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HomeMy WebLinkAboutRESO 5851~~~··ro~~=-RESOLUTION NO. 5851 SEHT TO CO~Hc1.__ ______ ~g OAT£ RESOLUTION OF TH£ COUNCIL OF THE CITY OF PALO ALTO HONORING VICTOR CALVO, ASSEMBLYMAN, 21ST DISTRICT WHEREAS, Vtctor Calvo grew up in Santa Clara County and graduated fro• Stanford University; and WHEREAS, Victor Calvo served the City of Mountain View as a planning co1a1111ssioner aPd then was elected to the Mountain View City Council 1n 1962 and served with distinction for.s1x years, including tnree years as Mayor of that city; and WHEREAS, Victor Calvo was elected to the Santa Clara County Boa~d of Supervisors tn 1968 and was a leader on that board, servir.g as its Che1rma~ in 1970; and . WHEREAS, during hts ter• as ~ Superv1sor, Mr. Cal~o played a lead-ing role in the creation of tne Santa Clara County Transit District. serving ~s one of its four.ders. was vitally concerned with park and open space issues~ particularly the format1on of the M1d-Peninsula Regiontl Qpen Space District, consumer protection. and senior citizen services; and WHEREAS, Victor Calvo was an early participant in re9ion1l agencies. serving as Chairman of the Executive Comm1ttee of the Association of Bay Area Governments, and representative to the Jnter-C1ty Council, and the Bay Area Air Quality Management District; and WHEREAS, 1n 1974 Victor Calvo was elected to the State Legisla-turJ as Assemblyman representing the 21st District. which includes Palo Alto, East Palo Alto~ East Menlo, Mountain View, Sunnyvale, Stanford, and portions of Henle Park. Santa Clara and Los Altos tH11s; and ~HEREAS, during his term in the State Legislature. Assemblyman Calvo has served on n11111erous A~sembly colltllittees~ but particularly as Cha1r•an of the A1r Resources. Lan~ Use &nd Ener~y Co~~1ttee, one of the aost ~o~erful and influential policy committees with jur1~d1ct1on encompassing a wide r~nge of env1ron~ental protection and resource conservation is$ues, such as the State's energy po11cy. coastal land use man&ge•ent~ wild and 'cenic rivers, forest practices and timber industry regulations. legisl•tion to preserve agr1c~ltural lands and a1r quality legislation; and WHEREAS, Asse•bl.)'IWan Calvo. as Chatr~an of the Air Aesources Land Use and Energ1 CclUlittee, has worked t1rel~ssly for all energy conservation 1egislat1on, and was particularly effective 1n sponsortn9 legislation t~ provide grants for alternat1Ye energy deaonstrations; and WHEREAS, Asse•bl1111an Calvo has worked c1os~ly with loctl officials in the field of education to ensure f~ndtng of schools aft~r pas~age of Proposition 13; and WHEREAS. another major accomplish~ent of Assembl.)'lllan Victor Calvo has been hfs rote in negotiating wfth the State of Nevada to achieve 1 new bi-state compact prov;ding for greater protection for Lake Tahoe i and WHEREAS. on Sunday. November 9. 1980. Assemblyman Y1ctor Calvo is to be honored in appreciation of his years of service to this and other co•mun1t1es. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE, as follows: SECTION 1. That 1t expresses its heartfelt appreciation in behalf of the citizens of Palo Alto to V1ctor Ca1vG for his unselfish and dedicated service to the public during a long career filled with major ICCOQP 1 isf1•ents; SECTlOft 2. !hat it encodrtges Victor Calvo to consider continuing hts service to the public in so~e future role; SECTIOff 3. That the City of Palo Alto jofns constituents throughout the Zlst Ass~mbly District in honoring AsseMbl.)'lllan Victor Calvo and extends to hfm its war• wishes for his endeavors in the future. 1NTROOUC£a AND PASSED: Nove•ber 3. 1980 AYES: Eyerly Fazifno, Fletcher. Henderson, levy. Renzel, S~er. Witherspoon NOES: None ABSENT: Brenner ATTEST: APPROVED: Ctty Cieri Mayor APPROVED AS TO FORM: APPROVED: Ci\y Attorney C fty Manager • • EXHIBIT •A• I COST OF SERVICE: Findings: 1. Cost of service rates, especially marginal cost-based rates, en- courage conservation of energy in that such rates promote con- sumer awareness of the high cost of new or future power supplies and the need to conserve. 2. Cost-based rates ore ~quitable since the rates paid by each class of cona·u.mers reflect the actual costs that each class im- poses on the electrit: system. 3. Cost-based rates optim\ze tbe efficient use of facilities and resources by the electric utility in that such rates art'! design·- ed to more closely reflect th€ actual cost differentials assoc- iated with operating different facilities and power resources. 4. The City has historically based rates on the averaqe or imbedded cost of service. 5. Mar9inal costs can only estimate future costs and to that extent are not as reliable as imbedded or current costs. Basin9 r~tes on r.•.arg in al costs alone would likely result in revenues far in excess of the City•s cost of service, since the City's present power supply source, the Central Valley Project, consists pri- marily of low cost hyrdoelectric power and energy. 6. A blending of the marginal cost and imbedded cost methodologies, within their attendant advantages, in future rate determinations will ~ore effectively serve each of the PURPA goals of conserva- tion, efficiency, and equity. II DECLINING BLOCK RATES Findings: 1. None of the City's retail electric rates reflect a rate for the energy component that decreases as kilowatt-hour consumption in- creases. (NOTE: Although the Cit~•s present rate schedule E-2 has a declining block structure, the energy component i~self in- corporated in this rat~ design does not decline with consump- tion). 2. Declining energy rates with increased consumption do not encour- age conservation in that such rates do not send a proper price signal to the consumer reflecting the higher cost of additional power supplies. 3. Declining energy rates are not equitable rates to electric con- sumers in that such rates do not ref!ect the cost of service since the City is charged a flat energy rate under its current wholesale power agreement with the Western Area Power Adminis- tration, the City's present sour~e of power ~nd energy. • • 4. Declining energy rates do not optimize the efficient use of utility f.«cilities and resources in that such rates do not re- flect the true cost of service. 5. Since 1976, the City has progressively flattened its rate struc- tures and will continue to do so as cost of service studies in- dicate. III TIHE OF DAY RATES Findings~ 1. Time of day rates encourage the conservation of power provided that such rates tend to shift load shapes so that the City's peak demand is reduced as a result of the shift ir. load and thereby results iii deferral of new planned capacity. 2, If time of day rates can be developed that will result in an overall reduction in load growth, such rates would tend to op- timize the efficiency of use of presP.nt facilities and re- sources. 3. Time of day rates, which tend to reflect the higher costs of power n~eded to meet peak demand, result in more equitable rates to electric consumers since customers are charged for the higher costs of supplemental power in proportion to their contribution to the system's peak demand. 4. The electric utility has committed to evaluate a range of load m .. 11agement techniques, including time of day rates. S. Based upon the results of further studies and depending upon how power is marketed by the Western Area Power Administration dur- ing the 1980's, time of day rates may prove to be cost effective in Palo Alto. IV SEASONAL RATES Findings: 1. Seasonal rates tend to encourage the conservation Qf energy in that such rates are designed to reflect the actual cost of pro- v iding power according to season and thereby result in more ac- curate price signals to electric consumers. 2. To the extent that seasonal rates lower peak demand during Palo Alto's temperature sensitive peakit19 periods, such rates will encourage the most efficient use of the City's power resources and facii:tics by reducing reliance upon less efficient and more expensive ~eaking sources. 3. Season rates, which follow the cost of service rate making prin- ciple in that such rates are designed to reflect the actual costs that vary by eeason, tends to encourage more equitable rates to electric consWl!era. • • 4. Rot weather during the summer and early fall season in Palo Alto has a direct effect on the energy use pattern of the consumer. 5. The cost to the City of providing service varies seasonally as purchased power costs historically rise due to lower load f ac- tors experienced during warm weather months. v INTERRUPTIBLE RATES Findings: 1. Interruptible rates tend tc encourage conservation of energy in that the utility is able to curtail a portion of its load during periods of peak demand resulting in customers foregoing that energy consumption. 2. Interruptible rates tend to encourage the optimization of the efficient use of facilities and resources by the utility in that the utility's ability to drop interr1ptible customers during periods of peak demand results in a higher and more efficient load factor and minimiToes the nee~ for inefficient peaking sources. 3. Interruptible rates tend to encourage equitable rates to elec- tric consumers in that auch rates offer a customer a lower rate reflecting a lower level of service to these customers. 4. Op to the present time, no utility customer has expressed an interest in an interruptible rate. 5. The Electric Utility would not likely curtail service to a po- tential interruptible customer until 1984-85. 6. Interruptible rates should not be implemented until the utility's peak demand approaches its contractual limit of 175 megawatts. VI LOAD MANAGEMENT Findings: 1. Load management techniques may encourage the conservation of energy to the extent that such techniques can effectively modify power usage and cause a decrease in the peak demand of the elec- tric utility. 2. Load manage•ent techniques will encourage the optimization of the efficient u•e of facilities and resources by the electric utility to the extent that GYch techniques are a cost effective method of reducing the utility's peak demand. 3. Loaa management t•chniques will encourage equitable rates to electric consumers to the extent that such techniques result in the lowering of th~ coets of providing such service to co"- suaers. 4. The electric utility has co .. itted to evaluate a range of energy and ~apacity load management techniques and to implement those techniques which prove to be cost effective. • • EXHIBIT •9• I MASTER METERING Findings: 1. MasteI metering makes it difficult for individual occupants to monitor their electric energy use in th~ units they occupy. 2. Separate metering allows those customers who conserve to benefit •.Hrectly from lower utility costs while those not conserving bear the costs appropriate to their level of usage. 3. Master metering may not be coe:t effective or feasible for all new construction and ir. all circumstances. 4. Adoption of this standard is likely to further the ~hree pur- poses of PURPA: conservation, efficiency, and equitable rates. II INFORMATION TO CONSUMERS ~indings: l. well informed consumers is a desirable goal in the face of the longrun rise in energy costs. Availability of information about rates, conservation. and service practice policies is considered effective in promoting ccnservation, the efficient use of facil- ities and resources, and equity among consumers. 2. The utility's current plans and practices regardir.9 consUlller in- format.ion are consistent with this standard except that informa- tion on proposed rate schedules is made available to the public in staff reports rather than through a utility bill mailing. 3. The administrative costs to supply additional inforsation on proposed rate schedules would be burdensome and unwarranted in view of the fact that ele~tric utility rates are set by the City Council by ~esolution in properly-noticed public meetings. III PROCEDURES FOR TERMINATION OF SERVICE Findings: 1. This standa~d insuree that consumers receive reasonable notice and equitable consideration before service is ten1inated. 2. The City'e current ;:· .... cedures are in compliance with this stim- dard and with e:d;,dn9 California state law. • I • • • IV lU>VERTISING Findings: 1. Promotional advertising is not practiced by the City and is con- trary to conservation objectives. 2. The City does not engage in political advertising. 3. The City is currently iTI compliance with this standard and adop- tion of this standard may assist in furth~ring the three PURPA goals of conservation, efficiency, and equity. v AUTOl'IATIC ADJUSTMENT CLAUSES !'.'.!_ndings1 l. The objective of this PURPA standard is to establish some basic criteria by which regulatory authorities should evaluate automa- tic adjustment claus~s when used. 2. rhe City electric utility is presently not subject to frequent wholesale power rate increases due to increases in the cost of fuel. 3. Because the City does not utilize an automatic fuel adjust!llent clause in its electric tariffs, this standard is not appropriate to adopt in Palo Alto. ,_ • \ f Office of tM c1v Clwk (4!5) l!9-H71 ~ of "81111ag _. UrbR OneJ.-t S.. rr.ct .. At-M Office ...... ~ c.t.w, S..ite 1600 S. FNMitcO, Ca11fonta M111 a.r Sir: • &el...-ta• twtttfM..,,. of leloltJCftn i.o. ~ •• .,_, lw' tlM '-le Al• cttr cwn • o.raw a, ltlO~ •tttltd: •RfSm.UTlOI Of 11fl COltlell Of -CITY OF M.O ALTO C'CIU.UOB ITS ASSlllPTl1ll Of ~JBIUn FOi .,,.._t Of 1111 •n.w MAKS AtT .-1111.ATID =. :n• Of -CIU~lA NMJ•ISTMTM CODE w-.-.. ¥1'!:UlfRa-lJ/I M.O ~19" s1 ..... 11. '" I " ;'-·'-"''