The URL can be used to link to this page

Home My WebLink AboutStaff Report 2311-2263Item No. 5. Page 1 of 13 2 7 5 6 Utilities Advisory Commission Staff Report From: Dean Batchelor, Director Utilities Lead Department: Utilities Meeting Date: December 6, 2023 Staff Report: 2311-2263 TITLE S/CAP Strategic Plan on the Reliability and Resiliency for the Electric Distribution Utility RECOMMENDATION Staff Recommends the Utilities Advisory Commission (UAC) Recommend the City Council Approve the Reliability and Resiliency Strategic Plan1 for the Electric Distribution Utility EXECUTIVE SUMMARY At the September 6, 2023 UAC meeting staff and the UAC discussed a work plan for development of a Reliability and Resiliency Strategic Plan (RRSP). The RRSP is a work item in the 2023-2025 Sustainability and Climate Action Plan (S/CAP) Work Plan. This work item was intended to address the need for a reliable, well maintained electric system with enhanced reliability to support an electrified community and a desire among some community members for ways to maintain some level of electric supply during outages, particularly with an electrified home. Staff has developed a Draft RRSP1 and has begun implementation of some items. This report provides an overview of the RRSP and a progress update from December 20232. Staff is requesting the UAC recommend the Council approve the RRSP. The six strategies of the RRSP are described in depth in the report, but are as follows: •Strategy 1: Replace and modernize electric distribution infrastructure •Strategy 2: Implement operational practices to improve reliability and manage outages effectively 1 Draft Strategic Plan for Reliability and Resiliency https://www.cityofpaloalto.org/files/assets/public/v/2/agendas- minutes-reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and- minutes-2023/12-dec-2023/new-folder/12-06-23-id-2307-1780-attachment-a-rrsp-draft-for-discussion-and- approval.pdf 2 RRSP Progress Update from December 2023 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and- minutes-2023/12-dec-2023/new-folder/12-06-23-id-2307-1780-attachment-b-rrsp-progress-update.pdf Item #5 Packet Pg. 124 Item No. 5. Page 2 of 13 2 7 5 6 •Strategy 3: Integrate and ease adoption of flexible and efficient technologies and strategies •Strategy 4: Evaluate the benefits of flexible and efficient technologies and strategies to the utility and community •Strategy 5: Evaluate utility-driven programs to promote adoption of flexible and efficient technologies and strategies •Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are chosen by the community BACKGROUND A core part of City of Palo Alto Utilities Department (CPAU) mission is to provide safe and reliable electric supply and distribution services. On-going activities to support this mission include proactive maintenance of the electric distribution system, replacement of aging distribution system components, procuring and delivering sufficient electric supplies to meet Palo Alto electric demands, and advocating for the upgrade and maintenance of a reliable bulk transmission grid in California. The focus of the RRSP is the electric distribution system reliability and resiliency. An overview of the distribution system description and topology3 is provided for context for the RRSP. CPAU along with Emergency Services has engaged with the community regularly to seek feedback on the role of the City to enhance the levels of resiliency service. Two public meetings were held in August 20184, and November 20195 to seek community input on a utility resiliency framework. The engagement resulted in the development of a vision, set of goals to enhance utility resiliency – these aspects were discussed with the UAC in March 20206, and has since been incorporated into the CPAU’s on-going work plans. Based on this public engagement, CPAU’s resiliency objective to advance the Utility to become a “Smart” Utility, able to assist the City prepare, respond, support, and rebound from manmade and natural disasters. Smart in this context was defined by the community to mean advanced 3 Description of Electric Distribution System Topology https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2023/12-dec-2023/new-folder/12-06- 23-id-2307-1780-attachment-c-description-of-electric-distribution-system-topology.pdf 4 UAC August 2018 Agenda https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes- 2018/final-uac-agenda-8-22-18-special-resiliency-workshop-agenda.pdf 5 Resiliency workshop#2: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes- 2019/11-06-19-meeting/final-uac-agenda-november-13-2019.pdf 6 Discussion of Resiliency Workshops: Follow-up and Next Steps https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2020/03-05-2020-special/item-no.-1- mini-packet-id-11074.pdf Item #5 Packet Pg. 125 Item No. 5. Page 3 of 13 2 7 5 6 grid technologies such as advanced meters, but also includes non-tech solutions (coordinate with neighborhood group and via other communication channels) and backup generation. On June 6, 2023 Council adopted the Sustainability and Climate Action Plan (S/CAP) and the 2023- 2025 S/CAP Work Plan, which included a work item to complete a Reliability and Resiliency Strategic Plan (RRSP) and policy guidelines to guide its development. This work item was intended to address the need for a reliable, modernized electric system with enhanced reliability to support an electrified community and a desire among some community members for ways to maintain some level of electric supply during outages, particularly with an electrified home. On September 6, 2023 staff presented the Utilities Advisory Commission staff’s approach for developing the RRSP7. This report presents the RRSP for the UAC’s consideration and recommendation for approval by the City Council. The RRSP lays out six strategies to address the issues noted above, several of which are being implemented on an on-going basis while others require further analysis and resources for implementation of projects. DISCUSSION The RRSP encompasses actions related to maintaining and upgrading many of the electric distribution system elements as described in the RRSP Electric Distribution System Topology8, to meet higher electrical energy demands, enable customer deployment of new technologies to lower cost and increase resiliency, and to efficiently utilize electrical service and the distribution grid. The six strategies for the RRSP are: •Strategy 1: Replace and modernize electric distribution infrastructure •Strategy 2: Implement operational practices to improve reliability and manage outages effectively •Strategy 3: Integrate and ease adoption of flexible and efficient technologies and strategies •Strategy 4: Evaluate the benefits of flexible and efficient technologies and strategies to the utility and community •Strategy 5: Evaluate utility-driven programs to promote adoption of flexible and efficient technologies and strategies •Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are chosen by the community 7 Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas- minutes/utilities-advisory-commission/linking-documents/09062023-id-208-1934-uac.pdf 8 RRSP Electric Distribution System Topology https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and- minutes-2023/12-dec-2023/new-folder/12-06-23-id-2307-1780-attachment-c-description-of-electric-distribution- system-topology.pdf Item #5 Packet Pg. 126 Item No. 5. Page 4 of 13 2 7 5 6 These strategies are outlined below and describe the steps CPAU is currently taking and plans to take to maintain and enhance the electric distribution system reliability and resiliency. Strategy 1: Replace and modernize electric distribution infrastructure To avoid outages the utility must replace aging infrastructure, upgrade the electric system’s capacity to ensure it can accommodate new technologies and electrification measures into the distribution system, and increase the interconnectedness of the system, both internally and with the PG&E transmission system. Infrastructure investment to reduce wildfire risk will also reduce outages. Actions in this area would be coordinated with the Fiber to the Premises project and wildfire mitigation plan. The RRSP actions for this strategy are as follows: 1.1 Replace aging infrastructure 1.2 Upgrade capacity to accommodate new loads 1.3 Improve switching to improve system flexibility, efficiency, and reliability 1.4 Identify and construct second transmission connection 1.5 Underground distribution system in Foothills area The electric utility’s grid modernization effort, expected to be completed by 2030, will accomplish actions 1.1, ,1.2, and 1.3. The utility will replace much of this infrastructure over a seven-year grid modernization effort while simultaneously addressing the need to increase capacity to meet new and increasing customer loads. A coordinated, planned investment to address new capacity is needed to avoid operational issues caused by new load installed without permits, and to ensure the utility can keep up with utility service upgrade applications for new load additions. The grid modernization project will also include additional distribution feeder circuit ties and switches so that in the event of a fault or an overload of substation transformer, a neighborhood could be served by switching to a second feeder. This will also allow flexibility in configuring the distribution system for efficiency, reducing system losses, and enable improved integration of new solar and storage on the system. An additional benefit is that planned upgrades to 12 kV distribution voltages (from 4 kV, currently) in several neighborhoods will reduce energy losses on the distribution system. CPAU continues to work with the CAISO and PG&E to connect to the transmission grid via a second transmission line to eliminate potential service disruptions made more likely by the fact that the City is currently served via a single transmission corridor. In addition, wildfire risk in the foothills creates the potential for outages during windy high fire risk days if the utility needs to shut off service to avoid the risk of electric lines being blown into trees and starting wildfires. The utility is undergrounding lines in the Foothills to minimize this risk. Strategy 1 Progress To-Date and Next Steps The City’s grid modernization project is underway, based on an electric engineering study which identified upgrades throughout the distribution system, including line transformer capacity, feeder capacity, increasing the number of switches and connections on the system between Item #5 Packet Pg. 127 Item No. 5. Page 5 of 13 2 7 5 6 feeders and substations, and upgrading substation equipment. The program has the following timeline: •Upgrade transformer and feeder capacity in the overhead sections of the system (which represent over 90% of single-family neighborhoods) by the end of 2027. •Upgrade underground sections by 2030. •Add switches, connections, and upgrade substations by 2030. Construction on the first modernization project is starting in Q1 2024 in a 1200-home neighborhood bounded by Louis, Amarillo, 101, and Embarcadero, followed by additional neighborhoods. The modernization projects will be coordinated with fiber to the premise construction. Staff, with assistance from a consultant, continues to work with the CAISO and PG&E to build a second transmission line to the Adobe Creek Substation, from Moffett field, but no definitive progress has been made to date. A key wildfire mitigation activity is undergrounding eleven miles of electric lines in the Foothills area. This project involves installing substructure work, including boxes for electric and fiber lines; removing electric lines and fiber lines from poles; and installing pad-mount equipment where possible. This iterative project consists of multiple phases and is expected to be complete in 2025. CPAU already installed two of four required substructures and is designing the next two. The first two phases were completed in September of 2023. Strategy 2: Implement operational practices to improve reliability and manage outages effectively This strategy involves minimizing the number of outages by reducing operational risks that lead to outages. If key staff positions are not filled it becomes difficult to keep up with investment and maintenance, to operate the system, or to recover from outages. Without active and effective tree trimming, the risk of outages related to wildfires increases. Communication during outages is also critical to help residents understand what is happening and take what steps are needed for their health, safety, and comfort. The RRSP actions for this strategy are as follows: 2.1 Strengthen the workforce 2.2 Employ best maintenance practices for wildfire protection 2.3 Communicate effectively during outages Strategy 2 Progress To-Date and Next Steps Concerted efforts are currently underway to recruit, train, and retain line-workers, system operators, engineers, inspectors to maintain system and respond to outages effectively. Staff have also contracted with third-party contractors to supplement staff to undertake emergency response, maintenance, and capital improvement projects. Staff regularly updates its Wildfire Mitigation Protection Plan to protect power lines in the Foothills, and staff is exploring innovative Item #5 Packet Pg. 128 Item No. 5. Page 6 of 13 2 7 5 6 software to make vegetation management more efficient. In September 2023 CPAU implemented and operationalize a new Outage Management System (OMS). The new OMS will also allow CPAU to more quickly detect and respond to power outages and provide customers with timely notifications and updates. Strategy 3: Integrate and ease adoption of flexible and efficient technologies and strategies Many technologies being added to the electric system are capable of charging and discharging, generating electricity, or flexing their electric use by time of day. Technologies include rooftop solar, home batteries, vehicle to home and vehicle to grid systems, grid-responsive home equipment and smart EV charging, and smart electrical panels and circuit sharing devices at home, etc. These technologies can also create challenges for the distribution system at high penetrations, resulting in voltage issue, reverse current flows resulting in failures in system protection, or other issues because the system is not designed for them. But they can also create benefits when used well, reducing the cost of electricity, reducing emissions, reducing strain on the local distribution system, reduce the need for electrical panel upgrades by customers, and creating home resiliency. Effective integration will make the system operate more efficiently, especially when paired with best practices for installing and operating them. And these technologies can be even more effective when paired with efficient electrification practices like circuit sharing, installing lower-voltage EV chargers and heat pumps, and improving building efficiency to enable heat pumps to be sized smaller. The RRSP actions for this strategy are as follows: 3.1 Configure the distribution system to accommodate high penetrations of solar, batteries, and other technologies 3.2 Review, communicate, and streamline permitting and other regulatory rules for efficient electrification strategies9 3.3 Communicate how to electrify efficiently 3.4 Communicate how to use technologies in a grid-friendly way These actions remove barriers to installation of these types of technologies and electrification strategies. The study and design of the grid modification project includes accommodation of high penetration of solar, storage, vehicle to grid, and other technologies and enabling of these systems to be installed more easily, with fewer utility engineering studies needed. Ensuring they are accommodated easily and routinely by the City’s permitting system is also important. In parallel with these barrier reduction efforts staff will develop communications and outreach to promote these technologies and explain how to use them in a grid-friendly way (e.g. setting EV chargers, batteries, and other flexible loads to charge or operate outside evening hours, especially mid-day, and to discharge in the evenings). As advanced metering infrastructure (AMI) is installed and time of use rates become viable, these rates will enhance this communication. 9 RRPS Efficient Electrification Strategies https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes- 2023/12-dec-2023/new-folder/12-06-23-id-2307-1780-attachment-d-efficient-electrification-strategies.pdf Item #5 Packet Pg. 129 Item No. 5. Page 7 of 13 2 7 5 6 Strategy 3 Progress To-Date and Next Steps Staff has completed two studies on high penetration of solar and storage. These studies identified the risk of feeder and transformer capacity issues, voltage problems, and system protection issues that could result from high penetrations of solar and storage, particularly under “reverse flow” conditions (when power is flowing in the opposite direction than the system is designed for). Solutions involve upgrading the distribution system to operate under reverse flow conditions, including: •upgrading up to 15 feeders and 10 substation transformers, •installing equipment capable of maintaining voltage and under reverse flow, •installing system protection (breakers, relays) capable of operating under reverse flow, •changing system operating practices where needed •transferring loads among feeders to balance loads on the substation transformers •Exploring “smart” (microprocessor-based) controls for voltage regulation, protection, and automatic switching Staff believes that these upgrades will also enable higher penetrations of vehicle to grid technologies and other flexible loads, but is currently studying this to confirm. As noted above, staff is continuing its studies on integrating flexible technologies with the distribution system. Staff has begun cross-department discussions with City permitting departments to ensure there is clarity on how these technologies are treated under the City’s permit processes. There has already been a fair amount of attention on solar and storage permitting to-date, but staff is expanding the discussion to include technologies like smart vehicle charging, smart panels, and efficient electrification strategies involving circuit pausers and lower- voltage equipment. When this step is completed staff will develop resources and outreach to help and encourage residents to employ these strategies and install this equipment, including instructions on how to best use the equipment to reduce emissions, costs, and minimize distribution system impacts. Staff is aiming to complete these steps by March 2024, but competing priorities and staff constraints may slow progress. Development of time of use rates is in progress through the City’s electric cost of service study, which staff is aiming to complete for Council adoption in June 2024. The transition to time of use rates is dependent in part on the rollout of the City’s AMI system. Strategy 4: Evaluate the benefits of flexible and efficient technologies and strategies to the utility and community These resiliency-enhancing and utility demand responsive new technologies are in different stages of adoption and commercialization. Operationalizing these distributed technologies for the benefit of the grid also takes considerable resources for a small utility like CPAU, and having a framework for valuing the benefits to the utility and community is important. This strategy will examine various benefits of adopting these technologies to the utility, the individual customer, and the community. Based on this analysis, Strategy 5 will develop different program options for community/Council consideration. Item #5 Packet Pg. 130 Item No. 5. Page 8 of 13 2 7 5 6 The RRSP actions for this strategy are as follows: 4.1 Determine the utility value of new technologies and impact to electric supply costs 4.2 Explore the utility value of new technologies on electric distribution costs and capacity 4.3 Explore estimating the value of resiliency for the community 4.4 Estimate the cost of individual customer community resiliency approaches Staff already has some experience valuing the benefits of solar, storage, and other flexible technologies to the electric utility’s supply costs and plans to hire a consultant to complete this evaluation. These technologies could also potentially yield benefits to the distribution system. The utility may be able to reduce the amount of new capacity needed to accommodate electrified buildings and vehicles or use existing capacity more efficiently to allow for more electrification in areas of the distribution system even before they are upgraded via the grid modernization project. Valuing these benefits is far more complex than valuing the benefits to the utility’s supply costs. Lastly, staff will explore how to quantify the value of having backup power to various segments of the community. This analysis is also complex since different individuals, businesses, nonprofits, and government agencies will value resiliency differently. One way to approach this analysis is to assess the average cost of the most common technologies available to these customers right now to provide resiliency. Strategy 4 Progress To-Date and Next Steps Staff has done several analyses of the value of energy storage to the community over the last decade, with the most recent being in 2020. These analyses have primarily focused on the value to the electric utility’s supply costs, though some analyses have included customer benefits as well, including resiliency benefits. Staff is developing a Request for Proposals (RFP) to hire a consultant to update these analyses. This consultant will likely focus on valuing the electric supply costs, the resiliency benefits, and the cost to customers of achieving resiliency during outages through commonly available strategies and technologies such as: 1.Emergency preparation 2.Generators (diesel, propane, natural gas) 3.Solar with backup power inverter 4.Battery storage system without solar 5.Solar + storage 6.Vehicle to load 7. Vehicle to home (with / without solar) Valuing the benefits to the distribution system is more complex and will likely require a different approach since it requires much more in-depth modeling of the electric distribution system. This will be an intensive exercise, not something that can be achieved in-house with existing staffing without impacting the grid modernization project. Staff is in discussion with its electric engineering consultants on how to approach the analysis and is also exploring academic partnerships on the topic. Item #5 Packet Pg. 131 Item No. 5. Page 9 of 13 2 7 5 6 Cost for implementing these resiliency solutions at various locations will also be explored. Locations include single-family homes, multiple family homes, homes of vulnerable residents, partnerships with major commercial facilities (e.g. VMware), community centers (e.g. libraries, fire stations), neighborhood and substation level, etc. Strategy 5: Evaluate utility-driven programs to promote adoption of flexible and efficient technologies and strategies Based on the cost and value of various demand reduction and resiliency solutions investigated in Strategy 4, staff and its consultants will develop outlines of potential CPAU programs for the community and associated resources needs for such programs. The goal of this strategy is to characterize and estimate resource needs for the potential program approaches described below and to provide policy options for Council’s consideration and for the allocation of appropriate resources. The RRSP actions for this strategy are as follows: 5.1 Evaluate utility-driven programs to enhance resiliency and lower the demand on the grid 5.2 Evaluate equity-based and need-based versions of the programs 5.3 Evaluate community-based versions of the programs 5.4 Evaluate other resiliency approaches These four actions involve doing a high-level review of potential strategies for utility-driven programs that could enhance resiliency and reduce grid impacts in a variety of contexts. Implementing any of these programs would be an expansion of the utility’s role in providing resiliency. To-date, utility customers with the need for a higher level of reliability and resiliency than the utility provides have made their own arrangement for generators or other backup systems. Pursuing any of the programs listed below would involve expanding the utility’s role, which would require resources. The resource need would depend on how time-intensive and costly the program is. Outreach, education, and providing resources would be the least time- intensive and costly, while utility programs to facilitate installation of flexible technologies, direct utility control of these technologies, or neighborhood microgrids would require the most effort and cost. Under these four actions staff would evaluate possible utility programs to help community members install grid-responsive equipment, solar, storage, and vehicle to home or vehicle to grid solutions. This could involve strategies like incentives, technical assistance, expansion of the current Clean Energy Accessible Now (CLEAN) program tariff, direct installation through a utility program, or a public-private partnership with a flexible load aggregator. Types of locations to investigate would include single-family homes, multi-family buildings, and partnerships with major facility owners. These programs would then be reviewed to determine what features might be needed to enable them to serve lower-income customers or customers with medical needs. Versions of the programs specifically focused on providing community benefits, such as through installations at community centers or partnerships with major facilities that could provide both Item #5 Packet Pg. 132 Item No. 5. Page 10 of 13 2 7 5 6 private and community benefits. And lastly, other strategies like mobile battery storage and neighborhood microgrids would be evaluated. To be clear, these evaluations would not result in actionable programs that could be adopted. They would only do a high-level preliminary review of the pros and cons of specific strategies and identify the resources needed to do a more complete evaluation. This would support Council policy discussions on which of the strategies to devote resources to investigating further. New staff and budget resources would almost certainly be required. Strategy 5 Progress To-Date and Next Steps As noted under strategy 4, staff is currently preparing a request for proposals (RFP) for a consultant to help with implementation of RRSP strategies 4 and 5. The consultant would perform the valuation analyses outlined in Strategy 4 and review a City-provided list of potential utility- driven approaches to expand the use of flexible technologies in Palo Alto to decrease supply costs, carbon emissions, and distribution system costs while enhancing community resiliency. A draft list of program features, technologies, and locations is in RRSP Strategy 5, Action 1: Evaluate possible utility programs to help community members install grid-responsive equipment, solar, storage, and/or vehicle to home or vehicle to grid solutions. Program approaches could include, but are not limited to, incentives, technical assistance, power purchase agreements or feed-in tariffs, direct installation and possibly ownership of equipment, or public-private partnerships with an aggregator. Types of locations to investigate include single-family homes, multi-family buildings, at small and medium businesses, or in larger commercial facilities in Palo Alto. In addition, Strategy 5, Actions 2 and 3 are to evaluate how the program ideas developed under Action 1 need to be adjusted to address the needs of low-income residents, residents with medical needs, or how they could be tailored to provide community-wide benefits via installation at community facilities or via public-private partnerships. Lastly, staff intends to address mobile battery storage and neighborhood or substation level microgrids as noted in Action 4. Staff is seeking UAC feedback on whether the technologies, program approaches, and locations that are listed in Actions 1-4 address the range of potential utility programs the community expects to see in this analysis. This list will form part of the basis for the RFP and consultant contract scope. Automated demand response programs to reduce electric utility supply costs may be easier to implement than other utility programs, since they are more commercialized. For example, staff is currently evaluating an electric vehicle telematics-based smart charging demand response program that may be able to lower the impact of EV charging on statewide peak demands and reduce utility supply costs. Staff has determined the cost and resources required to implement such a program in Palo Alto outweighs the value of such a customer program at this time. Staff is monitoring the implementation of such programs at other utilities and may revisit merits of this program in the 2025-26 timeline, after the implementation of advanced electric meters. Item #5 Packet Pg. 133 Item No. 5. Page 11 of 13 2 7 5 6 Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are chosen by the community Specific actions under this strategy would depend on the outcomes of the policy discussions following the studies completed for Strategies 4 and 5. Implementation of any programs would likely require additional staffing and budget resources. FISCAL/RESOURCE IMPACT Strategy 1: Replace and modernize electric distribution infrastructure: Implementation of this strategy has already been budgeted as CIP for Grid Modernization. Cost is estimated at $200 to $300 million and would require 5 to 8 FTE staff over the seven-year period. This estimate includes replacement of aging infrastructure and to increase capacity of the system to accommodate additional loads projected as a result of electrification. The cost of the second transmission line has not been estimated. Strategy 2: Implement operational practices to improve reliability and manage outages effectively: The new utility outage management system became operational in September 2023 and the system costed $630,000, including five years of annual maintenance. Ongoing 0.25 FTE of staffing effort would be required to maintain the system. Other activities under this strategy are operationalized and would not require any additional resources. Strategy 3: Integrate and ease adoption of flexible and efficient technologies and strategies: This effort is estimated to cost $30,000 to $50,000 for consulting assistance and 0.25 FTE of staff effort. This amount would solely cover analysis and not any subsequent implementation. Strategy 4 & 5: Evaluate the benefits of flexible and efficient technologies and strategies to the utility and community and Evaluate utility-driven programs to promote adoption of flexible and efficient technologies and strategies: The plan to retain a consultant to assist with this analysis effort and is estimated to cost $70,000 to $120,000, and will require 0.25 FTE of existing staff effort to complete the analysis and bring forth potential customer programs for community consideration. In addition, more consulting work or academic partnerships may be needed at additional cost and staff time to value the distribution benefits of flexible and efficient technologies and strategies (Task 4.2). Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are chosen by the community for implementation: The effort and cost associated with this strategy is unknown at this time. STAKEHOLDER ENGAGEMENT Extensive public engagement on this topic was undertaken to-date as outlined below: •Two public meetings in August 2018 and November 2019 to seek community input on utility resiliency framework. The engagement resulted in the development of a vision, set of goals Item #5 Packet Pg. 134 Item No. 5. Page 12 of 13 2 7 5 6 and nine projects to enhance utility resiliency – these aspects were discussed with the UAC in March 2020, and has since been incorporated into the CPAU’s on-going work plans. •Discussion of these topics with the S/CAP Working Group 2022-23 •Addition of topic to 2023-2025 S/CAP Work Plan, which was discussed with S/CAP Working Group and S/CAP Committee, then adopted by Council June 6, 2023 (Report #:2303-1158)10 •Discussions with the UAC on a variety of reliability and resiliency topics over the past three years, 2021-23: OMS updates, Wildfire Mitigation Plan, Workforce, etc. •Analysis of the Impact of Decarbonization on the Resiliency of Single Family Homes in Palo Alto11 was presented to the UAC November 2021 •Analysis of Costs and Reliability of Different Back-up Electricity Technologies12 presented to the UAC in December 2022. •Strategic Plan discussions w/ UAC (which include resiliency topics) •Electric Distribution Infrastructure Modernization Update13 provided to the UAC in June 2023 •Discussion of Reliability and Resiliency Strategic Plan Policy Guidelines14 with the UAC in September 2023 Progress in implementing the RRSP will be reported to the UAC periodically as progress is made in implementing projects contemplated under the plan. ENVIRONMENTAL REVIEW Development of a Reliability and Resiliency Strategic Plan is exempt from the California Environmental Quality Act (CEQA) because it can be seen with certainty that completing a study will not result in any environmental impacts. Implementation of individual programs/installations chosen by the community in Strategy 6 that may need CEQA evaluation. ATTACHMENTS 10 Staff Report2303-1158: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/utilities-advisory-commission/reference-files/060523-id-2303-1158.pdf 11 Impact of Decarbonization on the Resiliency of Single Family Homes in Palo Alto: https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/11-03-2021-regular/id-13608.pdf 12 Costs and Reliability of Different Back-up Electricity Technologies: https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/12-07-2022/12-07-2022-agenda- and-packet.pdf 13 Electric Distribution Infrastructure Modernization Update: https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/reference-files/electrification-modernrization-plan-6-7-2023.pdf 14 Discussion of Reliability and Resiliency Strategic Plan Policy Guidelines: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2023/09-sep-2023/09-06-2023-uac- packet.pdf Item #5 Packet Pg. 135 Item No. 5. Page 13 of 13 2 7 5 6 Attachment A: Presentation AUTHOR/TITLE: Dean Batchelor, Director of Utilities Staff: Jonathan Abendschein, Assistant Director of Utilities/Resource Management Item #5 Packet Pg. 136 December 6, 2023 www.cityofpaloalto.org Reliability and Resiliency Strategic Plan Adoption Utilities Advisory Commission .CITY OF . PALO ALTO Item #5 Packet Pg. 137 1 Background •2022 Discussions w/ S/CAP Committee and Working Group •Highlighted need for modernizing grid, enhancing capacity, reliability •Council Adoption of 2023-2025 S/CAP Work Plan (June 6, 2023) •Adopted with S/CAP on June 6, 2023 •Included Reliability and Resiliency Strategic Plan •Guidelines for plan development included in Appendix D •September 6, 2023 UAC Discussion •General support for the approach •Feedback on how to improve task framing •Feedback on how to incorporate resiliency in the plan ~-,,,,~ I~ ~ ,.,, • 'I; ~ ~ ~l i ~ . z ~ ~s ~ , ,. . ,:::, ~ " .::::::; '''f .::5:::: ':S:::.'''' ·:::::;;;; .: -,::: -- ~CITY OF ~PALO ALTO Item #5 Packet Pg. 138 1 Proposed Reliability & Resiliency Strategic Plan •Strategy 1: Replace and modernize electric distribution infrastructure •Strategy 2: Implement operational practices to improve reliability and manage outages effectively •Strategy 3: Integrate and ease adoption of flexible and efficient technologies and strategies •Strategy 4: Evaluate the benefits of flexible and efficient technologies and strategies to the utility and community •Strategy 5: Evaluate the resource needs for various demand reduction and resiliency programs •Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are chosen by the community ~~j ~ ~~;:-'.: ~ , .. ~ '#; ~ ~ ~l i . ~ ~ •s -- ~CITY OF ~PALO ALTO Item #5 Packet Pg. 139 1 Achievements To-Date •Grid modernization construction starting Q1 2024 (Task 1) •Increase capacity, reliability, efficiency •Replace aging infrastructure •Developed plan for solar and storage integration (Task 1) •Made progress on recruitment and retention (Task 2) •Developed/implemented Foothills wildfire strategies (Task 2) •Installed new outage management system (Task 2) ~CITY OF ~PALO ALTO Item #5 Packet Pg. 140 1 Implementation Activities In Progress •Ongoing efforts related to Tasks 1 and 2 –grid modernization, recruitment and retention, wildfire management, etc. •Reviewing efficient electrification and flexible technologies against permit / interconnection processes (Task 3) •Developing efficient electrification outreach program and exploring efficient electrification technical assistance (Task 3) •Getting partnerships in place to analyze the impact of flexible load management on grid capacity (Task 4.2) •Establishing consulting contract to evaluate cost/benefit and resource needs of potential resiliency programs (Tasks 4 and 5) ~CITY OF ~PALO ALTO Item #5 Packet Pg. 141 1 Recommendation Staff Recommends the Utilities Advisory Commission Recommend the City Council Approve the Reliability and Resiliency Strategic Plan for the Electric Distribution Utility .. lt1 :, ,,,, I ~, .II. I;,: ' ~ I,. . ;, , .• ~ 1, , . '' '• I/ • r~ ~ . I~•• ~ ~ ~ / ~~ ~►~ ~ s Ii: ~~ ~~~· ~ •s .. ~: -~~ , I. ~ -·~a." ~ ~ - ~, :::- fl ◄ ~ ~1 ' l . ill\~\ --~ '~ ~ ~ I/ -·-,-- ~1,,(Jil ' , ' ~- ~CITY OF ~PALO ALTO Item #5 Packet Pg. 142 Jonathan Abendschein Assistant Director of Utilities/ Resource Management jon.abendschein@cityofpaloalto.org (650) 329-2309 CI TY OF PALO ALTO Item #5 Packet Pg. 143