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HomeMy WebLinkAboutStaff Report 185-09BUDGET FY 2010 -FY 2011 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER ATTENTION: FINANCE COMMITTEE DATE: MARCH 31, 2009 DEPARTMENT: UTILITIES CMR: 185:09 SUBJECT: Recommendation that Finance Committee Recommend Council Adoption of a Resolution Adopting an Electric Rate Increase and Amending Utilities Rate Schedules E-1, E -1-G, E-2, E -2-G, E-4, E-4- TOU, E -4-G, E-7, E-7-TOU, E -7-G, E-14, E-18, and E -18-G RECOMMENDATION Staff recommend that the Finance Committee recommend City Council adopt the attached resolution to: (a) Approve a 10 percent increase to retail electric rates effective July 1, 2009, which will increase annual revenues by $10.3 million; (b) Approve a transfer of $2.6 million from the Calaveras Reserve for Fiscal Year (FY) 2010, which is the minimum transfer amount established by the proposed Calaveras Reserve Guidelines; and (c) Approve the changes to the Electric Utility Rate Schedules E-1, E -1-G, E-2, E -2-G, E-4, E-4-TOU, E -4-G, E-7, E-7-TOU, E -7-G, E-14, E-18, and E -18-G, as attached. BACKGROUND During the budget processes for FY 2009, a 14 percent revenue electric increase was approved by the City Council effective July 1, 2008. The Electric Fund's revenue requirement consists of a number of components including: supply purchase costs, distribution system operations, Capital Improvement Program (CIP) projects, funding of the Electric Supply Rate Stabilization Reserve (E-SRSR), Electric Distribution Rate Stabilization Reserve (E-DRSR), Emergency Plant Replacement Reserve, and debt service. Any change in one or more of these components, or a change in retail sales levels, can trigger the CMR: 185:09 Page 1 of 6 need for a rate adjustment. During the budget process, staff forecasts customer revenues and utility expenses in order to quantify the annual revenue requirement. DISCUSSION Revenues and Expenses Table 1 below shows the estimated revenues and expenses for the Electric Fund for FY 2010 and FY 2011, the actual revenues and expenses for FY 2008, and the budgeted revenues and expenses for FY 2009. TABLE 1 - Electric Fund Sources and Uses of Funds ($000) Fiscal Year A B C D E F G Actual 2008 Adjusted 2009 Proposed 2010 Planned 2011 2012 2013 2014 94�W1N 1RTOTgL SYSTEAA RETAI4BAIEE trfc* 1,rk� ±!4 1090 'I0% : 6. 75. �Y°�4 r1 PROJECTED TOTAL AVERAGE RATE ($/KWH) $ 0.092 $ 0.105 $ 0.116 $ 0.133 $ 0.140 $ 0.147 $ 0.147 PROJECTED COMMODITY COST ($/KWH) $ 0.063 $ 0.074 $ 0.066 $ 0.071 $ 0.069 $ 0.069 $ 0.073 SALES IN GWH 989 993 981 976 977 978 979 PROJECTED CHANGE IN RETAIL SALES REVENUE 4,360 12,800 10,328 16,954 6,492 6,792 22 Utilities Retail Sales 90,514 103,402 112,548 128,628 135,714 142,660 143,139 Surplus Energy Sales 1,454 5,919 2,566 3,577 2,922 3,015 2,879 Service Connection Charges 1,198 750 1,200 1,250 900 925 950 Other Revenues plus Transfers In 7,393 10,150 8,923 8,333 9,492 9,604 9,674 Interest plus Gain or Loss on Investment 9,953 6,111 4,564 4,220 4,108 4,346 4,799 Total Sources of Funds 110,512 126,333 129,801 146,009 153,137 160,551 161,441 € _ Purchases to Serve Load 64,843 76,710 68,026 73,957 72,113 72,226 76,489 CVP O&M Loan Advance 4,800 7,200 7,100 6,600 7,000 7,000 7,000 Surplus Energy Cost 762 2,140 1,632 1,973 1,413 1,479 1,429 Joint Venture Debt Service 8,554 8,892 7,722 8,849 8,855 8,987 9,076 Supply Operating Budget 2,228 6,223 6,264 6,436 6,622 6,817 7,019 Distribution Operating Budget 16,102 22,294 23,078 25,018 26,040 27,091 27,997 Rent 3,438 3,252 3,350 3,450 3,554 3,660 3,770 General Fund Transfers 8,998 9,268 11,112 11,525 11,738 11,905 12,148 Other Transfers Out 3,890 2,745 1,322 1,322 1,322 1,322 1,322 Capital Improvement programs 10,185 9,553 8,780 9,695 8,520 8,750 8,620 Total Uses of Funds 123,722 148,277 138,386 148,826 147,177 149,237 154,870 Into/ (Out of) Reserves (13,210) (21,944) (8,585) (2,817) 5,960 11,313 6,571 Based on the five-year financial projections, staff expects total use of funds of $138.4 million in FY 2010 for the Electric Fund. This is driven predominately by purchases to serve load costs of $68.0 million, supply and distribution operating costs of $29.3 million, and CIP costs of $8.8 million. The transfer to the General Fund is expected to be $11.11 million based on the proposed revision to the equity transfer methodology. There is a companion report being heard by the Finance Committee (CMR:190:09) on March 31, 2009, that provides more detail on the equity transfer methodology to the General Fund. Staff identified a total cost savings of $0.8 million in Supply and Distribution Operating costs mainly as a result of keeping salaries and benefits unchanged from FY 2009 levels, and targeting a five percent reduction in controllable costs such as travel, meetings, office supplies and other general expenses. As staff is currently assessing these and other possible adjustments to the proposed FY 2010 operating budget, these adjustments have not been reflected in the figures presented in Table 1. They are reflected as part of the discussion in the section below on reserves. CMR: 185:09 Page 2 of 6 The proposed rate increase for FY 2010 represents a $10.3 million annual electric revenue increase. With this revenue increase, the total sources of funds for the Electric Utility will be $129.8 million. The Electric Fund requires an additional $8.6 million from its reserves in order to meet projected revenue requirements without further drawing down the Electric Rate Stabilization Reserves (RSRs). With the inclusion of the $0.8 million budget savings identified above, the shortfall could be reduced to $7.8 million. In order to manage the shortfall, staff originally proposed to the Utilities Advisory Commission (UAC) in March 2009 a total transfer of $9.4 million from the Calaveras Reserve in FY 2010 which is $6.8 million in addition to the $2.6 million minimum transfer amount established by the proposed Calaveras Reserve Guidelines. This was based on maintaining the ending Rate Stabilization Reserve levels above the risk assessment levels. Staff's current proposal is to remain within the existing Calaveras Reserve Guidelines and transfer only the $2.6 million minimum based on estimated stranded costs. Staff will continue to monitor the Rate Stabilization Reserve Levels throughout the fiscal year and recommend mid -year rate adjustments if necessary. Reserves and Risk Assessment Table 2 below summarizes the end of year balances for the E-SRSR, the E-DRSR and the Calaveras Reserve, the risk assessment level and the RSR Guidelines. The annual risk assessment level for the Electric Fund is determined by assessing the short-term risks to the Electric Fund. A report on this assessment was reviewed by the UAC at its February 2009 meeting. The RSR Guidelines were established to manage risks over the longer term. The proposed revisions to the minimum and maximum guideline levels for the E-DRSR for FY 2010 and FY 2011 (CMR:180:09) are reflected in Table 2 below. TABLE 2: Electric Reserve Balance, Guideline Levels and Risk Assessment Level ($M FY 2009 FY 2010 FY 2011 Electric Supply Rate Stabilization Reserve End of Year Balance 34.3 25.4 22.0 Risk Assessment Level 33.8 33.6 37.1 Minimum Guideline Level 38.4 34.0 37.0 Maximum Guideline Level 76.7 68.0 74.0 Electric Distribution Rate Stabilization Reserve End of Year Balance 7.5 7.9 7.9 Risk Assessment Level 4.6 5.8 5.9 Minimum Guideline Level 6.7 6.5 6.8 Maximum Guideline Level 16.7 12.9 13.6 Calaveras Reserve End of Year Balance 64.5 64.5 65.1 Estimated Stranded Costs N/A 2.6 2.0 Transfers to SRSR 10.1 2.6 2.0 The proposed electric revenue increase of 10 percent, or $10.3 million, is applied to the Distribution funds. With the recommended revenue increase, the FY 2010 ending balance for the E-DRSR is forecast to be $2.1 million above the risk assessment level, and $1.4 million above CMR: 185:09 Page 3 of 6 the proposed revised minimum guideline level. In FY 2011, the E-DRSR is projected to have a year-end balance of $7.9 million, which exceeds both the proposed revised minimum guideline level and the risk assessment levels. The proposed transfer of $2.6 million from the Calaveras Reserve in FY 2010 will be applied to the Supply funds. With this funding, the E-SRSR will have a year-end balance of $25.4 million in FY 2010. This is below the risk assessment level and minimum reserve guidelines for FY 2010. With the $0.8 million budget savings identified in Operating budgets and $2.1 million in E-DRSR in excess of the risk assessed levels, staff has determined that adequate reserves are available in the Electric Rate Stabilization Reserves for FY 2010. For FY 2011, the projections presented in this report assume a 15% rate increase and a transfer of $2.0 million from the Calaveras Reserve, the minimum level according to the proposed Calaveras Reserve Guidelines. With this level of funding, the E-SRSR year-end balance will be below the minimum guideline level and the risk assessment level. An updated risk assessment will be performed as part of the budget process for FY 2011, and staff will evaluate the revenues, expenses and risks during the FY 2011 budget process to ensure that the Electric Fund remains financially sound. Over the longer term, both the E-SRSR and the E-DRSR are projected to be above the minimum guideline levels. Allocation of Proposed Revenue Increase The proposed electric revenue increase of 10 percent, or $10.3 million, is proposed to be applied evenly to the rates for both residential and non-residential customers on an equal per kilowatt- hour (kWh) basis. However, individual customers may see different percentage increases, depending on their monthly usage patterns. Table 3 below shows the impact of this rate proposal on a typical monthly bill for various customer classes and consumption levels. The table does not include the bills for those who participate in the PaloAltoGreen program. TABLE 3: Effect of Proposed Electric Rate Increase on Customer Bills Customer Type Usage per Month (kWh) Current Monthly Bill ($) Proposed Monthly Bill ($) Proposed Monthly Bill Increase ($) Proposed Monthly Bill Increase (%) Residential Small 300 $ 25.98 $ 28.57 $ 2.59 10.0 Residential Average 650 69.36 76.33 6.97 10.0 Residential Large 1200 156.41 172.03 15.62 10.0 Commercial Small 500 60.69 66.77 6.08 10.0 Commercial Medium 200,000 21893.50 24,084.00 2,190.50 10.0 Commercial Large 5,500,000 501474.18 551,379.56 49,905.38 10.0 Bill Comparison Table 4 below compares Palo Alto's monthly electric bills for residential customers with those of PG&E and several other municipal electric utilities. The comparisons are for rates in effect on CMR: 185:09 Page 4 of 6 February 1, 2009. Staff does not know the rate increase plans for PG&E, but is aware that many of the municipal utilities have plans for electric rate increases. However, those increases are still being developed or are not yet approved and cannot be used for comparisons. TABLE 4 - Monthly Residential Electric Bill Comparison (rates as of February 1, 2009) Electric Bill ($) Usage (kWh) Palo Alto PG&E Alameda Roseville Santa Clara ' Average Benchmark Diff. (% o) Small 300 25.98 34.61 31.45 38.97 26.52 32.89 26.6% Average 650 69.36 98.92 91.14 76.15 58.61 81.20 17.1% Large 1200 156.40 289.01 192.31 150.19 109.03 185.13 18.4% Difference from Palo Alto for average residential use 42.6% 31.4%0 9.8% -15.5% 17.1% Note that Palo Alto's current rates for the average residential customers are significantly below PG&E's current rates. However, the difference is less for other municipal utilities and, in the case of Santa Clara, another San Francisco Bay Area municipal electric utility, Palo Alto's rates are higher. ALTERNATIVES Staff evaluated several options to the recommended proposal, all of which would result in the RSR balances being at least equal to the risk assessment level. One option is to increase electric rates by 21% without any additional transfers from the Calaveras Reserve beyond $2.6 million, the minimum transfer amount for FY 2010 under the proposed revised guidelines. Another option is to increase rates by 16% and increase the Calaveras Reserve transfer to $5.6 million. A third option (the one presented to the UAC at its March 2009 meeting) is to raise electric rates 10% and transfer $9.4 million from the Calaveras Reserve. Staff determined that a rate increase above 10% would have too large of an impact on ratepayer bills in today's economy. COMMISSION REVIEW AND RECOMMENDATIONS Staff's proposal to the UAC at its March 4, 2009 meeting included a 10% electric retail rate increase and a transfer from the Calaveras Reserve of $9.4 million, or $6.8 million more than the minimum transfer of $2.6 million. In general, the UAC did not support taking additional funds from the Calaveras Reserve in order to implement a lower rate increase than justified given the projected revenues and expense. One commissioner preferred that a higher rate increase be implemented to align costs with revenues, noting that future costs are expected to require additional rate increases. Also noted were the current dry conditions that result in low hydroelectric generation in the next three years even if precipitation improves. One commissioner wanted to more deeply examine costs to see if there was a way to reduce costs or defer CIP projects to allow a 10% rate increase without taking additional money from the Calaveras Reserve. Another commissioner noted that the increase in the equity transfer to the General Fund could be reduced to allow a 10% rate increase. Staff's reasoning in proposing a 10% rate increase was that a higher increase would not be acceptable to ratepayers in these difficult economic times. CMR: 185:09 Page 5 of 6 Several motions were made regarding the electric rate adjustment proposal, but one failed to obtain a majority vote in support and two failed to get seconded. In the end, the UAC made no recommendation to the Council on an electric rate adjustment for FY 2010. The notes from the UAC meeting are provided as Attachment D. RESOURCE IMPACT Approval of this rate proposal will increase the Electric Fund retail sales revenues for FY 2010 by approximately $10.3 million. The proposal will also result in a transfer of $2.6 million from the Calaveras Reserve. The balance remaining in Calaveras Reserve is sufficient to cover long- term stranded cost projections. POLICY IMPLICATIONS This recommendation does not represent a change to current City policies. ENVIRONMENTAL REVIEW The rate increase is needed for funding requirements due to increased supply costs as a result of continued drought that caused more expensive purchases to replace hydraulic supply, and other operational cost increases. An increase in electric rates to meet operating expenses and financial reserve needs is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Section 21080(b)(8) and Title 14 of the California Code of Regulations Section 15273(a)(1) and (3). ATTACHMENTS A. Resolution B. Electric Fund FY 2010 Rate Adjustment Financial Projections C. Electric Rate Schedules: E-1, E -1-G, E-2, E -2-G, E-4, E-4 TOU, E -4-G, E-7, E-7 TOU, E -7-G, E-14, E-18, and E -18-G D. Draft Notes from the March 4, 2009 UAC meeting PREPARED BY: DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: IPEK CONNOLLY Utilities, Sr. Resource Planner JANE O. RATCHYE Utilities Assistant Director, Resource Management VALERIE Director of 4 .FO tilitie 5 JAM ENE City . ' ager CMR: 185:09 Page 6 of 6 ATTACHMENT A NOT YET APPROVED Resolution No. Resolution of the Council of the City of Palo Alto Adopting an Electric Rate Increase and Amending Utility Rate Schedules E-1, E -1-G, E-2, E -2-G, E-4, E -4-G, E-4-TOU, E-7, E -7-G, E-7-TOU, E-14, E-18, and E -18-G WHEREAS, 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 and the fees and charges therefore; and WHEREAS, the Council has considered the need for an adjustment in electric rates to maintain the Electric Supply and Distribution Rate Stabilization Reserves above the levels determined by the annual risk assessment. NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. 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 in accordance with sheet E-1-1, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -1-G (Residential Green Power Electric Service) is hereby amended to read in accordance with sheets E -1-G-1 and E -1-G-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-2 (Small Commercial Electric Service) is hereby amended to read in accordance with sheets E-2-1 and E-2-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -2-G (Small Commercial Green Power Electric Service) is hereby amended to read in accordance with sheets E -2-G-1 and E -2-G-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4 (Medium Commercial Electric Service) is hereby amended to read in accordance with sheets E-4-1 to E-4-3, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. 1 090319 syn 6050698 NOT YET APPROVED SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -4-G (Medium Commercial Green Power Electric Service) is hereby amended to read in accordance with sheets E -4-G, E -4-G-3 and E -4-G-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4-TOU (Medium Commercial Electric Time of Use Service) is hereby amended to read in accordance with sheets E-4-TOU-1, E-4-TOU-2, E-4-TOU-3 and E-4-TOU- 4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7 (Large Commercial Electric Service) is hereby amended to read in accordance with sheets E-7-1, E-7-2 E-7-3, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -7-G (Large Commercial Green Power Electric Service) is hereby amended to read in accordance with sheets E -7-G-1, E -7-G-2, E -7-G-3 and E -7-G-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7-TOU (Large Commercial Electric Time of Use Service) is hereby amended to read in accordance with sheets E-7-TOU-1, E-7-TOU-2, E-7-TOU-3 and E-7-TOU- 4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-14 (Street Lights) is hereby amended to read in accordance with sheets E-14-1, E-14-2, E-14-3 and E-14-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-18 (Municipal Electric Service) is hereby amended to read in accordance with sheets E-18-1 and E-18-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 13. Pursuant to Section 12.20.010 of 4the Palo Alto Municipal Code, Utility Rate Schedule E -18-G (Municipal Green Power Electric Service) is hereby amended to read in accordance with sheets E -18-G-1 and E -18-G-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2009. SECTION 14. The Council finds that the revenue derived from the authorized adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. 2 090319 syn 6050698 NOT YET APPROVED SECTION 15. The Council finds that an increase in electric rates to meet operating expenses and 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)(1) and (3). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Deputy City Attorney City Manager Director of Utilities Director of Administrative 3 Services 3 090319 syn 6050698 ATTACHMENT B Actual Adjusted Proposed Planned 2008 2009 2010 2011 Fiscal Year 2012 2013 2014 1 % CHANGE IN RETAIL RATE 2 ` TOTAL AVERAGE RATE (MILLS/KWh) 3 SALES UNITS (GWh) 4 ELECTRIC FUND REVENUE 5 L` BASE SALES REVENUES: 6 COMMODITY SALES 7 % DISTRIBUTION SALES 8 PUBLIC BENEFIT REVENUE 9 SUB -TOTAL BASE SALES REVENUE 10 '. ' RATE ADJUSTMENT: 11 COMMODITY 12 i DISTRIBUTION PUBLIC BENEFIT TOTAL RATE ADJUSTMENT PRORATION IMPACT 5.0% 14.1% : 10.0% 15.0% 92 105 116 133 989 993 981 976 5.0% 140 977 5.0% 147 978 0.0% 147 979 E V N u 13 14 15 TOTAL ADJUSTED BASE SALES REVENUE 17 18__ss 55,856 55,660 28,856 33,363 2,360 2,545 87,073 91,567 0 12,445 4,242 0 118 355 4,360 12,800 (182) (534) 67,266 66,911 32,952 42,775 2,864 3,126 103,082 112,812 0 13,918 10,050 2,567 278 470 10,328 16,954 (430) (706) 80,927 45,397 3,600 129,925 6,312 0 180 6,492 (271) 87,346 45,452 3,785 136,583 5,241 1,364 188 6,793 (283) 92,699 46,873 3,978 143,550 (1,854) 1,875 1 22 (1) 91,251 103,834 112,980 129,060 136,146 143,092 143,570 DISCOUNTS/UNCOLLECTABLES INTEREST SURPLUS ENERGY REVENUE E 20 PA -GREEN SALES REVENUE 21 OTHER REVENUE S 22 FROM RESERVES: SUPPLY RSR DISTRIBUTION RSR CALAVERAS P.B. RESERVE CVP CUSTOMER O&M FUNDING 24 '1 25 26 27 28 TOTAL FINANCIAL RESOURCES (137) (432) 9,953 6,111 1,454 5,919 727 996 2,925 2,704 13,285 13,024 0 561 5,721 10,086 0 440 4,938 7,200 (432) (432) 4,564 4,220 2,566 3,577 1,039 1,084 1,984 1,899 8,896 3,428 0 0 2,637 1,995 0 0 7,100 6,600 (432) 4,108 2,922 1,139 2,254 0 0 1,375 0 7,000 (432) 4,346 3,015 1,196 2,334 0 0 1,505 0 7,000 (432) 4,799 2,879 1,255 2,369 0 0 1,574 0 7,000 129,518 150,444 141,334 151,432 154,512 162,056 63,014 OPERATING EXPENSES SUPPLY PURCHASES 64,843 76,710 SURPLUS ENERGY COST 762 2,140 PA -GREEN POWER PURCHASES 659 917 DEBT SERVICES: CALAVERAS 7,566 7,566 TANG 988 1,326 SUPPLY FUNDED ALTERNATIVE RESOUR 34 2,053 SUPPLY RESOURCE, OTHER ADMIN 1,198 2,817 ALLOCATED CHARGES: COST PLAN CHARGES & OTHER 192 188 UTILITIES ADMINISTRATION 145 248 SUB -TOTAL SUPPLY 76,388 93,965 DISTRIBUTION OPERATIONS & MAINT, OTHER ADMIN 10,380 11,989 PUBLIC BENEFITS PROGRAMS 1,742 3,325 CUSTOMER DESIGN & CONNECTION CIP 1,700 1,800 SYSTEM IMPROVEMENT (CIP) 8,430 7,665 STREET LIGHT, TRAFFIC SIGNAL O&M 768 950 STREET LIGHT, TRAFFIC SIGNAL CIP 0 0 COMMUNICATIONS O&M & CIP 462 379 ALLOCATED CHARGES: COST PLAN CHARGES & OTHER 672 3,336 UTILITIES ADMINISTRATION 2,134 2,402 SUB -TOTAL DISTRIBUTION 26,287 31,847 TRANSFERS: GENERAL FUND TRANSFER 8,998 9,268 RENT 3,438 3,252 OTHER TRANSFERS 3,890 2,745 68,026 73,957 1,632 1,973 1,039 1,084 7,722 8,849 0 0 2,050 2,050 2,722 2,830 195 203 258 268 83,644 91,215 12,468 12,967 3,131 3,576 2,300 2,400 6,415 7,225 988 1,028 220 925 368 385 3,470 3,608 2,498 2,598 31,858 34,713 11,112 11,525 3,350 3,450 1,322 1,322 72,113 1,413 1,139 8,855 0 2,050 2,944 211 279 89,003 13,486 3,773 2,000 6,445 1,069 930 403 3,753 2,702 34,560 11,738 3,554 1,322 72,226 1,479 1,196 8,987 0 2,050 3,061 220 290 89,509 14,025 3,965 2,100 6,570 1,112 935 421 3,903 2,810 35,841 11,905 3,660 1,322 76,489 1,429 1,255 9,076 0 2,050 3,184 228 302 94,013 14,586 3,978 2,205 6,330 1,156 940 439 4,059 2,923 36,617 12,148 3,770 1,322 3/16/200911:37 AM t,\ u-rEu M Actual Fiscal Year 2008 61 62 63 64 65 66 67 68 69 70 RESERVE FUNDING: PLANT REPLACEMENT SUPPLY RSR DISTRIBUTION RSR P.B. RESERVE CALAVERAS INTEREST TOTAL RESERVE FUNDING CVP CUSTOMER O&M FUNDING RECONCILE TO SAP & OTHER TOTAL REVENUE REQUIREMENT 71 72 73 R 74 75 E 77 78 79 E 80 R 81 V 82 83 E 84 S 85 86 87 88 89 RESERVES BALANCES PLANT REPLACEMENT DISTRIBUTION RSR SUPPLY RSR CALAVERAS P.B. RESERVE BALANCE OTAL RE Eta > ALaN �s Short Term Risk Assessment Value -Supply RSR Short Term Risk Assessment Value- Distribution RSR Long Term Rate Stabilization Guidelines Supply RSR Minimum Supply RSR Maximum Distribution RSR Minimum Distribution RSR Maximum 432 0 323 732 4,309 5,796 4,800 (79) 129,518 3,057 8,109 47,309 70,397 2,109 82 29,273 58,546 16,549 Adjusted Proposed Planned 2009 2010 2011 (2.057) 0 0 0 4,224 2,167 7,200 0 150,444 1,000 7,548 34,285 64,535 1,669 109,037: 33,800 38,355 76,710 16,681 366 0 2,581 2,948 7,100 0 1,000 7,914 25,389 64,480 1,669 33,600 34,013 68,026 12,901 141,334 151,432 154,512 162,056 27 0 2,579 2,606 6,600 0 1,000 7,942 21,961 65,064 1,669 37,100 36,979 73,957 13,603 0 4,151 581 0 2,603 7,334 7,000 0 2013 2014 0 9,481 686 0 2,652 12,819 7,000 0 0 3,900 1,547 0 2,698 8,144 7,000 0 163,014 1,000 8,522 26,112 66,291 1,669 1,000 9,209 35,592 67,438 1,669 1,000 10,756 39,492 68,562 1,669 1133,595 114,909 36,057 36,113 72,113 72,226 6,810 7,022 13,619 14,045 121',479 38,245 76,489 7,312 14,624 3/16/200911:37 AM ATTACHMENT C RESIDENTIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-1 A. APPLICABILITY: This schedule applies to separately metered single-family residential dwellings receiving retail energy services from the City of Palo Alto Utilities. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total Tier 1 usage $0.0292003755 $0.0029200321 $0.0866009524 Tier 2 usage 100%-200% of Tier 1 Tier 3 usage Over 200% of Tier 1 D. SPECIAL NOTES: 1. Calculation of Cost Components $0.05448 0.07654 0.0387805045 0.0029200321 0.10349 0.0518106729 0.0029200321 0.1182113020 0.1582517399 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. 2. Calculation of Usage Tiers Tier 1 electricity usage shall be calculated and billed based upon a level of 10 kWh per day, prorated by meter reading days of service. As an example, for a 30 --day bill, the Tier 1 level would be 300 kWh. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. [End] CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447-1-20082009 Sheet No E-1-1 Supersedes Sheet No E-1-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES RESIDENTIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -1-G A. APPLICABILITY: This schedule applies to separately metered single-family residential dwellings receiving retail energy services from the City of Palo Alto Utilities under the Palo Alto Green plan. Palo Alto Green provides for the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the premises every month. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and create a transparent and sustainable market that encourages new development of wind and solar power. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Per kilowatt-hour (kWh) Tier 1 usage Tier 2 usage 100%-200% of Tier 1 Tier 3 usage Over 200% of Tier 1 D. SPECIAL NOTES: 1. Calculation of Cost Components Commodity $0.05448 0.07654 0.10349 Distribution $0.0292003755 0.0387805045 0.0518106729 Public Benefits $0.002920 0321 0.0029200 321 0.0029200 321 Palo Alto Green Total $0.0150 $0.10160 11024 0.133211 0.0150 4520 0.173251 0.0150 8899 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 44-7-01-20082009 Sheet No E -1-G-1 Supersedes Sheet No E -1-G-1 dated 7-11-1-2008 CITY OF PALO ALTO UTILITIES RESIDENTIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -1-G 2. Calculation of Usage Tiers Tier 1 electricity usage shall be calculated and billed based upon a level of 10 kWh per day, prorated by meter reading days of service. As an example, for a 30 --day bill, the Tier 1 level would be 300 kWh. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. {End] CITY OF PALO ALTO UTILITIES Issued by the City Council IWV Effective 44-7-01-20082009 Sheet No E -1-G-2 Supersedes Sheet No E -1-G-2 dated 7-11-1-2008 CITY OF PALO ALTO UTILITIES SMALL COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 A. APPLICABILITY: This schedule applies to non -demand metered electric service for small commercial customers and master -metered multi -family facilities. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Per kilowatt-hour (kWh) Summer Period Winter Period D. SPECIAL NOTES: Commodity Distribution Public Benefits Total $0.08219 $0.0425405505 $0.0029200321 $0.1276514045 0.07406 0.0381004934 0.0029200321 0.1150812661 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. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E-2-1 dated -711-1-2008 Effective 447 1 20082009 Sheet No E-2-1 CITY OF PALO ALTO UTILITIES SMALL COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15 -minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5 -minute interval. A thermal -type demand meter which does not reset after a definite time interval may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E-2-2 dated -711-1-2008 Effective -7 1 20082009 Sheet No E-2-2 CITY OF PALO ALTO UTILITIES SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -2-G A. APPLICABILITY: This schedule applies to non -demand metered electric service for small commercial customers and master -metered multi -family facilities receiving retail energy services from the City of Palo Alto Utilities under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and create a transparent and sustainable market that encourages new development of wind and solar power. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: 1. 100% Renewable Green option: Per kilowatt-hour (kWh) Commodity Distribution $0.04254055 Summer Period $0.08219 05 0.03 00493 Winter Period 0.07406 4 2. (1000 kWh block option): Per kilowatt-hour (kWh) Summer Period Winter Period Commodity $0.08219 0.07406 Distribution $0.042-54055 05 0.038100493 4 Palo Alto Green Charge (per 1000 kWh block) Public Benefits $0.002920 0321 0.0029200 321 Public Benefits $0.002920 0321 0.0029200 321 Palo Alto Green Total $0.142651 $0.0150 5545 0.1300814 0.0150 161 Total $0.127651 4045 0.1150812 661 15.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447-1-20082009 Sheet No E -2-G-1 Supersedes Sheet No E -2-G-1 dated 711-1-2008 CITY OF PALO ALTO UTILITIES SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -2-G 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. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer and Winter Periods, usage will be prorated based upon the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. 4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15 -minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5 -minute interval. A thermal -type demand meter which does not reset after a definite time interval may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. [End) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447-1-20082009 Sheet No E -2-G-2 Supersedes Sheet No E -2-G-2 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 A. APPLICABILITY: This schedule applies to demand metered secondary electric service for customers with a maximum demand below 1,000 kilowatts. This schedule applies to three-phase electric service and may include service to master -metered multi -family facilities or other facilities requiring demand -metered services, as determined by the City. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodit y Distribution Summer Period Demand Charge (per kW) Energy Charge (per kWh) Winter Period Demand Charge (per kW) Energy Charge (per kWh) Public Benefits Total $5.31 $11.88$15.23 $17.19$20.54 0.06083 0.0137801767 0.0029200321 0.0775308171 $4.80 x98$9.04 $11.78$13.84 0.05281 0.0 501716 0.0029200321 0.0689807318 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 4-1-7 1 20082009 Sheet No E-4-1 Supersedes Sheet No E-4-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15 -minute interval in the month, provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5 -minute interval. A thermal -type demand meter which does not reset after a definite time interval may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. 4. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill will include a "power factor penalty", if applicable. The penalty adjustment will be applied to a customer's bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer's load was less than 95%. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447-1-20082009 Sheet No E-4-2 Supersedes Sheet No E-4-2 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month. Where time -of -day metering is installed, the monthly power factor shall be the power factor coincident with the customer's maximum demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any City of Palo Alto full - service rate schedule as is applicable to their kilowatt -demand and kilowatt-hour usage profile. 6. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt - ampere size limitation. (End) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective ? -1-20082009 Sheet No E-4-3 Supersedes Sheet No E-4-3 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU A. APPLICABILITY: This schedule applies to demand metered secondary electric service for customers with demand between 500 and 1,000 kilowatts per month and who have sustained this level of usage for at least three consecutive months during the most recent 12 month period. This schedule applies to three-phase electric service and may include service to master -metered multi -family facilities or other facilities requiring demand -metered services, as determined by the City. In addition, this rate schedule is applicable for customers who did not pay power factor penalties during the last 12 months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Public Commodity Distribution Benefits Total Summer Period Demand Charge (per kW) Peak $3.12 X9.9$8.96 $10.11$12.08 Mid -Peak 1.99 1.415.65 6:407.64 Off -Peak 1.13 2.513.26 3.67'1.39 Energy Charge (per kWh) Peak $0.10963 $0.0252903242 $0.0029200321 $0.1378114526 Mid -Peak 0.05617 0.0126601623 0.0029200321 0.0717507561 Off -Peak 0.04298 0.0095001218 0.0029200321 0.0554005837 Winter Period Demand Charge (per kW) Peak Off -Peak Energy Charge (per kWh) $2.77 1.49 X94$5.10 2.2794 X1$7.87 3.76'1.43 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447 1 29942009 Sheet No E-4-TOU-1 Supersedes Sheet No E-4-TOU-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU Peak $0.07003 $0.0177302296 $0.0029200321 $0.0906809620 Off -Peak 0.04088 0.0101401313 0.0029200321 0.0539105722 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. 2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off -Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off -Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: "Holidays" for the purposes of this rate schedule are New Years Day, President's Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein.. For further discussion CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 117 1 20082009 Sheet No E-4-TOU-2 Supersedes Sheet No E-4-TOU-2 dated 711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU of bill calculation and proration, refer to Rule and Regulation 11. 3. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts taken during any 15 -minute interval in each of the designated Time periods as defined under Section D.2. 4. Power Factor Penalty Time of Use customers must not have had a power factor penalty assessed on their service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month, and must not have fallen below 95% to avoid the power factor penalty. Should the City of Palo Alto Utilities Department find that the customer's service should be subject to power factor penalties, the customer will be removed from the E-4-TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt demand and kilowatt-hour usage. 5. Changing Rate Schedules Customers electing to be served under E-4 TOU must remain on said schedule for a minimum of 12 months. Should the customer so wish, at the end of 12 months, the customer may request a rate schedule change to any applicable City of Palo Alto full -service rate schedule as is suitable to their kilowatt demand and kilowatt-hour usage. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447 1 20082009 Sheet No E-4-TOU-3 Supersedes Sheet No E-4-TOU-3 dated 711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU 6. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt - ampere size limitation. [End] CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447 1 20082009 Sheet No E-4-TOU-4 Supersedes Sheet No E-4-TOU-4 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -4-G A. APPLICABILITY: This schedule applies to demand metered secondary electric service for customers with a maximum demand below 1,000 kilowatts (kW) who receive power under the Palo Alto Green plan. This schedule applies to three-phase electric service and may include service to master -metered multi- family facilities or other facilities requiring demand -metered services, as determined by the City. B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: (1000 kWh block option): Summer Period Demand Charge (per kW) Energy Charge (per kWh) Commodity Distribution Public Benefits $5.31 $11.88$15.23 0.06083 0.0137801767 0.0029200321 Palo Alto Green Charge (per 1000 kWh block) Winter Period Demand Charge (per kW) $4.80 X98$9.04 Energy Charge (per kWh) 0.05281 0.0132501716 0.0029200321 Palo Alto Green Charge (per 1000 kWh block) (100% Renewable Green option): Summer Period Demand Charge (per kW) Energy Charge (per kWh) Winter Period Demand Charge (per kW) Energy Charge (per kWh) Commodity Distribution Total $17.19$20.54 0.0775308171 15.00 $11.78$13.84 0.0689807318 15.00 Palo Public Alto Benefits Green Total $5.31 $11.88$15.23 $17.19$20.54 0.06083 0.0.137801767 0.0029200321 0.0150 0.0925309671 $4.80 x98$9.04 $11.78$13.84 0.05281 0.0132501716 0.0029200321 0.0150 0.0839808818 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E -4-G-1 dated .711-1-2008 Effective 4-17-1-20082009 Sheet No E -4-G-1 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -4-G 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. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15 -minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5 -minute interval. A thermal -type demand meter, which does not reset after a definite time interval, may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 PM on weekdays. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E -4-G-2 dated -711-1-2008 Effective 4-1-7 1 20082009 Sheet No E -4-G-2 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -4-G 4. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has dropped below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill will include a "power factor penalty", if applicable. The penalty adjustment will be applied to a customer's bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly power factor of the customer's load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt-hours to kilovolt -ampere hours consumed during the month. Where time -of -day metering is installed, the monthly power factor shall be the power factor coincident with the customer's maximum demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full -service rate schedule as is applicable to their kilowatt -demand and kilowatt-hour usage profile. 6. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E -4-G-3 dated 711-1-2008 Effective -147 1 20082009 Sheet No E -4-G-3 CITY OF PALO ALTO UTILITIES MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -4-G 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change the system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt - ampere size limitation. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E -4-G-4 dated 711-1-2008 Effective ? 1 20082009 Sheet No E -4-G-4 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 A. APPLICABILITY: This schedule applies to demand metered secondary service for commercial customers with a maximum demand of at least 1,000KW per month per site, who have sustained this demand level at least 3 consecutive months during the last twelve months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides electric service. C. RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Public Commodity Distribution Benefits Total Summer Period Demand Charge (kW) $6.42 $9.54$12.55 Q'�$18.97 Energy Charge (kWh) 0.05662 0.0138801825 0.0029200321 0.0734207808 Winter Period Demand Charge (kW) $5.50 $4.39$6.04 $9.859$11.54 Energy Charge (kWh) 0.04990 0.0137901898 0.0029200321 0.0666407209 D. SPECIAL NOTES: 1. Calculation of Charges 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective ? 1 20082009 Sheet No E-7-1 Supersedes Sheet No E-7-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the summer and in the winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15 -minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5 -minute interval. A thermal -type demand meter which does not reset after a definite time interval may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. CITY OF PALO ALTO UTILITIES Issued by the City Council 11111_-�� Effective 44-7 1 20082009 Sheet No E-7-2 Supersedes Sheet No E-7-2 dated -711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 5. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer's bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer's load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month. Where time -of -day metering is installed, the monthly power factor shall be the power factor coincident with the customer's maximum demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt -demand and kilowatt-hour usage profile. 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. [End) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447-1-29952009 Sheet No E-7-3 Supersedes Sheet No E-7-3 dated 711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU A. APPLICABILITY: This schedule applies to demand metered secondary service for commercial customers with a maximum demand of at least 1,000KW per month per site, who have sustained this demand level at least 3 consecutive months during the last twelve months. In addition, this rate schedule is applicable for customers who did not pay power factor penalties during the last 12 months. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Public Commodity Distribution Benefits Summer Period Demand Charge (per kW) Peak Mid -Peak Off -Peak Energy Charge (per kWh) Peak Mid -Peak Off -Peak Winter Period Demand Charge (per kW) Peak Off -Peak Energy Charge (per kWh) Peak Off -Peak $4.24 2.06 1.17 $6x.2-7$8.25 3,144.13 1.572.06 $0.07029 $0.04-7.4602296 0.05867 0.0-144601901 0.04870 0.0 201567 $3.04 1.59 $2.46$3.38 1.2268 $0.0029200321 0.0029200321 0.0029200321 Total $10.51$12.49 5-206.19 2.743.23 $0.0906709646 0.0760508089 0.0635106758 $5.50$6.42 2.813.27 $0.05617 $0.0155702142 $0.0029200321 $0.0746608080 0.04663 0.0128101767 0.0029200321 0.0623906751 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 4-1-7-1-20082009 Sheet No E-7-TOU-1 Supersedes Sheet No E-7-TOU-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU D. SPECIAL NOTES: 1. Calculation of Charges 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. 2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off -Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off -Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: "Holidays" for the purposes of this rate schedule are New Years Day, President's Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein.. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447-1 20082009 Sheet No E-7-TOU-2 Supersedes Sheet No E-7-TOU-2 dated -711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU 3. Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts taken during any 15 -minute interval in each of the designated Time periods as defined under Section D.2. 5. Power Factor Penalty Time of Use customers must not have had a power factor penalty assessed on their service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month, and must not have fallen below 95% to avoid the power factor penalty. Should the City of Palo Alto Utilities Department find that the customer's service should be subject to power factor penalties, the customer will be removed from the E-7-TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt demand and kilowatt-hour usage. 6. Changing Rate Schedules Customers electing to be served under E-7 TOU must remain on said schedule for a minimum of 12 months. Should the customer so wish, at the end of 12 months, the customer may request a rate schedule change to any applicable City of Palo Alto full -service rate schedule as is suitable to their kilowatt demand and kilowatt-hour usage. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447-1 20082009 Sheet No E-7-TOU-3 Supersedes Sheet No E-7-TOU-3 dated 711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt - ampere size limitation. [End) CITY OF PALO ALTO UTILITIES Issued by the City Council //� Effective 447 1 20082009 Sheet No E-7-TOU-4 Supersedes Sheet No E-7-TOU-4 dated -711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -7-G A. APPLICABILITY: This schedule applies to demand metered service for large commercial customers who choose service under the Palo Alto Green plan. A customer may qualify for this rate schedule if the customer's maximum demand is at least 1,000KW per month per site, who have sustained this demand level at least 3 consecutive months during the last twelve months B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: (1000 kWh block option): Summer Period Demand Charge (per kW) kWh) Energy Charge (per Commodity $6.42 0.05562 Palo Alto Green Charge (per 1000 kWh block) Winter Period Demand Charge (per kW) $5.50 Distribution $9-54$12.55 Public Benefits 0.0138801825 0.0029200321 $4.39$6.04 Energy Charge (per kWh) 0.04990 0.0137901898 Palo Alto Green Charge (per 1000 kWh block) (100% renewable green option): Summer Period Demand Charge ( per kW) Energy Charge (per kWh) Winter Period Demand Charge (per kW) Commodity Distribution 0.0029200321 Total $15.96$18.9 7 0.07342078 08 15.00 $9.89$11.54 0.9 1-072 09 15.00 Public Palo Alto Benefits Green Total X96$ $6.42 $9.54$12.55 18.97 0.013880182 0.0029200 0.98842 0.05562 5 321 0.0150 09308 $5.50 $4-.39$6.04 $9.89$1 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447 1 20082009 Sheet No E -7-G-1 Supersedes Sheet No E -7-G-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -7-G 1.54 0. 90189 0.0029200 0.08161 Energy Charge (per kWh) 0.04990 8 321 0.0150 08709 D. SPECIAL NOTES: 1. Calculation of Charges 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. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15 -minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5 -minute interval. A thermal -type demand meter, which does not reset after a definite time interval may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 PM on weekdays. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 44-7-1-20082009 Sheet No E -7-G-2 Supersedes Sheet No E -7-G-2 dated .711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -7-G 4. Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are at one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 5. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has dropped below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer's bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly power factor of the customer's load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt-hours to kilovolt -ampere hours consumed during the month. Where time -of -day metering is installed, the monthly power factor shall be the power factor coincident with the customer's maximum demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt -demand and kilowatt-hour usage profile CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 4-1-7 1 20082009 Sheet No E -7-G-3 Supersedes Sheet No E -7-G-3 dated 711-1-2008 CITY OF PALO ALTO UTILITIES LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -7-G 7. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. 8. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed; provided, however, the City is not required to supply service at a qualified line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change the system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt -ampere size limitation. [End] CITY OF PALO ALTO UTILITIES Issued by the City Council 1// Effective 447-1-20082009 Sheet No E -7-G-4 Supersedes Sheet No E -7-G-4 dated 711-1-2008 CITY OF PALO ALTO UTILITIES STREET LIGHTS UTILITY RATE SCHEDULE E-14 A. APPLICABILITY: This schedule applies to street and highway lighting installations owned by any governmental agency other than the City of Palo Alto. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C. RATES: Per Lamp Per Month - Class A Utility supplies energy and switching service only. kWh's Per Month Burning Schedule: All Night/Midnight All Night Midnight Lamp Rating: Mercury -Vapor Lamps 100 watts 42/20 $ 10.9812.08 $ 8.4492 175 watts 68/35 13.10 10.2114.41 11.23 400 watts 154/71 26.96 20.7929.66 22.87 High Pressure Sodium Vapor Lamps 120 volts 70 watts 29/15 9.63 6.7510.59 7.43 100 watts 41/20 12.90 9.4214.19 10.36 150 watts 60/30 16.75 14.0718.43 15.48 240 volts 70 watts 34/17 10.7711.85 8.4492 100 watts 49/25 14.07 10.2115.48 11.23 150 watts 70/35 16.75 11.5618.43 12.72 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-20082009 Sheet No. E-14-1 Supersedes Sheet No. E-14-1 dated 7-01 20072008 CITY OF PALO ALTO UTILITIES STREET LIGHTS UTILITY RATE SCHEDULE E-14 200 watts 90/45 18.68 14.8320.55 16.31 250 watts 110/55 21.20 15.0123.32 16.51 310 watts 134/167 24.84 19.6127.32 21.60 400 watts 167/84 30.43 22.5333.47 24.78 Fluorescent Lamps 40 watts 15/8 4.0516 3.2-760 CITY OF PALO ALTO UTILITIES Issued by the City Council Ble Effective 7-01-20082009 Sheet No. E-14-1 Supersedes Sheet No. E-14-1 dated 7-01 20072008 CITY OF PALO ALTO UTILITIES STREET LIGHTS UTILITY RATE SCHEDULE E-14 (Continued) / Per Lamp Per Month - Class C Utility supplies energy and switching service and maintains entire system, including lamps and glassware. Burning Schedule: Lamp Rating: Mercury -Vapor Lamps 100 watts $ 10.36 175 watts 12.91 250 watts 15.70 400 watts 23.32 Incandescent Lamps 189 watts ( 11.46 295 watts ( 14.41 405 watts ( 19.27 2,500 L) 4,000 L) 6,000 L) 620 watts (10,000 L) 26.88 Fluorescent Lamps 25 watts 3.6704 40 watts 4.0516 55 watts kWh's Per Month All Night/Midnight High Pressure Sodium Vapor Lamps 120 volts 70 watts 42/20 68/35 97/49 154/71 65/32 101/5 139/70 212/106 12/6 15/8 18/9 All Night Midnight $ 12.33$ 14.83 18.47 27.54 13.10 16.75 21.20 29.47 5.30 5.49 X6.36 9.4213.56 11.7116.31 14.2720.32 21.2030.29 10.4214.41 13.1018.43 17.5223.32 24.1132.42 4.8 4.99 4.568 29/15 1 11.02 7. 84 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-20082009 Sheet No. E-14-2 Supersedes Sheet No. E-14-2 dated 7-01 20072008 CITY OF PALO ALTO UTILITIES STREET LIGHTS UTILITY RATE SCHEDULE E-14 (Continued) 100 watts 41/20 13.47 9.8314.82 10.81 150 watts 60/30 17.33 14.4619.06 15.91 240 volts 70 watts 34/17 11.17 8.4812.29 9.33 100 watts 49/25 14.63 10.7716.09 11.85 150 watts 70/35 17.33 12.1119.06 13.35 200 watts 90/45 19.25 15.4021.18 16.94 250 watts 110/55 21.58 15.8023.74 17.38 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01 20082009 Sheet No. E-14-2 Supersedes Sheet No. E-14-2 dated 7-01 20072008 CITY OF PALO ALTO UTILITIES STREET LIGHTS UTILITY RATE SCHEDULE E-14 (Continued) D. SPECIAL CONDITIONS: 1. Type of Service: This schedule is applicable to series circuit and multiple street lighting systems to which the Utility will deliver current at secondary voltage. Unless otherwise agreed, multiple current will be delivered at 120/240 volts, three -wire, single-phase. In certain localities the Utility may supply service from 120/208 volt star -connected poly -phase lines in place of 240 -volt service. Single phase service from 480 -volt sources will be available in certain areas at the option of the Utility when this type of service is practical from the Utility's engineering standpoint. All currents and voltages stated herein are nominal, reasonable variations being permitted. New lights will normally be supplied as multiple systems. 2. Point of Delivery: Delivery will be made to the customer's system at a point or at points mutually agreed upon. The Utility will furnish the service connection to one point for each group of lamps, provided the customer has arranged his system for the least practicable number of points of delivery. All underground connections will be made by the customer or at the customer's expense. 3. Switching: Switching will be performed by the Utility (on the Utility's side of points of delivery) and no charge will be made for switching provided there are at least 10 kilowatts of lamp load on each circuit separately switched, including all lamps on the circuit whether served under this schedule or not; otherwise, an extra charge of $2.50 per month will be made for each circuit separately switched unless such switching installation is made for the Utility's convenience or the customer furnishes the switching facilities and, if installed on the Utility's equipment, reimburses the Utility for installing and maintaining them. 4. Annual Burning Schedule: The above rates apply to lamps which will be turned on and off once each night in accordance with a regular burning schedule agreeable to the customer but not exceeding 4,100 hours per year for all-night service and 2,050 hours per year for midnight service. 5. Maintenance: The rates under Class C include all labor necessary for replacement of glassware and for inspection and cleaning of the same. Maintenance of glassware by the Utility is limited to standard glassware such as is commonly used and manufactured in reasonably large quantities. A suitable charge will be made for maintenance of glassware of a type entailing unusual expense. Under Class C, the rates include maintenance of circuits between lamp posts and of circuits and equipment in and on the posts, provided these are all of good standard construction; otherwise, CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7 1 20082009 Sheet No. E-14-3 Supersedes Sheet No. E-14-3 dated 7-1 20032008 CITY OF PALO ALTO UTILITIES STREET LIGHTS UTILITY RATE SCHEDULE E-14 (Continued) the Utility may decline to grant Class C rates. Class C rates applied to any agency other than the City of Palo Alto also include painting of posts with one coat of good ordinary paint as required to maintain good appearance but do not include replacement of posts broken by traffic accidents or otherwise. 6. Multilamp Electroliers: The above charges are made on per -lamp basis. For posts supporting one or more lamps, where the lamps are less than nine feet apart, the above charges for Class C will be reduced by 6 percent (6%) computed to the nearest whole cent, for all lamps other than the first one. 7. Operating Schedules Other Than All -Night and Midnight: Rates for regular operating schedules other than all-night and midnight will be the midnight rates plus or minus one -eleventh of the difference between the midnight and the all-night rate, computed to the nearest whole cent, for each half hour per night more or less than midnight service. This adjustment will apply only to lamps on regular operating schedules which do not exceed 4,500 hours per year. 8. Street Light Lamps, Standard and Nonstandard Ratings: The rates for incandescent lamps under Class A are applicable for service to regular street lamps only and must be increased by 6 percent, computed to the nearest whole cent, for service to group -replacement street lamps. The rates under Class C are applicable to both regular and group -replacement street lamps. 9. Continuous Operation: The rate for continuous 24 -hour operation under Class A service will be twice the all-night rate. 10. System Owned In -Part by Utility : Where, at customer's request, the Utility installs, owns, and maintains any portion of the lighting fixtures, supports, and/or interconnecting circuits, an extra monthly charge of one and one-fourth percent of the Utility's estimate of additional investment shall be made. 11. Rates For Lamps Not on Schedule: In the event a customer installs a lamp which is not presently represented on this schedule, the Utility will prepare an interim rate reflecting the Utility's estimated costs associated with the specific lamp size. This interim rate will serve as the effective rate for billing purposes until the new lamp rating is added to Schedule E-14. [End] CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20082009 Sheet No. E-14-4 Supersedes Sheet No. E-14-4 dated 7-1 20032008 CITY OF PALO ALTO UTILITIES MUNICIPAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-18 A. APPLICABILITY: This schedule applies to service for buildings and facilities owned and/or operated by the City of Palo Alto. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total Summer Period $0.06686 $0.0345604472 $0.0029200321 $0.1043'111479 Winter Period 0.05369 0.0275003559 0.0029200321 0.0841109249 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 cost components as calculated under Section C. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. CITY OF PALO ALTO UTILITIES Issued by the City Council 1// Effective 447 1 20082009 Sheet No E-18-1 Supersedes Sheet No E-18-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MUNICIPAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-18 3. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer's bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer's load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month. Where time -of -day metering is installed, the monthly power factor shall be the power factor coincident with the customer's maximum demand. 4. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt - ampere size limitation. [End] CITY OF PALO ALTO UTILITIES Issued by the City Council EV Effective 447-1-20082009 Sheet No E-18-2 Supersedes Sheet No E-18-2 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MUNICIPAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -18-G A. APPLICABILITY: This schedule applies to service for buildings and facilities owned and/or operated by the City of Palo Alto receiving power under the Palo Alto Green plan. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: (100% renewable green option): Palo Per kilowatt-hour Public Alto (kWh) Commodity Distribution Benefits Green Total Summer Period $0.06686 $0.0345604472 $0.0029200321 $0.0150 $0.1193'112979 Winter Period 0.05369 0.0275003559 0.0029200321 0.0150 0.0991110749 (1000 kWh block option): Per kilowatt-hour Public (kWh) Commodity Distribution Benefits Total Summer Period $0.06686 $0.0345604472 $0.0029200321 $0.10'13111479 Winter Period 0.05369 0.0275003559 0.0029200321 0.0841 X09249 Palo Alto Green Charge (per 1000 kWh block 15.00 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 cost components as calculated under Section C. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 447 1 20082009 Sheet No E -18-G-1 Supersedes Sheet No E -18-G-1 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MUNICIPAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -18-G 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer's bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer's load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month. Where time -of -day metering is installed, the monthly power factor shall be the power factor coincident with the customer's maximum demand. 4. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and create a transparent and sustainable market that encourages new development of wind and solar power. CITY OF PALO ALTO UTILITIES Issued by the City Council //� Effective ? -1-20082009 Sheet No E -18-G-2 Supersedes Sheet No E -18-G-2 dated -711-1-2008 CITY OF PALO ALTO UTILITIES MUNICIPAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E -18-G 5. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt - ampere (kVA) size limitation. {End] CITY OF PALO ALTO UTILITIES Issued by the City Council ‘Il/i Ele Effective 14-7-1-20082009 Sheet No E -18-G-3 Supersedes Sheet No E -18-G-3 dated -711-1-2008 CITY OF PALO ALTO UTILITIES ATTACHMENT D EXCERPTS from Draft Minutes of UAC Meeting of March 4th, 2009 ITEM 5: ACTION ITEM: Rates Proposals for Fiscal Year 2010 Senior Resource Planner Ipek Connolly reviewed where we are in the budget process. In February, the UAC reviewed the long-term financial projections and this month, it will review the proposed rate adjustments for FY 2010. The rate proposals will be considered by the Council Finance Committee on March 31. The budget will be considered by the UAC in May and by the Finance Committee on May 19. Council adoption of the budget is scheduled for June 8. Connolly listed the assumptions used to prepare the financial projections used to develop the rate projections. The assumptions that have changed since the UAC saw the financial projections in February include the proposed changes in the equity transfer method (Item #4 discussed tonight), and additional savings identified in supply and distribution operating budgets. Savings estimates for operating budgets total $354,000. In addition, although labor negotiations are not complete for FY 2010, if there were no cost increases for salaries and benefits for FY 2010 compared to FY 2009, then savings would total $1,326,000. These savings are not incorporated into the cost projections at this time, but can be considered. Chair Dawes asked Director Fong if she had looked closely at headcount. Fong responded that she has looked closely, but that there are many regulatory compliance and reporting requirements that require staff to complete. These include the Department of Transportation, the Federal Energy Regulatory Commission, the California Energy Commission, State and County Department of Health, Regional Water Quality Control Board, and the California Public Utilities Commission. In addition, she scrutinizes the justification to fill any vacancy and noted that there is a rigorous city-wide process that any vacancy must go through before filling. Commissioner Waldfogel felt that the director should look at all programs and cut the lowest value projects and programs. Connolly presented the impact on the average residential total bill for gas, water, electricity and wastewater if the proposed rate adjustments were adopted by Council. Although water, wastewater, and electric rates are proposed to be increased, the proposed gas rate decrease cancels almost all the other rate increases so that, on an annual basis, the average residential bill will increase only 7 cents per month. Chair Dawes asked if staff had done any benchmarking or examination of best practices for utilities. He asked if NCPA has started a study to help the member agencies institute best management practices. Fong said that this much coordination between agencies, including the evaluation of pooled resources where feasible and bulk buying of supplies with other agencies. Commissioner Waldfogel said that across the board, there is a need to acknowledge the state of the economy with salary cuts, layoffs, drop in the value of homes and investments. He advised that Utilities must ensure that all the fat is cut off and that we need to proceed to cut into the bone at this point. 5d. Electric: Senior Resource Planner Ipek Connolly presented the Electric Fund costs and revenue projections and staffs recommended electric rate increase for FY 2010 of 10%. Despite a 10% rate increase, electric revenue will still not cover projected costs. Connolly noted that an extra transfer from the Calaveras Reserve would be required in order to have only a 10% rate increase. After the proposed rate increase and the extra transfer from the Calaveras Reserve, the Electric Fund Supply and Distribution Rate Stabilization Reserves would be slightly below the minimum guideline levels. Connolly noted that the recommended electric rate increase would be applied on an equal amount per kilowatt-hour basis for all customer groups. Chair Dawes asked what hydroelectric generation assumptions are used in the budget year and the five- year projections. Assistant Director Ratchye replied that lower than average generation is assumed since, even if median precipitation occurs from now on, average generation won't return until after three years. Commissioner Melton said that drought means a power shortage, not just a water shortage, for Palo Alto, and that a 10% rate increase is insufficient since we know hydrogeneration is lower than average. Melton recommended that the rate increase should be 15%, not 10%. Melton also said that the UAC and Council have agreed that the Calaveras Reserve should not be used for rate relief. Instead there should be a rate increase that helps to align revenues and expenses. Commissioner Keller stated that she was upset to see the proposed use of the Calaveras Reserve to reduce the rate increase proposal. She reiterated the UAC's clear opposition to the use of the Calaveras Reserve for this purpose. Commissioner Waldfogel agreed that the Calaveras Reserve should not be used for lowering the rate increase, but wanted to look closely at reducing expenses before increasing rates more than 10%. He asked whether there were any CIP projects that could be deferred. Assistant Director Tomm Marshall said that he didn't support deferrals in the proposed CIP projects. He indicated that the City was looking at funding several new programs, including components of smart grid and LED streetlights. Commissioner Melton noted that if there are good projects such as those mentioned, they should be proposed for funding from the Calaveras Reserve. Melton noted that this was the process established for the use of the Calaveras Reserve. Director Fong said that she understood that this was the process for the use of the Calaveras Reserve, but that staff felt that the economic conditions were so extraordinary that it was unacceptable to propose a rate increase in excess of 10% due to the impact on ratepayers. Commissioner Rosenbaum moved the staff recommendation to recommend that Council: 1) approve a 10 percent increase to electric retail rates effective July 1, 2009, which will increase annual revenues by $10.3 million; 2) approve a total transfer of $9.4 million from the Calaveras Reserve for fiscal year (FY) 2010, which is $6.8 million in addition to the $2.6 million minimum transfer amount established by the proposed Calaveras Reserve Guidelines; and 3) approve the changes to the Electric Utility Rate Schedules E-1, E -1- G, E-2, E -2-G, E-4, E-4 TOU, E -4-G, E-7, E-7 TOU, E -7-G, E-14, E-16, E-18, and E -18-G, as attached. Chair Dawes seconded the motion. The UAC voted to defeat the motion by a 2-3 vote with Keller, Waldfogel and Melton voting no. Commissioner Waldfogel made a motion to postpone consideration of the electric rate adjustment until the UAC considers the budget at its May meeting. The motion received no second. Commissioner Melton made a motion to increase electric rates by 15% and only make the minimum transfer from the Calaveras Reserve of $2.6 million for FY 2010. The motion received no second. Since no further motions were attempted, Chair Dawes stated that the UAC was unable to make a recommendation to the Council on the FY 2010 electric rate adjustment.