HomeMy WebLinkAboutRESO 9557DocuSign Envelope ID: F77 A41 A4-5DB5-45E4-B8C4-6914306DF50D
Resolution No. 9557
Resolution of the Council of the City of Palo Alto to Formally Adopt a
Net Energy Metering Cap Calculation Methodology
RECITALS
A. Net energy metering (NEM), is a billing arrangement that provides credit to
customers for the full retail value of the electricity their system generates.
B. State law requires all electric utilities to offer NEM to eligible customers with
distributed renewable generation up to a maximum cap of 5% of the utility's aggregate
customer peak demand.
C. The California Public Utilities Code affords publicly owned utilities (POUs), like
Palo Alto, with the discretion to define "aggregate customer peak demand," leaving matters
such as the best method for calculating "aggregate customer peak demand" and what
reference year to use up to the City.
D. Given the flexibility available to POUs and other non-Investor Owned Utilities,
there are a variety of differing methodologies in use for calculating the NEM cap across the
state, resulting in confusion for utility customers and renewable energy installers operating
across multiple utility service territories.
E. Palo Alto staffs current practice is to define the NEM cap to be 5% percent of
the City's peak demand achieved in 2006, or 9.5 megawatts (MW) fixed in time, and referenced
this NEM cap in multiple staff reports. The City's NEM installations are currently approximately
70% of the proposed 9.5 MW NEM cap and staff estimates that the cap will be reached by the
end of 2016.
F. Formally adopting the City's current methodology for calculating the NEM cap in
Palo Alto will promote greater market certainty and transparency for customers and renewable
energy installers operating within the community and is consistent with NEM legislative and
regulatory obligations and the Council-adopted Local Solar Plan to promote distributed solar
projects.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The City Council adopts the methodology for calculating the City's NEM
cap to be five (5) percent of the City's aggregate customer peak demand, which is defined as
2006 historical system peak electric demand of 190 megawatts (MW) or 9.5 MW.
II
II
151015 jjs 01-0071 1
DocuSign Envelope 10: F77A41A4-5DB5-45E4-B8C4-6914306DF50D
SECTION 2: The Council finds that the formal adoption of the NEM cap does not meet
the California Environmental Quality Act's definition of a "project" under Public Resources Code
Section 21065, thus no environmental review is required.
INTRODUCED AND PASSED: October 26, 2015
AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID,
WOLBACH
NOES:
ABSENT:
ABSTENTIONS:
ATIEST:
~
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
~DocuSigned by:
~;::~0~ QDocuSigned by:
o·Kftt-~
S9E7298FB2064DB ...
Senior Deputy City Attorney City Manager
(\ DocuSigned by:
~::'~8~~~
Director of Utilities
Director of Administrative Services
151015 jjs 01-0071 2
Certificate Of Completion
Envelope Number: F77 A41 A45DB545E4B8C46914306DF50D
Subject: Please DocuSign this document: RESO 9557 to Clarify NEM Cap FINAL.pdf
Source Envelope:
Document Pages: 2
Certificate Pages: 5
AutoNav: Enabled
Envelopeld Stamping: Enabled
Record Tracking
Status: Original
10/28/2015 9:50:07 AM PT
Signer Events
Jessica Mullan
Jessica.Mullan@CityofPaloAito.org
Jessica.Mullan@CityofPaloAito.org
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered
ID:
Lalo Perez
Lalo.Perez@CityofPaloAito.org
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered
ID:
Valerie Fang
Valerie.Fong@CityofPaloAito.org
Utilities Director
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered
ID:
James Keene
james.keene@cityofpaloalto.org
City Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 4/14/2015 5:40:07 PM PT
I D: 44 fe333a-6a81-4cb 7 -b 7 d4-9254 73ac82e3
In Person Signer Events
Editor Delivery Events
Signatures: 4
Initials: 0
Holder: Kim Lunt
kimberly.lunt@cityofpaloalto.org
Signature
Using IP Address: 199.33.32.254
GDocuSigned by:
t.t. /J,.,._~
82ADF35ED7C5498 ...
Using IP Address: 166.176.184.70
Signed using mobile
~~~·;;~~
10583588F83E412 ...
Using IP Address: 199.33.32.254
0 Docu51gned by:
~:2:t!
Using IP Address: 199.33.32.254
Signature
Status
Docu~ .
Status: Completed
Envelope Originator:
Kim Lunt
250 Hamilton Ave
Palo Alto , CA 94301
kimberly.lunt@cityofpaloalto.org
IP Address: 199.33.32.254
Location: DocuSign
Timestamp
Sent: 10/28/2015 9:53:00 AM PT
Viewed: 11/24/2015 8:59:58 AM PT
Signed: 11/24/2015 9:00:08 AM PT
Sent: 11/24/2015 9:00:10 AM PT
Viewed: 11/24/2015 10:50:34 AM PT
Signed: 11/24/2015 10:51 :07 AM PT
Sent: 11/24/2015 10:51:08 AM PT
Viewed: 11/24/2015 10:55:02 AM PT
Signed: 11/24/2015 10:55:21 AM PT
Sent: 11/24/201510:55:22 AM PT
Viewed: 11/30/201511:49:28 PM PT
Signed: 11/30/201511:49:36 PM PT
Timestamp
Timestamp
• SECURED