HomeMy WebLinkAboutRESO 9405Resolution No. 9405
Resolution of the Council of the City of Palo Alto Establishing the
PaloAitoGreen Gas Program Using Certified Environmental Offsets
and Approving Three New Gas Rate Schedules G-1-G (Residential
Green Gas Service), G-2-G (Residential Master-Metered and
Commercial Green Gas Service) and G-3-G (Large Commercial Green
· Gas Service)
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 PaloAitoGreen Program.
B. In March 2013, the Council unanimously approved the Carbon Neutral Plan
(Resolution 9322) directing staff to achieve carbon neutrality for the electric supply portfolio by
2013 through the use of a combination of hydroelectric resources, long-term renewable
resources and short-term renewable energy resources and/or renewable energy certificates
("RECs").
C. On September 9, 2013, this Council approved a resolution modifying and
suspending portions of the PaloAitoGreen Program, and directing staff to develop a
PaloAitoGreen Gas Program (Staff Report #4041).
D. Establishment of a voluntary PaloAitoGreen Gas Program (PAG Gas Program) will
provide the opportunity for residential and commercial customers to economically reduce or
eliminate the impact of greenhouse gas (GHG) emissions associated with their gas usage
through the purchase of certified environmental offsets.
E. Establishment of a PAG Gas Program also requires Council approval of three new
gas rate schedules to implement the PAG Gas Program.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The PaloAitoGreen Gas Program is hereby established as of July 1, 2014.
SECTION 2. The PaloAitoGreen Gas Program shall adhere to the following principles:
a. Participation in the PAG Gas Program shall be voluntary for all CPAU gas
customers in good standing;
b. CPAU gas customers may participate in or opt out of the PAG Gas Program at
any time;
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c. The PAG Gas Program will use certified environmental offsets acquired from an
established offset registry and offer appropriate offset protocols, as
determined by CPAU staff;
d. Staff shall monitor and manage PAG Gas Program expenditures such that
revenues and costs are properly balanced, and shall return to Council as
needed to request any adjustments to PAG Gas Program rates.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule G-1-G (Residential Green Gas Service) is added as attached and incorporated. Utility
Rate Schedule G-1-G shall become effective as of July 1, 2014.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule G-2-G (Residential Master-Metered and Commercial Green Gas Service) is added as
attached and incorporated. Utility Rate Schedule G-2-G shall become effective as of July 1,
2014.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule G-3-G (Large Commercial Green Gas Service) is added as attached and incorporated.
Utility Rate Schedule G-3-G shall become effective as of July 1, 2014.
SECTION 6. The Council finds. that revenue derived from the authorized adoption enumerated
herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the
City of Palo Alto.
SECTION 7. The Council's establishment of a PAG Gas Program does not meet the definition of
a project, pursuant to section 21065 of the California Environmental Quality Act (CEQA).
However, the City will receive environmental offsets from projects that will constitute a project
for the purposes of CEQA, or for projects located outside of California, NEPA or other applicable
state environmental statute. Offset project developers will be responsible for acquiring
necessary environmental reviews and permits as offset projects are developed.
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SECTION 8. The Council finds that the adoption of this resolution establishing new gas rates in
support of the PAG Gas Program is not subject to CEQA, pursuant to California Public Resources
Code Sec. 21080(b)(8) and Title 14 ofthe California Code of Regulations Sec. 15273(a)(1) and
(3), because the rates adopted by this resolution are necessary to recover the PAG Program's
operating expenses. After reviewing the this resolution and associated staff report, the Council
finds that sufficient evidence has been presented setting forth with specificity the basis for this
claim of CEQA exemption.
INTRODUCED AND PASSED: April 21, 2014
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
APPROVED AS TO FORM:
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ATIACHMENTB
RESIDENTIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-1-G
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Separately-metered single-family residential Customers.
2. Separately-metered multi-family residential Customers in multi-family residential
facilities.
B. TERRITORY:
c.
This schedule applies anywhere the City of Palo Alto provides Gas Service.
UNBUNDLED RATES: Per Service
Monthly Service Charge: .......................................................................................................... $9.88
Tier 1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based).......................................... $0.10-$2.00
2. Administrative................................................................................... $0.0074
3. Transportation ................................................................................... $0.0435
Distribution Charge: ............................................................................................ .
PaloAltoGreen Gas Charge ................................................................................. .
Tier 2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1. Commodity (Monthly Market Based) ....................... : ................ ..
2. Administrative ................................................................................... .
3. Transportation ................................................................................... .
Distribution Charge: ............................................................................................ .
PaloAltoGreen Gas Charge ................................................................................. .
$0.3883
$0.1200
$0.10-2.00
$0.0074
$0.0435
$0.9037
$0.1200
D. SPECIAL NOTES:
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\I/~ ""' ;...-" -~ CITY OF PALO ALTO
" UTILITIES Effective 7-1-2014
New Sheet No G-1-G-1
RESIDENTIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-1-G
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer's bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer's meter. The
Commodity charge will fall within the minimum/maximum range set forth in Section C.
2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the Winter period is effective
from November 1 to March 31. When the billing period includes use in both the Summer
and the Winter periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates for each period, For
further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms
per day during the Summer period and 2.0 therms per day during the Winter period,
rounded to the nearest whole therm, based on meter reading days of service. As an
example, for a 30 day bill, the Tier 1 level would be 20 therms during the Summer period
and 60 therms during the Winter period months. For further discussion of bill calculation
and proration, refer to Rule and Regulation 11.
4. PaloAitoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer's Gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer's premises every month.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\I/~ .......;: ~ -~CITY OF PALO ALTO
" UTILITIES
{End}
Effective 7-1-2014
New Sheet No G-1-G-2
RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-2-G
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Master-metered residential Customers in multi-family residential facilities.
2. Commercial Customers who use less than 250,000 therms per year at one site.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
1. 100% Renewable/Full Green option: Per ServiCe
Monthly Service Charge: ............................................................................................ $74.86
PerTherm
Supply Charges:
1. Commodity (Monthly Market Based).......................................... $0.10-$2.00
2. Administrative......................................................................................... $0.0074
3. Transportation.......................................................................................... $0.0435
Distribution Charge: ............................................................................................ $0.5638
PaloAltoGreen Gas Charge.................................................................................. $0.1200
2. 100 Therm block option: Per Service
Monthly Service Charge: ............................................................................................ $74.86
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based).......................................... $0.10-$2.00
2. Administrative......................................................................................... $0.0074
3. Transportation.......................................................................................... $0.0435
Distribution Charge: ............................................................................................ $0.5638
CITY OF PALO ALTO UTILITIES
Issued by the City Council ~\I/~ ........-: ~ -~ CITY OF PALO ALTO
~ UTILITIES Effective 7-1-2014
New Sheet No G-2-G-1
RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-2-G
PaloAltoGreen Gas Charge (per 100 therm block) ............................................ .. $12.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer's bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer's meter. The
Commodity charge will fall within the minimum/maximum range set forth in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one. A site consists of one or more
contiguous parcels of land with no intervening public right-of-ways (e.g. streets).
3. PaloAitoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer's gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer's facility every month (the 100%
Renewable/Full Green option), or in 100 therm blocks.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
CITY OF PALO ALTO UTILITIES
Issued by the City Council ~\II~ ........:: ;....--~ CITY OF PALO ALTO
'\ UTILITIES
{End}
Effective 7-1-2014
New Sheet No G-2-G-2
LARGE COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-3-G
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Commercial Customers who use at least 250,000 therms per year at one site.
2. Customers at City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
1.
2.
100% Renewable/Full Green option:
Monthly Service Charge:
Supply Charges:
Per Service
$361.18
PerTherm
1. Commodity (Monthly Market Based) .......................................................... $0.10-$2.00
2. Administrative ................................................................................................... $0.0074
3. Transportation ..................................................................................................... $0.0435
Distribution Charge: ................................................................................................. $0.5562
PaloAltoGreen Gas Charge: ...................................................................................... $0.1200
100 Therm block option:
Monthly Service Charge:
Supply Charges:
Per Service
$361.18
Per Therm
1. Commodity (Monthly Market Based) .......................................................... $0.10-$2.00
2. Administrative ................................................................................................... $0.0074
3. Transportation ..................................................................................................... $0.0435
Distribution Charge: ................................................................................................. $0.5562
PaloAltoGreen Gas Charge (per 100 therm block): .................................................... $12.00
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\I/~ -.....;: ~ -~ CITY OF PALO ALTO
UTILITIES Effective 7-1-2014
New Sheet No G-3-G-1
LARGE COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-3-G
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer's bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer's meter. The
Commodity charge will fall within the minimum/maximum range set forth in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one site. A site consists of one or more
contiguous parcels of land with no intervening public right-of-ways (e.g. streets).
3. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer's gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer's facility every month, (the 100%
Renewable/Full Green option), or in 100 therm blocks.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
CITY OF PALO ALTO UTILITIES
Issued by the City Council ~\l/~ -.....;; ~ -~ CITY OF PALO ALTO
" UTILITIES
{End}
Effective 7-1-2014
New Sheet No G-3-G-2