HomeMy WebLinkAbout2013-07-31Utilities Advisory Commission Summary MinutesUtilities Advisory Commission Minutes Approved on: October 2, 2013 Page 1 of 11
UTILITIES ADVISORY COMMISSION SPECIAL MEETING
FINAL MINUTES OF JULY 31, 2013
CALL TO ORDER
Chair Cook called to order at 7:00 p.m. the meeting of the Utilities Advisory Commission (UAC).
Present: Commissioners Chang, Cook, Eglash, Foster, Melton, and Waldfogel
Absent: Commissioner Hall and Council Liaison Scharff
ORAL COMMUNICATIONS
None.
APPROVAL OF THE MINUTES
The minutes from the May 1, 2013 special UAC meeting were approved as presented.
AGENDA REVIEW
None.
REPORTS FROM COMMISSION MEETING/EVENTS
None.
UTILITIES DIRECTOR REPORT
Utilities Director Valerie Fong provided the following report:
1. Communications Update:
a. For Gas Safety Awareness, this week we received the APGA Consumer Education Award
for our gas safety outreach programs. More about this later during our presentation. In
addition, the annual, federally-mandated telephone survey to 7,500 residential
customers to gauge their gas safety awareness will be taking place in mid-August.
Besides residents, public officials, local excavators, etc. are also surveyed.
b. UCC Staffing---our Utilities Control Center no longer has sufficient staffing to operate
24/7 so effective earlier this month, electric “emergency” calls after 4pm and before
6am are being switched to Police Dispatch. This process should be invisible to the
calling customer but will result in delayed response times during those off hours.
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2. Marketing:
Events and workshops in June and July included:
o Facility Managers Meeting – In June we held another successful and well-attended
meeting of our large commercial customer facility managers. Topics included utility
rates, financial forecasts, how to improve building operations performance and
advanced lighting controls.
o EcoHome Tours – In June we gave a marketing strategy presentation and then gave
a tour to two large groups of international high school students who were
participating in a “LeadAmerica” course at Stanford on the subject of Business
Innovation---Bringing a Sustainable Business to Market. Then in July, we hosted 40
students from provinces across China with an EcoHome tour and various educational
games. The elementary-aged students from China were all part of the “Little
Cultural Ambassador Program” designed around sustainability learnings.
o Recent Residential Workshops included:
Hands-On Sheet Mulching for Sustainable Lawn Alternatives
Whole-House Sustainable Water Management
Green Building Renovations
Solar Power Basics 101
Recent Recognitions:
o DOE’s National Renewable Energy Laboratory ranked PaloAltoGreen as the #1
program in the country based on customer participation and the #3 utility in terms
of the renewables purchased as a percent of total electric purchases.
o The Photovoltaic Partners Program was ranked in the top ten nationwide for the 4th
year in a row for its contribution to the national promotion of solar power. Palo Alto
ranked #7 for cumulative installed overall solar capacity per utility customer. 1.8% of
CPAU customers have a PV installation.
3. Demand Response Program:
During the hot days at the beginning of July, three Demand Response Events were called.
Seven large commercial customers are enrolled in the pilot this summer and 6 customers
participated in the first event while 5 participated on days 2 and 3. Verified load reductions of
350 to 400 KW were realized for each of the three events.
CPAU is also working with a local start up to demonstrate the potential for electric vehicle
owners to contribute to energy reductions during demand response events. Event notifications
were sent via text message to 16 vehicle owners in Palo Alto. Preliminary results show that
vehicle charging was reduced by about 30% relative to the expected baseline.
4. Emerging Technology Program Update – July 2013
The Emerging Technology program has received 16 applications over 5 quarters since its
inception in July 2012 and the status of them is in your quarterly report. An additional 3
applications were received by the July 15th quarterly deadline. These applicants want to test
technologies related to commercial building heating and cooling systems, lighting controls, and
mobile application development for local government needs.
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In addition to testing technologies, this program connects applicants with other interested
parties such as Electric Power Research Institute researchers, commercial building owners, and
members of the Silicon Valley Leadership Group. By making these connections, the program is
aiding the technology and innovation ecosystem here in the Bay Area.
Vice Chair Foster commented that he was glad to hear that the emerging technology program
includes making the connections as this aspect will make the program more effective.
Commissioner Melton noted that the quarterly report has improved and is very informative.
UNFINISHED BUSINESS
None.
NEW BUSINESS
ITEM 1: ACTION: Election of Officers
Vice Chair Foster commented that he discussed this topic with Chair Cook before the meeting
and both agreed that any members of the commission would be fine as Chair or Vice Chair and
that both he and Chair Cook would be happy to continue in their roles from last year.
ACTION:
Commissioner Melton nominated Chair Cook to continue as Chair of the UAC. Vice Chair Foster
seconded the nomination. Commissioner Chang nominated Vice Chair Foster to continue as
Vice Chair. The nomination was seconded by Commissioner Waldfogel. There were no other
nominations. The nominations were approved unanimously (6-0).
ITEM 2: PRESENTATION: Development Center Update
Director of the Development Center (DC) Peter Pirnejad provided a presentation on the vision
and strategy of Development Services. He said that a blueprint was completed by a committee
and one recommendation was to separate Development Services from the Planning
Department. Key technology changes, key process changes, and relocation of staff were also
part of the blueprint. Now all relevant departments are represented in the DC. The three
multi-departmental areas are permitting, plan check, and inspections. Pirnejad described it as a
start-up within a government organization as it must be responsive to the economy and
community.
He stated that the DC has undergone a cultural change and become more customer oriented
and transparent. The goals are to honor commitments, streamline code compliance, solicit
feedback, and do outreach to the community. Pirnejad reviewed the major accomplishments
to date, including developing a department identity with the involvement of all City
departments and regular check-ins, retreats and monthly meetings with the DC Advisory Group.
One action relevant to Utilities is to streamline the permitting of photovoltaic (PV) systems
after working with the PV Action Committee.
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Pirnejad described how new technology has been employed to provide access of information to
applicants, including providing data to the public.
Chair Cook asked if applicants can view the status of their application on line. Pirnejad replied
that this is in phase 2 of the technology roll-out plan.
Commissioner Eglash asked if the information is publicly available. Pirnejad stated that all
applications are public information and that relevant information is provided as open data to
the public for third parties to make applications with. Eglash said that there are still privacy
concerns that need to be taken into consideration. Pirnejad agreed and stated that no
information such as addresses are provided in the open data.
Pirnejad described how performance is being measured and the budget document now
contains these new performance measures. These goals are tracked in the monthly newsletter
to improve transparency.
Regarding PV permitting, the DC has worked closely with Utilities and met with PV installers.
The goal is to make the process quick and easy for installers. Trends do show that installations
are increasing, time to get a permit is falling, and time for inspections has fallen. As a result of
these improvements and lowering the permit fees, the PV permitting process has gotten kudos
and now Palo Alto has gotten a "best" rating.
Chair Cook asked if these improvements are being spread to other entities. Pirnejad stated that
he has reached out and has been requested to speak at conferences about the improvements.
Commissioner Waldfogel asked if these improvements are being used for EV charger
permitting. Pirnejad replied that that is the next area to focus on.
Vice Chair Foster stated that he has heard from PV installers that they refuse to do business in
Palo Alto as a result of the old processes. He asked if outreach has been done to make sure
that developers know that the processes have changed. Pirnejad stated that a press release
has been issued and that he has reached out to developers and installers.
Vice Chair Foster asked how much the permitting fees have fallen. Pirnejad stated that the fee
has fallen slightly. Foster asked why a fee needed to be charged at all for PV installations.
Pirnejad said that making the fee free would be a political decision for Council and that they
would have to decide if it wanted to subsidize the permitting fee.
Vice Chair Foster asked how the UAC could request that the fee be further reduced. Director
Fong stated that this is not in the purview of Utilities, but could be brought up to the Council or
the Planning Commission.
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ITEM 3: PRESENTATION: Overview of Safety Related Outreach
Communications Manager Debbie Katz provided a presentation on gas safety outreach efforts.
She stated that recently the City received the American Public Gas Association award for
Excellence in Consumer Education for "raising community awareness of critical natural gas
safety issues."
Katz showed examples of the different communication messages on gas safety. These include
the annual brochure, a pirate-themed "call before you dig" message, seasonal messages
including for Valentine's Day, and a scratch-and-sniff card to let people know how gas smells.
Other issues that have been addressed include making Utilities meters accessible.
Katz also noted that the public education regarding the gas/sewer crossbore safety program.
After the original outreach in 2011, the message needed to be repeated and new methods
were employed without as much detail but focusing on the message to call the City first before
clearing a sewer line.
Regarding electric safety, Katz showed examples of safety tips as well as how to reach Utilities,
winter storm safety tips, and how to locate the right tree in the right place to avoid interference
with electric lines. For sewer safety, messages relate to what not to put into the sewer. Water
safety includes the annual water quality information, which is now provided as a postcard with
a link to the full report that is available on line. Backflow prevention is also an issue for which a
message was developed. For people who have been trained on how and when to turn off a
meter, a brochure was developed.
Commissioner Waldfogel congratulated staff on the APGA award. He commented that the
messaging is very old school. He asked how people can get these messages in the modern
world and wondered if the information provided is received by a large percentage of the public.
Katz replied that she is trying to stay current and get messages out using a variety of ways.
Director Fong added that twitter, facebook and other social media are utilized and the web site
is updated on an ongoing basis.
Commissioner Melton stated that he gets his bills electronically and hasn't been aware of the
bill inserts. Katz indicated that she will look into making that link more prominent.
ITEM 4: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend
that the City Council Terminate or Approve Changes to the PaloAltoGreen Program
Public Comment:
Bruce Hodge recommended retaining the electric program and transitioning to a green gas
program to get additional GHG emission reductions from the purchase of offsets. Also reducing
gas usage should be a focus. In addition, he supports focusing on new programs such as
community solar programs.
Walt Hays stated that the program should not be terminated since the City has spent so much
getting the brand established. He added that climate change is the threatening issue and a
Utilities Advisory Commission Minutes Approved on: October 2, 2013 Page 6 of 11
program should be focused on reducing gas usage. He also supports the introduction of a
community solar program.
Senior Resource Planner Monica Padilla provided a presentation summarizing the written
report on modifications to the PaloAltoGreen (PAG) program.
Commissioner Eglash asked what is meant by having an objective of having the program
available to all customers. He stated that the Utility has used a broader portfolio approach to
provide programs for customers, but does not require any specific program to be relevant to all
customers. Assistant Director Jane Ratchye replied that this only meant that all customers are
provided an opportunity to participate in a voluntary green program.
Commissioner Waldfogel asked about the objective that a participant receive a benefit since he
believes that Renewable Energy Certificates (RECs) don't directly benefit participants, but
benefit the planet. Padilla stated that the idea was that participants who purchase and own the
RECs would get at least a "feel good" benefit knowing that they were part of the solution.
Commissioner Melton stated that he likes the option of terminating the full needs program
since he doesn't like idea of greening up hydropower since it is already a green resource, but he
does see the advantage of the program for commercial customers. He said he would support
environmental offsets for a green gas program if the offsets are high quality. Ratchye replied
that there are various types of environmental offsets and that the ones certified by the
California Air Resources Board (CARB) are thought to be of the highest quality and those are the
ones that staff is currently thinking would be used for a green gas program. Ratchye added that
staff would return to the UAC with further information when it returns with a green gas
program design proposal.
Commissioner Melton asked if the market for biogas is still not mature enough for the City’s
needs to back a green gas program. Ratchye indicated that biogas is very difficult to find and
expensive in California. She added that any biogas that is available is used where it’s produced
to generate renewable electricity. In addition, the biogas is not of high enough quality to be
inserted into the gas pipeline transmission and distribution pipelines and it is not practical to
clean up the gas to meet pipeline quality standards.
Commissioner Melton stated that he supports the option to terminate the full needs program,
but keep the commercial block program going. He also supports the development of a green
gas program if the environmental offsets are high quality.
Commissioner Waldfogel said that he agrees with Commissioner Melton's comments. He said
that the program has three components to the PAG program: the program, the brand, and the
movement. However, he said that the program met its objective and is now obsolete and
should be terminated. He added that we should figure out how to retain the participants. He
stated that one option is to suspend, or stop charging for, the program until we figure out our
next move.
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Commissioner Chang asked if we know of any other entity that greens up a carbon neutral
portfolio. Padilla stated that she doesn't know of any. Commissioner Chang advised against
terminating the program. She stated that none of the options recommended seem like good
ones. She asked why there was a need to change the program by January 2014. Director Fong
stated that we could make a modification earlier than January, but that something needs to
change relatively soon since the portfolio is carbon neutral. Commissioner Chang stated that
she would support other options for the long term, but doesn't like the option of terminating
the program. She supports community solar programs and sees them as a way to hedge
electric costs for customers with locally sited renewables. She asked why staff did not consider
that type of program. Director Fong stated that these programs could be done as separate
programs, but the design doesn't lend itself to the PAG design. Padilla added that staff plans to
return by the end of year with a local solar strategy. Commissioner Chang added that she
supports the use of the highest quality environmental offsets if used for a PAG Gas program.
Commissioner Waldfogel asked whether Commissioner Chang supports the concept of fuel
switching from dirty gas to clean electricity. Commissioner Chang said that when we are at
100% renewable electric supply, she may support that type of fuel switching.
Commissioner Eglash stated that PAG was created to solve a specific problem and that problem
has now been solved. Having a carbon neutral portfolio is a happy situation. The question is
how to use PAG to address other environmental problems. He stated that staff and he have
concluded that community solar programs are not good fits for the PAG program. He stated
that the letter to the commission from Karl Knapp made many good points, including the fact
that large hydro does have environmental impacts and that climate change was not the original
driver for the PAG program. Commissioner Eglash pointed out that the program administration
costs are very high – administrative costs of $250,000 (not including the cost of the RECs), but
that the proposed revenue is only $140,000, which is not a sustainable practice. Commissioner
Eglash suggested continuing the program until a transition can be made to the PAG Gas
program or if a new program could be blended in with PAG. Commissioner Eglash stated that
the current program at the current price does not make sense – the program must change in
some way.
Vice Chair Foster stated that getting rid of the nation's top green program makes no sense and
is a non-starter. He said that substituting one form of renewable energy for another is not easy
to explain. He does support high quality environmental offsets for a green gas program. He
supports community solar programs but is persuaded that these are not a good fit for the PAG
program. He supports the solar PV donation program for schools and suggested using the
money from the program for this purpose. Vice Chair Foster recommends immediately
redirecting funds from the program to a program to install PV systems on Palo Alto Unified
School District (PAUSD) facilities. He also recommends cutting the premium in half with the
revenues directed to PV on schools. He also recommended developing PAG gas program and
continuing the non-residential PAG program for block purchases.
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Commissioner Eglash asked why a solar donation program was not part of the
recommendation. Ratchye stated that the program would take longer to develop, but would be
part of the larger local solar strategy that staff plans to develop.
Vice Chair Foster said that the solar donation program should be very simple and be restricted
to PAUSD.
Chair Cook thanked staff, the UAC subcommittee and the public, particularly Bruce Hodge and
Walt Hays. Chair Cook noted that the program is number one in the country and does
something important and we should not terminate the program. The program should be cost
neutral, not a money loser – it should be priced at the break-even price of 0.5 cents per
kilowatt-hour (₵/kWh) and not be lowered to 0.2 ₵/kWh. Chair Cook supports retaining the
program at a lower price for both the full needs and the block programs as a transition and
developing a green gas program as soon as possible. He recommended using a big marketing
push for the new program to increase participation.
Commissioner Waldfogel asked Chair Cook if the REC purchases of the program are the key
piece, or should collections continue. Chair Cook said that the collections should continue, but
should not be used to purchase RECs. Director Fong stated that that approach would be
difficult.
Commissioner Eglash said the program should be priced at the 0.2 cents/kWh and that the
admin costs should be reduced.
Chair Cook said that we are collecting more money than we need now so that is not an issue.
Commissioner Melton agrees with Commissioner Waldfogel's comments regarding spending
money to buy RECs to green up green hydro power. He suggested that the revenue collected
could be used for seed money for putting PV on schools.
Vice Chair Foster stated that he hears general consensus for developing a green gas program
and for continuing the block program at a cost neutral. However, there does not seem to be
support for greening up green resources for the full needs program. The alternative is to either
use the funds for solar PV on schools or suspend the collection of funds for the full needs
program and stop buying RECs.
Commissioner Melton asked the subcommittee why the solar donation program wasn't
recommended. Commissioner Eglash stated that the committee felt that the program couldn't
be designed quickly enough and that a transition needed to happen relatively quickly.
Commissioner Waldfogel commented that participants are willing to spend 1.5 ₵/kWh for
something very conceptual (i.e. RECs) and we leave money on the table by lowering the price.
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ACTION:
First Motion:
Vice Chair Foster moved that the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014;
2. Approve changes to the PAG program for the commercial customer blocks at the
purchase rate of 0.2 ₵/kWh; and
3. Approve changes to the PAG full needs program to cut the rate to 0.75 ₵/kWh and use
the funds for PV systems or solar hot water heating program for PAUSD.
Commissioner Waldfogel proposed an amendment to modify the program so that the funds
collected would be used for seed funds for PV on PAUSD sites.
Commissioner Melton indicated he would support using the funds for seed money to fund solar
on PAUSD as suggested by Waldfogel.
Chair Cook seconded the amended motion.
Commissioner Eglash stated that he does not support the motion as it could have many
negative ramifications in the future since the program suggested in the motion has not been
worked through by staff.
Substitute to the First Motion:
Commissioner Eglash made a substitute motion that the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014; and
2. Approve changes to the PAG program with two rate options:
a. Full Needs: rate premium of 0.2 ₵/kWh to purchase RECs for the large hydroelectric
supply portion of the City’s supply mix; and
b. Commercial Customer blocks: purchase rate of 0.2 ₵/kWh, or $2 for a 1,000 kWh
block.
Chair Cook seconded the substitute motion.
Vice Chair Foster noted that the dangers alluded to by Commissioner Eglash are not an issue
since there is time before Council makes the final decision.
The substitute motion did not carry (3-3) with Commissioners Waldfogel, Foster, and Melton
voting no.
Returning to the first motion,
Vice Chair Eglash proposed amending the motion as follows:
That the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014;
2. Approve changes to the PAG program for the commercial customer blocks at the
purchase rate of 0.2 ₵/kWh; and
Utilities Advisory Commission Minutes Approved on: October 2, 2013 Page 10 of 11
3. Approve changes to the PAG full needs program to reduce the rate by 50% and use
those funds as a seed fund for a community local solar donation program (e.g., for
PAUSD schools) as directed by the City Council.
Chair Cook, the motion’s seconder, agreed to the amendment to the first motion.
Commissioner Eglash noted that the recommendation is contrary to staff's opinion since it
concluded that such a program won't be ready by January 2014. Melton replied that the
money could be put into a fund until the program could be ready and he realizes that it
wouldn't be ready by January 2014. Commissioner Eglash said that this means that collection
of funds would occur prior to the program being designed. Vice Chair Foster indicated that the
Council would decide the final details.
The first motion did not carry (3-3) with Commissioners Cook, Chang, and Eglash voting no.
Second Motion:
Commissioner Melton made a motion that the UAC recommend that Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014; and
2. Suspend the PAG Full Needs program, but maintain the PAG program’s Commercial
Customer Block program and reduce the price to 0.2 ₵/kWh, or $2 per 1,000 kWh block.
Vice Chair Foster seconded the motion.
Substitute to the Second Motion:
Commissioner Eglash made a substitute motion that the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014; and
2. Approve changes to the PAG program with two rate options:
a. Full Needs: rate premium of 0.2 ₵/kWh to purchase RECs for the large hydroelectric
supply portion of the City’s supply mix; and
b. Commercial Customer blocks: purchase rate of 0.2 ₵/kWh, or $2 per 1,000 kWh
block.
Chair Cook seconded the substitute motion.
The substitute motion failed (3-3) with Commissioners Waldfogel, Foster, and Melton voting no.
Returning to the Second Motion, the motion passes unanimously (6-0).
ITEM 5: ACTION: Selection of Potential Topic(s) for Discussion at Future UAC Meeting
Vice Chair Foster suggested adding to the agenda eliminating solar PV permit fees.
Commissioner Eglash recommended that the topic should be to discuss modifying solar PV
permit fees.
Utilities Advisory Commission Minutes Approved on: October 2, 2013 Page 11 of 11
Commissioner Waldfogel asked for a report about distribution grid readiness for electric vehicle
charging.
ACTION:
No action was taken.
COMMISSIONER COMMENTS
None.
Meeting adjourned at 10: 08 p.m.
Respectfully submitted,
Marites Ward
City of Palo Alto Utilities