HomeMy WebLinkAboutRESO 101786056815
Utility Electric Rate Schedules
FY25 Electric Financial Plan
1
Resolution No. 10178
Resolution of the Council of the City of Palo Alto Approving the Fiscal
Year 2025 Electric Utility Financial Plan and Accepting the 2024 City of Palo
Alto Electric Cost of Service and Rate Study, and Amending Utility Rate
Schedules E-1 (Residential Electric Service), E-2 (Residential Master-Metered
and Small Non-Residential Electric Service), E-2-G (Residential Master-
Metered and Small Non-Residential Green Power Electric Service), E-4
(Medium Non-Residential Electric Service), E-4-G (Medium Non-Residential
Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of
Use Electric Service), E-7 (Large Non-Residential Electric Service), E-7-G
(Large Non- Residential Green Power Electric Service), E-7 TOU (Large Non-
Residential Time of Use Electric Service), E-14 (Street Lights), E-NSE (Net Surplus
Electricity Compensation Rate), and E-EEC (Export Electricity Compensation)
R E C I T A L S
A.Each year the City of Palo Alto (“City”) regularly assesses the financial position of its
utilities with the goal of ensuring adequate revenue to fund operations. This includes making
long-term projections of market conditions, the physical condition of the system, and other
factors that could affect utility costs, and setting rates adequate to recover these costs. It does
this with the goal of providing safe, reliable, and sustainable utility services at competitive rates.
The City adopts Financial Plans to summarize these projections.
B.The City uses reserves to protect against contingencies and to manage other
aspects of its operations, and regularly assesses the adequacy of these reserves and the
management practices governing their operation. The status of utility reserves and their
management practices are included in Reserves Management Practices attached to and made
part of the Financial Plans.
C.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.
D.On June 17, 2024, 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:
Docusign Envelope ID: 094C591F-045E-44F1-BCF7-D1877F59F697
6056815
Utility Electric Rate Schedules
FY25 Electric Financial Plan
SECTION 1. The Council hereby approves the FY 2025 Electric Utility Financial Plan
(Exhibit 2), including the amended Electric Utility Reserves Management Practices in
Appendix B of the Financial Plan and accepts the 2024 City of Palo Alto Electric Cost of
Service and Rate Study (Exhibits 1.1 and 1.2).
SECTION 2. The Council hereby approves the following transfers to be made by the
end of FY 2024, as described in the FY 2025 Electric Utility Financial Plan (Exhibit 2):
a.A transfer of up to $20 million from the Electric Special Projects Reserve to the
Supply Operations Reserve; and
b.A transfer of up to $17 million from the Supply Operations Reserve to the
Hydroelectric Stabilization Reserve; and
c.A transfer of up to $58 million from the Supply Operations Reserve to the
Distribution Operations Reserve
SECTION 3. The Council hereby approves the following transfers to be made by the
end of FY 2025, as described in the FY 2025 Electric Utility Financial Plan (Exhibit 2):
a.A transfer of up to $26 million from the Distribution Operations Reserve to the
Supply Operations Reserve; and
b.A transfer of up to $30 million from the Supply Operations Reserve to the Electric
Special Projects Reserve; and
c.A transfer of up to $5 million from the Distribution Operations Reserve to the CIP
Reserve
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-1 (Residential Electric Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule E-1, as amended, shall become effective July 1, 2024 (Exhibit
3).
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-2 (Residential Master-Metered and Small Non-Residential Electric Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule E-2, as amended, shall
become effective July 1, 2024 (Exhibit 3).
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-2-G (Residential Master-Metered and Small Non-Residential Green Power Electric
Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-2-G,
as amended, shall become effective July 1, 2024 (Exhibit 3).
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SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-4 (Medium Non-Residential Electric Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule E-4, as amended, shall become effective July 1, 2024
(Exhibit 3).
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-4-G (Medium Non-Residential Green Power Electric Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become
effective July 1, 2024 (Exhibit 3).
SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-4 TOU (Medium Non-Residential Time of Use Electric Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-4 TOU, as amended, shall become
effective July 1, 2024 (Exhibit 3).
SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7 (Large Non-Residential Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-7, as amended, shall become effective July
1, 2024 (Exhibit 3).
SECTION 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-7-G (Large Non-Residential Green Power Electric Service) is hereby amended to read
as attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become effective
July 1, 2024 (Exhibit 3).
SECTION 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-7 TOU (Large Non-Residential Time of Use Electric Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-7 TOU, as amended, shall become
effective July 1, 2024 (Exhibit 3).
SECTION 13. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-14 (Street Lights) is hereby amended to read as attached and incorporated. Utility
Rate Schedule E-7 TOU, as amended, shall become effective July 1, 2024 (Exhibit 3).
SECTION 14. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-NSE (Net Surplus Electricity Compensation Rate) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-NSE-1, as amended, shall become effective
July 1, 2024 (Exhibit 3).
SECTION 15. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-EEC-1 (Export Electricity Compensation) is hereby amended to read as attached and
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Utility Electric Rate Schedules
FY25 Electric Financial Plan
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Utility Electric Rate Schedules
FY25 Electric Financial Plan
incorporated. Utility Rate Schedule E-EEC-1, as amended, shall become effective July 1, 2024
(Exhibit 3).
SECTION 16. The Council makes the following findings:
a.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.
b.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.
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Docusign Envelope ID: 094C591F-045E-44F1-BCF7-D1877F59F697
6056815
Utility Electric Rate Schedules
FY25 Electric Financial Plan
SECTION 17. The Council finds that approving the Financial Plan and Reserve transfers
does not meet the California Environmental Quality Act’s (CEQA) definition of a project under
Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an
administrative governmental activity which will not cause a direct or indirect physical change in
the environment, and therefore, no environmental assessment is required. The Council finds that
changing electric rates to meet operating expenses, purchase supplies and materials, meet
financial reserve needs and obtain funds for capital improvements necessary to maintain service
is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public
Resources Code Sec. 21080(b)(8) and CEQA Guidelines 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: June 17, 2024
AYES: BURT, KOU, LAUING, LYTHCOTT-HAIMS, STONE, VEENKER
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: 094C591F-045E-44F1-BCF7-D1877F59F697
Certificate Of Completion
Envelope Id: 094C591F045E44F1BCF7D1877F59F697 Status: Completed
Subject: Docusign: Resolution 10178 - FY 2025 Electric Utility Financial Plan
Source Envelope:
Document Pages: 5 Signatures: 6 Envelope Originator:
Certificate Pages: 2 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
6/20/2024 5:54:44 PM
Holder: Vinhloc Nguyen
Vinhloc.Nguyen@CityofPaloAlto.org
Location: DocuSign
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Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign
Signer Events Signature Timestamp
Aylin Bilir
Aylin.Bilir@CityofPaloAlto.org
Assistant City Attorney
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Lauren Lai
lauren.lai@cityofpaloalto.org
Director Administrative Services/CFO
COPA
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Dean Batchelor
Dean.Batchelor@CityofPaloAlto.org
Director of Utilities
City of Palo Alto
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Kiely Nose
Kiely.Nose@CityofPaloAlto.org
Assistant City Manager/CFO
City of Palo Alto
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Signed: 7/9/2024 6:46:27 PM
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Greer Stone
greer.stone@cityofpaloalto.org
Vice Mayor
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Mahealani Ah Yun
Mahealani.AhYun@CityofPaloAlto.org
City Clerk
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Signed: 7/12/2024 10:48:01 AM
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