Loading...
HomeMy WebLinkAbout2011-04-27 Utilities Advisory Commission Summary Minutes _______________________________________ City of Palo Alto FINAL UTILITIES ADVISORY COMMISSION - SPECIAL MEETING MINUTES OF APRIL 27, 2011 CALL TO ORDER Commissioner Melton called to order at 4:05 p.m. the meeting of the Utilities Advisory Commission (UAC). Present: Commissioners Berry, Cook, Eglash, Keller, Melton and Waldfogel (arrived late at 4:35 p.m.) Absent: Commissioner Foster and Council Member Liaison Scharff ORAL COMMUNICATIONS None. APPROVAL OF THE MINUTES None AGENDA REVIEW No changes to the agenda were requested. REPORTS FROM COMMISSION MEETING/EVENTS None. UTILITIES DIRECTOR REPORT None UNFINISHED BUSINESS None. NEW BUSINESS ITEM 1: PRESENTATION: Economic Development Report Tommy Fehrenbach, the City’s Economic Development Manager noted the economic development in proactively building relationships with the community and relationships within city government. He also noted that innovation is a key ingredient and commended the UAC on its commitment to the exploration of creative and new ideas. Fehrenbach commented on the diversity of companies in Palo Alto. He also observed that when one company moves out, such as Facebook, others are afforded opportunities to be more visible within the community. . Utilities Advisory Commission Minutes Approved on: June 1, 2011 Page 1 of 5 Fehrenbach noted that ownership by the City of its own utilities provides a number of competitive advantages, and the great service provided at a fair price is a recruitment tool for the City. He particularly noted the Fiber network as a strategic attraction and retention tool, and noted a further advantaged of City- owned utilities as an important way to develop contacts with new business coming into town. Lastly, Fehrenbach discussed the “test bed” idea, the Emerging Technologies Demonstration and Pilot Partnership idea. A policy which will be shared with the UAC, the Policy and Services Committee and the Council is in development. The two aims for the Economic Development organization are the test bed as a tool to attract innovative companies to town and partnering with cutting-edge technologies that can help achieve efficiency and save energy. Commissioner Melton stated that he thought is was interesting that Utilities is often the first point of contact with a new company coming to town and that he is glad that Utilities has to capacity to serve new loads and that lack of supplies will not be a reason that companies won’t locate in Palo Alto. Commissioner Cook commented that he supported the work Mr. Fehrenbach is doing, especially with respect to emerging technologies. Commissioner Eglash stated that the UAC recently discussed a pilot Demand Response program, which could be an economic opportunity for customers. He also mentioned that Palo Alto Square has many forward-thinking companies as tenants and there are many electric vehicles there, but no place to charge them. He mentioned that the City may be able to assist them. ITEM 2: PRESENTATION: Assessment of Smart Grid Applications for Palo Alto and Customer Survey Results Director Fong kicked off this item by reading some prepared remarks from Commissioner Foster who was not able to attend the meeting. In his remarks, Commissioner Foster noted his agreement with the consultant’s recommendation to defer smart grid implementation for at least a year or two; reminded all of the benefits of smart grid implementation; suggested that immediate efforts to expand on home energy monitoring and management systems and commercial building energy management systems be undertaken. He suggested that the Commission’s subcommittee on technology and innovation might want to work with staff on the immediate efforts. Shiva Swaminathan, Sr. Resource Planner, presented an overview of the consultant reports on Assessment of Smart Grid Applications, by EnerNex Corporation, and Smart Grid Benchmark Survey, by RKS Research and Consulting. Swaminathan began by highlighting the smart grid assessment process; applications relevant to utilities; cost and benefit analysis; consultant recommendations; and possible timeline for implementation. Consultant recommendations include: 1) holding off on major smart grid investments for 2 to 3 years; 2) performing long range planning on staffing and infrastructure requirements; and 3) seven different tasks, some which are already in progress, that will clarify some of the benefits and help position CPAU for making a decision in the future when the cost-benefit analysis is more positive for CPA. Swaminathan ended by reviewing the results of the survey of 250 residential and 60 commercial customers in Palo Alto. The survey found that customers appreciate CPAU’s communications and are cautious of Utilities Advisory Commission Minutes Approved on: June 1, 2011 Page 2 of 5 smart meters, for various reasons. The consultant recommends that CPAU approach smart grid as a product launch not a hardware installation, which includes employee training; widespread customer outreach through marketing and support; constant communication; tracking of customer experiences; and allocation of sufficient resources for successful implementation. Public speakers: Jeff Hoel, suggested that fiber to the home and smart grid could make use of the same fiber optic cables and RF health effects must be addressed. Herb Borock, clarified that the UAC does not direct staff; this must come from the Council. He stated that fiber could take care of any security issues related to smart meters and wireless communications. Commissioner Melton turned the meeting over to Chairman Waldfogel. Commissioner Eglash agreed that the two primary recommendations, postpone major investments and move forward with smaller projects, are the right thing to do. Commissioner Melton supported waiting before putting rate payer money into the system but questioned why the current recommendation is to wait for two years before deploying smart grid activities, is exactly the same as the recommendation from two years ago during the first study session. Commissioner Berry agreed with the recommendation to not jump into major projects and stated that there did not appear to be a compelling reason to move forward in the future. Commissioner Keller asked where the two years (before moving forward with implementation) came from as it seems arbitrary. She also noted that electro magnetic fields or other health effects need to be taken into consideration. Commissioner Melton stated that based on the cost-benefit Distribution Automation could be implemented. Swaminathan explained that portions of the benefits are linked to implementation of other smart grid applications. Commissioner Cook asked who would perform the reevaluation of cost-benefit and when would it be done, and aside from electric vehicles, what other reasons there are for time-of-use rates. Swaminathan explained that the reevaluation would be done in two years and could be done with the assistance of a consultant. Bob Russ, EnerNex, spoke about the assessment process and discussed the thresholds that determined that smart grid was not justified from a cost-benefit standpoint at this time. Chair Waldfogel asked staff to consider installing ITRON Ethernet meters at residential customer locations to provide energy monitoring benefits because customer installed options are difficult and costly. This could be an extra service CPAU provides to customers at a cost. ITEM 3: PRESENTATION: Electric Vehicle Policy and Infrastructure Discussion Karla Dailey, Sr. Resource Planner, presented an overview of the electric vehicle (EV) landscape and the short-term deployment of five new charging stations in City of Palo Alto garages using California Energy Commission grant funding. Utilities Advisory Commission Minutes Approved on: June 1, 2011 Page 3 of 5 Dailey emphasized that multiple City departments, including Utilities, are involved in EV-related decisions. Three major policy questions were posed: 1) Does the City/Utility want to own and operated charging stations (public and/or private on customer-owned property?; 2) Does the City want to dedicate City-owned public parking spaces for EV charging?; and 3) Does the City/Utility want to incent EV use or adhere to cost-recovery mechanisms? A range of possible roles for the City/Utility were posed from very little involvement to being very involved in EV infrastructure and incentives. Completed and on-going EV-related tasks were listed, and the plan to develop an interdepartmental EV policy framework was estimated to be shown to the UAC by fall 2011. Public speakers: Anton Wahlmana an apartment dweller, urged the UAC to help renters gain access to EV charging facilities. Arthur Keller from the Planning Commission encouraged the UAC to help the City become more EV- friendly. Geoff Ryder, a representative from SAP, described the process of installing chargers at SAP’sPalo Alto facility and clarified that the contractor, not the City, was responsible for permitting delays. Chair Waldfogel asked if the City will allow chargers to cross sidewalks. Assistant Director Tomm Marshall stated that a tripping hazard would not be permitted, but acknowledged that the City needs to develop a policy for EV chargers in the public right of way. Commissioner Keller stated that the City should be in a facilitation role but should not be in the business of EV charging. Chair Waldfogel was concerned about free or low-cost EV charging downtown incenting EV owners to charge in public parking spaces rather that at home on time of use (TOU) rates. He pondered whether home EV chargers should be mandated to have TOU rates, and he hoped that the City would think long- term (2020) about EVs in Palo Alto. He suggested a carbon adder as part of the rate-making equation and reminded staff to track any EV-related regulatory or legislative initiatives. Commissioner Eglash stated that there is an on- vs. off-peak charging issue, and noted that consideration should be given to providing adequate charging facilities to attract EV users. There could be TOU pricing for public EV chargers. He added that the problems of apartment dwellers are similar to those for energy efficiency with differing incentives between tenant and landlord. Commissioner Cook said the City should be cautious about spending money to incent EV ownership and supported the notion of private companies owning and operating charging stations. He stated that rates should be designed to recover costs and stated that no one who buys an EV expects free electricity. He added that the City would partner with others and supports the City replacing old fleet vehicles with EVs. Commissioner Keller agreed that the City should not set a precedent of providing free electricity or free parking for EVs. The free market should be able to address the demand for chargers. Commissioner Melton stated that the government provides services that the private enterprise does not and that government should not compete against private enterprise. He agreed with Commissioners Cook and Utilities Advisory Commission Minutes Approved on: June 1, 2011 Page 4 of 5 Utilities Advisory Commission Minutes Approved on: June 1, 2011 Page 5 of 5 Keller that the City should not own and operate charging stations and he suggested the possibility of leasing space in parking garages to private entities. He also expressed a desire for a single electric rate for EV charging in Palo Alto. Dailey summarized the Commission’s discussion as having general agreement on: 1) not getting in the way of EVs and help things to run smoothly for EV owners; 2) not subsidizing the cost of EV charging equipment or electricity; and 3) equitable cost for electricity for all users. There was general agreement with Dailey’s summary. Chair Waldfogel added that using a carbon adder on the cost of electricity would be consistent with earlier actions. Commissioner Eglash added that the City should think of scale and expects that there will be a large number of EVs in Palo Alto before long, perhaps 20% of all cars in the City. COMMISSIONER COMMENTS None. Meeting adjourned at 6:26 p.m. Respectfully submitted, Marites Ward City of Palo Alto Utilities