HomeMy WebLinkAboutRESO 9702170721 jb 1
018 20170721 RESO CPAU to Procure Energy Storage System Inappropriate
Resolution No. 9702
Resolution of the Council of the City of Palo Alto Determining that a Target for the
City of Palo Alto Utilities to Procure Energy Storage Systems is Not Appropriate
Due to Lack of CostEffective Options
R E C I T A L S
A.
requires the governing board of each local publiclyowned electric utility (POU) to determine
appropriate targets, if any, for the utility to procure viable and costeffective energy storage
systems.
B. In addition to requiring POUs to evaluate the feasibility of energy storage targets,
AB 2514 also requires that all procurement of energy storage systems by a POU be cost
effective.
C. To conform to California Public Utilities Code § 2836(b)(1) and § 2836.6, and
Term Acquisition Plan (LEAP), staff undertook a study in 2013
and again 2016, to determine the viability and costeffectiveness of energy storage to serve
electric utility customers in Palo Alto, which included an investigation into a variety of energy
storage technologies and their viability and costeffectiveness.
D. Based on those two studies, staff found in 2013 and once again in 2016, that the
least cost energy storage technology today is more costly than the present value of energy
storage in the best case application, even when a variety of factors including current CPAU load
projections, rooftop PV penetration, and distribution system capacity were considered, such
that energy storage systems are not costeffective at this time.
E. Most recently, at its May 3, 2017 meeting, the Utility Advisory Commission (UAC)
unanimously recommended that the City Council decline to set an energy storage procurement
target for the City of Palo Alto or provide rebate incentives for thermal energy storage because
such targets and incentives are not costeffective.
F. The Council has reviewed staff
recommendation.
G. Based on that review, Council determines that that a target for the City of Palo
Alto Utilities to procure energy storage systems is not appropriate due to lack of costeffective
energy storage options.
H. AB 2514 requires Palo Alto to reevaluate this determination concerning the need
for an energy storage procurement target once every three years.
The Council of the City of Palo Al as follows:
DocuSign Envelope ID: 1355D907-BB4A-4D77-B01D-0191EAB850FC
170721 jb 2
018 20170721 RESO CPAU to Procure Energy Storage System Inappropriate
SECTION 1.
determines that setting a target for the City of Palo Alto Utilities to procure energy storage
systems is not appropriate due to lack of costeffective energy storage system options.
SECTION 2. The Council will reevaluate its decision not to set an energy storage system
procurement target for the City of Palo Alto Utilities within three years, as required by AB 2514.
SECTION 3. The Council finds that the adoption of this resolution is not subject to
California Environmental Quality Act review because it does not constitute a project under
California Public Resources Code section 21065.
INTRODUCED AND PASSED: August 21, 2017
AYES: DUBOIS, FILSETH, FINE, HOLMAN, KNISS, KOU, TANAKA, WOLBACH
NOES:
ABSENT: SCHARFF
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Utilities General Manager
Director of Administrative Services
DocuSign Envelope ID: 1355D907-BB4A-4D77-B01D-0191EAB850FC
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