Loading...
HomeMy WebLinkAboutRESO 10089 6056681C 1 Reference Document: Utility Rate Schedule E-HRA Resolution No. 10089 Resolution of the Council of the City of Palo Alto Amending Electric Rate Schedule E-HRA (Electric Hydro Rate Adjuster), Increasing the Current E-HRA Rate to $0.048/kWh Effective January 1, 2023 R E C I T A L S A. Hydroelectric Rate Adjustment mechanisms are designed to modify customer rates, either up or down, such that overall sales revenue is aligned with supply costs for the electric utility. B. Hydroelectric Rate Adjustment mechanisms are intended to enable the electric utility to maintain a reasonably stable level of financial reserves, and maintain base electric rates at lower levels over the long term. C. In 2018, staff developed the E-HRA rate mechanism utilizing a 20-year simulation model, estimating reserve needs under periods of both above average hydro generation as well as periods of extended drought. The original model inputs have changed since then, with multi-year drought conditions, rising inflation, increased market costs for alternative fuels, and uncertainty in natural gas markets greatly increasing the market costs for electricity. The existing E-HRA rate is no longer collecting enough revenue to adequately offset required market purchases. D. Section D(2)(a) of the Council-adopted E-HRA Rate Schedule directs staff to calculate the Hydro Rate Adjustment annually in May. E-HRA activation may also occur at other times throughout the year, such as when hydrologic conditions are poor and Hydroelectric Stabilization Reserve levels are projected to fall below the 25% level within the current fiscal year. E. On November 2, 2022, staff recommended and the Utilities Advisory Commission approved increasing the E-HRA from $0.013/kWh to $0.026/kWh (ID# 14837). F. Further increases to electric purchase costs from staff’s September projections prompted staff to revise their recommendation to the Finance Committee at its November 29, 2022 meeting (ID #14975). There, staff offered 2 alternatives intended to keep the Electric Supply Operations Reserve (E-SOR) above minimum guideline levels at the end of FY 2023: Alternative #1 increased the E-HRA surcharge to $0.048/kWh and Alternative #2 increased the E-HRA surcharge to $0.050/kWh. G. The Finance Committee unanimously approved recommending Alternative #1 to the City Council. DocuSign Envelope ID: 2280158A-325B-4368-A45D-A8C27FB67BDC 6056681C 2 Reference Document: Utility Rate Schedule E-HRA H. 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 hereby RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-HRA (Electric Hydro Rate Adjuster) is added as attached and incorporated. Utility Rate Schedule E-HRA, as amended, shall become effective January 1, 2023. SECTION 2. As a result, on January 1, 2023 the $0.013/kWh E-HRA rate activated by Council on March 14, 2022, and effective April 1, 2022, will increase to $0.048/kWh. SECTION 3. 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 4. 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. // // // // // // // // // // // DocuSign Envelope ID: 2280158A-325B-4368-A45D-A8C27FB67BDC 6056681C 3 Reference Document: Utility Rate Schedule E-HRA SECTION 5. The Council finds that the adoption of this resolution changing electric 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 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: December 19, 2022 AYES: BURT, CORMACK, DUBOIS, FILSETH, KOU, STONE NOES: TANAKA ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services DocuSign Envelope ID: 2280158A-325B-4368-A45D-A8C27FB67BDC ELECTRIC HYDRO RATE ADJUSTER UTILITY RATE SCHEDULE E-HRA CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EHRA-1 Sheet No E-HRA-1 dated 47-1-20221 Effective 14-1-20232 A. APPLICABILITY: This schedule applies to all Customers receiving Electric Service from the City of Palo Alto Utilities. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Electric Service. C. RATES: Per kWh Hydro Rate Adjustment: ...............................................................................($0.06618) - $0.04813 D. SPECIAL NOTES: 1. Hydro Rate Adjustment a. The Hydro Rate Adjustment is a surcharge or discount applied to Electric rates based on the strength of the City’s hydrological generation portfolio, applied to manage volatility in energy costs and generation and the impact of that volatility on customer rates. b. The Hydro Rate Adjustment is determined based on the level of funding in the Hydro Stabilization Reserve, including transfers or withdrawals projected to be made in the current fiscal year according to the City’s Electric Utility Reserve Management Practices, and on the forecasted amount of annual generation the City of Palo Alto Utilities will receive from its hydroelectric generation resources through the end of the current fiscal year. 2. Calculation of Hydro Rate Adjustment a) Staff calculates the Hydro Rate Adjustment surcharge or discount annually in May, or whenever hydrologic conditions are poor and Hydro Stabilization Reserves are projected to fall below the 25% level within the current fiscal year. b) The Hydro Rate Adjustment will be applied to all Customers’ Electric rate schedules upon Council approval, and re-evaluated annually. c) The Hydro Rate Adjustment surcharge or discount will fall within the minimum/maximum range set forth in Section C, and will be applied as follows: DocuSign Envelope ID: 2280158A-325B-4368-A45D-A8C27FB67BDC ELECTRIC HYDRO RATE ADJUSTER UTILITY RATE SCHEDULE E-HRA CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EHRA-2 Sheet No E-HRA-2 dated 47-1-20221 Effective 14-1-20232 Hydro Rate Adjustment ($/kWh) Hydro Stabilization Reserve Level Projected Hydro Generation vs. Average Hydro Generation (GWh/year) Less than 319 319 to 480 480 to 642 Over 642 Above Maximum $- $(0.024065) $(0.024065) $(0.06618) 75% to 100% $- $- $(0.024065) $(0.04813) 25% to 75% $- $- $- $- 25% and below $0.04813 $0.024065 $- $- {End} DocuSign Envelope ID: 2280158A-325B-4368-A45D-A8C27FB67BDC Certificate Of Completion Envelope Id: 2280158A325B4368A45DA8C27FB67BDC Status: Completed Subject: DocuSign: Resolution 10089 Source Envelope: Document Pages: 5 Signatures: 6 Envelope Originator: Certificate Pages: 5 Initials: 0 Vinhloc Nguyen AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Vinhloc.Nguyen@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 12/21/2022 8:34:07 AM Holder: Vinhloc Nguyen Vinhloc.Nguyen@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Amy Bartell Amy.Bartell@CityofPaloAlto.org Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/21/2022 8:36:12 AM Viewed: 12/21/2022 8:42:14 AM Signed: 12/21/2022 8:42:35 AM Electronic Record and Signature Disclosure: Accepted: 7/16/2015 5:52:40 AM ID: d8ecb53d-ef81-4016-8886-1560c48de42a Kiely Nose Kiely.Nose@CityofPaloAlto.org Director, Administrative Services/CFO City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 73.162.77.140 Sent: 12/21/2022 8:42:37 AM Viewed: 12/27/2022 5:19:11 PM Signed: 12/27/2022 5:20:11 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Dean Batchelor Dean.Batchelor@CityofPaloAlto.org Director of Utilities City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/27/2022 5:20:13 PM Viewed: 12/28/2022 8:40:47 AM Signed: 12/28/2022 8:41:05 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/28/2022 8:41:08 AM Viewed: 12/28/2022 8:51:31 AM Signed: 12/28/2022 8:51:36 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Patrick Burt pat@patburt.org Mr Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 98.37.159.0 Sent: 12/28/2022 8:51:38 AM Viewed: 12/29/2022 6:08:35 PM Signed: 12/29/2022 6:08:57 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lesley Milton Lesley.Milton@CityofPaloAlto.org City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 73.223.74.76 Signed using mobile Sent: 12/29/2022 6:09:00 PM Viewed: 12/30/2022 8:50:22 AM Signed: 12/30/2022 8:50:31 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/21/2022 8:36:12 AM Certified Delivered Security Checked 12/30/2022 8:50:22 AM Signing Complete Security Checked 12/30/2022 8:50:31 AM Completed Security Checked 12/30/2022 8:50:31 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 10/1/2013 8:33:53 AM Parties agreed to: Amy Bartell How to contact City of Palo Alto: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: david.ramberg@cityofpaloalto.org To advise City of Palo Alto of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at david.ramberg@cityofpaloalto.org and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Palo Alto To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to david.ramberg@cityofpaloalto.org and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Palo Alto To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to david.ramberg@cityofpaloalto.org and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC CONSUMER DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Palo Alto as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Palo Alto during the course of my relationship with you.