HomeMy WebLinkAboutRESO 9710170725 jb 6053985 1
Resolution No. 9710
Resolution of the Council of the City of Palo Alto Amending Rate Schedules G-1
(Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas
Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas
Service Service) and repealing G-1-G (Residential Green Gas Service), G-2-G
(Residential Master-Metered and Commercial Green Gas Service), G-3-G (Large
Commercial Green Gas Service), G-10-G (Compressed Natural Green Gas Service)
R E C I T A L S
A. In December 2007, Council adopted the City’s Climate Protection Plan which set
aggressive greenhouse gas (GHG) emission reduction goals to be achieved by the year 2020.
B. In April 2016, this Council adopted a GHG reduction goal of 80% by the year
2030. GHG emissions associated with natural gas use were 135,000 metric tons of carbon
dioxide equivalent, or 27% of the City’s GHG emissions, in 2015.
C. On December 5, 2016, the City Council voted unanimously to approve a Carbon
Neutral Natural Gas Plan, enabling the City to achieve a carbon-neutral gas supply portfolio
with a rate impact not to exceed ten cents per therm ($0.10/therm), and terminate the
PaloAltoGreen Gas program established by Resolution 9405, starting in fiscal year 2018.
D. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of
the City of Palo Alto may by resolution adopt rules and regulations governing utility services,
fees and charges.
The Council of the City of Palo Alto does hereby RESOLVE 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 to read as attached and
incorporated. Utility Rate Schedule G-1, as amended, shall become effective September 1,
2017.
SECTION 2. 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 to read as attached and incorporated. Utility Rate Schedule G-2, as amended, shall
become effective September 1, 2017.
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SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule G-3, as amended, shall become effective September 1,
2017.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule G-10, as amended, shall become effective
September 1, 2017.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedules G-1-G (Residential Green Gas Service), G-2-G (Residential Master-Metered and
Commercial Green Gas Service), G-3-G (Large Commercial Green Gas Service), G-10-G
(Compressed Natural Green Gas Service) are hereby repealed, effective July 1, 2017.
SECTION 6. The Council finds that the revenue derived from the adoption of this
resolution 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 finds that the fees and charges adopted by this resolution are
charges imposed for a specific government service or product provided directly to the payor
that are not provided to those not charged, and do not exceed the reasonable costs to the City
of providing the service or product.
SECTION 8. The Council finds that the adoption of this resolution changing gas rates
to meet operating expenses and meet financial reserve needs is not subject to the California
Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec.
21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing
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the staff report and all attachments presented to Council, 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: August 28, 2017
AYES: DUBOIS, FILSETH, HOLMAN, KNISS, KOU, SCHARFF, TANAKA, WOLBACH
NOES:
ABSENT: FINE
ABSTENTIONS:
ATTEST:
________________________________ ________________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
________________________________ ________________________________
Deputy City Attorney City Manager
________________________________
Director of Utilities
________________________________
Director of Administrative Services
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-1
dated 11-1-2016 Effective 9-1-2017
Sheet No G-1-1
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:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$10.32
Tier 1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charge ..................................................$0.00-$0.25
3. Transportation Charge........................................................................$0.00-$0.15
4.Carbon Offset Charge ........................................................................$0.00-$0.10
Distribution Charge: ............................................................................................. $0.3933
Tier 2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-2.00
2. Cap and Trade Compliance Charge ...................................................$0.00-$0.25
3. Transportation Charge........................................................................$0.00-$0.15
4.Carbon Offset Charge ........................................................................$0.00-$0.10
Distribution Charge: ............................................................................................. $0.9319
D. SPECIAL NOTES:
1. Calculation of Cost Components
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-2
dated 11-1-2016
Effective 9-1-2017
Sheet No G-1-2
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 Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse
gases produced in the burning of natural gas. The Carbon Offset Charge will change
in response to changing market conditions, changing sales volumes and the quantity
of offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation
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
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-3
dated 11-1-2016
Effective 9-1-2017
Sheet No G-1-3
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.
{End}
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-1
dated 11-1-2016
Effective 9-1-2017
Sheet No G-2-1
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:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$78.23
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ................................................. $0.00-0.25
3. Transportation Charge........................................................................$0.00-$0.15
4.Carbon Offset Charge ........................................................................$0.00-$0.10
Distribution Charge: ........................................................................................................ $0.5767
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
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-2
dated 11-1-2016 Effective 9-1-2017
Sheet No G-2-2
volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse
gases produced in the burning of natural gas. The Carbon Offset Charge will change in
response to changing market conditions, changing sales volumes and the quantity of
offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges
will fall within the minimum/maximum ranges set forth in Section C.
{End}
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES Issued by the City Council
Supersedes Sheet No G-3-1
dated 11-1-2016
Effective 9-1-2017
Sheet No G-3-1
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: $377.43
Per Therm Supply Charges:
1. Commodity (Monthly Market Based) .................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ...................................................... $0.00-0.25
3. Transportation Charge .......................................................................... $0.00-$0.154.Carbon Offset Charge ........................................................................... $0.00-$0.10
Distribution Charge: .............................................................................................................$0.5687
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
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES Issued by the City Council
Supersedes Sheet No G-3-2
dated 11-1-2016 Effective 9-1-2017
Sheet No G-3-2
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 Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced in the burning of natural gas. The Carbon Offset Charge will change in response to changing market conditions, changing sales volumes and the quantity of
offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation
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 oneaccount 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 of PaloAlto full-service rate schedule.
{End}
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES Issued by the City Council
Supersedes Sheet No G-10-1
dated 11-1-2016
Effective 9-1-2017
Sheet No.G-10-1
A. APPLICABILITY:
This schedule applies to the sale of natural gas to the City-owned compressed natural gas (CNG) fueling station at the Municipal Service Center in Palo Alto
B. TERRITORY:
Applies to location at the Municipal Service Center in City of Palo Alto.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$52.93
Per Therm
Supply Charges:
Commodity (Monthly Market Based) ................................................................ $0.10-$2.00
Cap and Trade Compliance Charges .............................................................. $0.00 to $0.25
Transportation Charge........................................................................................ $0.00-$0.15
Carbon Offset Charge ........................................................................................ $0.00-$0.10
Distribution Charge ...............................................................................................................$0.0093
D. SPECIAL CONDITIONS
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
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES Issued by the City Council
Supersedes Sheet No G-10-2
dated 11-1-2016 Effective 9-1-2017
Sheet No.G-10-2
allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases
produced in the burning of natural gas. The Carbon Offset Charge will change in response to
changing market conditions, changing sales volumes and the quantity of offsets purchased within
the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for
delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will
fall within the minimum/maximum range set forth in Section C.
{End}
DocuSign Envelope ID: 793C4AE1-6743-43BA-8876-4652D8276344
Certificate Of Completion
Envelope Id: 793C4AE1674343BA88764652D8276344 Status: Completed
Subject: Please DocuSign: RESO 9710 Gas Rate Adoption.docx, RESO 9710 - Attachment A - Schedule G-1.pdf,...
Source Envelope:
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Palo Alto , CA 94301
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9/8/2017 9:54:06 AM
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Amy Bartell
Amy.Bartell@CityofPaloAlto.org
Senior Deputy City Attorney
City of Palo Alto
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Chief Financial Officer
City of Palo Alto
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Assistant City Manager
City of Palo Alto
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H. Gregory Scharff
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Mayor
City of Palo Alto
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City Clerk
City of Palo Alto
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