HomeMy WebLinkAboutRESO 101876056828C 1
Resolution No. 10187
Resolution of the Council of the City of Palo Alto Amending the Gas Utility Long-term Plan Objectives,
Strategies, and Implementation Plan, Amending the Gas Utility Reserves Management Practices,
Amending the FY 2025 Gas Fund Budget Appropriation, and Amending Rate Schedules G-1 (Residential
Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial
Gas Service), and G-10 (Compressed Natural Gas Service)
R E C I T A L S
A.On March 7, 2011, the Council adopted Resolution No. 9151, approving
the Gas Utility Long-term Plan Objectives, Strategies and Implementation Plan (the
"Plan"), amended on April 23, 2012 via Resolution No. 9244 and on September 18,
2023 via Resolution No. 10126.
B.On May 1, 2024 staff presented the Utilities Advisory Commission and
the Council information proposing a third amendment to Resolution No. 10126, to
further amend the Plan to include a gas price mitigation strategy, which will collect
funds to mitigate the impact of short-term gas price spikes on customer rates.
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 Council adopted Resolution 10177 approving the
Fiscal year 2025 Gas Utility Financial Plan including the Gas Utility Reserves Management
Practices.
E.Implementing the gas price mitigation strategy requires amending the FY 2025
Gas Fund Budget revenue by $1,200,000.
F. Implementing the gas price mitigation strategy requires amending the
Commodity Charge cost component of the following Rate Schedules to include a gas price
mitigation adder of 5.5 cents per therm within the Commodity Charge: G-1 (Residential Gas
Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large
Commercial Gas Service), and G-10 (Compressed Natural Gas Service); attached and
incorporated as Exhibits C through F to this Resolution.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the amendments to the Gas Utility
Long-term Plan Objectives, Strategies and Implementation Plan (GULP), attached to this
Resolution as Exhibit A.
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6056828C 2
SECTION 2. The Council hereby approves the amendments to the Gas Utility
Reserves Management Practices, attached to this Resolution as Exhibit B.
SECTION 3. Resolution No. 10126 is hereby amended in so far as the Plan, as
amended, is hereby approved.
SECTION 4. The Council hereby approves amending the Fiscal Year 2025 budget
appropriation for the Gas Fund by:
a.increasing Net Sales Revenue by $1,200,000; and
b.increasing the Gas Rate Stabilization Reserve by $1,200,000.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-1 (Residential Gas Service) is hereby amended to read as attached and
incorporated to this Resolution as Exhibit C. Utility Rate Schedule G-1, as amended, shall
become effective November 1, 2024.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby
amended to read as attached and incorporated to this Resolution as Exhibit D. Utility Rate
Schedule G-2, as amended, shall become effective November 1, 2024.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as
attached and incorporated to this Resolution as Exhibit E. Utility Rate Schedule G-3, as
amended, shall become effective November 1, 2024.
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as
attached and incorporated to this Resolution as Exhibit F. Utility Rate Schedule G-10, as
amended, shall become effective November 1, 2024.
SECTION 9. The City Council finds as follows:
a.Revenues derived from the gas rates approved by this resolution do not exceed
the funds required to provide gas service.
b.Revenues derived from the gas rates approved by this resolution shall not be
used for any purpose other than providing gas service, and the purposes set
forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 10. 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.
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SECTION 11. The Council finds that approving the changes to the FY 2024 Gas
Fund budget appropriation and Plan 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 these actions are administrative
governmental activities which will not cause a direct or indirect physical change in the
environment. The Council finds that changing the Commodity Charge cost component
of gas rates to meet operating expenses and financial reserve needs 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 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.
Mayor
APPROVED:
INTRODUCED AND PASSED: AUGUST 19, 2024
AYES: BURT, LAUING, LYTHCOTT-HAIMS, STONE, VEENKER
NOES: KOU, TANAKA
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
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Exhibit A Adopted April 23, 2012 via Resolution 9244
Amended September 18, 2023 via Resolution 10126
Amended August 19, 2024 via Resolution 10187
Proposed Gas Utility Long-term Plan (GULP)
Objectives, Strategies and Implementation Plan
GULP Objectives:
1.Market price transparency – Pass a market supply cost signal through to customers
with measures to mitigate the impact of short-term gas market price spikes.
2.Supply Cost Management – Lower delivered gas cost over the long term.
3.Energy Efficiency – Ensure the deployment of all feasible, reliable, cost-effective energy
efficiency measures.
4.Climate Protection – Reduce the carbon intensity of the gas portfolio in accordance with
the Sustainability and Climate Protection Plan.
5.Parity with PG&E – At a reasonable cost, protect the City’s interests and maintain access
to transportation on par with PG&E’s core customers.
GULP Strategies:
1.Pass a market supply cost signal through to customers with measures to mitigate the
impact of short-term gas market price spikes by:
a.Purchasing gas at monthly and daily market index prices;
b.Changing gas supply rates monthly to reflect market prices; and
c.Collecting funds in the Gas Rate Stabilization Reserve to manage potential short-
term price spikes; and
d.Utilizing those funds if a short-term gas market price spike occurs.
2.Lower delivered gas cost over the long term by:
a. Acquiring pipeline assets that yield supply costs below market and meet operational
needs;
b.Taking advantage of the City’s low cost of capital to acquire gas supply and assets;
and
c.Optimizing existing assets.
3.Ensure the deployment of all feasible, reliable, cost-effective energy efficiency measures
by:
a.Developing a ten-year gas efficiency plan every four years maintaining consistency
with the electric energy efficiency goals update schedule; and
b.Considering the impacts of electrification on gas demand.
4.Reduce the carbon intensity of the gas portfolio in accordance with the Climate
Protection Plan by:
a.Terminating the PaloAltoGreen Gas program established by Resolution 9405; and
b.Designing and implementing the Carbon Neutral Gas Plan to achieve carbon
reduction with no more than a 10 cent per therm rate impact.
5.At a reasonable cost, protect the City’s interests and maintain access to transportation
on par with PG&E’s core customers by:
a.Participating in the regulatory and legislative arenas when the potential impact on
the City is aligned with the cost to intervene and the probability of success;
b.Negotiating with PG&E for fair access to transportation and storage; and
c.Exploring potential joint action with other public agencies.
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GULP Implementation Plan:
1.Implement market-based supply purchases and commodity rates with measures to
mitigate the impact of short-term gas market price spikes by:
a.Adding 5.5 cents per therm to the Gas Commodity Charge from November 2024
through October 2027; and
b.Conducting customer communication and outreach.
2.Pursue below-market assets available through the Gas Transportation and Storage
Settlement by:
a.Evaluating the pipeline capacity reservation options available; and
b.Contracting with PG&E for any pipeline capacity with an estimated cost below the
forecasted market value.
3.Monitor the prepay market and prepare for implementation in preparation for a future
MuniGas transaction.
4.Implement gas efficiency programs to meet the gas efficiency goals.
5.Track and report on gas efficiency by:
a.Providing quarterly updates to the UAC about the gas efficiency programs; and
b.Providing annual updates to Council on gas efficiency achievements compared to the
goals and overall cost effectiveness.
6.Continue evaluating new gas efficiency technologies and undertake pilot studies where
appropriate.
7.Pursue potential modifications to the Carbon Neutral Gas Plan by:
a.Determining an acceptable premium, if any, to be paid for a local offset project if
and when a certified project is identified; and
b.Investigating alternatives to offsets, including methods involving voter approval.
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Exhibit B
APPENDIX C: GAS UTILITY RESERVES MANAGEMENT PRACTICES
The following reserves management practices shall be used when developing the Gas Utility
Financial Plan:
Section 1. Definitions
a)“Financial Planning Period” – The Financial Planning Period is the range of future fiscal
years covered by the Financial Plan. For example, if the Financial Plan delivered in
conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY 2015
to FY 2019 would be the Financial Planning Period.
b)“Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers
to the Utility’s Unrestricted Net Assets.
c)“Net Assets” - The Government Accounting Standards Board defines a Utility’s Net Assets
as the difference between its assets and liabilities.
d)“Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital
assets (net of related debt) or restricted for debt service or other restricted purposes.
Section 2. Supply Fund Reserves
The Gas Utility’s Supply Fund Balance is reserved for the following purposes:
a)For existing contracts, as described in Section 4 (Reserve for Commitments)
b)For operating and capital budgets re-appropriated from previous years, as described in
Section 5 (Reserve for Re-appropriations)
Section 3. Distribution Fund Reserves
a)For existing contracts, as described in Section 4 (Reserve for Commitments)
b)For operating and capital budgets re-appropriated from previous years, as described in
Section 5 (Reserve for Re-appropriations)
c)For cash flow management and contingencies related to the Gas Utility’s Capital
Improvement Program (CIP), as described in Section 6 (CIP Reserve)
d)For rate stabilization, as described in Section 7 (Rate Stabilization Reserve)
e)For operating contingencies, as described in Section 8 (Operations Reserve)
f)For tracking unspent or unallocated revenues from the sale of carbon allowances freely
allocated by the California Air Resources Board to the gas utility under the State’s Cap and
Trade Program, as described in Section 11 (Cap and Trade Program Reserve)
g)Any funds not included in the other reserves will be considered Unassigned Reserves and
shall be returned to ratepayers or assigned a specific purpose as described in Section 9
(Unassigned Reserves)
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Exhibit B
Section 4. Reserve for Commitments
At the end of each fiscal year the Gas Supply Fund and Gas Distribution Fund Reserve for
Commitments will be set to an amount equal to the total remaining spending authority for
all contracts in force for the Wastewater Collection Utility at that time.
Section 5. Reserve for Reappropriations
At the end of each fiscal year the Gas Supply Fund and Gas Distribution Fund Reserve for
Reappropriations will be set to an amount equal to the amount of all remaining capital and
non-capital budgets, if any, that will be re-appropriated to the following fiscal year for each
fund in accordance with Palo Alto Municipal Code Section 2.28.090.
Section 6. CIP Reserve
The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for
capital contingencies. Staff will manage the CIP Reserve according to the following practices:
The following guideline levels are set forth for the CIP Reserve. These guideline levels are
calculated for each fiscal year of the Financial Planning Period based on the levels of CIP
expense budgeted for that year.
Minimum Level 12 months of budgeted CIP expense
Maximum Level 24 months of budgeted CIP expense
a)Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and
the Reserve for Commitments when funds are added to or removed from the Reserve for
Commitments as a result of a change in contractual commitments related to CIP projects.
Any other additions to or withdrawals from the CIP reserve require Council action.
b)Minimum Level:
i)Funds held in the Reserve for Commitments may be counted as part of the CIP Reserve
for the purpose of determining compliance with the CIP Reserve minimum guideline
level.
ii)If, at the end of any fiscal year, the minimum guideline is not met, staff shall present
a plan to the City Council to replenish the reserve. The plan shall be delivered by the
end of the following fiscal year, and shall, at a minimum, result in the reserve reaching
its minimum level by the end of the next fiscal year. For example, if the CIP Reserve is
below its minimum level at the end of FY 2017, staff must present a plan by June 30,
2018 to return the reserve to its minimum level by June 30, 2019. In addition, staff
may present, and the Council may adopt, an alternative plan that takes longer than
one year to replenish the reserve, or that does so in a shorter period of time.
c)Maximum Level: If, at any time, the CIP Reserve reaches its maximum level, no funds may
be added to this reserve. If there are funds in this reserve in excess of the maximum level
staff must propose to transfer these funds to another reserve or return them to
ratepayers in the next Financial Plan. Staff may also seek Council approval to hold funds
in this reserve in excess of the maximum level, if they are held for a specific future purpose
related to the CIP.
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Exhibit B
Section 7. Rate Stabilization Reserve
The Rate Stabilization Reserve is used to manage the trajectory of future year rate increases
and mitigate the impact of short-term gas market price spikes. This reserve holds revenues
derived from the gas price mitigation adder adopted by Council on August 19, 2024;
additional funds may be added by action of the City Council. Withdrawal of funds from the
Rate Stabilization Reserve requires Council action. If there are funds in the Rate Stabilization
Reserve at the end of any fiscal year, any subsequent Gas Utility Financial Plan must result in
the withdrawal of all funds from this Reserve by the end of the Financial Planning Period, with
the exception that gas price mitigation adder revenues may be held in the Rate Stabilization
Reserve until needed.
Section 8. Operations Reserve
The Operations Reserve is used to manage normal variations in costs and as a reserve for
contingencies. Any portion of the Gas Utility’s Fund Balance not included in the reserves
described in Section 4-Section 7 above will be included in the Operations Reserve unless this
reserve has reached its maximum level as set forth in Section 8 d) below. Staff will manage
the Operations Reserve according to the following practices:
a)The following guideline levels are set forth for the Operations Reserve. These guideline
levels are calculated for each fiscal year of the Financial Planning Period based on the
levels of Operations and Maintenance (O&M) and commodity expense forecasted for that
year in the Financial Plan.
Minimum Level 60 days of O&M and commodity expense
Target Level 90 days of O&M and commodity expense
Maximum Level 120 days of O&M and commodity expense
b)Minimum Level: If, at the end of any fiscal year, the funds remaining in the Operations
Reserve are lower than the minimum level set forth above, staff shall present a plan to
the City Council to replenish the reserve. The plan shall be delivered within six months of
the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its
minimum level by the end of the following fiscal year. For example, if the Operations
Reserve is below its minimum level at the end of FY 2014, staff must present a plan by
December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In
addition, staff may present, and the Council may adopt, an alternative plan that takes
longer than one year to replenish the reserve.
c)Target Level: If, at the end of any fiscal year, the Operations Reserve is higher or lower
than the target level, any Financial Plan created for the Gas Utility shall be designed to
return the Operations Reserve to its target level by the end of the forecast period.
d)Maximum Level: If, at any time, the Operations Reserve reaches its maximum level, no
funds may be added to this reserve. Any further increase in the Gas Utility’s Fund Balance
shall be automatically included in the Unassigned Reserve described in Section 9, below.
Section 9. Unassigned Reserve
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Exhibit B
If the Operations Reserve reaches its maximum level, any further additions to the Gas Utility’s
Fund Balance will be held in the Unassigned Reserve. If there are any funds in the Unassigned
Reserve at the end of any fiscal year, the next Financial Plan presented to the City Council
must include a plan to assign them to a specific purpose or return them to the Gas Utility
ratepayers by the end of the first fiscal year of the next Financial Planning Period. For
example, if there were funds in the Unassigned Reserves at the end of FY 2015, and the next
Financial Planning Period is FY 2016 through FY 2020, the Financial Plan shall include a plan
to return or assign any funds in the Unassigned Reserve by the end of FY 2016. Staff may
present an alternative plan that retains these funds or returns them over a longer period of
time.
Section 10. Intra-Utility Transfers Between Supply and Distribution Funds
The Gas Utility records costs in two separate funds: the Gas Supply Fund and the Gas
Distribution Fund. At the end of each fiscal year staff is authorized to transfer funds between
the Gas Supply Fund and Gas Distribution Fund if consistent with the purposes of the two
reserves involved in the transfer and in order to balance gas utility reserves to avoid negative
balances. For example, Gas Distribution revenues are needed to pay for certain supply-
related costs such as administration of the Gas Supply Fund. Such transfers shall be included
in the ordinance closing the budget for the fiscal year.
Section 11. Cap and Trade Program Reserve
This reserve holds revenues from the sale of carbon allowances freely allocated by the
California Air Resources Board to the gas utility, under the State’s Cap and Trade Program.
Funds in this Reserve are managed in accordance with the City’s Policy on the Use of Freely
Allocated Allowances under the State’s Cap and Trade Program (the Policy), adopted by
Council Resolution 9487 in January 2015. At the end of each fiscal year, the Cap and Trade
Program Reserve will be adjusted by the net of revenues and expenses associated with the
Cap and Trade program.
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Exhibit C
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-1 Sheet No G-1-1
dated 7-1-2024 Effective 11-1-2024
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from City of Palo AltoUtilities:
1. Separately-metered single-family residential Customers;2.Separately-metered multi-family residential Customers in multi-family residentialfacilities.
B.TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:Per Service
Monthly Service Charge: .......................................................................................................$ 16.93
Tier 1 Rates: Per Therm Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$4.00 2.Cap and Trade Compliance Charge ............................................ $0.00-$0.25 3. Transportation Charge ................................................................. $0.00-$0.25 4. Carbon Offset Charge .................................................................. $0.00-$0.10
Distribution Charge:....................................................................................... $ 0.8229
Tier 2 Rates: (All usage over 100% of Tier 1) Supply Charges: 1.Commodity (Monthly Market Based) .......................................... $0.10-$4.00
2.Cap and Trade Compliance Charge ............................................. $0.00-$0.25 3. Transportation Charge ................................................................. $0.00-$0.25 4. Carbon Offset Charge .................................................................. $0.00-$0.10
Distribution Charge:............................................................................................. $ 2.1043
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Exhibit C
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-2 Sheet No G-1-2
dated 7-1-2024 Effective 11-1-2024
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above andadjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s billstatement, the bill amount may be broken down into appropriate components ascalculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index fordelivery at PG&E Citygate, adjusted to account for delivery losses to the Customer’sMeter. The Commodity Charge also includes adjustments to account for Council-approved programs implemented to reduce the cost of Gas, including a municipal
purchase discount1 and $0.055 per therm for mitigating the impact of short-term naturalgas market price spikes2.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Capand Trade Compliance Charge will change in response to changing market conditions,retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse
gases produced when Gas is burned. The Carbon Offset Charge will change in responseto changing market conditions, changing sales volumes and the quantity of offsetspurchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Chargeswill fall within the minimum/maximum ranges set forth in Section C. Current and historic
1 Adopted via Resolution 9451, on September 15, 2014. 2 Adopted via Resolution 10187, on August 19, 2024.
Docusign Envelope ID: 97D33B63-4236-43DE-AC57-065A0B29BE64
Exhibit C
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-3 Sheet No G-1-3
dated 7-1-2024 Effective 11-1-2024
per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are posted on the City Utilities website.3 2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the Winter period is effectivefrom November 1 to March 31. When the billing period includes use in both the Summerand the Winter periods, the usage will be prorated based on the number of days in eachseasonal period, and the charges based on the applicable rates for each period. For furtherdiscussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms
per day during the Summer period and 2.0 therms per day during the Winter period,
rounded to the nearest whole therm, based on meter reading days of service. As anexample, for a 30 day bill, the Tier 1 level would be 20 therms during the Summer periodand 60 therms during the Winter period months. For further discussion of bill calculationand proration, refer to Rule and Regulation 11.{End}
3 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/residential-utility-rates/monthly-gas-volumetric-and-service-charges-residential.pdf
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Exhibit D RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-1 Effective 11-1-2024
dated 7-1-2024 Sheet No G-2-1
A. APPLICABILITY: This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto Utilities:
1. Commercial Customers who use less than 250,000 therms per year at one site;
2. Master-metered residential Customers in multi-family residential facilities. B. TERRITORY: This schedule applies anywhere the City of Palo Alto provides Gas Service. C. UNBUNDLED RATES: Per Service Monthly Service Charge: .....................................................................................................$ 156.90 Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) ......................................... $0.10-$4.00 2. Cap and Trade Compliance Charges ........................................... $0.00-$0.25 3. Transportation Charge ................................................................. $0.00-$0.25 4. Carbon Offset Charge .................................................................. $0.00-$0.10
Distribution Charge: .................................................................................................. $1.0809 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated under Section C. The Commodity Charge is based on the monthly natural gas Bidweek Price Index for delivery at PG&E Citygate, adjusted to account for delivery losses to the Customer’s
Meter. The Commodity Charge also includes adjustments to account for Council-
approved programs implemented to reduce the cost of Gas, including a municipal
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Exhibit D
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-2 Effective 11-1-2024
dated 7-1-2024 Sheet No G-2-2
purchase discount1 and $0.055 per therm for mitigating the impact of short-term natural gas market price spikes2.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced when Gas is burned. The Carbon Offset Charge will change in response to changing market conditions, changing sales volumes and the quantity of offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges
will fall within the minimum/maximum ranges set forth in Section C. Current and historic
per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are posted on the City Utilities website.3
{End}
1 Adopted via Resolution 9451, on September 15, 2014. 2 Adopted via Resolution 10187, on August 19, 2024. 3 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/business/business-rates/monthly-gas-volumetric-and-service-charges-commercial.pdf
Docusign Envelope ID: 97D33B63-4236-43DE-AC57-065A0B29BE64
Exhibit E
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES Issued by the City Council
Supersedes Sheet No G-3-1 Effective 11-1-2024
dated 7-1-2024 Sheet No G-3-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto
Utilities:1. Commercial Customers who use at least 250,000 therms per year at one site;2. Customers at City-owned generation facilities.
B.TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:Per Service
Monthly Service Charge:$ 717.89
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................................... $0.10-$4.00 2.Cap and Trade Compliance Charges .................................................... $0.00-$0.25 3. Transportation Charge .......................................................................... $0.00-$0.25 4. Carbon Offset Charge ........................................................................... $0.00-$0.10
Distribution Charge: ............................................................................................................$ 1.0702
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above andadjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index fordelivery at PG&E Citygate, adjusted to account for delivery losses to the Customer’sMeter. The Commodity Charge also includes adjustments to account for Council-
Docusign Envelope ID: 97D33B63-4236-43DE-AC57-065A0B29BE64
Exhibit E
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES Issued by the City Council
Supersedes Sheet No G-3-2 Effective 11-1-2024
dated 7-1-2024 Sheet No G-3-2
approved programs implemented to reduce the cost of Gas, including a municipal purchase discount1 and $0.055 per therm for mitigating the impact of short-term natural
gas market price spikes2.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced when Gas is burned. The Carbon Offset Charge will change in response to
changing market conditions, changing sales volumes and the quantity of offsets purchased
within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will fall within the minimum/maximum ranges set forth in Section C. Current and historic per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are posted on the City Utilities website.3
2.Request for Service
A qualifying Customer may request service under this schedule for more than one accountor meter if the accounts are located on one site. A site consists of one or more contiguousparcels of land with no intervening public right-of- ways (e.g. streets).
3.Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo
Alto full-service rate schedule.{End}
1 Adopted via Resolution 9451, on September 15, 2014. 2 Adopted via Resolution 10187, on August 19, 2024. 3 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/business/business-rates/monthly-gas-volumetric-and-service-charges-commercial.pdf
Docusign Envelope ID: 97D33B63-4236-43DE-AC57-065A0B29BE64
Exhibit F
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-1 Effective 11-1-2024
dated 7-1-2024 Sheet No. G-10-1
A. APPLICABILITY:
This schedule applies to the sale of Gas to the City-owned compressed natural gas (CNG) fuelingstation at the Municipal Service Center in Palo Alto.
B.TERRITORY:
Applies to the City’s CNG fueling station located at the Municipal Service Center in City of Palo Alto.
C. UNBUNDLED RATES:Per Service
Monthly Service Charge: .....................................................................................................$ 106.11
Per Therm Supply Charges: Commodity (Monthly Market Based) ................................................................ $0.10-$4.00
Cap and Trade Compliance Charges .................................................................. $0.00-$0.25
Transportation Charge ....................................................................................... $0.00-$0.25 Carbon Offset Charge ........................................................................................ $0.00-$0.10
Distribution Charge ..............................................................................................................$ 0.0175
D. SPECIAL CONDITIONS
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjustedfor any applicable discounts, surcharges and/or Taxes. On a Customer’s bill statement, the billamount may be broken down into appropriate components as calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for delivery at
PG&E Citygate, adjusted to account for delivery losses to the Customer’s Meter. TheCommodity Charge also includes adjustments to account for Council-approved programsimplemented to reduce the cost of Gas, including a municipal purchase discount1 and $0.055 per
1 Adopted via Resolution 9451, on September 15, 2014.
Docusign Envelope ID: 97D33B63-4236-43DE-AC57-065A0B29BE64
Exhibit F
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-2 Effective 11-1-2024
dated 7-1-2024 Sheet No. G-10-2
therm for mitigating the impact of short-term natural gas market price spikes2.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient
to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge
will change in response to changing market conditions, retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases
produced when Gas is burned. The Carbon Offset Charge will change in response to changing
market conditions, changing sales volumes and the quantity of offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting
for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will fall within the minimum/maximum range set forth in Section C. Current and historic per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are
posted on the City Utilities website.3
{End}
2 Adopted via Resolution 10187 on August 19, 2024.
3 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/business/business-rates/monthly-gas-volumetric-and-service-charges-commercial.pdf
Docusign Envelope ID: 97D33B63-4236-43DE-AC57-065A0B29BE64
Certificate Of Completion
Envelope Id: 97D33B63423643DEAC57065A0B29BE64 Status: Completed
Subject: RESO 10187.pdf
Source Envelope:
Document Pages: 18 Signatures: 6 Envelope Originator:
Certificate Pages: 5 Initials: 0 Christine Prior
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250 Hamilton Ave
Palo Alto , CA 94301
Christine.Prior@CityofPaloAlto.org
IP Address: 199.33.32.254
Record Tracking
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Christine.Prior@CityofPaloAlto.org
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Amy Bartell
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Assistant City Attorney
City of Palo Alto
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Lauren Lai
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Director Administrative Services/CFO
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Dean Batchelor
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Director of Utilities
City of Palo Alto
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Ed Shikada
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Ed Shikada
City of Palo Alto
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Greer Stone
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Vice Mayor
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Mahealani Ah Yun
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City Clerk
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Electronic Record and Signature Disclosure created on: 10/1/2013 8:33:53 AM
Parties agreed to: Amy Bartell
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