HomeMy WebLinkAbout2020-09-02 Utilities Advisory Commission Summary MinutesUtilities Advisory Commission Minutes Approved on: October 7, 2020 Page 1 of 6
UTILITIES ADVISORY COMMISSION MEETING
MINUTES OF SEPTEMBER 2, 2020 MEETING
CALL TO ORDER
Chair Forssell called the meeting of the Utilities Advisory Commission (UAC) to order at 4:01 p.m.
Present: Chair Forssell, Vice Chair Segal, Commissioners Jackson, Johnston, Scharff, and Smith
Absent: Commissioner Danaher
ORAL COMMUNICATIONS
None.
APPROVAL OF THE MINUTES
Commissioner Jackson moved to approve the minutes of the August 5, 2020 meeting as presented.
Commissioner Scharff seconded the motion. The motion carried 5-0 with Chair Forssell, Vice Chair Segal, and
Commissioners Jackson, Johnston, and Scharff voting yes, and Commissioners Danaher and Smith absent.
AGENDA REVIEW AND REVISIONS
None.
REPORTS FROM COMMISSIONER MEETINGS/EVENTS
Commissioner Scharff disclosed that he attended several Northern California Power Agency (NCPA) virtual
meetings, which kicked off the 5-year Strategic Plan and would bring back reports to the Commission as the
process moves forward.
UTILITIES DIRECTOR REPORT
Dean Batchelor, Utilities Director, delivered the Director's Report.
American Public Gas Association Advocacy Concerns - Recently, the City has received a few inquiries through
social media and comments to the UAC from advocates concerned about Palo Alto’s membership with the
American Public Gas Association (APGA). In recent years, APGA has submitted comments to the California
Energy Commission opposing building electrification mandates. Palo Alto has made its concerns about
APGA’s advocacy known to APGA staff. City staff have communicated directly with executive management
at APGA regarding legislation surrounding renewable energy, the fossil fuel industry, and electrification. In
the past, APGA has extended us the courtesy of sharing their policy statements and comments to regulatory
agencies on these matters. Through such correspondence, we have reiterated that Palo Alto is actively
exploring electrification in our service territory and developing relevant policies and programs while carefully
considering the operational implications for our gas utility operations. Specifically, we have communicated
to APGA that Palo Alto’s position on this topic diverges from APGA, and we will continue to do so when
corresponding about these issues.
Utilities Advisory Commission Minutes Approved on: October 7, 2020 Page 2 of 6
We have debated internally whether we should continue our membership. At this time, we believe the safety
and reliability of the gas system needs to continue to be our priority. APGA primarily exists to help small
publicly owned gas utilities ensure the safety of their gas systems and comply with Department of
Transportation (DOT) safety regulations. It provides a wide variety of resources to its members that we rely
on heavily in managing our gas system. As a result, we continue to maintain our membership with APGA
while expressing our dissatisfaction about their advocacy positions.
SFPUC Water System Health – The City of Palo Alto’s water supplier, the San Francisco Public Utilities
Commission (SFPUC), has not reported any damage to the regional water system, nor known water quality
impacts, due to recent regional wildfires. CPAU staff will provide updates on critical information if the agency
reports any news during subsequent evaluations. Council member Cormack shared an article with us that
was included in a recent Bay Area Water Supply and Conservation Agency (BAWSCA) correspondence packet
that she thought might be helpful in reminding us to check in on our codes and practices with respect to
backflow prevention devices and fire resistant meter boxes. CPAU staff have been working diligently for many
years to ensure that appropriate backflow prevention measures are in place to protect the city’s main potable
water supply distribution system.
Rolling Power Outages – Over the past month, California and the western United States have experienced
record-breaking heatwaves. This has caused a strain on the electric grid, and high electricity demand
continues to put pressure on the state’s energy infrastructure. The agency that manages the state’s electric
grid, the California Independent System Operator (ISO), issued a statewide call for voluntary electricity
conservation, known as a Flex Alert, in an attempt to avert rolling power outages. Palo Alto experienced a
power outage for about 4,500 customers on the evening of Friday, August 14, but due to concerted efforts
from state and city community members, we were able to avoid additional power outages. Thank you to all
who heeded our call to power down or eliminate unnecessary appliance and lighting usage! View helpful tips
at cityofpaloalto.org/efficiency tips.
• CEC – Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned
Electric Utilities
• CM Cormack – The article was included in the BAWSCA correspondence packet and she thought it
would be a good idea to review the backflow devices and fire resistant meter boxes
• Workforce COVID Update
• Fiber Update – On August 5th the UAC discussed the importance of broadband service and FTTP
given the shift to teleworking, telepresence and remote learning due to the pandemic. The UAC
asked staff and Magellan to determine if it was feasible and effective to accelerate some FTTP
analysis and tasks in Phase 3 to shorten the duration of the fiber network expansion plan and
provide the UAC and Council more up to date information on cost protection and alternative
approaches to build out the FTTP network
In response to inquiries, Batchelor shared that email blasts and social media posts are sent out ahead of time
to inform customers of potential blackouts and how they can help conserve energy. Most of the blackouts
occur a night. Staff continues to explore more efficient ways to reach customers who may experience a
blackout. Batchelor emphasized to ISO that they could not inform the department of last-minute load
shedding and that advanced notification needed to happen.
In reply to Council Member Cormack’s questions, Batchelor noted that the Utilities Department does keep
track of areas that do have blackouts. Staff moves through the utility feeders to determine which areas may
receive a blackout.
Chair Forssell recommended that everyone download the CAISO Today App which sends out alerts if there is
going to be a blackout.
Utilities Advisory Commission Minutes Approved on: October 7, 2020 Page 3 of 6
COMMISSIONER COMMENTS
None.
UNFINISHED BUSINESS
None.
NEW BUSINESS
ITEM 1: DISCUSSION: Discussion and Presentation of Brown Act.
Dean Batchelor, Utilities Director, introduced Aylin Bilir, Assistant City Attorney from the City Attorney’s
Office, who gave a refresher course to the Commission on the Brown Act.
Aylin Bilir, Assistant City Attorney, announced that several rules have changed due to the COVID-19 pandemic
and then gave a brief recap of how to avoid serial meetings. The purpose of the Brown Act is to engage the
community and to ensure that all meetings are open and transparent. The Brown Act did not apply to
meetings between one Commissioner and the public, Commissioner and staff communications, and
temporary Ad Hoc Committees. Care needs to be taken when Commissioners post to social media and serial
meetings are reviewed on a case by case basis. If majority of Commissioners use direct communication to
discussion or deliberate on items, that is considered a serial meeting. Under Executive Order N-29-20,
suspended Brown Act rules include no physical public location for a meeting, no physical notice needs to be
posted at each location, a Commissioner can teleconference in a place outside of Palo Alto, and the agenda
can be posted on online only.
In response to Chair Forssell’s question regarding what UAC business means when it comes to posts made by
an individual Commissioner on social media, Bilir referred to the UAC’s Formation Statement which stated a
broad overview of the UAC’s jurisdiction.
In reply to Commissioner Jackson’s inquiry about if a Commissioner could publicly announce their personal
position on a general topic, Bilir predicted that it was not a violation, but a Commissioner should not pre-
decide on an issue without having a conversation with the public and the Commission as a whole.
In answer to Commissioner Scharff’s comment regarding copying all UAC Commissioners on an email that
advocates for a position, Bilir confirmed that a Commissioner cannot copy all UAC Commissioners onto an
email that is sent to staff.
The UAC recessed at 5:04 p.m. and returned at 5:15 p.m.
Bilir continued her presentation which stated that the Brown Act prohibits sharing opinions with other
members outside of the public meeting forum, but technical questions can be sent to Staff who will then
present them to the public. Articles or links can be sent to all UAC Commissioners if no Commissioners
express their opinion regarding the article. No Commissioner can email another Commissioner to solicit input
regarding an item that is on the agenda.
Bilir concurred with Commissioner Jackson’s statement that if a Commissioner sends an article to another
Commissioner and that other Commissioner replies with an opinion on the article. That Commissioner is in
violation, not the original sender.
In response to Commissioner Jackson’s question regarding the UAC’s designated City email, Tabatha
Boatwright reported that any email received from the public from that email goes into the public letters to
the UAC and is posted online with the UAC Packet. UAC Commission Members do not respond to those
Utilities Advisory Commission Minutes Approved on: October 7, 2020 Page 4 of 6
emails personally. Commissioner Jackson disclosed that the notification process regarding the UAC’s City
email is not clear to him and will follow up with the City’s Attorney’s Office.
In response to Chair Forssell’s inquiry regarding the discussion that took place earlier around blackouts, Bilir
did not believe that conversation was in violation because no action was taken.
ACTION: None
ITEM 2: DISCUSSION: Discussion and Update on Program for Emerging Technologies.
Jonathan Abendschein, Assistant Director of Utilities Resource Management, introduced Lena Perkins, Senior
Resource Planner, who managed the program for Emerging Technologies.
Lena Perkins, Senior Resource Planner, disclosed that the program has been a success, it has helped several
research grants and early-stage companies, and it has allowed collaboration with neighboring load-serving
entities. One change that staff recommended is to move the program to an annual application cycle.
Abendschein added that staff was not seeking any action from the Commission and the report is
informational.
Commissioner Jackson fully appreciated the change to move the program to an annual application cycle and
he looked forward to reading more about staff’s academic collaboration to evaluate the impact of the switch
to all-electric residents.
In reply to Commissioner Johnston’s query regarding the decline in applications, Perkins explained that staff
has not been actively soliciting the program due to other priorities in the past years. The program will be
promoted more now that staff has been able to reorganize. Commissioner Johnston wished to see the
program promoted more and he supported the change staff recommended.
Commissioner Scharff did not believe the program should be prioritized and take up more of staff’s time. It
is a good program and that it should be left up to staff on how it is managed.
In response to Vice Chair Segal’s question regarding potential funding from other sources, Perkins explained
that staff’s approach is to solicit applications that are more in line with the City’s interests and programs that
would require minimal staff time. Abendschein added that finding long term funding sources is a challenge
and existing funding sources were already allocated to other projects. Vice Chair Segal supported the annual
switch.
In reply to Commissioner Smith’s query, Perkins proclaimed that all prior pilot programs provided a benefit
the City. Any programs that may become permanent have a layer of commitment to them and staff resources
needed to be evaluated before anything can become permanent.
In answer to Chair Forssell’s questions, Perkins concurred that on the Emerging Technologies’ Website has a
list of prior pilot projects that were accepted and executed. A lighthouse customer is a customer that first
deploys the product. She advised that in her opinion pilot programs should be restricted to the Series A, B
space and staff can provide letters of support and consultation for very early-stage projects.
ACTION: None
ITEM 3: DISCUSSION: Discussion on Scoping of Future Studies of the Potential Impacts of Building
Electrification Efforts on the Electric and Gas Utilities
Utilities Advisory Commission Minutes Approved on: October 7, 2020 Page 5 of 6
Bret Andersen proclaimed that the project is very important and is impressed that the City is moving forward
with it. It is important that the City publicly announce that it is doing investigations and that the City is
planning a managed transition from gas to electricity. He emphasized that American Public Gas Association
(APGA) should not be using utility funds to solicit negative messages that go against the effort.
Tom Kabat, a resident of the City of Menlo Park, expressed excitement that Palo Alto is following bold climate
action changes in terms of combining the gas and electric utility.
Jonathan Abendschein, Assistant Director of Utilities Resource Management, said his goal was to take
feedback from the Commission on what information related to the utility impacts of building electrification
Commissioners were interested in so it could be incorporated into studies staff was currently working on. He
noted the Sustainability and Climate Action Plan (S/CAP) goal is to reduce emissions within the City by 80
percent by 2030, which will have significant impacts on the gas and electric utility financial positions and
physical operations. Staff was working to quantify these impacts. Key questions to be answered included
whether achieving the 80 percent by 2030 goal would result in a non-viable gas utility and a description of
the physical impacts it would have on the gas as well as the electric utility. Staff is aiming to complete the
studies by the end of 2020. He shared some early insights from the studies. While there was a strong
likelihood that the gas utility would be eliminated at some point in the eventual future, eliminating the gas
utility was not necessary to achieve the 80 percent by 2030 goal. A key potential barrier to achieving the
S/CAP goals would likely be electric utility Engineering and Operations staffing. Positions and contractors in
these areas were challenging to recruit for and many more employees and/or contractors would be needed
to support the community in achieving the S/CAP goals.
Commissioner Scharff wanted to know if the technologies existed to go fully electric for single-family homes
(including large homes) without impacting quality of life? How much would the average homeowner’s bill go
up, and what would be the range of cost to electrify different homes? Who would pay those costs? Would
going fully electric cause more impacts to the City’s electric load during critical times and what is the cost of
upgrading the grid so that it can handle the additional load? What would the impacts be to the broader
electric grid and how would that factor into the potential for rolling blackouts? Finally, he said it was
important that all questions and answers be transparent to the public and there was strong communication
with the public about these goals.
In reply to Commissioner Smith’s question about whether vehicle electrification was included in the study
when evaluating electric distribution system impacts, Abendschein mentioned that a parallel study is taking
place that explores the total electric vehicle (EV) charging infrastructure needed across the whole City to
support the 80 percent by 2030 goal. All the studies will be combined and will represent the total impact of
vehicle charging and electrification on the electric distribution system. In response to Commissioner Smith’s
question about whether the City should be promoting solar as a carbon reduction strategy, Abendschein
noted that solar does reduce carbon emissions on the wider CAISO grid, but the City calculates emissions
differently when tracking S/CAP progress, and solar does not contribute reduction of emissions in that
context. Staff continues to explore solar and storage solutions for its resiliency value.
Commissioner Jackson asked how strategic the utility needed to be in withdrawing gas from specific areas in
a specific order? Abendschein said staff was exploring those topics, and that there were definitely physical
limitations on which gas lines had to be withdrawn first, Staff was not yet sure whether there were financial
limitations. Commissioner Jackson said that people will be using copious amounts of electricity and that will
have major impacts on the electric grid. He wanted to know what percentage of residential customers have
100-amp service, 200-amp service, or 400-amp service? What will the costs be for homeowners and utilities
when the capacity of the electrical system must increase, and what potential financing options will the
Utilities Department offer? He endorsed on-bill financing as a potential mechanism for facilitating
electrification.
Utilities Advisory Commission Minutes Approved on: October 7, 2020 Page 6 of 6
Vice Chair Segal recommended thinking through how peoples’ lifestyles may need to change due to building
and vehicle electrification. Has staff considered the physical issues associated with building electrification?
For example, how does a customer with tankless gas water heating in a small home find space for a heat
pump water heater? When implementing electrification programs, will the City get involved with
procurement? Lastly, she was glad to see staff would explore the question of whether it was legally required
to serve gas to customers.
Commissioner Johnston underlined the point that practical problems needed to be thought through and how
to persuade people to electrify.
Chair Forssell appreciated staff’s work so far and the questions raised by the other Commissioners. She
emphasized that education and outreach needed to take place way in advance so that residents are not
surprised. She highlighted the need to look at financing issues as well.
Council Member Cormack acknowledged that there will be an impact to staff resources in terms of processing
applications. She found it interesting to learn about the possibility of a gas utility transitional strategy
addressing primarily multi-family / commercial to be interesting. She emphasized that customer education
and outreach was critical. She advised staff to explore standardized ways to permit electrification projects,
similar to the work being done to address Accessory Dwelling Units (ADU) permitting in Palo Alto and in other
cities.
Commissioner Scharff encouraged staff to look carefully at the requirements other City departments impose
that can create additional costs to a project, and that are different from the requirements in other cities, and
work with them to relieve those types of burdens. He gave an example related to ADUs – in Palo Alto the
sewer main must be connected to the street instead of the line for the main house, unlike in some other
jurisdictions.
ACTION: None
ITEM 4: ACTION: Selection of Potential Topic(s) for Discussion at Future UAC Meeting.
Commissioner Jackson suggested a topic on undergrounding electricity and fiber. He had several questions
regarding the topic and would email them to staff.
Vice Chair Segal wanted more information regarding the rolling blackouts and notification for those
blackouts. Commissioner Jackson supported that recommendation.
ACTION: None
NEXT SCHEDULED MEETING: October 7, 2020
Vice Chair Segal moved to adjourn. Commissioner Jackson seconded the motion. The motion carried 6-0
with Chair Forssell, Vice Chair Segal, and Commissioners Jackson, Johnston, Scharff and Smith voting yes, and
Commissioner Danaher absent. Meeting adjourned at 6:43 p.m.
Respectfully Submitted
Tabatha Boatwright
City of Palo Alto Utilities