HomeMy WebLinkAbout2025-09-02 Finance Committee Action MinutesFINANCE COMMITTEE
ACTION MINUTES
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Regular Meeting
September 2, 2025
The Finance Committee of the City of Palo Alto met on this date in the Community Meeting Room
and by virtual teleconference at 5:30 P.M.
Present In-Person: Reckdahl, Lythcott-Haims, Burt (Chair)
Absent: None
Call to Order
Public Comment
Agenda Items
1. Recommend the City Council Adopt Voluntary Residential Electric Service Time-of-Use
Rates (E-1 TOU); CEQA Status: Not a Project
MOTION: Council member Reckdahl moved, Council member Lythcott-Haims that the Finance
Committee recommend the City Council adopt a resolution (Attachment A: Resolution) adding
voluntary Rate Schedule E-1 Time of Use (TOU) applicable to separately metered single-family
residential dwellings receiving electric service effective January 1, 2026 (Attachment B: Rate
Schedule E-1TOU).
MOTION PASSED: 3-0
2. Recommend City Council Direct Staff to use Proposition 26 as the Design Principle for
the Gas Cost of Service Analysis and Work with the Utilities Advisory Commission on
Review of a Recommended Gas Rate Schedule Effective by January 2026
ACTION MINUTES
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Finance Committee Meeting
Action Minutes: 09/02/25
MOTION: Council member Reckdahl moved, Chair Burt seconded that the Finance Committee
recommend the City Council direct staff to follow the reasonable-cost analysis required by
Proposition 26, and that staff work with the Utilities Advisory Commission on a recommendation
to the Council on revised gas rates effective January 2026, including:
1. Rates must be based on the reasonable cost to serve customers. This is the overriding
principle for the cost-of-service analysis (COSA); all other rate design considerations are
subsidiary to this basic premise.
2. The COSA should involve a review of all existing rate schedules for applicability in the
COSA.
3. The impact of any proposed changes on low-income customers should be evaluated in
alignment with California Law.
4. Design Principle 3: Determine the proper allocation of fixed and variable costs and how
those can be implemented in various rate designs.
5. Design Principle 4: Review non-rate revenue sources that may be available for rate
discounts or rebates.
MOTION PASSED: 3-0
Adjournment: The meeting was adjourned at 7:21 P.M.