HomeMy WebLinkAboutRESO 9372Resolution No. 9372
Resolution of the Council of the City of Palo Alto Suspending
PaloAltoGreen's Full Needs Program for All Electric Customers and
Reducing PaloAltoGreen's Commercial Electric Block Rate by
Repealing Rate Schedule E-I-G and Amending Rate Schedules E-2-G,
E-4-G, E-7-G and E-18-G
A. In an effort to provide City of Palo Alto Utilities ("City") electric customers the
option to voluntarily reduce greenhouse gas emissions associated with their electricity use, in
2003 the City launched the PaloAltoGreen Program.
B. City electric customers can opt in to the PaloAltoGreen Program in two ways.
The "Full Needs" option allows all customers to receive renewable energy equivalent to 100
percent of their needs in exchange for paying an additional 1.5 cents per kilowatt hour ("kWh")
assessed on their full load. The "Commercial Customer Block" rate gives commercial customers
the option to receive renewable energy in blocks of l,OOOkWh in exchange for paying an
additional 1.5 cents per 1,000 kWh.
C. Approximately 20 percent of the City's electric utilities customers participate in
PaloAltoGreen, representing approximately 8 percent of the City's electric load and making the
PaloAltoGreen Program one of the most successful green energy programs in the United States.
D. In March 2011, the Council unanimously approved the Long-term Electric
Acquisition Plan (LEAP), a strategic planning document focused on how the City's Utilities
Department (CPAU) can successfully balance environmental and economic sustainability as it
provides electric service to CPAU customers. Council approved an update to the LEAP in April
2012 (Resolution 9241). As part of LEAP Climate Protection Strategy #5, Council directed staff
to evaluate PaloAltoGreen program design and recommend modifications, as appropriate,
including constructing PaloAltoGreen to assist in meeting Renewable Portfolio Standard ("RPSJJ)
goals.
E. In March 2013, the Council unanimously approved the Carbon Neutral Plan
(Resolution 9322) directing staff to achieve carbon neutrality for the electric portfolio by 2013
through a combination of hydroelectric resources, long-term renewable resources and short-
term renewable energy resources and/or renewable energy certificates ("RECs"). The Carbon
Neutral Plan also included direction to redesign PaloAltoGreen in the context of achieving
carbon neutrality for the electric supply portfolio.
F. The City's increasing RPS and the adoption of the Carbon Neutral Plan require an
evaluation of the continued effectiveness of PaloAltoGreen as currently implemented.
PaloAltoGreen participants no longer need to participate in the program to eliminate the
greenhouse gas emissions associated with their electric usage, as much of the City's electric
portfolio is now renewable.
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G. At the July 31, 2013 Utilities Advisory Commission (UAC) meeting, staff
presented alternatives to redesign PaloAltoGreen, and the UAC voted unanimously (six in favor
and one absent) to recommend that the Council suspend PaloAltoGreen's Full Needs program
for all electric customers and reduce PaloAltoGreen's commercial electric block ratefrom 1.5
cents per 1,000 kWh to 0.2 cents per 1,000 kWh.
H. On August 20, 2013, the Finance Committee also voted unanimously to
recommend that the Council suspend PaloAltoGreen's Full Needs program for all electric
customers and reduce PaloAltoGreen's commercial electric block rate from 1.5 cents per 1,000
kWh to 0.2 cents per 1,000 kWh.
I. On September 9, 2013, this Council did, on the motion of Council Member
Schmidt, seconded by Council Member Burt, by a vote of 7-0, temporarily suspend
PaloAltoGreen's Full Needs program for all electric customers and reduce PaloAltoGreen's
commercial electric block rate to $2 per 1,000 kWh block, or 0.2 cents per kilowatt-hour.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-l-G (Residential Green Power Electric Service) is hereby repealed effective as of
September 10, 2013, until further action of the Council of the City of Palo Alto.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-2-G (Small Commercial Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-2-G, as amended, shall become effective
September 10, 2013.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-4-G (Medium Commercial Green Power Electric Service) is hereby amended to read
as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become effective
September 10, 2013.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-7-G (Large Commercial Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become effective
September 10, 2013.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-18-G (Municipal Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-18-G, as amended, shall become effective
September 10, 2013.
SECTION 6. The Council finds that the adoption of this resolution suspending
PaloAltoGreen's residential rates and reducing PaloAltoGreen's commercial rates is not subject
to the California Environmental Quality Act (CEQA), pursuant to California Public Resources
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because such action does not meet the definition of a "project" pursuant to California Public
Resources Code Sec. 21065(b)(8).
INTRODUCED AND PASSED: September 9, 2013
AYES: BURT, HOLMAN, KLEIN, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT: BERMAN, KNISS
ABSTENTIONS:
Mayor
APPROVED AS TO FORM:
Senior Deputy City Attorney
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