HomeMy WebLinkAboutStaff Report 13923City of Palo Alto (ID # 13923)
Utilities Advisory Commission Staff Report
Meeting Date: 2/2/2022
City of Palo Alto Page 1
Title: Discussion and Presentation on the Electric Distribution Infrastructure
Modernization for S/CAP
From: Director of Utilities
Lead Department: Utilities
Recommended
This is for discussion purposes and no action is requested.
Background
The Utilities Advisory Commission requested an update on the status of the electric
distribution and how staff is working with the S/CAP process.
Attachments:
•Attachment A: Presentation
Staff: Tomm Marshall
CITY OF
PALO
ALTO
Electric Distribution Infrastructure Modernization for S/CAP
February 02, 2022 www.cityofpaloalto.org
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Existing Infrastructure
•Reaching the end of its useful life.
•Insufficient capacity for electrification of EV transportation
and electrical heating.
•System was designed for one-way power flow.
•Limits the energy from rooftop solar, battery storage, and
other local generation.
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Future Grid Attributes
•Allows two way power flow.
•Meets capacity, voltage regulation, and system protection
requirements.
•Incorporates local generation sources.
•Provides higher levels of reliability and resiliency.
•Changes funding for the grid away from an energy
consumption model.
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Option 1 for Transitioning to a Modern Grid
Upgrade the system as load and generation emerges.
Pros
•Promotion of electrification and Distributed Energy Resources can begin now.
Cons
•Insufficient staff to review, design, and construct system upgrades.
•Inefficient construction of upgrades.
•Inability to support marketing efforts.
•Long delays for the customer.
•Delays in reaching climate goals.
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Option 2 for Transitioning to a Modern Grid
Upgrade the System in Advance
Pros
•Creates an organized plan to upgrade the grid.
•Allows time to recruit and train staff to manage the grid upgrades.
•Strengthens the system to accept electrification and generation sources onto the grid.
•Improves reliability and resiliency of the grid.
•Allows citywide goals to be reached in the most timely and cost effective way.
•Continues to support the natural progression towards electrification, solar rooftop, and
other generation.
Cons
•3-4 years before promotional activities can begin.
•Customers may experience near-term delays in their upgrades.
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Steps for Modernization
•Prepare a general study by a contract consultant to determine
universal changes needed to modernize the grid.
•Analyze and prioritize feeders and substations requiring upgrades.
•Establish contracts to design and build improvements for each circuit
and associated substation.
•Establish marketing plans for electrification that are targeted toward
modernized circuits.
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Staffing Needs for Grid Modernization
Engineering and Operations Staffing
•Insufficient staffing to manage existing programs due to on-going
vacancies.
•No staffing to manage Grid Modernization program and contracting.
•Need to attract and retain qualified personnel for positions.
•Compensation needs to be set at levels higher than surrounding
agencies.
•Incentives need to be developed to retain existing staffing.
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Other Needs for Grid Modernization
Streamlined Contracting
•Reduce timelines for developing, bidding, and awarding of contracts.
•Approval limits for SCAP should be changed to allow the City Manager to approve larger
contracts.
Governance
•Consideration should be given to setting up a separate governance structure to advance
SCAP goals.
•Current structure does not integrate policy with infrastructure needs.
•Electrification, Solar, Battery Storage, and Microgrid integration should be a program
managed in the Utilities Department.
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