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Home My WebLink AboutRESO 9765DocuSign Envelope ID: 1FB8EB97-D9B6-44E6-9A7D-31429E57A90F Resolution No. 9765 Resolution of the Council of the City of Palo Alto Increasing Gas Rates by 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) RECITALS A. 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. B. On June 11, 2018, the City Council heard and approved the proposed rate increase at a noticed public hearing. 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 July 1, 2018. 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 July 1, 2018. 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 July 1, 2018. 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 ~ate Schedule G-10, as amended, shall become effective July 1, 2018. SECTION 5. The City Council finds as follows: a. Revenues derived from the gas rates approved by this resolution do not exceed the funds required to provide gas service. b. Revenues derived from the gas rates approved by this resolution shall not be used for any purpose other than providing gas service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. 180315 jb 6055006 DocuSign Envelope ID: 1FBBEB97-D9B6-44E6-9A7D-31429E57A90F RESIDENTIAL GAS SERVICE UTILITY RA TE 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: This schedule applies anywhere the City of Palo Alto provides Gas Service. c. UNBUNDLED RATES: Per Service Monthly Service Charge: ........................................................................................................ $10.94 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:............................................................................................. $0.4239 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:............................................................................................. $0.9948 D. S{>ECIAL NOTES: 1. Calculation of Cost Components CITY OF PALO AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-1-1 dated 9-1-2017 ~\I/~ """ ;..-" -~ CITY OF PALO ALTO ~\\ UT I L IT I ES Effective 7-1-2018 Sheet No G-1-1 DocuSign Envelope ID: 1FBBEB97-D9B6-44E6-9A7D-31429E57A90F RESIDENTIAL GAS SERVICE UTILITY RATE SCHEDULE G-1 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 of0.667 therms per day during the Summer period and 2.0 therms per day during the Winter period, rounded to CITY OF PALO AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-1-2 dated 9-1-2017 ~\I/~ ~ ~ -~ CITY OF PALO ALTO Sfij\'\ U T I L I T I E S Effective 7-1-2018 Sheet No G-1-2 DocuSign Envelope ID: 1 FBBEB97-D986-44E6-9A7D-31429E57A90F RESIDENTIAL GAS SERVICE UTILITY RA TE SCHEDULE G-1 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 AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-1-3 dated 9-1-2017 ~\I/~ ""' ;..-"' -~ CITY OF PALO ALTO llfij\~ U T I L I T I E S {End} Effective 7-1-2018 Sheet No G-1-3 DocuSign Envelope ID: 1FB8EB97-D9B6-44E6-9A7D-31429E57A90F 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: This schedule applies anywhere the City of Palo Alto provides Gas Service. c. UNBUNDLED RA TES: Per Service Monthly Service Charge: ........................................................................................................ $82.92 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: ........................................................................................................ $0.6183 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 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No G-2-1 dated 9-1-2017 ~\I/~ .......; ;;; jjm ~ CITY OF PALO ALTO mrij\'\ U T I L I T I E S Effective 7-1-2018 Sheet No G-2-1 DocuSign Envelope ID: 1 FBBEB97-D9B6-44E6-9A7D-31429E57A90F RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE UTILITY RA TE SCHEDULE G-2 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. CITY OF PALO AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-2-2 dated 9-1-2017 ~\l/~ ~ ;....-" -~ CITY OF PALO ALTO 111ij\\" UT I L IT I ES {End} Effective 7-1-2018 Sheet No G-2-2 DocuSign Envelope ID: 1FB8EB97-D986-44E6-9A7D-31429E57A90F 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 Gas Service. c. UNBUNDLED RA TES: Per Service Monthly Service Charge: $400.08 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: ............................................................................................................. $0.6098 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 CITY OF PALO AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-3-1 dated 9-1-2017 ~\I/~ -.....; ;..; fl-~ CITY OF PALO ALTO \\ U T I L I T I E S Effective 7-1-2018 Sheet No G-3-1 DocuSign Envelope ID: 1 FBBEB97-D9B6-44E6-9A7D-31429E57A90F LARGE COMMERCIAL GAS SERVICE UTILITY RATE SCHEDULE G-3 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 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. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable City of Palo Alto full-service rate schedule. CITY OF PALO AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-3-2 dated 9-1-2017 ~\I/~ ........; ;,..-' iijw ~ CITY OF PALO ALTO _,,,,, U T I L I T I E S {End} Effective 7-1-2018 Sheet No G-3-2 DocuSign Envelope ID: 1FBBEB97-D986-44E6-9A7D-31429E57A90F COMPRESSED NATURAL GAS SERVICE UTILITY RA TE SCHEDULE G-10 A. APPLICABILITY: This schedule applies to the sale of natural gas to the City-owned compressed natural gas (CNG) fueling statio11 at the Municipal Service Center in Palo Alto. B. TERRITORY: Applies to the City's CNG fueling station located at the Municipal Service Center in City of Palo Alto. c. UNBUNDLED RATES: Per Service Monthly Service Charge: ........................................................................................................ $56.11 Per Therm Supply Charges: Commodity (Monthly Market Based) ................................................................ $0.l 0-$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 ............................................................................................................... $0.0100 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 CITY OF PALO AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-10-1 dated 9-1-2017 ~\I/~ -.....;; ,..... jj:m ~ CITY OF PALO ALTO mgj\\ U T I L I T I E S Effective 7-1-2018 Sheet No.G-10-1 DocuSign Envelope ID: 1 FBBEB97-09B6-44E6-9A7D-31429E57A90F COMPRESSED NATURAL GAS SERVICE UTILITY RA TE SCHEDULE G-10 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. CITY OF PALO AL TO UTILITIES Issued by the City Council Supersedes Sheet No G-10-2 dated 9-1-2017 ~\I/~ .........: ;,...-" • -E CITY OF PALO ALTO \~ UT I L IT I E S {End} Effective 7-1-2018 Sheet No.G-10-2