HomeMy WebLinkAboutRESO 9404Resolution No. 9404
Resolution of the Council of the City of Palo Alto Refunding Accumulated
Net Revenues from the Suspended Full Needs Portion of the PaloAitoGreen
Program to Program Participants
RECITALS
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, the
City launched the PaloAitoGreen Program in 2003.
B. City electric customers could choose to participate in the PaloAitoGreen Program
in two ways. The "Full Needs" option allowed residential and small commercial customers to
receive renewable energy equivalent to 100 percent of their needs in exchange for paying an
additional1.5 cents per kilowatt hour ("kWh") assessed on their full electric usage. The
"Commercial Customer Block" option allowed non-residential customers to receive renewable
energy in blocks of 1,000 kWh in exchange for an additional $15 per 1,000 kWh. Staff procured
local renewable energy and/or renewable energy certificates ("RECs") in proportion to the
participating customers' choices.
C. In March 2013, the City unanimously approved the Carb9n Neutral Plan
(Resolution 9322) directing staff to achieve carbon neutrality for the electric portfolio by 2013.
As a result of adoption of the Carbon Neutral Plan, PaloAitoGreen participants no longer need
to participate in the program to e.liminate the greenhouse gas emissions associated with their
electric usage.
D. For the first eight years of the PaloAitoGreen program, the costs of RECs and
PaloAitoGreen program marketing were nearly equal to the revenues received from
PaloAitoGreen participants. Due to lower than projected REC costs, cumulative revenues for
both the Full Needs and the Commercial Customer Block portions of PaloAitoGreen have
exceeded overall program .costs through 2013 by about $692,000. Of that, $425,000 is
attributed to the Full Needs portion of PaloAitoGreen. These accumulated net revenues reside
in the Electric Supply Rate Stabilization Reserve.
E. In September 2013, Council, by Resolution No. 9372, suspended the Full Needs
portion of the PaloAitoGreen program, reduced the price for the Commercial Customer Block to $2
per 1,000 kWh, and directed staff to return with a recommendation for how to disperse the
accumulated net revenues associated with the Full Needs portion of the PaloAitoGreen program.
F. On February 12, 2014, the UtiHties Advisory Commission unanimously approved
(five in favor and two absent) staff's recommendation to refund the accumulated net revenues
associated with the Full Needs portion of the PaloAitoGreen program to program participants
via a credit to their utilities bill.
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G. On March 18, the Finance Committee voted unanimously (three in favor and one
absent) to recommend Council approve staff's and the UAC's recommendation to refund the
accumulated net revenues associated with the Full Needs portion of the PaloAitoGreen
program to program participants via a credit to their utilities bill.
The Council ofthe City of Palo Alto hereby RESOLVES as follows:
SECTION 1. The Council adopts the resolution refunding the accumulated net
revenues from the suspended Full Needs portion of the PaloAitoGreen program to Full Needs
program participants.
SECTION 2. The Council finds that the sufficient funds are available in the Electric
Supply Rate Stabilization Reserve to fund the refunds, and that after withdrawal of those funds,
the Electric Rate Stabilization Reserve balance will be above the minimum guideline level for
that reserve.
SECTION 3. The Council finds that the adoption of this resolution does not constitute
a project under Section 21065 of the California Environmental Quality Act (CEQA) and the CEQA
Guidelines, and therefore, no environmental assessment is required.
INTRODUCED AND PASSED: April21, 2014
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
APPROVED AS TO FORM:
nior Deputy City Attorney
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Director o til 1 s
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