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Home My WebLink AboutRESO 9488Resolution No. 9488 · Resolution of the Council of the City of Palo Alto Amending Utility Gas Rate Schedules G-1 (Residential Gas Service), G-1-G (Residential Green Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-2-G (Residential Master-Metered and Commercial Green Gas Service), G-3 (Large Commercial Gas Service) and G-3-G (Large Commercial Green Gas Service) RECITALS A. Effective January 1, 2015, natural gas suppliers such as Palo Alto are covered entities under the California Air Resources Board's (CARB's) cap and trade program regulations, with a compliance obligation based on their retail gas sales. B. Greenhouse Gas Allowances, which may be freely allocated by CARB, or purchased from the CARB-sponsored Cap-and-Trade auctions or via the secondary market, may be used to fulfill these compliance obligations. C. The proposed rate schedule amendments reflect this new, additional regulatory compliance cost as a revenue-neutral, pass-through rate component and do not otherwise modify the rate schedules. 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 G-1 (Residential Gas Service) is hereby amended as attached and incorporated. Utility Rate Schedule G- 1, as amended, shall become effective February 1, 2015. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-1-G (Residential Green Gas Service) is hereby amended as attached and incorporated. Utility Rate Schedule G-1-G, as amended, shall become effective February 1, 2015. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby amended as attached and incorporated. Utility Rate Schedule G-2, as amended, shall become effective February 1, 2015. 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 hereby amended as attached and incorporated. Utility Rate Schedule G-2-G, as amended, shall become effective February 1, 2015. SECTION 5. Pursuant to Section 12.20.010 ofthe Palo Alto Municipal Code, Utility Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended as attached and incorporated. Utility Rate Schedule G-3, as amended, shall become effective February 1, 2015. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-3-G (Large Commercial Green Gas Service) is hereby amended as attached and incorporated. Utility Rate Schedule G-3-G, as amended, shall become effective February 1, 2015. 150105 mf 6053202 SECTION 7. The Council finds that the revenue derived from the authorized adoption of the Rate Schedules enumerated herein shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo. SECTION 8. The Council finds that the authorized adoption of the Utility Gas Rates enumerated herein, including the use of revenue derived from them, and the expenditures of funds necessary to implement them, represents the City's cost of regulatory compliance with the state's cap-and-trade program and is consistent with the goals of AB 32. As such, such costs represent the reasonable costs of providing service to CPAU's gas customers. SECTION 9. The Council finds that the Utility Gas Rates enumerated herein are adopted for the purposes of ensuring the City's compliance with the state's cap-and-trade program and such action is statutorily exempt from CEQA review pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 ofthe California Code of Regulations Sec. 15273(a). After reviewing the staff reports presented to Council, the Finance Committee and the Utilities Advisory Commission, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: January 26, 2015 AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: ABSTENTIONS: . ATIEST: ~ ~A;Jt~ ~~ City Clerk ~ APPROVED AS TO FORM: APPROVED: Sr~~ ~!%~ Direct- J) ••f !7 a ~,.Director of Administrative Services RESIDENTIAL GAS SERVICE UTILITY RATE SCHEDULE G-1 A. APPLICABILITY: This schedule applies to the following Customers receiving Gas Service from City of Palo Alto Utilities: 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. Cap and Trade Compliance Charge ..................... i ............................. $0.00-$0.25 ! I' D. 'b . Ch '· 1stn ut1on arge: ................................................................ :; ........................... . Tier 2 Rates: (All usage over 100% ofTier 1) Supply Charges: ! I, $0.4392 1. Commodity (Monthly Market Based) ................... :....................... $0.10-2.00 2. Cap and Trade Compliance Charge ..................... .!.. ........................... $0.00-$0.25 I ' i • • • l: D1stnbut1on Charge: ................................................................ '............................. $0.9546 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable tates in Section C above and adjusted for any applicable discounts, surcharges and/or Tax~s. On a Customer's bill statement, the bill amount may be broken down into appropriate components as CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-1-1 dated 1-1-2013 ~\1/~ ......::: ~ -~ CITY OF PALO ALTO " UTILITIES Effective 2-1-2015 Sheet No G-1-1 RESIDENTIAL GAS SERVICE UTILITY RATE SCHEDULE G-1 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 Cap and Trade Compliance Charge reflects the City's cost of regulatory compliance with the state's Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City's Gas Utility's compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required. The Commodity and Cap and Trade Compliance Charges will fall within the minimum/maximum ranges set forth in Section C. 2. Seasonal Rate Changes: The Summer period is effective April1 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 of0.667 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-1-2 dated 1-1-2013 ~\I/~ ""' ~ -~ CITY OF PALO ALTO " UTILITIES {End} Effective 2-1-2015 Sheet No G-1-2 RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE UTILITY RATE SCHEDULE G-2 A. APPLICABILITY: This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto Utilities: 1. Commercial Customers who use less than 250,000 therms per year at one site. 2. Master-metered 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: ........................................................................................................ $74.86 PerTherm Supply Charges: 1. Commodity (Monthly Market Based).................................... $0.10-$2.00 2. Cap and Trade Compliance Charges ................................................. $0.00-0.25 I Distribution Charge: .......................................................................... .!............................. $0.6147 i D. SPECIAL NOTES: 1. Calculation of Cost Components I The actual bill amount is calculated based on the applicable fates in Section C above and adjusted for any applicable discounts, surcharges and/or Tax~s. On a Customer's bill statement, the bill amount may be broken down into approp4ate 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 Cap and Trade Compliance Charge reflects the City's cost of regulatory compliance with the state's Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City's Gas Utility's compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required. The Commodity and Cap and Trade Compliance Charges will fall within the minimum/maximum ranges set forth in Section C. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-2-1 dated 7-1-2012 ~\1/~ ""' ~ -~ CITY OF PALO ALTO " UTILITIES Effective 2-1-2015 Sheet No G-2-1 RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE UTILITY RATE SCHEDULE G-2 {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-2-2 dated 7-1-2012 ~\1/~ '"' ~ -~ CITY OF PALO ALTO " UTILITIES Effective 2-1-2015 Sheet No G-2-2 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. Cap and Trade Compliance Charges .................... ; ............................. $0.00-$0.25 Distribution Charge: ................................................................ :............................. $0.4392 PaloAltoGreen Gas Charge ..................................................... ,............................. $0.1200 Tier 2 Rates: (All usage over 100% ofTier 1) Supply Charges: 1. Commodity (Monthly Market Based) .................. :....................... $0.10-2.00 2. Cap and Trade Compliance Charges .................... ~ ............................. $0.00-$0.25 Distribution Charge:............................................................................................. $0.9546 PaloAltoGreen Gas Charge.................................................................................. $0.1200 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section·c above and CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-1-G-1 dated 7-1-2014 ~\1/~ .........: ~ --~ CITY OF PALO ALTO " UTILITIES Effective 2-1-2015 Sheet No G-1-G-1 RESIDENTIAL GREEN GAS SERVICE UTILITY RATE SCHEDULE G-1-G 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 Cap and Trade Compliance Charge reflects the City's cost of regulatory compliance with the state's Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City's Gas Utility's compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required. The Commodity and Cap and Trade Compliance Charges will fall within the minimum/maximum ranges 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. 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 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 Supersedes Sheet No G-1-G-2 dated 7-1-2014 ~\1/~ ""' ~ -~ CITY OF PALO ALTO " UTILITIES {End} Effective 2-1-2015 Sheet No G-1-G-2 LARGE COMMERCIAL GAS SERVICE UTILITY RATE SCHEDULE G-3 A. APPLICABILITY: This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto Utilities: 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 natural gas service. c. UNBUNDLED RATES: Per Service Monthly Service Charge: $361.18 Per Therrn Supply Charges: 1. Commodity (Monthly Market Based) .................................................... $0.10-$2.00 2. Cap and Trade Compliance Charges ......................... , ......... : .................... $0.00-0.25 Distribution Charge: .......................................................................... ~ ....... : .. , ......................... $0.6071 : D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable· rate~ '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 Cap and Trade Compliance Charge reflects the City's cost of regulatory compliance with the state's Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City's Gas Utility's compliance obligations. The Cap and Trade CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-3-1 dated 7-1-2012 ~\1/~ .......,;; :;..-" -~ CITY OF PALO ALTO " UTILITIES Effective 2-1-2015 Sheet No G-3-1 LARGE COMMERCIAL GAS SERVICE UTILITY RATE SCHEDULE G-3 Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required. The Commodity and Cap and Trade Compliance Charges will fall within the minimum/maximum ranges 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. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable City ofPalo Alto full-service rate schedule. Customers served under this rate schedule may elect Gas Direct Access at any time. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-3-2 dated 7-1-2012 ~\l/~ ""' ~ -~ CITY OF PALO ALTO " UTILITIES {End} Effective 2-1-2015 Sheet No G-3-2 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) .............................. J ........................... $0.10-$2.00 2. Cap and Trade Compliance Charges .......................... ) ............................. $0.00-0.25 ' Distribution Charge: ·······························································:··································$0.6071 ' 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. Cap and Trade Compliance Charges .......................................................... $0.00-0.25 Distribution Charge: ................................................................................................. $0.6071 PaloAltoGreen Gas Charge (per 100 therm block): .................................................... $12.00 D. SPECIAL NOTES: CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-3-G-1 dated 7-1-2014 ~\I/~ ---..;; ~ -~ CITY OF PALO ALTO " UTILITIES Effective 2-1-2015 Sheet No G-3-G-1 LARGE COMMERCIAL GREEN GAS SERVICE UTILITY RATE SCHEDULE G-3-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 Cap and Trade Compliance Charge reflects the City's cost of regulatory compliance with the state's Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City's Gas Utility's compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required. The Commodity and Cap and Trade Compliance Charges will fall within the minimUm/maximum ranges 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 ofland 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 Supersedes Sheet No G-3-G-2 dated 7-1-2014 ~\1/~ "" ~ -~CITY OF PALO ALTO " UTILITIES {End} Effective 2-1-2015 Sheet No G-3-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. 2. 100% Renewable/Full Green option: Per Service Monthly Service Charge: ............................................................................................ $74.86 ' Per Therm Supply Charges: i 1. Commodity (Monthly Market Based) ........................ .!................. $0.10-$2.00 2. Cap and Trade Compliance Charges·························~····························· $0.00-0.25 .l Distribution Charge: ............................................................. .)............................. $0.6147 PaloAltoGreen Gas Charge ..................................................... :............................. $0.1200 100 Therm block option: Per Service Monthly Service Charge: ............................................................................................ $74.86 PerTherm Supply Charges: 1. Commodity (Monthly Market Based).......................................... $0.10-$2.00 2. Cap and Trade Compliance Charges ....................................................... $0.00-0.25 Distribution Charge: ............................................................................................ $0.6147 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-2-G-1 dated 7-1-2014 ~\1/~ ......,;: ;....--~ CITY OF PALO ALTO \'\ U T I L I T I E S Effective 2-1-2015 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 Cap and Trade Compliance Charge reflects the City's cost of regulatory compliance with the state's Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City's Gas Utility's compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required. The Commodity and Cap and Trade Compliance Charges will fall within the minimum/maximum ranges 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 ofland 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 Supersedes Sheet No G-2-G-2 dated 7-1-2014 ~\1/~ ......:: ~ -~ CITY OF PALO ALTO " UTILITIES Effective 2-1-2015 Sheet No G-2-G-2 RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE UTILITY RATE SCHEDULE G-2-G CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-2-G-3 dated 7-1-2014 ~\1/~ -.....;: ;,..-' -~ CITY OF PALO ALTO " UTILITIES {End} Effective 2-1-2015 Sheet No G-2-G-3