please see directions on entering data for Projected Water Supplies in the Table Instructions.
Notes: Palo Alto purchases 100% of its potable water from SFPUC; Palo Alto used the SFPUC's April 17th 2023 Water Supply Availability Update to determine water supply. Palo Alto supplies
recycled water for irrigation of the municipal golf course, a park and some other minor applications. There is sufficient supply of both potable and recycled water to meet demand.
Total by Month (Potable)
Total by Month (Non-Potable)
Table 3: Water Supplies1
Projected Water Supplies - Volume3
Water
Quality
Drop-down
List
Total Right
or Safe
Yield*
(optional)
Additional
Detail on
Water
Supply
Drop-down List
May use each category multiple
times.These are the only water
supply categories that will be
recognized by the WUEdata
online submittal tool
(Add additional rows as needed)
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Item No. 2. Page 7 of 8
TIMELINE
Upon review, discussion, and action by the UAC, staff will bring the Annual Water Shortage
Assessment Report to the City Council to consider its adoption on June 12, 2023. California Water
Code Section 10632.1 requires the Annual Water Shortage Assessment Report to be submitted
= Auto calculated
= For manual input
Table 4(P): Potable Water Shortage Assessment1 Start Year:2023 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total
Anticipated Unconstrained Demand 1,259 1,147 1,103 1,070 840 715 673 554 674 887 1,138 1,120 11,182
Anticipated Total Water Supply 1,259 1,147 1,103 1,070 840 715 673 554 674 887 1,138 1,120 11,182
Surplus/Shortage w/o WSCP Action 0 0 0 0 0 0 0 0 0 0 0 0 0
% Surplus/Shortage w/o WSCP Action 0%0%0%0%0%0%0%0%0%0%0%0%0%
State Standard Shortage Level 0 0 0 0 0 0 0 0 0 0 0 0 0
Benefit from WSCP: Supply Augmentation 0.0
Benefit from WSCP: Demand Reduction 0 0 0 0 0 0 0 0 0 0 0 0 0
Revised Surplus/Shortage with WSCP 0 0 0 0 0 0 0 0 0 0 0 0 0
% Revised Surplus/Shortage with WSCP 0%0%0%0%0%0%0%0%0%0%0%0%0%
= Auto calculated
= For manual input
Table 4(NP): Non-Potable Water Shortage Assessment1 Start Year:2023 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total
Anticipated Unconstrained Demand: Non-Potable 54 53 35 22 11 2 2 11 9 24 42 50 315
Anticipated Total Water Supply: Non-Potable 54 53 35 22 11 2 2 11 9 24 42 50 315
Surplus/Shortage w/o WSCP Action: Non-Potable 0 0 0 0 0 0 0 0 0 0 0 0 0
% Surplus/Shortage w/o WSCP Action: Non-Potable 0%0%0%0%0%0%0%0%0%0%0%0%0%
Benefit from WSCP: Supply Augmentation 0.0
Benefit from WSCP: Demand Reduction 0.0
Revised Surplus/Shortage with WSCP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
% Revised Surplus/Shortage with WSCP 0%0%0%0%0%0%0%0%0%0%0%0%0%
= From prior tables
Planned WSCP Actions
1Assessments are based on best available data at time of submitting the report and actual volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly in Table 4 and make sure to use those same
columns to enter the benefits from Planned WSCP Actions. Please see directions on the shortage balancing exercise in the Table Instructions. If a shortage is projected, the supplier is
highly recommended to perform a monthly analysis to more accurately identify the time of shortage.
= From prior tables
Planned WSCP Actions
1Assessments are based on best available data at time of submitting the report and actual volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly in Table 4 and make sure to use those same
columns to enter the benefits from Planned WSCP Actions. Please see directions on the shortage balancing exercise in the Table Instructions. If a shortage is projected, the supplier is
highly recommended to perform a monthly analysis to more accurately identify the time of shortage.
July 1,2023 to June 30,2024
Enter Amount
(Drop-down
List)
Select % or
Volume Unit
Start Month End Month
Table 5: Planned Water Shortage Response Actions
NOTES: Palo Alto currently implements permanent water us e res trictions according to the Palo Alto Municipal Code Section 12.32.010
https ://codelibrary.amlegal.com/codes/paloalto/lates t/paloalto_ca/0-0-0-69362#JD_Chapter12.32. There is currently no water s hortage
projected for FY 2024 in Table 4(P).
Add additional rows as needed
How much is action going to
reduce the shortage gap?
When is s hortage res ponse
action anticipated to be
implemented?Is action
already being
implemented?
(Y/N)
ACTIONS: Demand Reduction, Supply
Augmentation, and Other Actions.
(Drop-down List)
Thes e are the only categories that will
be accepted by the WUEdata online
submittal tool. Select thos e that apply.
Anticipated
Shortage
Level
Drop-down Lis t of
State Standard
Levels (1 - 6) and
Level 0 (No
Shortage)
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Item No. 2. Page 8 of 8
to DWR by July 1 each year.
STAKEHOLDER ENGAGEMENT
Staff encourages interested parties to comment or provide feedback on the draft Annual Water
Shortage Assessment Report at the UAC or Council meeting where the report will be considered
for approval, or to submit written comments prior to those meetings.
ENVIRONMENTAL REVIEW
Adoption of the 2023 Annual Water Shortage Assessment Report is exempt from California
Environmental Quality Act’s (CEQA) review pursuant to Water Code Section 10652.
ATTACHMENTS
Attachment A: Presentation
APPROVED By:
Dean Batchelor, Director of Utilities
Staff: Lisa Bilir, Senior Resource Planner
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June 7, 2023 www.cityofpaloalto.org
2023 Annual Water Shortage Assessment Report
Utilities Advisory Commission
Staff: Lisa Bilir •
CITY OF
PALO ALTO
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TITLE 40 FONT BOLD
Subtitle 32 font
2 www.cityofpaloalto.org
Beginning in 2022, every urban water supplier must:
1) Conduct an Annual Water Supply and Demand Assessment; and
2) Submit an Annual Water Shortage Assessment Report to the Department of Water Resources
Required by the California Water Code Sections 10632(a) and 10632.1
There is no water shortage and no triggered water shortage actions
SFPUC’s April 17, 2023 Water Supply Availability Update indicates above average precipitation and
record-breaking snowpack
Palo Alto’s temporary drought emergency water use restrictions are expected to expire June 10, 2023;
staff will continue to monitor SFPUC and state requirements
Permanent Water Use Restrictions (Palo Alto Municipal Code Section 12.32.010)
Annual Water Shortage Assessment Report •
CITY OF
PALO ALTO
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TITLE 40 FONT BOLD
Subtitle 32 font
3 www.cityofpaloalto.org
The Utilities Advisory Commission recommends Council
adopt the 2023 Annual Water Shortage Assessment
Report.
RECOMMENDED MOTION •
CITY OF
PALO ALTO
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Questions
www.cityofpaloalto.org
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Item No. 3. Page 1 of 3
1
6
4
6
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: June 7, 2023
Staff Report: 2301-0900
TITLE
Staff Recommends the Utilities Advisory Commission Accept and Approve the 2023 Wildfire
Mitigation Prevention Plan as Presented
RECOMMENDATION
Staff recommends that the Utilities Advisory Commission receive the presentation of the 2023
Wildfire Mitigation Plan.
EXECUTIVE SUMMARY
The purpose of this report is to present to the UAC the annual Wildfire Mitigation Plan (Plan).
Following this public meeting and opportunity for public comment, staff will submit the Plan to
the California Wildfire Safety Advisory Board by July 1, 2023 as required by law. Attachment A is
the Plan and Attachment B is a report by an Independent Evaluator who reviewed the Plan.
BACKGROUND
State law1 requires electric Investor and Publicly Owned Utilities to annually develop and submit
a Plan setting out specific ways in which the utility will prepare for and mitigate against possible
wildfires ignited by its electric equipment. The Plans are limited in geographic scope to the areas
previously identified as a high fire threat area by the California Public Utilities Commission’s State
Fire map2. For Palo Alto, this is the Foothills area.
The City of Palo Alto Utilities Department (CPAU) submitted the initial Plan in 2020, with updates
following in 2021 and 2022.3 This year, CPAU staff presents a revision of the original Plan, in
1 State Law
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=8387.&lawCode=PUC
2 CPUC State Fire Map https://www.cpuc.ca.gov/industries-and-topics/wildfires/fire-threat-maps-and-fire-safety-
rulemaking
3 The initial Plan was reviewed and approved by the City Council on January 21, 2020 [[internal note, MT number is
10670]]. The first update to the Plan was presented to the UAC on June 2, 2021 [[MT number 12190]], and the
second update was presented to the UAC on June 8, 2022 [[MT number 14175]]. Legally, review by the City Council
is not required and only occurred for the inaugural report. The legal statue does require presentation of each Plan
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Item No. 3. Page 2 of 3
1
6
4
6
accordance with state law requiring a ”comprehensive revision of the Plan” at least once every
three years. The term “comprehensive revision” is legally undefined and subject to
interpretation. Consistent with other Publicly Owned Utilities, CPAU understands the law to
intend for a complete, renewed review of the Plan, rather than the less intensive ongoing updates
required in other years.
As such, staff prepared the 2023 Plan anew while reviewing (1) statutorily mandated elements,
(2) general suggestions4 from the Wildfire Safety Advisory Board,5 (3) information about specific
projects, and (4) feedback from the Independent Evaluator’s Report. Regarding (4), CPAU
retained Dudek to independently review the Plan to determine its efficacy, legal compliance, and
provide suggestions for improvement. Retaining an outside expert to review this Plan is not a
legal mandate; however, CPAU felt doing so for our very first comprehensive revision was
prudent and in the best interests of the community.
Utilities key mitigation activity is undergrounding eleven miles of electric lines in the Foothills
area. This project involves installing substructure work, including boxes for electric and fiber
lines; removing electric lines and fiber lines from poles; and installing padmount equipment
where possible. This iterative project consists of multiple phases and is expected to be complete
in 2025. Staff has completed the installation of 2.38 miles of substructure and is designing the
next two. The actual undergrounding of some lines and pole removals is expected to begin
FY23/24.
FISCAL/RESOURCE IMPACT
Neither the UAC presentation nor the Wildfire Mitigation Plan itself have any immediate resource
impacts besides the staff time to coordinate and develop the plan and the corresponding
presentation. Ongoing and proposed activities listed in the Plan are and will be approved annually
through the Capital and Operating Budget processes.
STAKEHOLDER ENGAGEMENT
The annual presentation of the Plan in a publicly noticed meeting provides an opportunity to hear
and accept comments from the public, other local and state agencies, and interested parties.
ENVIRONMENTAL REVIEW
iteration in an appropriately noticed public meeting; as such, staff brings the latest Plan to the UAC each year.
There is no mandate for formal acceptance, a vote, or a resolution, just that the public is offered an opportunity to
comment.
4 California Wildfire Safety Advisory Board https://energysafety.ca.gov/wp-content/uploads/wsab-wmp-pou-
guidance-advisory-opinion-adopted.pdf
5 Staff notes that in its Guidance Advisory Opinion for the 2023 Wildfire Mitigation Plans of Electric Publicly Owned
Utilities and Rural Electric Cooperatives, the Wildfire Safety Advisory Board (Board) offered no substantive
comments for improvement for CPAU. In fact, on page 10, the Board commended CPAU and a few other POUs “for
providing detailed and comprehensive [Plans] providing specific information above and beyond the template used
by many POUs.” And on pages A3-42 and 43, the Board “appreciates,” “thanks, “applauds,” and “greatly
appreciates” CPAU’s Plan multiple times.
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1
6
4
6
The UAC’s receipt of this report is not a project requiring California Environmental Quality Act
review, because it is an administrative governmental activity which will not cause a direct or
indirect physical change in the environment.
ATTACHMENTS
Attachment A: 2023 Wildfire Mitigation Plan
Attachment B: Independent review report from Dudek
Attachment C: Presentation
APPROVED By:
Dean Batchelor, Director of Utilities
Staff: Jim Pachikara, Acting Electric Engineering Manager
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Adopted by the Utilities Advisory Commission on June 7, 2023
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TABLE OF CONTENTS
I. Utility overview and context...................................................1
A. Context table ...........................................1
B. Statutory cross-reference table ..................2
C. Process for WMP adoption ........................2
D. Plan location on the website......................3
II. Plan purpose and objectives................................................3
A. Summary .................................................3
B. Scope ......................................................4
C. Plan objectives .........................................5
III. Roles and responsibilities .....................................................6
A. City of Palo Alto Utilities Department .........6
B. Coordination with other departments ........7
C. Deenergization-related communication ......9
IV. Electric-line ignited wildfire risk drivers with prevention and
mitigation efforts ..........................................................................9
A. Primary risk drivers and specific mitigation efforts..9
B. Primary risk driver and specific mitigation effort…..10
C. Other electric equipment-specific mitigation strategies…11
D. Enterprise-wide Safety Risks ....................13
E. Current and prior activities ......................13
V. Monitoring the plan.............................................................14
A. Measuring Plan and inspection performance……..14
B. Performance and outcome metrics ..........14
C. Applying previous Plan metrics to this Plan15
D. Independent evaluation of this 2023 Plan.16
Appendix A: Wildfire-related activities.......................................17
Appendix B: Independent evaluator report ...............................20
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I. UTILITY OVERVIEW AND CONTEXT
A. Context table
City of Palo Alto
Size in Square Miles 26 square miles
Assets Distribution
Number of Customers Served 29,849 residential and business customer accounts
Customer Classes Residential and Small/Medium Business
Location/Topography Urban
Percent Territory in
CPUC High Fire Threat Districts 40% in Tier 2 0 % in Tier 3 (PUC ArcGIS map)
CAL FIRE FRAP Map Fire Threat
Zones
40% High Approx. based on visual interpretation of map.
Existing Grid Hardening Measures Undergrounding
Impacted by another utility’s PSPS? Yes, as a transmission dependent utility, Palo Alto could be impacted by a
PG&E PSPS.
Mitigates impact of another utility’s
PSPS? Yes
Expects to initiate its own PSPS?
At this time, no. But as this report covers a one-year period, we cannot say
for certain. The last PSPS event Palo Alto initiated was on September 6,
2022, affecting approximately 1,700 customers for about 30 minutes. We
reenergized lines quickly upon learning that the deenergizing request was
made after a miscommunication between CAISO and NCPA.
Prevailing wind directions
& speeds by season
Please refer to Cal Fire’s Santa Clara Unit 2021 Strategic Fire Plan for
information about wind regional wind conditions
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B. Statutory cross-reference table
Code section Pertaining to Page
8387(b)(2)(A)Accounting of responsibilities 6
8387(b)(2)(B)Plan objectives 5
8387(b)(2)(C)Preventive strategies and programs to minimize risk 9
8387(b)(2)(D)Metrics used to evaluate Plan’s performance 14
8387(b)(2)(E)Current Plan informed by previous Plan’s metrics 14
8387(b)(2)(F)Protocols related to deenergizing and public safety impacts 11
8387(b)(2)(G)Customer notification around deenergizing 9
8387(b)(2)(H)Vegetation management 10
8387(b)(2)(I)Electrical infrastructure inspection plans 14
8387(b)(2)(J)A list of wildfire risks and drivers 9
8387(b)(2)(K)Area that is a particularly high wildfire threat 4
8387(b)(2)(L)Wildfire and safety risk methodology 9
8387(b)(2)(M)Restoring service after a wildfire 12
8387(b)(2)(N)Process to monitor Plan, identify any execution deficiencies, and audit
inspection effectiveness
14
8387(b)(3)Present Plan in an appropriately noticed public meeting 2
C. Process for WMP adoption
Palo Alto is a bit unique among POUs in that we have a Utilities Advisory Commission (UAC). This
commission is comprised of residents who meet monthly to provide advice to our City Council and
staff on utilities-related matters, including our Wildfire Mitigation Plan (Plan). A Brown Act body,
the UAC agendas are published in advance of each public meeting and opportunities for comment
are provided. Each year, Palo Alto staff presents our Plan at a UAC meeting where we accept any
com
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ments and receive feedback from Commissioners.1 Minutes and videos of past meetings are
available on the City’s website. This Plan revision and accompanying independent evaluation report
was presented at the June 7, 2023 UAC meeting.
D. Plan location on the website
Palo Alto’s Plan is the first substantive item found on our Utilities Department safety webpage.
Navigating to this page from our main department page takes only two clicks and is intuitive. Users
click on “Utilities Services and Safety,” then “Wildfire Mitigation.” This year, we streamlined the
information on the webpage to make it more easily readable by listing the specific links to current
and past plans. Because our city also has a Fire Department and an Office of Emergency Services
that respond to fires and other emergencies, we briefly note for readers how this wildfire Plan
differs from others.
II. PLAN PURPOSE AND OBJECTIVES
A. Summary
This Plan is written in compliance with Public Utilities Code section 8387 and describes how the City
of Palo Alto’s Utilities Department (CPAU) maintains and operates our electrical lines and
equipment in a manner that minimizes the risk of wildfire posed by those lines and equipment. As a
comprehensive revision to our prior Plans, we took a fresh look at how best to produce this report
and provide relevant information. As such and as the Wildfire Safety Advisory Board correctly
predicted in its 2022 guidance opinion, we do not include redlines from our 2022 Plan. All the
content in this Plan is new.
1 We note that while the Board asks on page A1-1 of its 2023 POU WMP Guidance Advisory Opinion that POUs “describe the
process by which the governing body” adopts Plans, such is not legally required. PUC 8783(b)(3) requires a POU to “present
its wildfire mitigation plan in an appropriately noticed public meeting…[and] shall accept comments on its wildfire
mitigation plan from the public….” While not our governing board, the UAC meetings meet the legal requirement of a
noticed public meeting where comments from the public are accepted.
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B. Scope
The scope of this Plan is limited to providing information about mitigating electric line-ignited
wildfires. We make a distinction between mitigating for possible electric line-ignited wildfires
versus wildfires or wildfire suppression generally. The latter two are in the scope and under the
purview of trained fire experts, such as our city’s Fire Department, and not within the expertise of
utility engineers and technicians.2 The former is within the scope of CPAU responsibilities and is the
subject of the state code section mandating this Plan. Therefore, it is our sole focus.
Additionally, this Plan applies to the only area in our city identified as a high fire threat area in the
California Public Utilities Commission (CPUC) State Fire Map. As of 2022, the high fire threat area in
Palo Alto is all areas with the city limits west of Highway 280, which we refer to as the Foothills
Area. (See below image). This area is about 8-square miles, is sparsely populated, and consists
primarily of open space.
Lastly and per the Board’s request of all POUs, in this updated Plan we deliberately omit general
information the Board already understands in favor of specific information about our territory, our
infrastructure, and our projects. For example, the Board already knows that CPAU, and other POUs,
meet all applicable GO 95 standards; we do not reiterate that here. To avoid redundancy, we also
do not include appendixes submitted in prior years, although we may refer to them. This is not to
short shrift our efforts, but rather to acknowledge that both CPAU and the Board have limited
resources to write and review Plans, the Board has already reviewed the appendixes and offered
guidance, and recycling past information is not as helpful as providing new information.
2 In our 2021 report, we attached as “Appendix A” our Fire Department’s Palo Alto Foothills Fire Management Plan Update;
it can be viewed at: https://www.cityofpaloalto.org/files/assets/public/oes/plans/foothills-fire-management-plan-update-
2016-final.pdf
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C. Plan objectives
The Plan’s primary objective is to help guide CPAU staff in minimizing the probability that our
distribution system may be an original or contributing source for wildfire ignition. We strive to
ensure that our infrastructure is safe and resilient by taking proactive actions to maintain our
equipment, refine our existing Public Safety Power Shutoff protocols as needed, and underground
the electric lines in our single high fire threat area.
High fire threat area also known as the Foothills area.
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A secondary objective is to improve the resiliency of our distribution system and a final goal, to
measure the efficacy of our mitigation strategies. Please see Appendix A for a listing of mitigation
projects.
III. ROLES AND RESPONSIBILITIES
A. City of Palo Alto Utilities Department
Palo Alto residents and businesses
Palo Alto City Council
Palo Alto City Manager
Director, Utilities Department
Manager,
Electric
Operations
Senior Electric
Engineer
Asist. Director, Electric Division
Power
Engineers
Utilities
Supervisors
Utilities Advisory Commission
Manager, Communications Manager, Compliance
Communications
Coordinator
This chart reflects only the CPAU
positions with a role related to the
subject of this Plan.
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In Palo Alto, the City Council is our governing body. As noted above, the UAC is the Brown Act body
that provides advice on utilities-related matters. CPAU operates and maintains all the utilities in the
city, including electric, water, gas, fiber, and wastewater. The Department also employs
communications staff to engage with the community and a Compliance Manager who, among other
duties, ensures reports such as this Plan are completed timely and appropriately.
The electric staff noted above all play a role in preventing electric-line ignited wildfires. Specifically, our
engineers produce safe and resilient designs and oversee fire mitigation projects.3 Our operators
inspect, repair, and maintain our equipment while flagging any potential causes for concern. Our
communications team produces safety communication material to our community and our compliance
manager ensures we meet or exceed laws and regulations.
B. Coordination with other departments
As one part of a larger body, CPAU works closely with other departments and internal divisions. These
include our Public Works Department and its Urban Forestry and Environmental Services Divisions, the
Fire Department, the Office of Emergency Services, and the Engineering and Operations team for our
water utility. Together, these departments and divisions proactively prepare for wildfires, act to
mitigate climate and fire-related risks, maintain electric and water infrastructure, develop plans for
deenergization events, ensure appropriate vegetation management, and lead Palo Alto’s robust
climate action efforts. As these divisions, departments, and teams are under the umbrella of one City,
there is a strong history of working together closely.
For example, during the January 2023 storm events, the above departments held daily calls to share
information on immediate needs, infrastructure repairs, and communication received from external
agencies. In less urgent times, these departments work together to prepare reports, conduct inter-
division meetings on the status of projects of joint interest, and collaborate on how best to engage the
community to proactively provide utilities-related information.
3 To keep the public informed of CPAU’s capital improvement projects, we place related information on our website. This
information includes the name(s) of those responsible for the projects.
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Public Works’ Urban Forestry
Division employs Foresters
who work with Utilities to
ensure appropriate tree
clearance standards.
The staff of the City’s Office of
Emergency Services work to
prevent, mitigate against, and
prepare for hazards of all types.
They are trained to communicate
with the community and other
agencies during emergencies in
ways Utilities staff is not.
The Fire Department not only plans for and responds to wildfires but is also trained on best practices in
communicating with the community and other agencies during wildfires.
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C. Deenergization-related communication
CPAU’s communications staff is responsible for engaging the community about deenergization events.
In doing so, and in deciding whether to deenergize lines, CPAU utilizes the “Utilities Wildfire Mitigation
Response and Communications Procedure for Public Safety Power Shutoff.”4 This procedure includes
proactively sending to customers a specific recorded message to customers living in the Foothills area,
and a more general but still targeted message to all customers. These messages are sent prior to
deenergizing lines, to allow residents time to act, if necessary.
Palo Alto also sends emails to Foothills residents, with specific information about conditions that may
prompt deenergization, the anticipated dates and times of a shutoff, how to prepare, and where to
find more information. During a deenergization event, CPAU continues to email and call customers.
The calls and emails prior to and during any shutoffs are supplemented with frequent information
posted on CPAU’s website and social media accounts.
IV. ELECTRIC-LINE IGNITED WILDFIRE RISK DRIVERS
WITH PREVENTION AND MITIGATION EFFORTS
A. Primary risk drivers and specific mitigation efforts
Palo Alto recognizes that the Board is most interested in specific risks unique to each POU and its
service territory rather than general risks carried by all electric utilities. As such and as we are in the
process of undergrounding the lines in our only high fire threat area, we note only the risk associated
with the equipment in the Foothills area. The more general risks Palo Alto regularly mitigates, but does
not belabor here, include:
Electric system operating, management, and construction practices
4 This document was previously provided to the Board as Attachment G in Palo Alto’s 2022 Plan. As a newer procedure that
remains accurate, it has not been updated since our submittal.
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Weather, including high winds
Extended drought
With regard to weather monitoring, Palo Alto installed a weather station in the Foothills area, allowing
staff direct, localized weather data. CPAU staff also monitor regional conditions, receive red flag
warnings, and communicate with our first-responder departments on any actions needed due to
weather conditions.
B. Primary risk driver and specific mitigation effort
Vegetation type, density, and management practices. Risks include vegetation intruding into power
lines, falling onto lines, or roots damaging undergrounded equipment. Mitigation efforts include
ongoing physical inspections, ensuring the proper type of vegetation is placed at the correct distance
from equipment, and adherence to our City’s Line Clearing Program and our Tree Technical Manual for
proper care of trees. Palo Alto is fortunate to have a dedicated Urban Forestry Division within our
Public Works Department, staffed by trained and experienced urban foresters. These individuals
regularly evaluate every tree twice each year in our high fire threat area with a potential for contact
with our electric lines.
In addition, for the foothills area, Urban Forestry uses an enhanced vegetation management buffer as
shown in the diagram below:
This practice exceeds GO 95
minimum standards for the
voltage. Specifically, a 4-foot
radial clearance is the
minimum required in high
fire danger areas for lines
between 750 volts and
300kv; Palo Alto has a
minimum of 10 feet and a
target of 12 feet for all
circuits in the foothills.
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Additionally, other jurisdictions sharing a border with our high fire threat area are just as interested in
vegetation management. For example, in November and December 2022, the Los Altos Hills County
Fire District engaged in a project to clear vegetation along a two-mile route adjacent to a road running
through both Palo Alto and Los Altos. This project involved pruning trees and clearing the area of
vegetation and debris to ensure a safe evacuation route in the event of a wildfire, while providing safe
entry and exit points for first responders.
Palo Alto utilizes a variety of vegetation treatment methods to reduce the risk of wildfire, including
tree or branch removal, trimming, mowing, brush cutting, discing, and herbicide use. Our Urban
Forestry Department is planning a program to help remove potential fall-ins from trees outside of Palo
alto’s maintenance envelope. In the future, to help staff track and manage flammable new growth,
Palo Alto may utilize GIS and growth modeling. Currently, this work is performed manually with
physical inspections.
C. Other electric equipment-specific mitigation strategies
Disabling certain reclosures. In the Foothills area, we have two reclosers on the distribution line
that automatically open when they sense a large amount of current flowing due to a fault. After
a preset delay, they both can automatically reclose; however, as a method to minimize fire risk,
the reclosing function is permanently disabled on both reclosures and at the circuit breaker of
the substation serving this area. Restoring service intentionally requires manual reclosing,
which occurs only after staff have physically inspected the lines, performed any needed repairs,
and ensured that the outage cause is removed. While this practice means potentially longer
outage times, it is an important risk mitigation activity.
Utilizing specific fuses. We utilize non-expulsion fuses in our high fire threat area. Specifically,
CPAU utilizes Eaton’s Cooper PowerE series ELFE fuse, a full range, current-limiting dropout
fuse with a self-contained design that eliminates noise and expulsive showers. If these fuses
explode, any hot metal is contained within the fuse holder, preventing contact with vegetation.
Deenergizing, then reenergizing when prudent. We consider deenergizing our lines as a last
resort, realizing that while the lack of power could be an inconvenience for some, it can also
cause significant health and safety concerns for others. However, we will utilize this option
when necessary to minimize the risk of an electric-line ignited wildfire in our high fire threat
area. Factors we consider when determining whether to deenergize include:
o The possible safety impacts to our customers
o Any fire activity in the vicinity
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o Any evacuation orders and other information from emergency personnel
o Information from local fire agencies, vegetation staff, and our own operators
o Local and regional weather conditions including wind, humidity, precipitation and any
red flag warnings
o The state of vegetation in the area (ie: very dry)
Restoring power after a wildfire or deenergization event. Lines will only be reenergized
when (1) the risk has passed, (2) the lines are inspected, and (3) any needed repairs
are complete. CPAU utilizes a Public Safety Power Shutoff (PSPS) policy and
procedure5 when determining whether to deenergize lines because of a wildfire risk.
Our written protocol also includes customer notification procedures and
reenergization information. In addition to customer notification from the Utilities
Department, PSPS communication is also coordinated with staff of Palo Alto’s Office of
Emergency Services. The decision to institute a PSPS also includes working with
CPAU’s water utility staff to determine if we should pump water up to the reservoirs
located in the Foothills area in advance of shutting off power to ensure there is
sufficient water and water pressure for any firefighting activities.
Coordination with PG&E. As a transmission-dependent utility, CPAU communicates with
PG&E regarding their potential deenergization events that may impact our service
territory.
Studying device coordination strategies. Staff has engaged in protective device coordination
studies to ensure that any fault is isolated quickly and any impact limited. Based on these
studies, we changed our fuse type and size, as noted above, on distribution lines and changed
relay settings for reclosers and a station circuit breaker.
5 The Draft PSPS Policy and Process was included as Appendix G in our 2019 Wildfire Mitigation Plan and the final version
was included as Appendix F in our 2022 update. As noted above and as the Board has received the same information twice
already, we do no re-submit it here for a third time. Information on PSPS events can also be found on our webpage here.
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D. Enterprise-wide Safety Risks
Palo Alto’s protocol for identifying and addressing enterprise-wide safety risks is a collaborative
effort with various City departments. Together the goal is to prevent, protect from, mitigate,
respond to, and recover from hazards and threats. The City’s Office of Emergency Services (OES)
leads that coordination with City departments with the goal of developing, maintaining, and
sustaining a citywide, comprehensive, all hazard, risk-based emergency management program that
engages the whole community. The following reports and plans have been developed and are
updated to provide information regarding the risks in Palo Alto and the necessary actions to take.
- Threat and Hazard Identification and Risk Assessment Report6 - The result of the THIRA
process is an organized evaluation of vulnerability and implementation measures based on the
necessary capabilities to deal with the natural and non-natural hazards and threats of most
concern.
- Local Hazard Mitigation Plan7 - Identifies and prioritizes potential and existing hazards across
jurisdictional borders, including hazards that may be further amplified by climate change, and
provides mitigation objectives with prioritized actions.
- Foothills Fire Management Plan8 - Addresses a broad range of integrated activities and
produced planning documents to address and mitigate the impacts of fire hazards in the Palo
Alto Foothills Area.
E. Current and prior activities
Our earlier Plans note mitigation tasks our city has already completed, such as preparing a Foothills
Fire Mitigation Plan and acting as “territory lead” for the CPUC’s fire threat map. Additionally, prior
Plans note ongoing efforts, which continue. These include regular vegetation management, inspection
and maintenance of our electric system, and electric infrastructure designs that consider fire safety.9
Attachment A shows the status of our mitigation-related activities.
6 The Threat and Hazard Identification and Risk Assessment Report can be found here.
7 The Local Hazard Mitigation Plan can be found here.
8 The Foothills Fire Management Plan can be found here.
9 See Palo Alto’s 2022 Wildfire Mitigation Plan, pages 13-18 for more information.
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V. MONITORING THE PLAN
A. Measuring Plan and inspection performance
In preparing our annual Plans, we take the opportunity to evaluate our current Plan for any
deficiencies, or if any best practices have changed. In doing so, we consider what, if anything, related
to wildfires occurred in our high fire threat area. Any events related to wildfires or our electric
infrastructure in this area could inform our future Plans and help us understand the effectiveness of
our current Plan.
Since we began submitting these annual reports, we have had no wildfires in our high fire threat area.
We have had zero wires down events, and no incidences that required an unplanned inspection. We
also had no incidents in the Foothills area during the January 2023 storms.
With regard to inspections, we examine our electric equipment in our high fire threat area more
frequently than in other areas of our service territory. We strive to ensure that all inspections are
completed by June, before the historic start of fire season, or earlier, depending on drought conditions.
Inspections are completed manually. Staff analyzes the results of the inspections for trends of any
failures or maintenance needs, which can inform future design changes. Staff also monitors the
performance of equipment during windy and raining weather as described in the metrics below.
B. Performance and outcome metrics
CPAU audits the effectiveness of our Plan’s mitigation and prevention efforts by using two broad
metrics: performance and outcomes. Information specific to each are below:
i. Performance metrics
a. Vegetation management. This metric includes the amount of vegetation cleared or
number of trees trimmed in the high first threat area.
b. Infrastructure maintenance in high fire threat area. Includes the number of
equipment and lines inspected and repaired (if needed) in the high fire threat area.
c. Project status. This metric involves monitoring the progress of any projects related
to preventing electric-line ignited wildfires in our high fire threat area and ensuring
that projects progress on the proper timeline.
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ii. Outcome metrics
a. Electric-line ignited wildfire. This metric includes any fire started by CPAU’s electric
equipment in our high fire threat area that traveled greater than one linear meter
from the ignition point. In at least the past 20 years, there have been zero such fires.
b. Downed lines in our high fire threat area. For purposes of this Plan, a wires down
event includes any instance where an electric line in the high fire threat area of our
service territory falls to the ground or on to a foreign object. CPAU will not normalize
this metric by excluding unusual events, such as severe storms. Instead, we will
supplement this metric with a qualitative description of any such unusual events.
C. Applying previous Plan metrics to this Plan
Our initial Plan specified two metrics for evaluating performance. Below, we discuss each and how
they have informed this revised Plan:
i. Outages to the overhead lines in the high fire threat area
In our 2020 Plan, we described how we would evaluate any outages in our high fire threat area.
(Page 21). We also noted a related project in Appendix F, rebuilding the overhead lines, the status of
which is presented below in Appendix A. Our evaluation of any outages in the high fire threat area
described in 2020 remain: Determine if our activities (a) should have prevented any outages, (b)
were adequate to prevent an outage, (c) could be improved, and (d) could not have prevented an
outage. This evaluation and this metric remain for 2023 because they properly inform our efforts in
preventing outages.
Since January 1, 2020, we have had 10 outages in the Foothills area. None were a result of a PSPS
event or weather-related. Most were caused by animal activity in this heavily wooded area or a car
hitting a pole. However, trees contacting equipment also caused outages.
ii. Fire ignitions
An important metric, we stated in our 2020 Plan that we would provide the number of fires
occurring in our high fire threat area that were less than 10 acres in size, specifically describing any
fires larger than 10 acres. Since January 1, 2020, we have had zero wildfires in our high fire threat
area over 10 acres with no calls to 911 to report of a fire of any size. We have had four smaller fires
with ignition sources that do not include City infrastructure, but from sources such as vehicle fires or
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hot coals thrown in a dumpster. All fires were quickly extinguished by either private individuals or
City personnel.
If we experience any wildfires in this area, whether ignited by our electric infrastructure or not, we
will work with our Fire Department, Office of Emergency Services, and any related local government
agency to review the cause, how or if our equipment related to the cause or was impacted, and
collaborate on any after-action activities.
With this new Plan, we add one more metric:
iii. Wires down
This metric includes instances of any electric lines or conductors that fall to the ground or comes in
contact with a foreign object in our high fire threat area. For each wires down event, CPAU will
utilize an evaluation system similar to our outage evaluation, reviewing the cause, what actions may
have prevented the event, and if there are areas for improvement.
D. Independent evaluation of this 2023 Plan
CPAU contracted with Dudek to perform a comprehensive evolution of this Plan. The final
evaluation report, included here as Attachment B, was presented at a public UAC meeting on June 7,
2023.
CPAU staff realize that there is no legal mandate to retain an independent evaluator on an ongoing
basis. We do so this year as this Plan is our first comprehensive revision and we find value in a
review the first time we fully revise this document. However, this does not convey an intent to
continue the practice going forward, not when we can utilize internal resources in the form of
specially trained fire and vegetation staff. The decision about contracting for an independent
review in the future will depend on factors such as CPAU’s resources, any events in our high fire
threat area, the status of our undergrounding project, any significant changes to our Plan, and so
on.
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APPENDIX A: WILDFIRE-RELATED ACTIVITIES
Our key mitigation activity is undergrounding
eleven miles of electric lines in the Foothills
area. This project involves installing
substructure work, including boxes for electric
and fiber lines; removing electric lines and
fiber lines from poles; and installing pad-
mount equipment where possible.
This iterative project consists of multiple
phases and is expected to be complete in
2025. CPAU already installed two of four
required substructures and is designing the
next two. The actual undergrounding of lines is
expected to begin mid-2023.
Image is a high-level visual representation of
the project area, timeline, and how many feet
below the surface equipment will be placed.
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ADDITIONAL MITIGATION ACTIVITIES
Activity Description Status Projected
completion date
Utilizing fiberglass Some poles will remain in our high fire threat
area once lines are all underground. We will use
new fiberglass crossarms when replacement is
needed to enhance resiliency.
CPAU engineering staff finalized the
design and specifications for
fiberglass crossarms and ordered
the necessary materials. Shipping
constraints delayed shipment;
materials were received in the
Spring of 2023.
2024
Fiber optic extension Concurrently with the above project, we will
design and install new fiber optic cable to
enhance the communications capability in our
high fire threat area.
Segments of underground
communication conduit are being
installed along with the electric
substructure work, phase by phase.
Two phases are complete with two
more in development.
Summer 2025
Emergency generators Installing emergency backup generators at the
water pumping stations and wastewater lift
station in our high fire threat area.
Staff is working on the requirements
for each site. Staffing shortages
have delayed this project.
2024/2025
Wood pole inspection To ensure proper infrastructure maintenance,
this project involves inspecting, testing,
This is a regular, reoccurring project. June 2023
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2023 Wildfire Mitigation Plan
19
treating, and reinforcing 700 wood utility poles
through our territory.
SCADA switch to
facilitate
deenergization
To facilitate the ability to quickly shut off power
on the line serving our high fire threat area,
CPAU staff will install a remotely operable
switch, providing Electric Dispatch Operators at
our Utility Control Center the capability to
deenergize the line immediately.
We have selected the location of
the remote switch and will install it
while completing the above-
mentioned undergrounding project
Early 2025
Outage Management
System
To provide enhanced customer communication
during outages, CPAU is updating our Outage
Management System. The upgrades will provide
additional functionalities, including the ability to
notify customers and mobilize resources in
response to outages and emergencies, send
updates by email, text, and social media outlets,
and improve customer service.
Implementation of the new System
is underway.
August 2023
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20
APPENDIX B: INDEPENDENT EVALUATOR
REPORT
See attachment B
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May 9, 2023, 12108.09
Mr. Jim Pachikara & Mrs. Tabitha Boatwright
City of Palo Alto Utilities Department
1007 Elwell Court
Palo Alto, CA 94303
Subject: Independent Evaluat or’s Report of the City of Palo Alto Utilities Department 2023 Wildfire
Mitigation Plan
1 Introduction
The City of Palo Alto Utilities Department (CPAU) contracted with Dudek to engage in an independent evaluation of
its 2023 Wildfire Mitigation Plan (WMP). This independent evaluation report (Report) describes the technical
review and evaluation of the WMP prepared by the CPAU. The WMP requirements are codified in California Public
Utilities Code (PUC) §8387(b)(2) for publicly owned electric utilities (POUs). PUC §8387(c) requires that an
independent evaluator review and assess the comprehensiveness of a POU’s WMP and issue a summary report. Two
thousand twenty-three is a particularly important year for publicly owned utilities since they are required by PUC
§8387(b)(1) to “At least once every three years, the submission shall be a comprehensive revision of the plan.”
Dudek conducted a review of CPAU’s 2023 WMP from December 6, 2023, to March 20, 2023. The focus of the
evaluation was to determine the comprehensiveness of the City of Palo Alto Public Utilities Department’s WMP
and ensure that the WMP included all elements required under PUC §8387(b)(2) (listed in Attachment A).
In addition to evaluating the elements required by the California Public Utility Code, Dudek reviewed the Wildfire
Safety Advisory Board’s (WSAB) specific guidance for the City of Palo Alto Public Utilities Department published in
their Guidance Advisory Opinion for the 2023 Wildfire Mitigation Plans of Electric Publicly Owned Utilities and
Rural Electrical Cooperatives. ( (Wildfire Safety Advisory Board, 2022)).
This Independent Evaluator’s report contains the following elements: 1.) An overview of the City of Palo Alto
Utilities Department, 2.) A review of the statutory requirements in PUC §8387(b)(2) for publicly owned electric
utilities, 3.) A review of the specific recommendations published by the WSAB for the CPAU 2022 WMP, 4.) the
2022 wildfire mitigation and prevention accomplishments of the CPAU, 5.) An overview of the metrics used in the
CPAU’s WMP, and 6.) A comparison of wildfire risk reduction strategies used by the CPAU to similar utilities and
municipal utility industry standards.
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 2 MAY 2023
2 An Overview of the City of Palo Alto Public Utilities
Department
The City of Palo Alto Utilities Department service territory covers 26 square miles within the Palo Alto city limits in
the southeastern section of the San Francisco Peninsula. While the city limits stretch from the San Francisco Bay
to the ridgelines of the Santa Cruz Mountains, the CPAU services territory is concentrated in urban areas in the
northeast section of the city. The city is bordered by the northeast facing foothills and mountains to the west and
southwest, to the north and south is the densely urban areas of the San Jose valley and San Francisco Peninsula,
and to the east is the San Francisco Bay. The CPAU serves approximately 30,000 customers within the City of
Palo Alto, primarily residential and small/medium business customers. The CPAU’s service territory can be divided
into two categories; the fully developed, urban area east of Interstate 280 (I-280) and the more sparsely
developed areas in the Santa Cruz Mountains to the west of I-280. Most of the wildland urban interface in the
CPAU’s territory lies within the section south and east of I-280 (Carlson, 2022). Development in this section is
sparse and while it accounts for a large portion of the city’s surface area it only contains a small percentage of the
CPAU’s customers. Approximately 40% of their service territory lies within a tier 2 fire threat district, none of the
CPAU service territory is classified as tier 3 (California Public Utilities Commission, 2018). The CPAU owns and
operates transmission and distribution assets with approximately 57% of their electrical lines located
underground. The CPAU does not generate its own electrical power and is reliant of power purchased on the
market and delivered over PG&E lines.
The CPAU’s service territory experiences a typical fire season that lasts from May to September with the area fire
danger moderated by morning fog and overcast skies throughout the summer months. The Bay area typically
experiences diurnal winds with onshore winds during the daytime that diminish after sunset. These on-shore
winds are typically cooler and moister than the on-shore air and helps to moderate the fire danger during the fire
season. As a result, large destructive wildfires are uncommon and there is one recorded instance of a large
wildfire occurring within 5 miles of CPAU’s service territory (CAL FIRE, 2022).
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 3 MAY 2023
3 Statutory Requirements for Wildfire Mitigation Plans
A . Statutory Requirement Overview
PUC §8387(b)(2) lists the statutory requirements for WMPs. These are the specific elements that the
independent evaluator must review to make its determination for this report. The specific elements that must be
addressed in CPAU’s WMP are included in Table A (see Attachment A) and are summarized here for reference.
• Staff Responsibilities
• General Objectives
• Wildfire risk reduction program descriptions.
• The metrics used to evaluate the wildfire mitigation plan's performance.
• How the application of previously identified metrics has informed the wildfire mitigation plan.
• Protocols for reclosers, de-energization, and Public Safety Power Shut-off (PSPS)
• Procedures for community notification and outreach.
• Vegetation Management Plans
• Electrical Equipment and Infrastructure Inspection Plans.
• Description of wildfire risks, and drivers for those risks, throughout the service territory, including design,
construction, operation, and maintenance of equipment and facilities, and topographic and climatological
risk factors.
• Identification of any geographic area in the service territory that is a higher wildfire threat than is
identified in a commission fire threat map.
• Identification of enterprise-wide safety risk and wildfire-related risks.
• How the service will be restored after a wildfire.
• The processes and procedures used to monitor and audit the implementation of the wildfire mitigation
plan, identify any deficiencies, and the effectiveness of electrical line and equipment inspections.
3.1 Detailed Review of Statutory Requirements
A. Mi nimizing Wildfire Risks
PUC §8387(a) requires the following: “Each local publicly owned electric utility and electrical cooperative shall
construct, maintain, and operate its electrical lines and equipment in a manner that will minimize the risk of
wildfire posed by those electrical lines and equipment.”
The CPAU’s WMP and the CPAU documents referenced in the WMP comprehensively describes the safety-related
measures that the CPAU follows to reduce its risk of causing wildfires. Dudek has determined that CPAU complies
with this requirement through the design of its system, its operational procedures, and the implementation of
wildfire risk reduction and wildfire response strategies specifically the utility’s commitment to undergrounding its
existing above ground circuits in the High Fire Threat District.
B. Evaluation of WMP Elements
Dudek found that CPAU’s WMP meets the statutory requirements of comprehensiveness per PUC §8387. The
review of the WMP’s elements is summarized relative to the application of the WMP. The table in Attachment A
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 4 MAY 2023
lists each required element for CPAU’s WMP and provides Dudek’s initial assessment of the comprehensiveness
of that element within the WMP that was reported to the CPAU in our first review in February and our final
assessment.
Below is a summary of the WMP elements as required by PUC §8387, including restating sections of the WMP
where applicable.
8387(b)(2)(A): Responsibilities of Persons Responsible for Executing the Plan.
Chapter 3 A of the CPAU WMP comprehensively describes staff responsibilities and functions in the
implementation of their WMP including vegetation management, inspections, system maintenance, and
system design.
8387(b)(2)(B): Objectives of the Wildfire Mitigation Plan
Chapter 2 B of the CPAU WMP comprehensively describes the CPAU’s two objectives.
8387(b)(2)(C): Prevention Strategies and Programs
Chapter 4 in the CPAU WMP describes the utility’s wildfire prevention strategies. The chapter is a
combination of risk-drivers and mitigation strategies. The WMP describes the risk driver and then the
strategy used to address the risk.
8387(b)(2)(D): Metrics and Assumptions for Measuring WMP Performance
Chapter 5 section B describes the metrics the CPAU uses to evaluate the effectiveness of their WMP. Five
metrics are described: three performance metrics and two outcome metrics.
8387(b)(2)(E): Impact of Previous Metrics on WMP
Chapter 5 section C of the CPAU WMP describes the metrics used on previous versions of the WMP
including the data collected by the utility since 2020.
8387(b)(2)(F): Reclosing Protocols
Chapter 4 section C in the CPAU’s WMP describes the utility’s reclosing protocols specifically that there is
only one recloser on lines within their High Fire Threat District and that these reclosers are disabled
specifically to reduce the risk of a wildfire ignition.
8387(b)(2)(G): De-energization Notification Procedures
De-energization is described in Chapter 4 section C and Chapter 3 section C. Chapter 4 describes the
conditions under which de-energization would be considered and who the CPAU would coordinate with to
make the decision to de-energization. Chapter 3 describes who at the CPAU is responsible for notifying
customers of a de-energization event and how the CPAU contacts customers who will be impacted and a
general message. Since the CPAU is dependent on PG&E for power, the CPAU is at risk of shut down
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 5 MAY 2023
initiated by PG&E. CPAU uses the same procedures for notifications regardless of whether the de-
energization is initiated internally or externally.
8387(b)(2)(H): Vegetation Management
Chapter 4 section B of the CPAU WMP comprehensively describes in detail the utility’s vegetation
management program including their clearance standards for surface and aerial vegetation, and the
techniques the CPAU uses to perform vegetation management.
8387(b)(2)(I): Inspections
The WMP does not have a specific section that describes the inspection practices the utility uses. Instead,
the WMP contains several statements mainly in Chapter 4 that describe where and when the CPAU
performs vegetation and equipment inspections.
8387(b)(2)(J)(i): Risks and Risk Drivers Associated with Design and Construction Standards
Chapter 4 in the CPAU WMP describes risks and risk drivers present in the CPAU’s service territory. In the
introduction for the chapter the CPAU clearly states that they have determined vegetation to be primary
risk driver of wildfire in their service territory. Section C contains a brief description of risk drivers associated
with design and construction standards.
8387(b)(2)(J)(ii): Risks and Risk Drivers Associated with Topographic and Climatological Risk Factors
Chapter 4 in the CPAU WMP describes risks and risk drivers present in the CPAU’s service territory. In the
introduction for the chapter the CPAU clearly states that they have determined vegetation to be primary
risk driver of wildfire in their service territory. Section A & B in this chapter provide a more detailed
discussion of climatological and topographical risk drivers.
8387(b (2)) (K): Geographical Area of Higher Wildfire Threat
There is statement in Chapter 2 section B regarding the current extent of the High Fire Threat District in
the CPAU and the utility’s recommendation to maintain the current extent.
8387(b)(2)(L): Enterprise-wide Safety Risks
The WMP describes that the CPAU uses a risk assessment process that has been developed and is
implemented by the City’s Office of Emergency Services (OES). The OES, in collaboration with City
Departments has created several risk assessments and risk management plans that are relevant to the
electrical operations of the CPAU and address wildfire and safety related risks (Threat and Hazard
Identification and Risk Assessment Report, Local Hazard Mitigation Plan, etc.).
8387(b)(2)(M): Restoration of Service
Chapter 4 section C describes the CPAU’s power restoration process after a wildfire or de-energization
event. A full description of their restoration policy is in Appendix B of the WMP.
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 6 MAY 2023
8387(b)(2)(N)(i): Monitoring and Auditing WMP Implementation, 8387(b)(2)(N)(ii): Identifying and
correcting WMP deficiencies, 8387(b)(2)(N)(iii): Monitoring and Auditing the effectiveness of inspections.
Chapter 5 section of the CPAU WMP provides a brief description of how the utility monitors and audits the
implementation of the strategies described in Chapter 4. Chapter 4 also contains statements on how the
CPAU uses inspection results to identify issues and improve their electrical system.
4 Wildfire Safety Advisory Board Guidance Advisory
Opinions
In November 2022 the WSAB published a report (California Wildfire Safety Advisory Board Guidance Advisory
Opinion for the 2023 Wildfire Mitigation Plans of Electric Publicly Owned Utilities and Rural Electrical Cooperatives)
with a description of general recommendations for improving the Wildfire Mitigation Plans for publicly owned utilities
and rural electrical cooperatives (POUs). In addition, the report provided specific recommendations for each utility
that submitted a WMP for review by the board. Dudek reviewed the WSAB’s report, and the section below contains
a summary of each recommendation the WSAB had for the CPAU’s 2022 WMP and whether the 2023 WMP has
addressed the WSAB’s recommendation. It should be noted that the materials published by the WSAB and the
recommendations within are for ‘guidance’ and not statutory requirements.
1. The WSAB likes the added detail about WMP adoption, with plans being presented to the Advisory
Committee. For the 2023 comprehensive revision WMP, these practices should remain, per the proposed
new WSAB WMP template.
The CPAU WMP includes the WMP adoption policy in Chapter 1 section C of the plan.
2. The WSAB greatly appreciates Palo Alto’s additional descriptions of city climate change actions, and
encourages continued attention to this crucial issue, including revisited consideration of drone technology
or explaining in more detail why it is inappropriate in this case.
The 2023 CPAU WMP does not include any statements about the implementation of a UAV or drone aerial
inspection program. The CPAU does not have long stretches of poles where drone technology would be
effective. CPAU will continue to perform visual inspections of the 11 miles of aboveground wires. This
number will decrease as progress is made underground wires in the High Fire Threat District.
3. The WSAB appreciates and commends Palo Alto’s detailed PSPS policies, including the new PSPS customer
communication policy (found in Appendices F and G). In addition, the WSAB welcomes the consideration of
backup generation to potentially limit the customer impact of PSPS and other outages in the area.
The CPAU WMP does not include any discussion of backup generators. Based on the information in the
plan and discussions with CPAU staff, it is the opinion of the Independent Evaluator that this is because
the CPAU has correctly identified the wildfire risk and risk drivers in their service territory and have
determined that the wildfire mitigation efforts are best directed at reducing wildfire risk in the high fire
threat district.
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 7 MAY 2023
4. The WSAB looks forward, as promised in the 2022 Palo Alto WMP, to the consideration of new metrics
(including performance metrics) in the 2023 comprehensive revision WMP, and thanks Palo Alto for
including information in the current WMP about metric tracking results (0 fire ignitions)
The 2023 CPAU WMP contains 5 metrics. These metrics better describe the risk drivers present in the CPAU
service territory and the effectiveness of the WMP wildfire prevention strategies.
5 CPAU 2022 Progress in implementing WMP Wildfire
Prevention Strategies
The CPAU’s 2022 accomplishments for the wildfire prevention strategies described in their WMP were provided by
CPAU staff. The CPAU accomplished the following:
Vegetation Management
For the entire Service Territory:
• 4,689 trees trimmed away from primary and secondary lines.
• 99 electrical services cleared.
• 31 poles cleared of both brush and encroaching trees.
• 11 whole tree removals for Right Tree, Right Place program
• 50 trees trimmed away from streetlights/traffic signals.
In the High Fire Threat District
• 124 Trees trimmed away from primary and secondary lines.
• 15 poles cleared of both brush and encroaching trees.
• 7,000 square feet of access trail cleared of brush.
Inspections
• Completed Inspections in High Fire Threat District in September 2022.
• 11 miles of aboveground wires in the High Fire Threat District
• 202 Poles in High Fire Threat district
• 167 Underground locations (transformers, vaults, load cabinets.)
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 8 MAY 2023
Operational Practices
• An inspection audit was completed by Operations Department, Compliance Team in Fall 2022.
System Hardening
• 84 poles and 340 crossarms have been replaced since July 1st, 2022 (the majority of these are NOT in the
foothills area; we are not able to easily separate this data but will start working on that for next year).
• A total of ~12000ft of substructure install and underground wire pull in the Foothills will be completed by
July 1st, 2023. ~50 poles will be de-energized, and pole removal process will begin next.
6 WMP Metric Overview
Metrics help POUs determine if their wildfire prevention strategies are effective for reducing the risk of a wildfire
ignited by their electrical equipment. In 2020 the California Municipal Utilities Association published a Wildfire
Mitigation Plan template for POUs to use in the preparation of their WMPs. This template included two metrics:
number of fire ignition events and wires down events. These two metrics are general in nature and do not provide
the POU a lot of information about the effectiveness of their wildfire prevention strategies. As POUs have gained
more experience with their WMPs they have either adopted new metrics or added supplemental data such as
location, cause, and whether the event occurred in a HFTD that increases the usefulness of these two metrics.
The CPAU used the two initial metrics plus one additional metric, outages on overhead lines in the High Fire Threat
District in the previous versions of their WMP. The 2023 WMP incorporates three new metrics. The WMP’s five
metrics are organized into two categories: performance metrics and outcome metrics. Performance metrics
includes vegetation management accomplishments, infrastructure maintenance, and system hardening project
status. The outcomes metrics include outages on overhead lines in high fire threat district, new wildfire ignitions
and wires down. The CPAU supplements the data collected for these metrics by including whether metric happened
in or outside of the High Fire Threat District. The CPAU has not begun collecting data for the new metrics yet. A
summary data for the previous metrics is included in the WMP and detailed data shown on Table 1, 2, and 3 below
is based on conversations with CPAU staff.
Table 1: Metric 1-Outages to the overhead lines in the high fire threat area
Date Fire Threat Zone Line Voltage Cause
3/11/2022 Tier 2 12,470V Car hit pole
3/9/2023 Tier 2 12,470V Branch on line
Table 2: Metric 2-Fire Ignitions
Date Fire Threat Zone Line Voltage Cause
n/a Tier 2 - - No fires Reported
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 9 MAY 2023
Table 3: Metric 3-Wires Down
Date Fire Threat Zone Line Voltage Cause
n/a Tier 2 - No wires down Reported
These three metrics with the supplemental data are useful for informing the CPAU about the effectiveness of their
wildfire prevention strategies and if the utility is making progress reducing the risk of a wildfire being started by
their electrical equipment. As the CPAU collects data of its new metrics there is the potential that this new data will
provide CPAU staff with a more accurate assessment of the effectiveness of their WMP and provide some direction
where they can place their wildfire prevention efforts.
7 Comparison of Industry Standards and Similar Utility
Wildfire Prevention Strategies
As part of our review of the CPAU’s 2023 wildfire mitigation plan, Dudek compared the wildfire prevention strategies
described in the plan to the strategies being implemented by POU’s that are like the CPAU in terms of service
territory size, customer class, owned assets, and wildfire risk. The City of Palo Alto is only the city of its immediate
neighbors that has its own public electrical utility. There is only one other POU in the bay area, Silicon Valley Power
(SVP), but is significantly different from CPAU (larger customer base, remote assets, no WUI in the city limits, etc.).
For this independent evaluator’s report Azusa Light and Water (ALW) and the Banning Electric Utility (BEU) were
selected to compare the CPAU’s wildfire prevention strategies to. Th e CPAU, the ALW and BEU have similar assets
including customers and customer population, and all three have a service territory that consists of two sharply
distinct areas; a densely urban area and sparsely developed wildland urban interface. Additionally, all three utilities
are using undergrounding as their principal means to reduce wildfire risk in their high fire threat district. The BEU
and ALW differ from the CPAU in that both of their service territories have experienced several large wildfires where
the CPAU has not.
Vegetation Management
All three utilities implement vegetation management programs that meet GO 95 requirements. The CPAU and BEU
vegetation management programs include the management of surface vegetation around and beneath electrical
equipment with the specific goal of preventing the rapid spread of a new wildfire ignition. Azusa Light and Water
does not have a surface vegetation management program for its assets in the high fire threat district. All three
utilities rely on manual treatment techniques (e.g., crews with hand tools or powered equipment) to complete the
vegetation treatment work. For all three utilities vegetation contact with wires is identified as a significant wildfire
risk driver in the aboveground portions of the system and their vegetation management programs direct most of
their efforts towards tree trimming and the removal of dead trees that could strike their wires.
The CPAU is unique in that their lines run through large open space areas and their vegetation mana gement
program incorporates treatment of the surface vegetation (mowing, dead brush removal, etc.) along roadways in
the the power line right-of-way.
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 10 MAY 2023
System Hardening
Undergrounding
All three utilities utilize undergrounding as one of their primary system upgrade strategies to reduce wildfire risk in
their high fire threat districts. The CPAU completed approximately 7500 ft and the BEU completed approximately
2800 ft of undergrounding. Azusa Light and Water has %100 undergrounding in their high fire thre at district.
Undergrounding is considered an industry standard for reducing the risk of wildfire from electrical equipment and
many POUs have some policy towards its use. The CPAU has a wildfire prevention strategy that incorporates
undergrounding and is making progress in utilizing this strategy.
Equipment Upgrades
The CPAU and BEU ongoing upgrade programs that are designed to reduce the risk of outage, equipment failure,
and new wildfire ignitions. These include:
• Installing animal deterrents such as raptor framing and squirrel guards.
• Replacing wooden pole crossarms with non-combustible fiberglass cross arms
Azusa Light and Power has no above ground wires in the high fire threat district and does not utilize any of these
strategies.
Pole inspection and hardening
The CPAU and BEU both have a pole inspection programs that involve visual inspection and periodic intrusive testing
of wooden utility poles. Both utilities have pole reinforcement programs that include hardening the pole against
wildfire using protective wraps or applications of fire-retardant material.
Recloser Policy
All three utilities have recloser policies for circuits in their High Fire Threat Districts where the recloser is set to
manual reclosing operations.
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 11 MAY 2023
8 Conclusion
The City of Palo Alto Public Utilities Department has prepared a comprehensive Wildfire Mitigation Plan for 2023.
The plan does meet the statutory requirements described in PUC 8387 (b)(2) for a publicly owned utility. The CPAU
has also considered the recommendations of the Wildfire Safety Advisory Board and revised their WMP
appropriately. The CPAU’s WMP with the provided appendices describes a wildfire mitigation program that
accurately assesses the risks and risk drivers present in their service territory and implements preventative
strategies with a focus on undergrounding lines in the HFTD that are effective at reducing the wildfire risk of these
risks and risk drivers.
Based on the wildfire prevention programs described in the WMP and the progress the CPAU has made in its wildfire
prevention programs, the CPAU takes the risk of wildfire in its service territory seriously and is actively working to
the reduce the risk that its equipment starts or aids in the spread of a wildfire.
Sincerely,
________________________________
Jeremy Cawn
Fire Protection Planner
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 12 MAY 2023
References
California Public Utilities Commission. (2018, January 18). CPUC High Fire Threat District (HFTD). Retrieved from
Fire-Threat Maps and Fire-Safety Rulemaking:
https://capuc.maps.arcgis.com/apps/webappviewer/index.html?id=5bdb921d747a46929d9f00dbdb6d
0fa2
Carlson, A. H. (2022, March 31). Wildland-urban interface maps for the conterminous U.S. based on 125 million
building locations. Retrieved from U.S. Geological Survey data release:
https://doi.org/10.5066/P94BT6Q7
Wildfire Safety Advisory Board. (2022). Guidance Advisory Opinion of the 2023 Wildfire Mitigation PLans of
Electric Publicly Owned Utilities and Rural Electrical Cooperatives. Sacramento: Office of Energy
Infrastructure Safety.
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Attachment A: CPAU WMP Independent Evaluator’s Report Summary Tables
2023 Palo Alto Utilities WMP IE Report
Summary Tables
CPUC Requirement
Public Utility Code 8387(b)(2) Description of Required Element Initial Review Comment Final Review Comment
A Staff Responsibilities
Needs more information. Describe which staff member
position oversees inspections, vegetation mgmt., training,
community outreach, etc.
Updated. Good.
B General Objectives Good. Three objectives listed. Maybe expand the
description of improving resilience. Good.
C Program Descriptions Good. Appendix A contains a comprehensive description of
mitigation actions being done by CPAU Good.
D Evaluation Metrics
Good. The 2023 WMP introduces five metrics in two
categories: performance and outcome metrics. Three of the
new metrics are the metrics from the 2022 WMP.
Good.
E Lessons learned, metrics
application
Good. Describes how the metric is relevant to the 2023 plan
and provides data since the WMP was created. Good.
F
Protocols for reclosers, de-
energization, and PSPS
mitigation
Good. Good.
G Community Notification
Good. Describe how PAU sends these messages". This
procedure includes proactively distributing a specific
recorded message to customers living in the Foothills area,
and a more general but still targeted message to all
customers. These messages are sent prior to deenergizing
lines, to allow residents time to act, if necessary."
Updated. Good.
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SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 2 MAY 2023
H Vegetation Management
Needs more information. Describe where brush cutting and
mowing are used and how much clearance around assets is
being created. "Palo Alto utilizes a variety of vegetation
treatment methods to reduce the risk of wildfire, including
tree or branch removal, trimming, mowing, brush cutting,
discing, and herbicide use."
Updated. Good.
I Infrastructure Inspections Good. Minimal.
Good. I recommend
combining all of the
inspection related
statements in the WMP
into one section titled
"Inspections"
J(i) Grid Design, construction, and
operation risks
Needs more information. Describe the risk drivers, for
example "CPAU has lines that run through open space areas
with dense vegetation." This may be a 'common' issue
amongst POUs but it's CPAU specific too. It's also called out
in the city's risk assessment report.
Updated. Good.
J(ii) Vegetation, topographic, and
climate risks
Good. Identifies tree/vegetation contacts as the primary risk
driver in CPAU. Good.
K Identification and expansion of
higher wildfire threat areas Not included
Updated. Good. In the
middle of a paragraph in
Chapter 2 Section B.
L Identify enterprise-wide risk Not included
Updated. CPAU uses a City
of Palo Alto developed risk
assessment process
developed by the City OES.
M Restoration of Service Good. Good.
N(i) Monitoring and auditing of
WMPs Good. Good.
N(ii) Identifying and correcting
deficiencies
Needs more information. Describe how CPAU reviews and
updates your WMP. For example, the updated metrics. Updated. Good.
N(iii) Monitoring asset inspections Good. Good.
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TO: JIM PACHIKARA
SUBJECT: CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN INDEPENDENT EVALUATOR’S REPORT
12108.09 3 MAY 2023
PAU Specific WSAB
Recommendations
WSAB 2023 POU WMP
Guidance Advisory Opinion
Description of the WSAB
Recommendation Initial Review Comment Final Review Comment
A3-42
The WSAB looks forward, as
promised in the 2022 Palo Alto
WMP, to the consideration of
new metrics (including
performance metrics)
in the 2023 comprehensive
revision WMP,
Good. CPAU re-worked their WMP metrics into two
categories with a total of 5 metrics. Good.
Independent Evaluator's
general WMP Comments
Location Page Initial Review Comment Final Review Comment
1. Utility Overview and
Context
1 Context Table-Prevailing Wind Direction and Speed. The link
does not work. Please provide the text describing prevailing
winds or fix the link.
Corrected.
2. Plan Purpose and Objective 4 Based on past WSAB guidance documents, WSAB wants
quick access to WMP information including attachments, I
recommend including the relevant appendices. To avoid
redundancy, we also do not include appendixes submitted
in prior years, although we may refer to them. This is not to
short shrift our efforts, but rather to acknowledge that both
CPAU and the Board have limited resources to write and
review Plans, the Board has already reviewed the
appendixes and offered guidance, and recycling past
information is not as helpful as providing new information.
CPAU added relevant City
documentation as
appendices to the end of
the document.
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Utilities Wildfire Mitigation Plan Update
June 7, 2023
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2
Background information
•California legislation (Senate Bill 901) requires electric utilities to prepare a
Wildfire Mitigation Plan and update it annually.
•The Utilities’ Wildfire Mitigation Plan will be updated annually, presented
in a publicly noticed meeting, and submitted to the California Wildfire
Advisory Board by July 1st of each year.
•Every 3 years publicly owned utilities will complete a comprehensive
revision of the plan. 2023 is Utilities’ first revision.
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3
Utilities Wildfire Mitigation Plan
Update
▪Objective
Complete a comprehensive revision of
the Wildfire Mitigation Plan.
▪Collaboration
Prepared with assistance and input from
Fire, Urban Forestry, Open Space, Office
of Emergency Services.
▪Evaluation
Staff contracted with an outside
consultant to perform a independent
and comprehensive evaluation of the
plan.
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4
Utilities Wildfire Mitigation Plan Updates
1.Rebuild of overhead lines in the Foothills
•Staff installed 2.38 miles of substructure (conduit and boxes) of the 11 miles of
overhead lines.
•The removal of approximately 70 poles will now be scheduled and the
installation of substructure for Phases 3 and 4 will begin summer 2023.
•The anticipated target completion for the project is summer 2025.
2.Independent Evaluation
•CPAU contracted with Dudek to perform a comprehensive evolution of this Plan.
The final evaluation report is included here as Attachment B.
•In summary, the Utilities Wildfire Plan fulfills the requirements of a plan and
meets the statutory requirements described in PUC 8387 (b)(2) for a publicly
owned utility.
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5
Discussion
End of Presentation
Questions?
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6
Extra Slides
Supporting Information
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7
Activities
Activity Description Status Projected
completion date
Utilizing fiberglass Some poles will remain in our high fire threat area
once lines are all underground. We will use new
fiberglass crossarms when replacement is needed to
enhance resiliency.
CPAU engineering staff finalized the
design and specifications for fiberglass
crossarms and ordered the necessary
materials. Shipping constraints delayed
shipment; materials were received in the
Spring of 2023.
2024
Fiber optic extension Concurrently with the above project, we will design
and install new fiber optic cable to enhance the
communications capability in our high fire threat area.
Segments of underground
communication conduit are being
installed along with the electric
substructure work, phase by phase. Two
phases are complete with two more in
development.
Summer 2025
Emergency generators Installing emergency backup generators at the water
pumping stations and wastewater lift station in our
high fire threat area.
Staff is working on the requirements for
each site. Staffing shortages have
delayed this project.
2024/2025
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Activity Description Status Projected
completion date
Wood pole inspection To ensure proper infrastructure maintenance, this
project involves inspecting, testing, treating, and
reinforcing 700 wood utility poles through our territory.
This is a regular, reoccurring project. June 2023
SCADA switch to facilitate
deenergization
To facilitate the ability to quickly shut off power on the
line serving our high fire threat area, CPAU staff will
install a remotely operable switch, providing Electric
Dispatch Operators at our Utility Control Center the
capability to deenergize the line immediately.
We have selected the location of the
remote switch and will install it while
completing the above-mentioned
undergrounding project
Early 2025
Outage Management
System
To provide enhanced customer communication during
outages, CPAU is updating our Outage Management
System. The upgrades will provide additional
functionalities, including the ability to notify customers
and mobilize resources in response to outages and
emergencies, send updates by email, text, and social
media outlets, and improve customer service.
Implementation of the new System is
underway.
August 2023
8
Activities -continued
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Item No. 4. Page 1 of 1
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: June 7, 2023
Staff Report: 2305-1507
TITLE
Discussion and Presentation of the Update of the Grid Modernization
ATTACHMENTS
Attachment A: Presentation
APPROVED By:
Dean Batchelor, Director of Utilities
Staff: Tomm Marshall
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Electric Distribution Infrastructure Modernization Update
June 07, 2023 www.cityofpaloalto.org
Staff: Tomm Marshall
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2
Electric Infrastructure Analysis Report
•Peak Demand –6 kVA per home.
•Capacity increases –Distribution transformers and
secondary conductors.
•12 kV Circuit Ties
•Substation Transformer Upgrades
•Estimated Cost -$220 to $306 Million
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3
Peak Load Mitigation
•Technologies to reduce coincident loading are in
development.
•Need to do a cost analysis –upgrades vs.
mitigation
•As technologies are developed, upgrade plans can
be adjusted to incorporate new technologies.
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4
System Modernization Tasks
•Convert Overhead System from 4kV to 12kV
•Increase Overhead System Capacity
•Convert Underground System from 4kV to 12 kV
•Upgrade Underground System Capacity
•Increase Substation System Capacity
•Install Cost Effective Technologies to Reduce Peak Load
and Improve Reliability
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5
Task I -Trial Upgrade Project
Converting 4 kV overhead circuits to 12 kV.
Trial project currently in design/construction (Leland Manor
Area)
•Designed for 6 kVA per home.
•Construction started in the spring of 2023.
•Progress dependent upon transformer availability.
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6
Task II –Upgrade Overhead Systems
•Add capacity to the overhead system by upgrading transformers and
secondary systems.
•Upgrade to residential circuits.
•Reduce barriers limiting electrification of homes.
•Expected to start design and construction in late 2023.
•Construction completion by end of 2027.
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Task III–Upgrade Underground Systems
•Add capacity to the underground system by upgrading transformers
and secondary systems.
•Difficult to upgrade due requirements for transformer locations and
installation of new substructure.
•Reduce barriers limiting electrification of homes.
•Expected to start design and construction in late 2026.
•Construction completion by end of 2030.
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Task IV–Upgrade Substations and Circuits
•Add capacity to Substations.
•Install Circuit ties.
•Design and construction in late 2027
•Construction completion by end of 2030.
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5
Task V –Load Mitigation and Reliability
•Complete Study on the Cost Effectiveness and Viability in 2023.
•Design and Implement Reliability Projects. 2024-2032
•Implement Cost Effective and Viable Load Mitigation Projects. 2024-
2030
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9
Project Timeline
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10
Funding
•Project has been budgeted in the 5-year budget.
•Submitted for a matching DOE Grid Resiliency and Innovation
Partnership (GRIP) Grant.
•Revenue bonds.
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Item No. 5. Page 1 of 2
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: June 7, 2023
Staff Report: 2305-1408
TITLE
Informational Report on the FY2021 Demand Side Management Report
RECOMMENDATION
The FY 2021 Demand Side Management Report presents the achievements of Demand Side
Management (DSM) programs implemented by the City of Palo Alto Utilities (CPAU) during Fiscal
Year (FY) 2021. This is for the Commission’s information and no action is required.
EXECUTIVE SUMMARY
The FY 2021 DSM Report summarizes the achievements of CPAU’s customer efficiency and
sustainability programs. CPAU is committed to supporting environmental sustainability through
conservation of electric, gas and water resources. Additionally, CPAU promotes distributed
renewable generation, building electrification, and electric vehicles using incentives and
educational programs. CPAU accomplishes these goals by delivering a wide range of customer
programs and services as described in this report.
FY 2021 was characterized by transition, as reflected in changes to some of the sections of this
report. The section on “Electrification/Gas Efficiency Achievements” reflects that CPAU programs
are now aligned with the City’s Sustainability/Climate Action Plan (S/CAP) goals of reducing
natural gas use in the building sector; this is achieved through replacing gas equipment with high
efficiency electric equipment as well as building envelope improvements, and behavioral, retro-
commissioning and operational changes. A new section on “Transportation Electrification”
covers progress in CPAU’s programs that support EV adoption. The report also includes a new
section on “Resiliency”, which covers solar and battery installation within the city.
Due to staffing constraints, the publication of this report has been delayed by a year. Staff
anticipates that the FY 2022 DSM report will be published within the next 6 months.
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Item No. 5. Page 2 of 2
STAKEHOLDER ENGAGEMENT
CPAU’s program offerings are developed with input from community members, third party
subject matter experts, and feedback provided from the UAC and Council.
ENVIRONMENTAL REVIEW
The Demand Side Management Report is not subject to review under the California
Environmental Quality Act since the UAC’s receipt of this report will have no foreseeable direct
or indirect physical change in the environment and therefore does not meet the definition of a
Project under Public Resources Code 21065.
ATTACHMENTS
Attachment A: FY 2021 Demand Side Management Report
APPROVED By:
Dean Batchelor, Director of Utilities
Staff: Christine Tam, Senior Resource Planner
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Fiscal Year 2021 Demand Side Management Report
1
5
5
3
OVERVIEW:
The City of Palo Alto Utilities (CPAU) is the only city-owned utility in California that operates
its own utilities for electric, natural gas, water, fiber optic, storm drain, wastewater and refuse
services. We have been providing quality services to the citizens and businesses of Palo Alto
since 1896.
MISSION:
To provide safe, reliable, environmentally sustainable and cost-effective services.
STRATEGIC DIRECTION:
At CPAU, our people empower tomorrow’s ambitions while caring for today’s needs. We make
this possible with our outstanding professional workforce, leading through collaboration and
optimizing resources to ensure a sustainable and resilient Palo Alto.
PRIORITIES:
Workforce: We must create a vibrant and competitive environment that attracts, retains, and
invests in a skilled and engaged workforce.
Collaboration: We must collaborate with internal teams and external stakeholders to achieve
our shared objectives of enhanced communication, coordination, education, and delivery of
services.
Technology: We must invest in and utilize technology to enhance the customer experience
and maximize operational efficiency.
Financial Efficiency and Resource Optimization: We must manage our finances optimally and
use resources efficiently to meet our customers’ service priorities.
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Fiscal Year 2020 Demand Side Management Report
1
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5
3
TABLE OF CONTENTS
EXECUTIVE SUMMARY ......................................................................................................................3
1 ELECTRIC EFFICIENCY ACHIEVEMENTS.......................................................................................5
2 ELECTRIFICATION/GAS EFFICIENCY ACHIEVEMENTS..................................................................9
3 WATER EFFICIENCY ACHIEVEMENTS ........................................................................................ 12
4 TRANSPORTATION ACHIEVEMENTS........................................................................................ 15
5 RESILIENCY……………………………………………………………………………………………………………..…………….19
APPENDIX A: PROGRAM DESCRIPTIONS ..........................................................................................23
APPENDIX B: FY 2021 ACHIEVEMENTS BY DSM PROGRAM ..............................................................27
APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES ..............................................................30
APPENDIX D: CITY POLICIES/PLANS AND STATE MANDATES IMPACTING DSM PROGRAM GOALS
AND IMPLEMENTATION..............................................................................................31
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3FY 2021 Demand Side Management Annual Report
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EXECUTIVE SUMMARY
This Demand Side Management (DSM) Report for Fiscal Year (FY) 2021 is a public document
summarizing the achievements of CPAU’s customer efficiency and sustainability programs. CPAU is
committed to supporting environmental sustainability through conservation of electric, gas and water
resources. Additionally, CPAU promotes distributed renewable generation, building electrification,
and electric vehicles using incentives and educational programs. CPAU accomplishes these goals by
delivering a wide range of customer programs and services as described in this report and strives to do
so while remaining in touch with customer needs.
Fiscal Year 2021 was marked by shelter-in-place and work-from-home due to the Covid-19 pandemic,
as well as wrapping up program contracts for large-commercial customers and an associated issuance
of a Request for Proposals to establish new programs for these customers. In response to the
pandemic, CPAU’s customer programs group developed a virtual version of its in-home efficiency and
electrification readiness assessments, converted in-person educational events to online webinars and
offered energy efficiency tips relevant to working from home. The year was also marked by wildfires,
heatwaves and rolling power outages. In response to these conditions, staff developed a load shedding
program with incentives to large customers for powering down during times of grid stress.
The year was characterized by transition, as reflected in changes to some of the sections of this report.
The section on “Electrification/Gas Efficiency Achievements” reflects that CPAU programs are now aligned
with the City’s Sustainability/Climate Action Plan (S/CAP) goals of reducing natural gas use in the building
sector; this is achieved through replacing gas equipment with high efficiency electric equipment as
well as building envelope improvements, and behavioral, retro-commissioning and operational
changes. A new section on “Transportation Electrification” covers progress in CPAU’s programs that support
EV adoption. The report also includes a new section on “Resiliency”, which covers solar and battery installation
within the city.
ENERGY EFFICIENCY AND WATER CONSERVATION GOALS AND ACHIEVEMENTS
CPAU offers incentives and education programs for customers to encourage energy and water
efficiency – Table ES.1 summarizes FY 2021 efficiency goals and achievements. The energy and water
efficiency savings achieved through the City’s energy reach code and green building ordinance are
included. FY 2021 represents the sixth year of increased energy savings targets1 established since SB
350 was enacted with the aim to double the energy efficiency savings in electricity and natural gas in
buildings by 2030. CPAU has previously adopted gas efficiency goals to reduce gas use; these goals
ranged from 0.5% to 1.1% gas use reduction per year. These goals are no longer relevant and are
superseded by the S/CAP goal for the building sector. For FY 2021, CPAU fell short of its electricity and
water savings targets. There are many factors that contributed to the decline in energy savings and
below-target efficiency achievements, including the suspension of many residential customer in-home
1 Electric goals: https://www.cityofpaloalto.org/civicax/filebank/documents/56087;
Gas goals: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2017/final-staff-report-id-7862_update-of-ten-year-gas-efficiency-goals.pdf
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services as well as programs serving the Small Medium Business customer segment as a result of Covid-
19. In addition, there have been delays with launching Home Energy and Water reports due to a
combination of vendor challenges and staffing constraints.
Table ES.1: Efficiency Goals versus Achievements
Resource FY 2021 Savings
Goals (% of load)
FY 2021 Savings
Achieved (% of
load)
FY 2021 Savings Achieved
Electricity 0.80%0.46%3,744 MWh
Gas NA 0.23%60,071 therms
Water 0.91%0.39%18,451 CCF
CPAU is committed by its own policies and State law to implementing all cost-effective energy and
water efficiency measures (i.e. those that are less expensive than supply-side resources). Table ES.2
summarizes the cost of efficiency over the last three years compared to the projected cost of supply
resources. The rolling 3-year average is a suitable metric to track the cost effectiveness of efficiency
portfolios, as it accounts for yearly variations in program engagement and funding. The current 3-year
average cost for each efficiency portfolio is well below the cost of supply resources, demonstrating the
cost effectiveness of all efficiency portfolios. The gap between the portfolio-level cost of efficiency and
the cost of supply resources exists even while the portfolio supports high-touch programs such as the
Home Efficiency Genie, a customer service program that provides great educational value to Palo Alto
residents but delivers only modest energy efficiency savings. The gap also leaves room for increasing
customer incentives while maintaining overall portfolio cost effectiveness.
Table ES.2: Actual Levelized Efficiency Costs versus Projected Supply Costs
FY 2019
Efficiency
FY 2020
Efficiency
FY 2021
Efficiency
3-yr average
Efficiency
Future
Supply
Electric $/kWh $0.02 $0.06 $0.03 $0.04 $0.11
Gas*$/therm $0.56 $0.45 $0.51 $0.51 $0.90
Water $/CCF $0.26 $2.67 $2.73 $1.89 $6.24
*Note: Gas efficiency cost excludes electrification program expenditures
CPAU supports a variety of programs designed to promote sustainability and reduce carbon emissions
in Palo Alto. In addition, CPAU works closely with Planning and Development Services (PDS) to adopt
local Green Building regulations and Energy Reach Code to further reduce resource usage and carbon
emissions in the new construction or remodeling of residential and nonresidential buildings. Over the
past several years, CPAU has claimed energy and water savings achieved through the City’s Energy
Reach Code and Green Building Ordinance (jointly referenced as “Reach Codes”).
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1 ELECTRIC EFFICIENCY ACHIEVEMENTS
1.1 Electric Efficiency Savings versus Goals
City Council approved CPAU’s first Ten-Year Energy Efficiency Portfolio Plan in April 2007, which
included a 10-year cumulative savings target of 3.5% of the forecasted energy use. As mandated
by California law, the electric efficiency targets have been periodically updated, with the most
recent 10-year cumulative savings goal set at 5.7% between 2018 and 2027. Statewide building
standards and appliance standards have become increasingly stringent, which shrinks the
efficiency savings potential that CPAU can pursue through customer incentive programs and local
energy reach codes. With stricter codes and standards, higher efficiency goals and over 30 years
of running efficiency programs in Palo Alto (which has captured many of the easier
opportunities, such as lighting retrofits), staff needs to continue to innovate to maintain and
increase efficiency savings.
CPAU’s electric efficiency savings goals and achievements as a percentage of the City’s
electricity usage are shown in Table 1 below and cumulative net savings are shown in Figure 1. In
FY 2021, on a net efficiency savings basis, CPAU delivered electric efficiency savings of 0.46% of
its total electricity sales through its customer efficiency programs.
Table 1: Electric Savings versus Goals2
Year Annual Savings Goal
(% of load)
Savings Achieved
(% of load)
Savings Achieved
(MWh)Goal Source
FY 2008 0.25%0.44%4,399
FY 2009 0.28%0.46%4,668
FY 2010 0.31%0.53%5,270
2007
FY 2011 0.60%0.58%5,497
FY 2012 0.65%1.31%12,302
FY 2013 0.70%0.85%8,074
2010
FY 2014 0.60%0.86%8,218
FY 2015 0.60%0.65%6,063
FY 2016 0.60%0.59%5,548
FY 2017 0.60%0.65%5,986
2012
FY 2018 0.75%0.85%7,640
FY 2019 0.75%0.86%7,633
FY 2020 0.80%0.27%2,305
FY 2021 0.80%0.46%3,744
2017
2 The reported Achieved Electric Savings are net efficiency savings; efficiency savings from free-riders, i.e. participants who
would have pursued efficiency projects in the absence of EE incentives, are excluded. For FY 2018 through FY 2021, a net-to-
gross ratio of 0.85 is assumed for the achieved EE savings.
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Figure 1: Cumulative Net Electric Efficiency Savings ending FY 2021
While the 0.46% achieved savings fell short of the 0.80% goal, achieved kWh savings increased
compared to FY 2020 because a number of large commercial efficiency projects whose progress
slowed or halted at the end of FY 2020 due to the Covid-19 pandemic were completed in FY
2021. The decline in savings in FY 2021 compared to years prior to the pandemic is attributed
to a number of factors, including lower savings from the commercial and industrial program,
lower savings associated with the City’s energy reach code due to increasing statewide building
energy efficiency standards, delayed launch of the Small Medium Business program and
residential Home Energy reports, and significant portfolio-wide impacts resulting from local
shelter in place orders brought on by the pandemic. The shelter-in-place orders stopped on-site
work in nearly all program areas for all of FY 2021, with the exception of work on large commercial-
sector projects that recommenced at the end of FY 2021. These combined factors led to significantly
fewer projects, fewer implemented energy efficiency measures, and less overall energy savings
in FY 2021 than CPAU has achieved historically.
1.2 FY 2021 Electric Efficiency Savings by End Use and Customer Segment
In FY 2021, non-residential customers account for approximately 80% of CPAU’s electric sales,
and non-residential efficiency program savings represent about 98% of CPAU’s total electric
efficiency savings, as shown in Figure 2. Non-residential HVAC and non-residential lighting
accounted for approximately 85% of the total electric portfolio savings.
To achieve additional savings and to better serve the small and medium business (SMB) customer
sector, the City launched the Business Advantage Program in March 2021, providing HVAC control
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systems at no cost to support small and medium businesses that had been adversely impacted
by the pandemic. The program provides businesses with a free Energy Management System,
a cloud-based energy management portal, and free MERV-13 air filters to improve indoor air
quality.
Figure 2: Composition of Net Electric Efficiency Savings in FY 2021
Electric savings in the residential customer sector account for only 7% of total electric savings.
This small contribution is in contrast to earlier years (FY 2012 through FY 2015) when CPAU ran a
residential Home Energy Report (HER) program. Paper reports were mailed to customers showing
their electricity consumption relative to customer in similar homes, resulting in customers
changing their behavior to reduce their electricity consumption and perform more favorably. This
behavioral savings program resulted in a 1 to 2% reduction in electricity consumption by program
participants and accounted for 22% of electric savings by FY 2015 (as reported in the FY 2015
DSM Report. The program was discontinued in FY 2015 because the algorithm used to generate
the HERs was unable to account for beneficial electricity consumption (such as that from charging
electric vehicles) as well as residential solar electricity generation. Persistent savings were
claimed for five years following the program’s end, with claimed savings dropping by 20% per
year as dictated by studies that measure reductions in electricity consumption from behavioral
programs. FY 2020 was the first year with no HER savings claimed.
The City of Palo Alto’s Energy Reach Code is a local requirement for new construction projects to
exceed the state’s building energy efficiency standards (Title 24). Effective April 1, 2020, Palo Alto
requires all low-rise residential new construction projects to be all-electric; commercial new
construction projects can be proposed as all-electric design with no additional efficiency
requirements above Title 24 standards, or if proposed as mixed-fuel design, the project must
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exceed Title 24 standards by a margin of 5% to 12% depending on the building type. The adoption
of this latest set of Energy Reach Code is consistent with the City’s greenhouse gas (GHG)
reduction goals. In FY 2021, the Energy Reach Code accounted for 13% of the total electric
efficiency savings.
Figure 3 shows the historical annual electric efficiency savings and annual electric
efficiency program expenditures.
Figure 3: FY 2008 to FY 2021 Electric Efficiency Savings and Expenditures
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2 ELECTRIFICATION/GAS EFFICIENCY ACHIEVEMENTS
2.1 Gas Use Reduction Goals
In April 2016, Palo Alto City Council adopted the ambitious goal of reducing the community’s
GHG emissions to 80% below 1990 levels by 2030 (“80x30”) for the city’s Sustainability and
Climate Action Plan (S/CAP). To achieve this goal, the City is committed to reducing direct
emissions from natural gas use through building electrification. As of 2020, natural gas use in
buildings (including fugitive emissions) accounts for 36% of the city’s greenhouse gas emissions.
Under the 2021 Draft S/CAP Plan, the building sector will need to reduce GHG emissions from
the direct the direct use of natural gas in Palo Alto’s building sector by at least 60% below 1990
levels by 2030 (or 50% below 2018 levels). This will be achieved by:
a. Electrifying most single-family appliances
b. Electrifying most non-residential rooftop packaged HVAC units
c. Reducing gas use in major facilities by at least 20%
d. Seeking additional opportunities for commercial and multi-family electrification
CPAU has previously adopted gas efficiency goals to reduce gas use; these goals ranged from
0.5% to 1.1% gas use reduction per year. These goals are no longer relevant as they are
superseded by the S/CAP goal for the building sector. Rather than continuing gas efficiency
rebates and services to support the installation of new gas equipment that would remain in place
for the next decade or longer, CPAU has for the most part ended these types of rebate offerings
and will instead begin offering technical assistance and rebates to help customers with the
electrification of gas equipment. Building envelope improvements will remain a priority for
energy efficiency program services.
Going forward, staff will report on the gas use reductions achieved through customer programs
as part of the Annual DSM Report, rather than reporting on gas efficiency achievements. In
addition to customer programs, additional gas use reductions are achieved through the City’s
Energy Reach Code which mandates all-electric low-rise residential new construction projects
and electrification-readiness for mixed-fuel nonresidential new construction projects beginning
in January 2020. However, gas use reductions achieved through the City’s Reach Codes will not
be included in the DSM report in the future as the City moves towards mandating new
construction projects to be all-electric.
2.2 FY 2021 Gas Use Reductions by Customer Segment
In FY 2021, total gas use reduction attributed to customer programs is around 54,000 therms;
this is equivalent to avoiding 285 MT of GHG emissions each year. Figure 5 shows the breakdown
of gas savings in FY 2021 by end use.
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Figure 5: Composition of Natural Gas Use Reduction in FY 2021
Non-residential customers account for 51% of CPAU’s gas sales, and, as shown in Figure 5, in FY
2021 non-residential gas efficiency savings represented 90% of CPAU’s total gas savings,
primarily from retro- commissioning and upgrade of equipment such as boilers.
During FY 2021 staff continued to administer the Heat Pump Water Heater Rebate program to
incentivize residential customers to replace their gas water heater with heat pump alternatives.
The program continues to have relatively low participation, with roughly 20 to 25 rebates paid
to customers each year, and contributed 4% of the total gas savings in FY 2021.
2.3 Building Electrification Program Expenditures
Figure 6 compares historical annual expenditures on gas reduction programs. Prior to FY 2021,
expenditures covered only gas efficiency programs. Building electrification program
expenditures are added beginning in FY 2021.
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Figure 6: FY 2008 to FY 2021 Gas Efficiency and Building Electrification Expenditures
Expenditures for building electrification (BE) activities have to date been funded using Electric
Public Benefits Research and Development (R&D) funds. In FY 2021, total BE expenditure was
around $100,000; this covers HPWH rebates, marketing and outreach activities, and a pilot
project at a multifamily site to convert gas furnaces to heat pump systems.
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3 WATER EFFICIENCY ACHIEVEMENTS
3.1 Water Efficiency Savings versus Goals
Table 3: Water Savings
Year Savings Achieved
(CCF)
Savings Achieved
(% of load)
FY 2008 39,323 0.72%
FY 2009 52,983 0.98%
FY 2010 68,948 1.35%
FY 2011 23,409 0.47%
FY 2012 55,067 1.09%
FY 2013 26,513 0.53%
FY 2014 32,324 0.64%
FY 2015 68,209 1.54%
FY 2016 74,484 1.96%
FY 2017 57,154 1.40%
FY 2018 21,548 0.47%
FY 2019 134,242 3.04%
FY 2020 21,144 0.45%
FY 2021 18,451 0.39%
The City partners with the Santa Clara Valley Water District (Valley Water) to provide water
conservation programs. Valley Water administers the programs for Palo Alto customers, and
CPAU markets and promotes the programs. Water efficiency goals are in transition as old
legislation is being replaced by new legislation and state regulations.
The Water Conservation Bill of 2009 (SBx7-7) was enacted in November 2009. It required water
suppliers to reduce the statewide average per capita daily water consumption by 20% by
December 31, 2020. The City Council, through Resolution 9174, adopted a compliance
methodology based on one of the allowable options, and, as reported in the City’s 2020 Urban
Water Management Plan, the City met the target (180.3 GPCD) by more than 20% (141.7 GPCD).
Water conservation efforts by Palo Alto and Valley Water contributed to achieving the SBx7-7
target. However, drought conditions and the resulting state mandates had a profound impact on
water use behaviors which caused a systemic change in water demand across California, in effect
rendering the targets meaningless by 2020.
The State Water Resources Control Board (SWRCB) is in the process of developing urban water
use objectives with water use targets for (1) residential indoor per capita water use, (2)
residential outdoor water use, and (3) outdoor irrigation with dedicated irrigation meters. Palo
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Alto’s 2021 S/CAP draft goals and key actions include: exceed the forthcoming Making
Conservation a California Way of Life indoor and outdoor water use targets by 5%. Once the
urban use objectives are established by the SWRCB, the goal may or may not be revised, and new
water efficiency program goals will be determined.
3.2 FY 2020 Water Efficiency Savings by End Use and Customer Segment
In FY 2021, Palo Alto achieved 18,451 CCF in water efficiency savings. The Green Building
Ordinance accounted for nearly 62% of all water savings with the remaining majority, 38% coming
from residential water rebate programs administered by Valley Water (see Figure 7). The bulk of
these residential savings are a result of landscape conversion projects. The Residential Energy
Assistance Program (REAP) and the MultiFamily Plus and Home Efficiency Genie programs also
typically contribute small amounts of water savings from faucet and shower aerator measures
installed directly in residents’ homes. However, in FY 2021 all in-home visits were paused; thus,
no water savings from these programs were realized. To increase water savings by commercial
customers, staff is exploring ways to leverage WaterFluence, which provides data to assist
commercial customers with irrigating their landscapes efficiently.
Figure 7: Composition of Water Efficiency Savings in FY 2021
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Figure 8 compares the historical annual water efficiency savings and annual water DSM
expenditures.
Figure 8: FY 2008 to FY 2021 Water Efficiency Savings and Expenditures 3
3 Water savings increased substantially in FY2019 as a result of one large commercial retrofit project that implemented
many water savings measures as a result of the green building ordinance.
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4 TRANSPORTATION ELECTRIFICATION ACHIEVEMENTS
4.1 Transportation Electrification Goals
Powering transportation through Electric Vehicles (EVs) as opposed to fossil fuel powered
vehicles can significantly reduce GHG emissions and climate pollution. As of 2020, the
transportation sector accounts for 65% of the city’s greenhouse gas emissions. A key priority
under the City’s S/CAP is to increase the number of EVs registered in Palo Alto, and ensure
adequate EV charging infrastructure throughout the City to support mass EV adoption, with
equitable access for multifamily and lower income residents, as well as workplaces, public
parking lots and retail areas. Correspondingly, cross-departmental work is progressing on
proposals for curbside charging, fleet electrification and permit streamlining.
Under the 2021 Draft S/CAP Plan, the transportation sector will need to reduce GHG emissions
by at least 65% below 1990 levels by 2030. This will be achieved by:
a.Increasing EVs registered in Palo Alto from 4,500 (2019) to 28,000 (44% of vehicles)
b.Develop a public and private charging network to support these levels of EV penetration
4.2 Programs and Achievements
With internal and external stakeholder input, CPAU’s programs are focused on building out EV
charging infrastructure for commuters, residents and visitors, with a focus on multifamily (MF)
households and lower income populations.
EV Charger Rebate Program:
Goal: Incentivize the installation of EV chargers at nonprofits and MF properties. CPAU currently
offers up to $8000 per port for up to 10 ports.
Since the launch of the program in 2017, UTL has facilitated the installations of 92 new EV charging
ports/connectors at 13 sites. Each project has averaged 12 months to complete and the average
cost of each port is $10,000.
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Figure 9: Ports Installed Through the EV Charger Rebate Program
EV Technical Assistance Program (EVTAP)
Goal: Facilitate the installation of 180-360 ports @ 60-90 sites by 2024
This end-to-end EV charging consulting program launched in fall of 2019, offering technical
assistance for the installation of EV chargers at MF properties, non-profits and small to medium
businesses (SMB). The program involves a series of site visits, technical evaluations, project
designs, engineering reviews, review of contractor bids, building permit submittal support,
application for incentives and project management of the installation. Projects are expected to
take up to 2 years or more to reach completion.
COVID19 slowed things down as customers faced economic uncertainties and on-site visits were
halted, but by the end of FY2021 interest began picking up, boosted by a call campaign to the
largest MF properties and SMB properties.
Status at the end of FY2021:
o 0 installations complete
o 2 permit applications submitted
o 26 sites enrolled and working through the program
o Potential for 150 Level 2 ports and 10 Level 1 ports
Transformer Upgrade Rebate Program
Goal: Defray the cost of utility distribution system upgrades triggered by EVSE installations - costs
that would otherwise be borne by the customers. CPAU offers up to $100,000 for multifamily &
non-profit properties and up to $10,000 for single-family homes
Status at the end of FY2021:
0 Installations complete
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California Electric Vehicle Incentive Project (CALeVIP)
Goal: Facilitate and incentivize the installation of EV chargers at commercial sites.
Status at the end of FY2021:
A total of $1.4M of funds were reserved by 6 site owners through CALeVIP, a commercial EV
charging matching grant program sponsored by the California Energy Commission (CEC) with a total
of $2 million in funding over two years. The sites include 2 hotels, 3 office sites and 1 Midtown
retail parking lot and can potentially lead to 91 new Level 2 ports and 14 DC Fast Chargers.
California Clean Fuel Rewards (CCFR)
Goal: Incentivize the purchase of new EVs
Status at the end of FY2021: 563 participants since program launch in November 2020
Since the launch of this statewide point-of-sale-rebate, Palo Alto residents have earned rebates
valued at $800,000. This translates to 2% of Palo Alto households that have purchased an EV taking
advantage of this program. To date, the most popular battery EV continues to be the Tesla Model
Y and Model 3 and the most popular plug-in hybrid continues to be the Toyota Prius Prime. CPAU
will continue to contribute funds to this program as directed by the California Air Resources Board
(CARB).
Curbside Charger Pilot
Goal: Install 10 curbside EV charging ports to expand the types and locations of charging options.
Staff hopes to learn from this 5-year pilot.
Status at the end of FY2021:
o 0 installations
o 1 permit submitted
o 4 interested households
Education and Outreach
Goal: Answer all questions residents may have about EVs and micromobility to help them transition
to clean modes of transportation.
Raising awareness about transportation electrification and alternative modes of transportation has
been a top priority. Contract negotiations are in progress to offer a robust online and in-person
calendar of EV education and outreach events. The goal is to offer monthly EV education classes
including the City’s first e-Bike workshop, EV financial incentives clinics and one-on-one case
management for income qualified customers. There are also plans to offer EV group buy discount
opportunities
Other Projects: Workplace Charging at SAP
Goal: Install EV infrastructure to meet employee demand. At the beginning of 2019, SAP Palo Alto
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had 23 ports to provide charging for 349 registered users. This created many difficulties for the
employees who had to move their vehicles promptly when their sessions were completed to enable
others to connect. After attending a CPAU presentation about workplace charging at a Facility
Manager’s Meeting, SAP used the COVID lockdown as an opportunity to install more chargers.
End of FY2021:
o 135 ports installed in 2021
4.3 Funding and Expenditures:
All CPAU EV programs are funded using income generated from Low Carbon Fuel Standard (LCFS)
credits issued by the California Air Resources Board (CARB). These credits are received based on
the number of EVs in CPAU territory and as producer of clean electricity. Income generated from
LCFS proceeds must be used to accelerate transportation electrification. In FY2021, LCFS revenue
totaled $1.7M and dollars spent was $1.15M of which $893,000 was transferred to the state-run
point-of-sale CCFR EV rebate program and $150,000 was spent on rebates. At the end of FY2021,
CPAU has cumulative LCFS revenues of $6.9M for future EV projects and programs.
Figure 10: FY 2017 to FY 2021 LCFS Revenue vs. Expenditures
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5 RESILIENCY
5.1 Overview of Resiliency
Solar-plus-storage systems generally consist of a solar array connected to a battery storage
system. These systems allow solar energy to be deployed both day and night, making the
electricity grid more resilient to changes in demand. Rooftop solar-plus-storage systems also
provide resiliency by providing backup power during power outages or public safety power
shutoff events4. CPAU offers a solar calculator tool to help residents evaluate the economics of
purchasing a solar or solar-plus-storage system for their home. The City also participates in
BayArea SunShares – a group-buy program that offers discounts and vetted contractors for
installing rooftop solar and battery storage systems.
In recent years, California’s electric grid has been strained by wildfires and heat waves. As a
means of addressing potential rolling outages during these events, in FY 2021 CPAU began
planning an Emergency Load Reduction Pilot Program that will offer commercial customers
financial incentives to voluntarily reduce energy use – either through conservation measures or
operating back-up generation – during grid emergency events when the California Independent
System Operator (CAISO) requires CPAU to reduce load. The goal is to avoid rotating outages and
minimize customer costs. Program launch is planned for FY 2022.
5.2 PV and Battery Storage System Installations in Palo Alto
At the end of FY 2021, PV installations in Palo Alto totaled 1,254, with 1,160 residential, 88 non-
residential, and 6 Clean Local Energy Accessible Now (CLEAN) projects5 installed since CPAU
began supporting local solar PV installations in FY 2000. These customer-side generation
systems represent 15.7 megawatts (MW) of generating capacity and are not included in CPAU’s
Renewable Portfolio Standard (RPS) supply requirements.
4 During a power outage, a standard grid-tied rooftop solar system without battery system is required to disconnect from the
grid and therefore will not provide electric power to the home.
5 CLEAN is a program that purchases electricity generation by renewable energy generation systems located in CPAU’s service
territory. The program provides a Feed-in-Tariff rate of $0.0165/kWh for the first 3 MW of installed solar capacity.
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Figure 11: Photovoltaic (PV) Installations, Cumulative, up to June 2021
Figure 12: PV System Capacity (kW), Cumulative through June 2021
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Palo Alto also continues to participate in the SunShares program, which is a group-buy residential
solar and battery storage discount program serving the nine Bay Area counties. For CY 2020, Palo
Alto ranked in first place among outreach partners for the number of SunShares signups (154
signups), number of contracts signed (32 contracts), number of kilowatts (kW) of solar capacity
(178.92 kW), and number of kilowatt-hours (kWh) of storage capacity (211 kWh) that will be
installed in Palo Alto through the program. Palo Alto’s committed solar and storage capacity
represents 13% and 16% of the total SunShares program capacity, respectively.
CPAU utilized SunShares as a launch-point from which to inform customers about programs such
as the Home Efficiency Genie and heat pump water heater rebates. In CY 2020, eight SunShares
participants continued with the Home Efficiency Genie’s in-home assessments and one
participant applied for a Heat Pump Water Heater rebate.
As of the end of FY 2021, there are a total of 35 battery storage installations with a total capacity
of 362 kW, all of which were in the residential sector.
Figure 13: Battery Storage System Installations, cumulative through June 2021
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Figure 14: Battery Storage System Capacity (kW), cumulative through June 2021
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APPENDIX A: PROGRAM DESCRIPTIONS
The programs offered by CPAU are designed to assist all customer groups achieve efficiency savings in
electricity, natural gas and water in a cost-effective manner. Please see Appendix B for the savings totals
associated with each program.
RESIDENTIAL PROGRAMS
-Home Efficiency Genie
The Home Efficiency Genie (HEG) has become CPAU’s flagship residential program. Launched in
June 2015, the program enables our residents to call the ‘Genie’ to get free utility bill reviews
and phone consultations. For a fee, residents also have the option to receive an in-depth home
efficiency assessment which includes air leakage testing, duct inspections, insulation analysis,
energy modeling and a one-on-one review of assessment reports with an energy expert. This
package is also followed up with guidance and support throughout home improvement projects.
The HEG program has a high educational component for Palo Alto residents, which likely leads to
additional savings that staff cannot track and include in this program’s savings totals.
-MultiFamily Residence Plus+ Program
This CPAU program focuses on multifamily buildings, especially below-market rate apartment
complexes, providing free, direct installation of energy efficiency measures to multifamily
residences with 4 or more units including hospices, care centers, rehab facilities and select small
and medium commercial properties.
-Residential Energy Assistance Program (REAP)
REAP provides weatherization and equipment replacement services at no cost to low-income
residents and those with certain medical conditions. This program has equal focus on efficiency
and comfort, and therefore it is not included in the cost effectiveness calculation used in
reporting. The program provides LED lighting, heating system upgrades, insulation for walls and
roofs and weather-stripping for doors and windows.
-Refrigerator Recycling Program
The Refrigerator Recycling Program was launched in March 2019 in collaboration with City of Santa Clara
and funded by the Bay Area Air Quality Management District. Recycling old refrigerators and freezers
saves energy, helps curtail growing peak load demand, and prevents the release of greenhouse gases
through proper disposal of refrigerants. This program came to a close at the end of December 2021 when
the grant funding was depleted. Through the program, over 450 old refrigerators and freezers were
collected in Palo Alto, and 2,475 metric tons of greenhouse gas emissions were avoided.
-Do-It-Yourself Water-Wise Indoor Survey
Palo Alto residents can request a free indoor water survey kit that can help conserve water and
save money on utility bills. Residents also become educated on opportunities for conservation in
their homes, and they can request free tools to improve efficiency. The program is offered in
partnership with the Valley Water.
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-Free Water-Wise Outdoor Survey
Palo Alto residents can schedule a free outdoor survey with a trained irrigation professional. The
trained specialist will provide an on-site evaluation of the resident’s irrigation system and provide
recommended upgrades and repairs. The program is offered in partnership with the Valley
Water.
-Landscape Rebate Program (LRP)
The Landscape Rebate Program provides rebates for various irrigation hardware upgrades,
including rain sensors, high-efficiency nozzles, dedicated landscape meters, and weather-based
irrigation controllers, as well as landscape conversion rebates that encourage residential and
commercial customers to replace high-water-use landscaping with low-water-use landscaping.
During FY 2016 residents were eligible to receive rebates of $3.00/square foot ($2.00 from Valley
Water and $1.00 from CPAU). A new agreement with Valley Water was signed in early 2017,
continuing our partnership in the LRP. Residents are now eligible to receive rebates of $2/square
foot of replaced landscaping ($1.00 from Valley Water and $1.00 from CPAU).
-Educational Programs and Workshops
A variety of educational programs and workshops are held throughout the year. Typically,
residential workshops on water and energy programs occur in the spring near Earth Day and in
the “Summer Workshop Series.” Many workshops focus on water efficiency, landscaping, energy
efficiency, solar, home comfort and green building. CPAU is also invited to table at various events
throughout the year to educate residents about the various programs we offer. Customers also
receive timely E-newsletters on a variety of efficiency matters.
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BUSINESS PROGRAMS
-Business Advantage Program
The Business Advantage Program provides energy efficiency and economic relief to small and medium
businesses impacted by COVID-19. Because heating and cooling accounts for up to 60% of a business’s
energy bill, the BAP targets HVAC reductions by controlling use. The Business Advantage Program offers
a free Energy Management System (EMS) with “smart” thermostat, controller, zone temperature sensors,
cloud-based energy management portal, and air filter for indoor air quality improvements. Additionally,
the Program also provides free Merv-13 air filters to participants and will enable customers to implement
American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) recommended
actions that improve indoor air quality through hourly air circulation.
-Commercial Advantage Program
Business customers are offered rebates for energy efficiency upgrades including lighting, motors,
HVAC, and custom projects that target peak demand and energy reductions.
-Commercial and Industrial Energy Efficiency Program (CIEEP)
The Commercial and Industrial Energy Efficiency Program (CIEEP) offers free site assessment to
identify cost effective energy efficiency opportunities, as well as technical assistance and
efficiency rebates to key account customers to implement energy efficiency projects. Typical EE
projects including lighting upgrades, lighting control including occupancy sensors, HVAC
equipment upgrades, refrigeration system upgrades, etc.
-Commercial and Industrial Water Efficiency Program
CPAU partners with the Valley Water to provide non-residential customers with free landscape
irrigation audits, and direct installation of high-efficiency toilets and urinals. Rebates are available
for facility process improvements, landscape conversions, irrigation hardware upgrades and
weather-based irrigation controllers.
-Landscape Survey and Water Budget Program
In collaboration with Valley Water, the City offers landscape irrigation surveys, water budgets
and customized consumption reports for customers with large landscape sites through
Waterfluence. Through a web portal, customers can access site-specific recommendations, verify
water budget assumptions and request a free landscape field survey from an irrigation expert.
This program has been in place since 2012 and to date there are 118 large landscape sites covered
under this program.
-PaloAltoGreen
This program enabled residents and businesses to pay a small premium for 100% renewable
energy. In June 2014, Council terminated PaloAltoGreen for residential customers since the City’s
electric supplies are 100% carbon neutral. Commercial customers can still participate in this
program by enrolling in the PaloAltoGreen 100% option or by purchasing blocks in 1,000 kWh
increments. Participation enables commercial customers to be recognized under the U.S. EPA
Green Power Leadership program or to earn Leadership in Energy and Environmental Design
(LEED) Green Power credits.
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-Palo Alto Clean Local Energy Accessible Now (CLEAN) Program
Through the CLEAN (Clean Local Energy Accessible Now) program CPAU offers a feed-in tariff,
wherein developers of renewable energy generation projects in Palo Alto can receive a long-term
purchase agreement for the output of their projects. The generated electricity contribute
towards fulfilling Palo Alto’s Renewable Portfolio Standard (RPS) requirement. At the end of FY
2021, 2.8 MW were reserved of the program’s 3 MW limit.
-EV Charger Rebate Program
The California Air Resources Board (CARB) developed the Low Carbon Fuel Standard (LCFS)
program in compliance with AB 32 (the Global Warming Solutions Act of 2006) to reduce the
carbon intensity of transportation fuels used in California 10% by 2020. Electric utilities that
provide electricity to charge electric vehicles (EVs) are eligible to receive LCFS credits. The City
began participating in the program in April 2014 and CARB has been allocating LCFS credits to the
City since then. Using funds from the sale of LCFS credits, CPAU launched an EV charger rebate
program in FY 2017 to help build out EV infrastructure in anticipation of an increase in the
number of EVs in Palo Alto from its current level of 2,500 to between 4,000 and 6,000 EVs by
2020. Staff determined that providing EVSE rebates for underserved segments of the market
would be valuable, which would include multi-family and mixed-use buildings, schools and non-
profits.
PROGRAMS FOR ALL CUSTOMER SEGMENTS
-Solar Water Heating
CPAU began to offer rebates to residential and commercial customers that install solar water
heating (SWH) systems in 2008. The SWH rebate program was mandated by CA AB 1470 and is
administered by the Center for Sustainable Energy, which also administers SWH rebate programs
in the San Diego area. Incentives are limited to solar water heating for domestic use; solar water
heating systems for pools, spas, or space heat are not eligible. AB 797 (2017) extended the SWH
mandate for two additional years, but the program expired on January 1, 2021.
-Green Building Ordinance
In December 2019, City Council adopted an Energy Reach Code which requires additional energy
efficiency savings beyond California’s Title 24 building energy standards for non-residential
mixed-fuel new construction projects. The City’s Energy Reach Code has been in place since 2008
and has continued to evolve with California’s building standards (Title 24). As a reach code
specific to only the City of Palo Alto, energy savings from this code are savings that may be
counted towards energy efficiency. CPAU is coordinating with Development Services to report
the energy savings attributed to the Green Building Ordinance.
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APPENDIX B: FY 2021 ACHIEVEMENTS BY DSM PROGRAM
Table B.1: FY 2021 Achievements by Efficiency Program
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Table B.2: FY 2020 Achievements by CPAU’s Solar Programs
Electricity
Program Number of
Installations kW Saved
kWh/yr %
PV – Residential 51 293 468,000 18%
PV – Commercial (w/ CLEAN)3 1,330 2,128,000 82%
Solar Water Heating –
Single Family Residential 0 ---
Solar Water Heating – Multi-
Family Residential Low-Income 0 ---
Solar Water Heating
– Commercial 0 ---
Solar Programs Total 54 1,623 2,596,800 100%
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Table B.3: FY 2021 Expenditures by Program and Utility
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APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES
The chart below shows expenditures by type from FY 2012 through FY 2021. The Solar Renewables
category is the sum of expenditures for solar water heating and PV Partners programs.
Figure C.1 DSM Expenditures for Electricity, Gas and Water by Year and Function
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APPENDIX D: CITY POLICIES/PLANS AND STATE MANDATES
IMPACTING DSM PROGRAM GOALS AND IMPLEMENTATION
CITY POLICIES/PLANS
Title Description
Resolution No. 9241 LEAP, the Long-term Electric Acquisition Plan (April 2012)
Resolution No. 9322 Carbon Neutral Plan for Electric Supply (March 2013)
Resolution No. 9402 Local Solar Plan (April 2014)
Staff Report 3706 Program for Emerging Technology (April 2013)
Staff Report 2552 GULP, the Gas Utility Long-term Plan (April 2012)
Staff Report 6851 2015 Urban Water Management Plan (May 2016)
Staff Report 7304 Sustainability and Climate Action Plan (November 2016)
Staff Report 7718 Update of Ten-Year Energy Efficiency Goals for 2018 to 2027 (March
2017)
Staff Report 9761 2018 Electric Integrated Resource Plan (EIRP)
Staff Report 11789 Updated 10 Year Energy Efficiency Goals for 2022 to 2031
FULL LIST OF STAFF REPORTS
-CY 2015: cityofpaloalto.org/gov/agendas/city_managers_reports/2015.asp
-CY 2016: cityofpaloalto.org/gov/agendas/city_managers_reports/2016.asp
-CY 2017: cityofpaloalto.org/gov/agendas/city_managers_reports/2017.asp
-CY 2018: cityofpaloalto.org/gov/agendas/city_managers_reports/2018.asp
-CY 2019: cityofpaloalto.org/gov/agendas/city_managers_reports/2019.asp
STATE MANDATES
AB 209 (2022) Directs the California Energy Commission to develop and implement an Equitable
Building Decarbonization Program, which includes a direct install program focused
on low-to-moderate income households and a statewide incentive program to
accelerate deployment of low-carbon building technologies. AB 179 (2022) provides
CEC with $112 million for the Equitable Building Decarbonization Program for its
first year (2022-2023) , and up to $922 million in funding over the next four fiscal
years.
SB 1206 (2022)Prohibits the sale or distribution of bulk hydrofluorocarbons (HFCs) or HFC blends
that exceed by a specified global warming potential (GWP) threshold. Reclaimed
refrigerants are exempt from this requirement. The GWP limits for bulk HFCs are:
< 2,200 beginning January 1st, 2025 (includes R-404A and R-507)
<1,500 beginning January 1st, 2030 (includes R-410A)
<750 beginning January 1st, 2035 (includes R-134A, R-448A/B, R-440A/B)
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AB 1279 (2022) Codifies California’s existing goal of carbon neutrality by 2045.
EO N-79-20 (2020) Governor Executive Order: Establishes a statewide goal that 100% of in-state sales
of new passenger cars and trucks will be zero-emissions by 2045, and that all
operations of medium and heavy-duty vehicles in the State shall be zero-emissions
by 2045 where feasible.
EO B-55-18 (2 (2018) Governor Executive Order: Establishes a statewide carbon neutrality goal by 2045.
AB 3232 (2018) Requires all new buildings after 2030 to be zero-emissions buildings. Also requires
the state to establish a strategy to reduce GHG emissions from existing buildings by
50 percent below the 1990 levels by January 1, 2030.
SB 606, AB 1668 (2018)Establish a new foundation for long-term improvements in water
conservation and drought planning to adapt to climate change and the resulting
longer and more intense droughts in California.
AB 797 (2017) Extends existing Solar Water Heating Programs and changes the terminology of
“water heating” to “solar thermal.”
EO B-37-16 (2016) Governor Executive Order: Establishes “Making Water Conservation a California
Way of Life”, with four primary goals: (1) use water more wisely, (2) eliminate water
waste (water loss from distribution systems), (3) strengthen local drought resilience,
and (4) improve agricultural water use efficiency and drought planning.
AB 802 (2015) Requires utilities to maintain records of the energy usage data of all buildings to
which they provide service for at least the most recent 12-month period and, upon
the request and authorization of the owner (or owner's agent), provide aggregated
energy usage data to the owner in the ENERGY STAR Portfolio Manager.
AB 1164 (2015) Prohibits cities and counties from enacting or enforcing any ordinance or regulation
prohibiting the installation of drought tolerant landscaping, synthetic grass, or
artificial turf on residential property.
AB 1236 (2015) Obliges cities and counties to adopt an ordinance, with certain specific elements,
creating an expedited permitting process for electric vehicle charging stations. For a
city the size of Palo Alto, the ordinance must be passed by September 30, 2017. The
adopted ordinance passed 9-0 on June 27th, 2017:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=59416
SB 350 (2015) The Clean Energy and Pollution Reduction Act of 2015 sets targets for utilities of 50%
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renewable electricity retail sales and double the energy efficiency savings in
electricity and natural gas, both by 2030. The law grants compliance flexibility for
POUs that achieve 50% or more of retail sales from certain large hydroelectric power.
AB 2188 (2014) Requires a city and/or county to adopt an ordinance creating an expedited,
streamlined permitting process for small residential rooftop solar energy systems.
EO B-36-15 Governor Executive Order: Due to continued water shortages, on January 17, 2014,
the Governor proclaimed a State of Emergency and directed state officials to take all
necessary actions to make water immediately available. Part of the proclamation
included a 20 percent water reduction goal. On April 1, 2015, the Governor issued
an Executive Order (B-36-15) mandating the State Water Resource Control Board
impose restrictions leading to a 25 percent reduction in potable water use through
February 28, 2016.
SB 1420 (2014)Added a requirement to report on distribution system water loss to the UWMP.
AB 2227 (2012) AB 2227 changed the triennial energy efficiency target-setting schedule to a
quadrennial schedule, beginning March 15, 2013 and every fourth year thereafter.
The last EE goals update was due to be submitted to the California Energy
Commission by March 15, 2017. The next EE goals update will need to be submitted
by March 15, 2021.
AB 2514 (2010) Mandates a local publicly owned electric utility to determine appropriate targets, if
any, for the utility to procure viable and cost-effective energy storage systems and
to adopt an energy storage system procurement target, if appropriate, to be
achieved by the utility by December 31, 2016, and a second target to be achieved by
December 31, 2021.
SBx7-7 (2009)Mandates a statewide per capita potable water use reduction of 20% by the year
2020. Urban water suppliers are required to identify a baseline usage (expressed in
gallons per capita per day, or GPCD) for their service area, calculate a target to meet
the 20% reduction, and report on compliance in the 2020 UWMP. The City’s 2020
UWMP confirms the City met the Conservation target by more than 20%.
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"Making Conservation a California Way of Life" is the new generation legislation for
water conservation. The targets under SBx7-7 were pretty easy to meet especially
given the drought and the water use reductions that resulted. The new targets will
include and indoor residential per capita use, outdoor residential use, water loss, and
some C&I audit requirements. That is all currently under development.
AB 1103 (2007) Requires electric and gas utilities maintain records of the energy consumption data
of all nonresidential buildings to which they provide service and that by January 1,
2009, upon authorization of a nonresidential building owner or operator, an electric
or gas utility shall upload all of the energy consumption data for the specified
building to the EPA Energy Star Portfolio Manager in a manner that preserves the
confidentiality of the customer. This statute further requires a nonresidential
building owner or operator disclose Energy Star Portfolio Manager benchmarking
data and ratings, for the most recent 12-month period, to a prospective buyer,
lessee, or lender. Enforcement of the latter requirement began on January 1, 2014.
AB 1470 (2007) Solar Water Heating and Efficiency Act of 2007. Requires the governing body of
each publicly owned utility providing gas service to retail end-use gas customers, to
adopt, implement, and finance a solar water heating system incentive program.
SB 1 (2006)The California State Legislature enacted SB 1 to encourage the installation of 3, 000
megawatts (MW) of photovoltaic (PV) solar energy by the year 2017. SB 1 requires
all publicly owned utilities to adopt, finance and implement a solar initiative
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program for the purpose of investing in and encourage the increased installation of
residential and commercial solar energy systems. CPAU’s share of the state goal is 6.5
MW. In 2007, CPAU increased the PV Partners program funding to meet SB1
requirements. CPAU has fully reserved all rebate funds as of April 2016.
AB 2021 (2006) Requires the CEC on or before November 1, 2007, and every 3 years thereafter, in
consultation with the commission and local publicly owned electric utilities, to
develop a statewide estimate of all potentially achievable cost-effective electricity
and natural gas efficiency savings and establish statewide annual targets for energy
efficiency savings and demand reduction over 10 years.
AB 1881 (2006) Requires cities and counties to implement a Water Efficient Landscape Ordinance
which is “at least as effective as” the Department of Water Resources (DWR) Model
Ordinance in reducing landscape water use. Requirements include enforcing water
budgets, planting and irrigation system specifications to meet efficiency criteria.
SB 1037 (2005)Requires each local publicly owned electric utility, in procuring energy, to first
acquire all available energy efficiency and demand reduction resources that are cost-
effective, reliable, and feasible. Also requires each local publicly owned electric utility
to report annually to its customers and to the (CEC) its investment on energy
efficiency anddemand reduction programs.
AB 1890 (1996) Requires electric utilities to fund low-income ratepayer assistance programs, public
purpose programs for public goods research, development and demonstration,
demand- side management and renewable electric generation technologies
AB 797 (1983) The Urban Water Management Planning Act (AB 797) requires all California urban
water retailers supplying more than 3,000 acre feet per year or providing water to
more than 3,000 customers to develop an UWMP. The plan is required to be updated
every five years and submitted to the Department of Water Resources before
December 31 on years ending in 5 and 0.
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