HomeMy WebLinkAboutStaff Report 3314
City of Palo Alto (ID # 3314)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 12/18/2012
City of Palo Alto Page 1
Summary Title: Standby Rate and Policy for Energy Purchase from Potential
Waste to Energy Facility
Title: UAC Recommendation that the Finance Committee Recommend that
Council Adopt Two Resolutions: 1) Approving the Policy Pertaining to the
Purchase of Ener gy from a Potential Green Waste -to-Energy Facility and 2)
Amending Utility Rule and Regulation 2 (Definitions and Abbreviations) and
the Six Rate Schedules Covering Medium and Large Commercial Customers
(E-4 and E-7) to Include Standby Service Charges
From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Utilities Advisory Commission (UAC) recommend that the Finance Committee
recommend that Council:
1. Adopt a resolution (Attachment A) approving the Policy Pertaining to the Purchase of
Energy from Potential Green Waste-to-Energy Facilities; and
2. Adopt a resolution (Attachment B) modifying Utilities Rules and Regulation 2
(Definitions and Abbreviations) and the six electric rate schedules covering medium and
large commercial customers (E-4 and E-7) to include standby service charges.
Executive Summary
In January 2013 the Public Works Department is planning to seek Council approval of a request
for proposals (RFP) for a waste-to-energy facility at the Regional Water Quality Control Plant or
at an adjacent site designated for that purpose by Measure E, which passed in November 2011.
The biogas produced at such a facility could be used in a variety of ways, and staff has
introduced the attached resolutions to clarify the City of Palo Alto Utilities’ (CPAU’s) policies so
potential proposers have more certainty about which uses are acceptable and economic for a
given project. The proposed policy states that:
City of Palo Alto Page 2
i. CPAU will purchase the energy at the market prices prevailing when the contract is
signed, but the policy also commits CPAU to a minimum purchase price of 7.7 cents per
kilowatt-hour (¢/kWh). This default rate is a “no regrets” rate that represents CPAU ’s
forecasted avoided costs in 2018 based on a plausible scenario in which CPAU’s
expenses for renewable energy and transmission have decreased substantially from
current planning assumptions. The default rate is a minimum rate, and CPAU will
purchase at prevailing market prices if they are higher.
ii. The energy could be used to reduce the facility’s purchases from the utility, subject to
CPAU standby power rates.
iii. The proposer may sell the energy to another utility outside of Palo Alto, subject to a
wheeling agreement with CPAU.
iv. The policy also states that the City will not allow proposers to inj ect biogas into the
City’s gas distribution system.
The second resolution adopts the electric standby rate mentioned above. A standby rate
recovers the cost to the utility of providing backup service to customers who own their own
generators. Customers with renewable generators smaller than 1 MW that are sized to meet
customer load rather than to export to the grid (like most rooftop solar systems) are exempt
from the standby rates, as required by California Public Utilities Code 2827(g).
Background
In January 2013 the Public Works Department is planning to seek Council approval of an RFP for
a waste-to-energy facility (referred to as the Energy/Compost Facility, or E/C Facility) at the
Regional Water Quality Control Plant (RWQCP) or at an adjacent site designated for that
purpose by Measure E, which passed in November 2011. Biogas produced by these types of
facilities is used in a variety of ways. It can be used to generate electricity, cleaned up and used
as a vehicle fuel, or injected into a gas p ipeline for delivery to customers. If electricity is
generated it can be used on site, sold to the utility where the project is located, or sold to a
different utility. CPAU currently has no policies related to injection of biogas into its gas
distribution system, and has not reviewed its policies related to on-site electric generation or
moving electricity across its distribution system in several years. Staff has reviewed its policies
in order to develop the attached proposal.
Discussion
Staff has identified three primary ways the biogas from a waste-to-energy facility could
potentially be used: 1) the gas could be injected into the gas distribution system, 2) the gas
could be used in compressed natural gas (CNG) vehicles, and 3) the gas could be burne d in a gas
generator to make electricity. Utilities in California are only beginning to experiment with
injecting biogas into a gas distribution system. Given the safety issues involved in operating a
City of Palo Alto Page 3
gas distribution system, the corrosive nature of biog as, and CPAU’s small size and limited
resources, staff recommends against exploring the first alternative at this time. A CNG fueling
station, on the other hand, is a potentially viable alternative, but one that could be done by the
project developer independently from CPAU and, therefore, does not require any analysis by
CPAU. Therefore, the proposed Policy Pertaining to the Purchase of Energy from Potential
Green Waste-to-Energy Facilities mainly addresses CPAU policies regarding electricity
generation.
Electricity generated at an E/C Facility could be used in three ways:
1) The electricity could be used on site to supply the energy needs of the facility itself;
2) It could be sold to CPAU; or
3) If requested by the proposer, it could be sold to a utility outside of Palo Alto.
Option 1: On-site Electricity Use
If the electricity were to be used on site, it would result in reduced energy purchases from
CPAU for the RWQCP or the E/C Facility itself. CPAU’s interconnection rules and rates do not
prohibit this, but they are not written to facilitate it either. The proposed policy states that on -
site use is an acceptable use for the electricity, and that CPAU will make any necessary changes
to its rates and rules and regulations to facilitate this. The primary nec essary change is the
adoption of a standby rate to recover the utility’s costs associated with providing backup
service. The resolution in Attachment B modifies the rate schedules for large and medium
commercial electric customers to include these rates.
The proposed standby rates are designed to recover the cost to maintain the CPAU distribution
system to serve peak customer load, as well as the cost of maintaining reserve generating
capacity to provide energy when needed by the customer. For medium a nd large commercial
customers these costs are recovered through the demand charge . When a customer’s load is
served by an on-site generator, the generator reduces the customer’s metered demand, and
the utility is not able to recover its cost to maintain the distribution system or provide
generating capacity. Therefore, the proposed standby rate is designed to recover these costs
through a monthly charge. The standby rate recovers the entire distribution component of the
demand charge, which pays for the cost of maintaining the distribution system to serve peak
customer load. It also recovers a portion of the commodity component of the demand charge,
which pays for generation costs related to providing reserve generating capacity. Only a
portion of the commodity demand charge is recovered because the customer is providing their
own generating capacity. The portion of the commodity demand charge assessed reflects the
cost of maintaining reserve generating capacity for the customer that conforms to Califor nia
Independent System Operator (CAISO) reserve requirements.
City of Palo Alto Page 4
Under the proposed standby rate the customer would pay a monthly charge for backup service
based on the smaller of the generator size or the customer’s peak load for the month. In
developing the rate, staff surveyed fourteen other California utilities, and this rate design is the
same as the rate design used by the majority of those other utilities.
Table 1, below, shows the proposed standby rate and compares it to the retail demand charge
for each customer class. The standby rate is lower, but this relates to the fact that the
customer is only charged a portion of the commodity component of the retail demand charge,
as discussed above.
Table 1: E-4 and E-7 Standby Rates and Retail Demand Charges
Standby Rate ($/kW) Retail Demand Charge ($/kW)
E-4 (Medium Commercial)
Summer 15.92 20.54
Winter 9.67 13.84
E-7 (Large Commercial)
Summer 13.39 18.97
Winter 6.76 11.54
The standby charge will also include an exemption for renewable generators smaller than 1
MW, an exemption that is mandated by California Public Utilities Code 2827(g). To qualify, the
generator must be sized to meet the customer’s load, delivering no more than incidental
surplus energy to the grid. Residential and commercial solar systems built under the utility’s PV
Partners program are examples of the types of generators that qualify for this exemption. Solar
systems built under the Palo Alto CLEAN program would not be subject to the standby charge
because they are not intended to serve on-site load, and therefore do not reduce the customer
bill.
The proposed standby rate would apply to the following six electric rate schedules:
1. E-4 (Medium Commercial)
2. E-4 TOU (Medium Commercial Time of Use Service)
3. E-4-G (Medium Commercial Green Power Service)
4. E-7 (Large Commercial)
5. E-7 TOU (Large Commercial Time of Use Service)
City of Palo Alto Page 5
6. E-7-G (Large Commercial Green Power Service)
Staff does not believe a standby rate is necessary for E -2 (Small Commercial) or E-1 (Residential)
customers at this time, since customers this size would typically install renewable generators
that would be exempt from standby rates. Gas generators for small customers are not typically
economically feasible in Palo Alto. In addition, because the E -2 and E-1 rate schedules do not
have a demand rate, additional analysis would be required to establish these standby rates.
Staff validated its rate design by calculating sample customer bills using actual customer data,
and then applied eleven other utilities’ standby rates to the same customer data to see how
they compared. Staff measured the ratio of the customer’s bill with self -generation to the
customer’s bill without self-generation under each rate schedule, and found that the ratio for
the CPAU rate was close to the median ratio for the other eleven utilities’ rates. Since other
California utilities have similar cost structures, staff believes this provides additional industry-
supported data that validates the proposed rate.
The attached resolution also includes non-substantive cleanup to the six affected rate
schedules, which includes clarifying language incorporating a change in the term “power factor
penalty” to “power factor adjustment.” These changes will not affect operation of the rate
schedule.
Option 2: Electricity Sales to CPAU
Generally, CPAU buys renewable energy by soliciting proposals from suppliers and selecting the
best projects. That competitive procurement process ensures that the City pays the lowest
price for renewable energy. Staff expects that CPAU will have an ongoing need to execute new
contracts for renewable energy in the future as existing contracts start to expire beginning in
2021, leaving room for additional renewable energy in the electric portfolio.
The current timeline for the E/C Facility and Biosolids Facility projects involves the facility or
facilities beginning operation in 2018 or 2019. Due to the uncertainty associated with energy
markets, CPAU does not enter into contracts for renewable energy commencing more th an 3-4
years out. However, in order to evaluate the E/C and Biosolids facilities, the City will need to
establish a price it would pay for the renewable energy produced from the facilities. This price
will be used by vendors who respond to the E/C Facility RFP. Since the sale of energy is
expected to be a significant revenue source for most E/C Facility designs, the sale price of the
electricity will affect the fees the vendors will propose to charge the City for waste disposal.
City of Palo Alto Page 6
If proposal states that CPAU will pay market price for the electricity, the uncertainty of this
price could lead to the possibility that individual vendors will use different numbers to develop
their proposals in response to Public Works’ RFP. In the interest of providing some level of
certainty around the energy price, staff proposes that CPAU commit to purchasing the energy
at a default, “no regrets” rate of 7.7 ¢/kWh. The default price represents the City’s avoided
cost of locally sited renewable energy in 2018 under the fol lowing reasonable, but low cost (“no
regrets”), scenario:
1) Solar energy prices continue to drop substantially. Staff used recent projections of solar
energy prices from the National Renewable Energy Laboratory and the Rocky Mountain
Institute to develop these estimates;
2) The renewable energy market is favorable to buyers, as it is currently;
3) CPAU has built a second transmission line that enables it to avoid Low Voltage
Transmission Charges imposed by PG&E; and
4) All other avoided cost components use the current CPAU planning assumptions.
The proposed policy states that if, at the time the facility is built, the market value of local
renewable energy is less than 7.7 ¢/kWh, CPAU would still pay the default rate of 7.7 ¢/kWh. If,
however, the market value of local renewable energy is higher than 7.7 ¢/kWh, CPAU would
pay the market value determined at the time.
Option 3: Electricity Sales to Another Utility
Though CPAU will purchase the electricity from the project at market prices, it is possible,
though unlikely, that the proposer would be able to find another utility willing to pay more for
the electricity produced by the project. In this case CPAU would negotiate an agreement with
the proposer to facilitate transporting the energy across its distribution system to the PG&E
transmission system.
Commission Review and Recommendation
The UAC discussed the proposed Policy Pertaining to the Purchase of Energy from Potential
Green Waste-to-Energy Facilities at its September 5, 2012 meeting and recommended
unanimously that Council adopt the policy. The minutes from that meeting are provided as
Attachment E.
The UAC also discussed the proposed standby rates at its November 7, 2012 and December 5,
2012 meetings. The minutes from those meetings are provided as Attachments F and G.
Commissioners had questions about how the rate would operate and its applicability to the
City of Palo Alto Page 7
proposed E/C Facility project and to other types of projects. At its December 5, 2012 meeting,
the UAC recommended approval of the rate (6-0, Hall absent).
Timeline
Staff anticipates requesting City Council adoption of the proposed resolutions in January 2013.
This will enable the Public Works department to incorporate the policies into its RFP, which is
anticipated to be released in February 2013.
Resource Impact
Adopting the resolutions approving this policy and the standby rate will have minimal resource
impact, but if a customer takes service under the standby rate schedule, additional staff time
will be necessary to set up the metering required and to implement the rate in the billing
system. Staff time is estimated to be less than 0.1 FTE and would be absorbed with existing
staff. Equipment requirements would depend on the site in question and would be recovered
through applicable connection fees.
Policy Implications
To properly evaluate the value of onsite generation, customers need certainty regarding the
City’s rate structure, and by providing that certainty the staff recommendation is consistent
with Long-term Electric Acquisition Plan (LEAP) Strategy #4, Local Generation, which states
“promote and facilitate the deployment of cost-effective local resources.”
Environmental Review
The adoption of the resolution adopting an energy purchase policy does not meet the
Environmental Quality Act’s definition of a “project” under Public Resources Code 21065, and
the adoption of the resolution setting standby service charges does is not subject to CEQA
review under Public Resources Code Section 21080(b)(8) (modification of rates to meet
operating expenses, purchase supplies, meet financial reserve needs, obtain capital project
funds, or obtain funds for charter-authorized intracity transfers).
Attachments:
Attachment A: Resolution Adopting a Policy Regarding Purchase of Energy from Waste
to Energy Facilities (PDF)
Attachment B: Resolution Amending Six Rate Schedules for Medium and Large
Commercial Customers to Add Standby Charges (PDF)
Attachment C: Proposed Utilities Rule and Regulation 2 (Definitions and Abbreviations)
(PDF)
City of Palo Alto Page 8
Attachment D: Proposed Utility Rate Schedules E-4, E-4TOU, E-4G, E-7, E-7TOU and E-7G
(PDF)
Attachment E: Excerpted Final UAC Minutes of 10-3-12 (PDF)
Attachment F: Excerpted Draft Minutes of the UAC 11-07-12 Meeting (PDF)
Attachment G: Draft Excerpted UAC Minutes of 12-5-12 (PDF)
*NOT YET APPROVED*
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Resolution No.
Resolution of the Council of the City of Palo Alto Adopting a Policy
Pertaining to the Purchase of Energy from Potential
Green Waste-to-Energy Facilities
A. On November 3, 2011, the Palo Alto voters approved Measure E, which
undedicated 10 acres of existing parkland in Byxbee Park (the “Measure E Site”) for the
exclusive purpose of evaluating the development of an Energy/Compost facility, which could
potentially process yard trimmings, food waste, sewage sludge, and other organic material.”
B. The City is proceeding with a long-term planning process related to the future of
the regional Water Quality Control Plant.
C. The City plans to evaluate various alternative types of waste to energy facilities
at those sites. As part of this process, proposals will be solicited from project developers.
D. The City in order to properly evaluate the various alternatives and solicit
proposals from developers intends to adopt a policy pertaining to the use of the energy
generated by the facility or facilities.
The Council of the City of Palo Alto (“City”) does RESOLVE as follows:
SECTION 1. It is the policy of the City to provide a range of alternatives for the use of
energy generated by a potential waste-to-energy facility at the regional Water Quality Control
Plant and the Measure E Site. These alternatives may include, but are not limited to,
compressed natural gas vehicle fueling or electricity generation. Electricity generated may be
1) used by the facilities on the Measure E site or the regional Water Quality Control Plant ,
which would reduce the amount of electricity supplied by the City’s electric utility to those
facilities, 2) sold to the City’s electric utility for distribution to customers, or 3) sold to an entity
outside of the City’s electric utility service area.
SECTION 2. To enable this policy the City will evaluate its Utilities Rules and
Regulations and Utility Rate Schedules to determine whether changes are advisable or required
to enable these alternatives.
SECTION 3. It is the policy of the City to provide an optional default purchase price
for energy from a waste-to-energy project, commencing in calendar year 2018. This default
purchase price will be equal to the City’s forecasted avoided cost in 2018 based on a scenario in
which the City’s avoided cost of electricity compares favorably to its current costs. The default
purchase price is 7.7 ¢/kWh for electricity from a project certified by the California Energy
Commission (CEC) as an Eligible Renewable Energy Resource for the purpose of fulfilling
Renewable Portfolio Standard goals. “Renewable Portfolio Standard” refers to the standard
adopted by the State of California pursuant to Senate Bill 2 1st Extraordinary Session (SBX1 2,
*NOT YET APPROVED*
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Chapter 1, Statutes 2011-12), and California Public Utilities Code Sections 399.11through
399.31, inclusive, as may be amended, setting minimum renewable energy targets for local
publicly owned electric utilities.
SECTION 4. It is the policy of the City not to consider the injection of biogas
associated with a waste-to-energy project into its gas distribution system at this time.
SECTION 5. The Council finds that the adoption of this Resolution does not constitute
a project under the California Environmental Quality Act, California Public Resources Code
section 21080, subdivision (b)(8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Asst. City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
*NOT YET APPROVED*
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Resolution No. _________
Resolution of the Council of the City of Palo Alto Amending Utilities
Rule and Regulation 2 (Definitions and Abbreviations) and Utility Rate
Schedules E-4 (Medium Commercial Electric Service), E-4 TOU
(Medium Commercial Electric Time of Use Service), E-4G (Medium
Commercial Green Power Electric Service), E-7 (Large Commercial
Electric Service), E-7 TOU (Large Commercial Time of Use Electric
Service), and E-7G (Large Commercial Green Power Electric Service),
to Include Standby Service Charges
The Council of the City of Palo Alto RESOLVES:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities
Rule and Regulation 2 (Definitions and Abbreviations) is amended as attached and
incorporated. This Utilities Rule and Regulation shall become effective on February 5, 2013.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedules E-4 (Medium Commercial Electric Service), E-4 TOU (Medium Commercial
Electric Time of Use Service), and E-4G (Medium Commercial Green Power Electric Service), E-7
(Large Commercial Electric Service), E-7 TOU (Large Commercial Time of Use Electric Service),
and E-7G (Large Commercial Green Power Electric Service), are amended as attached and
incorporated. These utility rate schedules shall become effective as of February 5, 2013.
SECTION 3. Adoption of this resolution to add standby service charges to the six above-
referenced electric rate schedules has no effect on the other non -standby-related rates shown
on those rate schedules, nor on any of the City’s other electric rates.
SECTION 4. The Council finds that the rates adopted by this resolution are not special
taxes because they are charges imposed for a specific government service or product provided
directly to the payor that are not provided to those not charged, and which do not exceed the
reasonable costs to the City of providing the service or product.
SECTION 5. The Council finds that the adoption of this resolution does not constitute a
project under the California Environmental Quality Act, California Public Resources Code
section 21080, subdivision (b)(8) because the amended rates adopted by this resolution are
necessary to recover the costs of maintaining the City Electric Utility’s distribution system to
//
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*NOT YET APPROVED*
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serve peak customer load, as well as the costs of maintaining reserve generating capacity to
provide energy when needed by customers.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Sr. Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 1
A. ABBREVIATIONS
AMR - Automated Meter Reading
AER - Advance Engineering Request
Btu - British Thermal Unit
ccf - Hundred Cubic Feet
CEC - California Energy Commission
CPAU - City of Palo Alto Utilities
CPUC - California Public Utilities Commission.
DA - Direct Access
ERU - Equivalent Residential Unit
ESP - Energy Service Provider
FERC - Federal Energy Regulatory Commission
GDA - Gas Direct Access
GSP - Gas Service Provider
GSPA - Gas Service Provider Agreement
kVar - Kilovar
kVarh - Kilovar-hours
kW - Kilowatt
kWh - Kilowatt-hour
MW - Megawatt
MMBtu - One million Btus.
NEC - National Electric Code, Latest Version
NRTL - Nationally Recognized Testing Laboratory
PAMC - Palo Alto Municipal Code
PSIG - Per square inch gauge
PST - Pacific Standard Time
RWQCP - Regional Water Quality Control Plant
UUT - Utilities Users Tax
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 2
B. GENERAL DEFINITIONS
Account
The identification number in CPAU’s billing system for Utility Services.
Agency
Any local, county, state or federal governmental body or quasi-governmental body, including, without
limitation, the CPUC, the FERC and any joint powers agency, but excluding the City and any board,
commission or council of the City.
Applicant
An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same, requesting
CPAU to supply any or all of the following:
1. Electric Service
2. Water Service
3. Gas Service
4. Wastewater Collection
5. Refuse and Recycling Collection
6. Storm and Surface Water Drainage Service
7. Fiber Optics Service
Or, an entity submitting an Application for Interconnection pursuant to Rule 27.
Application (for Interconnection of Generating Facilities)
An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating Facility.
Bidweek Price Index
The price reported in Natural Gas Intelligence “NGI’s Bidweek Survey”, California “PG&E Citygate” under
the column “avg.” for the calendar month.
Billing Period
Also “service period” or “billing cycle”. The normal Billing Period for CPAU Customers is approximately
30 days, with variations occurring due to staff availability, holiday scheduling, field verification of Meter
readings, or any other billing-related issues requiring additional investigation prior to issuance of the bill..
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 3
British Thermal Unit
Also “Btu”. The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm
equals 100,000 Btu.
Business Day
Any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City.
Certification Test
A test pursuant to Rule 27 that verifies conformance of certain equipment with approved performance
standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs.
Certification; Certified; Certificate
The documented results of a successful Certification Test.
Certified Equipment
Equipment that has passed all required Certification Tests.
Charge
Any assessment, cost, fee, surcharge or levy for Utility Service other than a Tax, including metered and
unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required
Customer financial obligations for Service.
Charter
The Charter of the City of Palo Alto.
City Attorney
The individual designated as the City Attorney of the City under Section 2.08.120 of Chapter 2.08 of Title 2
of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Attorney.
City’s Collector
The Person(s) authorized under Section 5.20.040 of the Palo Alto Municipal Code to provide collection,
removal and disposal of solid waste and Recyclable Materials pursuant to one or more written contracts with
the City.
City Manager
The individual designated as the City Manager of the City under Section 2.08.140 of Chapter 2.08 of Title 2
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 4
of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Manager.
City of Palo Alto, or City
The government of the City of Palo Alto, a chartered City and a municipal corporation duly organized and
validly existing under the Laws of the State of California, with a principal place of business located at 250
Hamilton Avenue, Palo Alto, County of Santa Clara. For the purposes of these Rules and Regulations, the
term “City” may include services provided by both the City of Palo Alto Utilities Department and the City of
Palo Alto Public Works Department.
City of Palo Alto Public Works Department (Public Works)
The City Department responsible for providing Refuse and Recycling, Wastewater Treatment and Storm and
Surface Water Drainage Utility Services. Other Utility Services such as Water, Gas, Electric, Wastewater
Collection, and Fiber Optics are provided by the City of Palo Alto Utilities Department.
City of Palo Alto Utilities Department (CPAU)
The City Department responsible for providing Water, Gas, Electric, Wastewater Collection and Fiber Optic
Utility Services. Other Utility Services such as Refuse and Recycling, Wastewater Treatment and Storm and
Surface Water Drainage are provided by the City of Palo Alto Public Works Department.
Code
The words "the Code" or "this Code" shall mean the Palo Alto Municipal Code.
Commercial Service
Commercial Utility Service is provided to businesses, non-profit organizations, public institutions, and
industrial Customers. The term also applies to Utility Services through Master Meters serving multi-family
Residential dwellings and common areas of multi-family facilities.
Compostable Materials
Organic materials designated by the City as acceptable for collection and processing.
Cubic Foot of Gas (cf)
The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73 pounds
per square inch absolute, occupies one cubic foot.
Curtailment
The act of reducing or interrupting the delivery of natural Gas.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 5
Customer
The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from the
City of Palo Alto, or in whose name Service is rendered for a particular Account as evidenced by the
signature on the Application, contract, or agreement for Service. In the absence of a signed instrument, a
Customer shall be identified by the receipt of any payment of bills regularly issued in the name of the
Person, corporation, or Agency regardless of the identity of the actual user of the Utility Service(s).
Dark Fiber
A Fiber Optic cable provided to end-users or resellers by CPAU without any of the light transmitters,
receivers, or electronics required for telecommunications over the Fiber. Infrastructure for Fiber Optic
activation is provided by the reseller or end-user.
Dark Fiber Infrastructure
Components of the CPAU Fiber Optic Distribution System required to provide Service to Customers
(licensees), that are attached, owned, controlled or used by the City, located overhead or underground within
the Public Right-of-Way, the Public Utility Easements and Leased Service Properties.
Dedicated Distribution Transformer
A Distribution Transformer that is dedicated to serving a single premise.
Demand
The highest rate of delivery of Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA)
occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless otherwise
specified within a monthly billing cycle).
Demand Charge
An electrical Charge or rate that is applied to a metered Demand reading expressed in Kilowatts to compute
a Demand Charge component of a Customer’s Electric bill.
Demarcation Point
The Demarcation Point for a project shall be the Customer side of the panel onto which the CPAU Fiber
terminates within the Customer Premises, unless otherwise specified in the Proposal for Dark Fiber Services.
Direct Access (DA)
The election by a Customer to procure its Gas Supply Services, from an Energy Service Provider, other than
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 6
CPAU. In this situation, a Customer deals directly with an ESP for commodity supply, while distribution
and applicable transmission services would continue to be provided by CPAU.
Direct Access Service Request (DASR)
The form required to initiate Direct Access Service.
Distribution Services
Includes, but is not limited to, Utility Service provided by the Distribution System and other Services such as
billing, meter reading, administration, marketing, and Customer Services. Does not include Services directly
related to the Interconnection of a Generating Facility as per Rule 27.
Distribution System
The infrastructure owned and operated by CPAU which is capable of transmitting electrical power, other
than Interconnection Facilities, or transporting Water, Wastewater, or Gas within the City of Palo Alto. The
Electric Distribution System transmits power from the City’s Interconnection with PG&E to CPAU’s Meter
located on the Customer’s Premises. The Gas Distribution System transports Gas from PG&E receiving
stations to CPAU’s Meter located on the Customer Premises. The Water Distribution System transports
Water from the San Francisco Water Department receiving stations and CPAU wells to the meter located on
the Customer Premises. The Wastewater Collection System transports sewage from the Customer’s
Premises to the Water Quality Control Plant.
Distribution and Transmission Services
Services provided by CPAU to effect the physical delivery of Energy Services provided by the Energy
Services Provider from the Point of Receipt to the Direct Access Customer’s Service Address.
Effluent
Treated or untreated Wastewater flowing out of a Wastewater treatment facility, sewer, or industrial outfall.
Electric, Electric Service
Utility Service provided to residents and business owners in the City of Palo Alto consisting of generation,
transmission, and distribution of electrical power for retail use. Electric Service is provided by the City of
Palo Alto Utilities Department.
Emergency
An actual or imminent condition or situation, which jeopardizes CPAU’s Distribution System Integrity.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 7
Emergency Service
Electric Service supplied to, or made available to, Load devices which are operated only in Emergency
situations or in testing for same.
Energy Services
Energy commodity and any applicable ancillary Services used to generate and transport such commodity
from its origin to the City’s Point of Receipt. May also mean the sale of value added Services associated or
related to the Provision and/or usage of energy commodity.
Equivalent Residential Unit (ERU)
This is the basic unit for computing storm and surface water drainage fees. All single-family Residential
properties are billed the number of ERU’s specified in the table contained in Utility Rate Schedul e D-1,
according to parcel size. All other properties have ERU's computed to the nearest 1/10 ERU using this
formula: No. Of ERU = Impervious Area (sq. ft.) / 2,500 sq. ft.
Fiber Optic, Fiber Optic Service
A solid core of optical transmission material. Fiber Optic Service that is provided by the City of Palo Alto
Utilities Department is referred to as Dark Fiber.
Fiber Optic Backbone
The high-density portion of the Dark Fiber Infrastructure installed and owned by the City.
Force Majeure
The occurrence of any event that has, had or may have an adverse effect on the design, construction,
installation, management, operation, testing, use or enjoyment of the City’s Utility Services, which is beyond
the reasonable control of the parties and which event includes, but is not limited to, an Act of God, an
irresistible superhuman cause, an act of a superior governmental authority, an act of a public enemy, a labor
dispute or strike or a boycott which could not be reasonably contemplated by the City or Customer affected
thereby, a defect in manufactured equipment (including, but not limited to, the Dark Fibers), fire, floods,
earthquakes, or any other similar cause.
Full Service; Fully Bundled Service
Provision by CPAU of both Distribution and Transmission Services and Energy or Gas
Commodity Services to its Customer(s).
Function
Some combination of hardware and software designed to provide specific features or capabilities. Its use, as
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 8
in Protective Function, is intended to encompass a range of implementations from a single-purpose device to
a section of software and specific pieces of hardware within a larger piece of equipment to a collection of
devices and software.
Gas
Any combustible Gas or vapor, or combustible mixture of gaseous constituents used to produce heat by
burning. It shall include, but not be limited to, natural Gas, Gas manufactured from coal or oil, Gas obtained
from biomass or from landfill, or a mixture of any or all of the above.
Gas, Gas Service
Utility Service provided to residents and business owners in the City of Palo Alto consisting of procurement,
transmission, and distribution of Gas for retail use. Gas Service is provided by the City of Palo Alto Utilities
Department.
Gas Direct Access (GDA)
The election by a Customer to procure its natural Gas, and related natural Gas Services, from a Gas Service
Provider, other than CPAU. In this situation, a Customer obtains natural Gas commodity directly from a
GSP, but local transmission of the natural Gas commodity is effectuated by CPAU in accordance with the
terms of CPAU’s Natural Gas Service Agreement with PG&E. Also, Distribution Services would continue
to be provided by CPAU.
Gas Direct Access Service Request (GDASR)
The form required to initiate Gas Direct Access Service.
Gas Service Provider (GSP)
The Person who procures, schedules, nominates and arranges transport of natural Gas to Gas Direct Access
Customers, including its successors and assigns.
Gas Service Provider Agreement (GSPA)
The contract between CPAU and the Gas Direct Access Customer’s Gas Service Provider that establishes
the terms and conditions under which Gas Services may be provided to the Gas Direct Access Customer.
Generating Facility
All Generators, electrical wires, equipment, and other facilities owned or provided by Producer for the
purpose of producing Electric power. This includes a solar or wind turbine electrical generating facility that
is the subject of a Net Energy Metering and Interconnection Agreement and Rule and Regulation 29.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 9
Generator
A device converting mechanical, chemical or solar energy into electrical energy, including all of its
protective and control Functions and structural appurtenances. One or more Generators comprise a
Generating Facility.
Gross Nameplate Rating; Gross Nameplate Capacity
The total gross generating capacity of a Generator or Generating Facility as designated by the
manufacturer(s) of the Generator(s).
Initial Review
The review by CPAU, following receipt of an Application, to determine the following: (a) whether the
Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be made to
qualify for Interconnection with a Supplemental Review determining any additional requirements.
Inspector
The authorized Inspector, agent, or representative of CPAU.
Interconnection; Interconnected
The physical connection of a Generating Facility in accordance with the requirements of the City’s Utilities
Rules and Regulations so that Parallel Operation with CPAU’s Distribution System can occur (has
occurred).
Interconnection Agreement
An agreement between CPAU and the Producer providing for the Interconnection of a Generating Facility
that gives certain rights and obligations to effect or end Interconnection. For the purposes of the City’s
Utilities Rules and Regulations, the Net Energy Metering and Interconnection Agreement, and the Power
Purchase Agreements authorized by the City Council may be considered as Interconnection Agreements for
purposes of defining such term.
Interconnection Facilities
The electrical wires, switches and related equipment that are required in addition to the facilities required to
provide Electric Distribution Service to a Customer to allow Interconnection. Interconnection Facilities may
be located on either side of the Point of Common Coupling as appropriate to their purpose and design.
Interconnection Facilities may be integral to a Generating Facility or provided separately.
Interconnection Study
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 10
A study to establish the requirements for Interconnection of a Generating Facility with CPAU’s Distribution
System.
Internet Exchange
Any Internet data center for telecommunications equipment and computer equipment for the purposes of
enabling traffic exchange and providing commercial-grade data center services.
Interstate Transportation (or Transmission)
Transportation of Gas on a pipeline system under the regulation of the FERC.
Island; Islanding
A condition on CPAU’s Electric Distribution System in which one or more Generating Facilities deliver
power to Customers using a portion of CPAU’s Distribution System that is electrically isolated from the
remainder of CPAU’s Distribution System.
Junction
A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting
communication cables.
Junction Site
The area within the Transmission Pathway at which a Junction is located.
Kilovar (kVar)
A unit of reactive power equal to 1,000 reactive volt-amperes.
Kilovar-hours (kVarh)
The amount of reactive flow in one hour, at a constant rate of Kilovar.
Kilowatt (kW)
A unit of power equal to 1,000 watts.
Kilowatt-hour (kWh)
The amount of energy delivered in one hour, when delivery is at a constant rate of one Kilowatt; a standard
unit of billing for electrical energy.
Law
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 11
Any administrative or judicial act, decision, bill, Certificate, Charter, Code, constitution, opinion, order,
ordinance, policy, procedure, Rate, Regulation, resolution, Rule, Schedule, specification, statute, tariff, or
other requirement of any district, local, municipal, county, joint powers, state, or federal Agency, or any
other Agency having joint or several jurisdiction over the City of Palo Alto or City of Palo Alto Utilities or
Public Works Customers, including, without limitation, any regulation or order of an official or quasi-
official entity or body.
Licensed Fibers
One or more fibers comprising a part of the Dark Fiber Infrastructure that are dedicated to the exclusive use
of the Customer under the Provisions of the Dark Fiber License Agreement, Proposal to Dark Fiber Services
Agreement and the Utilities Rules and Regulations.
Licensed Fibers Route
A defined path of Licensed Fibers that is identified by specific End Points.
Load(s)
The Electric power Demand (kW) of the Customer at its Service Address within a measured period of time,
normally 15 minutes or the quantity of Gas required by a Customer at its Service Address, measured in
MMBtu per Day.
Main Wastewater Line
Any Wastewater line not including a building connection (Service) sewer.
Master-metering
Where CPAU installs one Service and Meter to supply more than one residence, apartment dwelling unit,
mobile home space, store, or office.
Maximum Generation
For a customer with a non-utility generator located on the customer’s side of the Point of Common
Coupling, the Maximum Generation for that non-utility generator during any billing period is the maximum
average generation in kilowatts taken during any 15-minute interval in that billing period provided that in
case the generator output is intermittent or subject to violent fluctuations, the City may use a 5-minute
interval.
Meter
The instrument owned and maintained by CPAU that is used for measuring either the Electricity, Gas or
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 12
Water delivered to the Customer.
Metering
The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive power in
kVar at a point, and its display to CPAU as required by Rule 27.
Metering Equipment
All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for Metering.
Meter Read
The recording of usage data from Metering Equipment.
Minimum Charge
The least amount for which Service will be rendered in accordance with the Rate Schedule.
Momentary Parallel Operation
The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less.
Nationally Recognized Testing Laboratory (NRTL)
A laboratory accredited to perform the Certification Testing requirements under Rule 27.
Net Energy Metering
Net Energy Metering means measuring the difference between the electricity supplied through CPAU’s
Electric utility Distribution System and the electricity generated by the customer-generator’s facility and
delivered to CPAU’s Electric utility Distribution System over a specified twelve-month period.
Net Generation Metering
Metering of the net electrical power of energy output in kW or energy in kWh, from a given Generating
Facility. This may also be the measurement of the difference between the total electrical energy produced by
a Generator and the electrical energy consumed by the auxiliary equipment necessary to operate the
Generator.
Net Nameplate Rating
The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating
Facility as designated by the manufacturer(s) of the Generator(s).
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 13
Non-Islanding
Designed to detect and disconnect from an Unintended Island with matched Load and generation. Reliance
solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non-Islanding.
Occupied Domestic Dwelling
Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is occupied
by a Person or Persons.
Parallel Operation
The simultaneous operation of a Generator with power delivered or received by CPAU while Interconnected.
For the purpose of this Rule, Parallel Operation includes only those Generating Facilities that are
Interconnected with CPAU’s Distribution System for more than 60 cycles (one second).
Performance Test, Performance Tested
After the completion of any Fiber Interconnection work, the City will conduct a Performance Test of each
Fiber constituting a part of the proposed leased fibers to determine its compliance with the Performance
Specifications.
Performance Specifications
These specifications will include, but not be limited to, criteria relating to end-to-end optical time domain
reflectometer data plots that identify the light optical transmission losses in each direction along the leased
fibers whenever the testing is possible, measured in decibels at a wavelength of 1310 or 1550 nanometers
for singlemode Fiber, as a Function of distance, measured in kilometers.
Person
Any individual, for profit corporation, nonprofit corporation, limited liability company, partnership, limited
liability partnership, joint venture, business, family or testamentary trust, sole proprietorship, or other form
of business association.
PG&E Citygate
The PG&E Citygate is the point at which PG&E’s backbone transmission system connects to PG&E’s local
transmission system.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 14
Point of Common Coupling (PCC)
The transfer point for electricity between the electrical conductors of CPAU and the electrical conductors of
the Producer.
Point of Common Coupling Metering
Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Metering
for Generating Facilities with no host load.
Point of Delivery (POD)
Unless otherwise specified, the following definitions apply: For Electric, that location where the Service
lateral conductors connect to the Customer’s Service entrance equipment; for overhead Services, the POD is
at the weather-head connection; for under-ground Services, the POD is located at the terminals ahead of or at
the Meter; for multiple Meter arrangements with connections in a gutter, the POD is at the Meter terminals
(supply-side); for multiple Meter arrangements in a switchboard, the POD is typically at the connectors in
the utility entrance section; for Natural Gas, the POD is the point(s) on the Distribution System where the
City delivers natural Gas that it has transported to the Customer.
Point of Interconnection
The electrical transfer point between a Generating Facility and the Distribution System. This may or may
not be coincident with the Point of Common Coupling.
Point of Receipt
The designated location at which CPAU receives Gas supplied by a GSP on behalf of a GDA Customer. The
Point of Receipt for Gas will be designated in the GSPA.
Point of Service (POS)
Where CPAU connects the Electric Service lateral to its Distribution System. For Fiber Optics Service, this
is where CPAU connects the Fiber Service to the backbone. This point is usually a box located in or near the
street or sidewalk and can be in the Public Right-of-Way. This point is at a mutually agreed upon location
established at the time of installation.
Pole Line
Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs,
platforms, cross arms braces, transformers, insulators, cutouts, switches, communication circuits, appliances
attachments, and appurtenances, located above ground and used or useful in supplying Electric,
communication, or similar or associated Service.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 15
Power Factor
The percent of total power delivery (kVA) which does useful work. For billing purposes, average Power
Factor is calculated from a trigonometric function of the ratio of reactive kilovolt-ampere-hours to the
Kilowatt-hours consumed during the billing month. Power Factor is a ratio that reflects the reactive power
used by a Customer. CPAU maintains an overall system Power Factor above 95% to reduce distribution
system losses caused by low Power Factor.
Power Factor Adjustment
CPAU must install additional equipment to correct for Customers that maintain a low Power Factor, and
may make a Power Factor Adjustment to a Customer’s bill to account for those costs and the additional
energy costs and losses incurred by CPAU due to the Customer’s low Power Factor.
Premises
All structures, apparatus, or portion thereof occupied or operated by an individual(s), a family, or a business
enterprise, and situated on an integral parcel of land undivided by a public street, highway, or railway.
Primary Service
CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level equal to or greater
than 1000 volts.
Producer
The entity that executes an Interconnection Agreement with CPAU. The Producer may or may not own or
operate the Generating Facility, but is responsible for the rights and obligations related to the Interconnection
Agreement.
Proposal for Dark Fiber Services
A project-specific Service agreement that acts as a supplemental document for the Dark Fiber License
Agreement. This Service agreement shall include the proposed Interconnection fees, applicable Fiber
licensing fees, term of the Service, and summary of licensed Fiber elements.
Protective Function(s)
The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with other
Functions) whose purpose is to protect against Unsafe Operating Conditions.
Provision
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 16
Any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction, recital,
reservation, representation, term, warranty, or other stipulation in a contract or in Law that defines or
otherwise controls, establishes, or limits the performance required or permitted by any party.
Prudent Utility Practices
The methods, protocols, and procedures that are currently used or employed by utilities to design, engineer,
select, construct, operate and maintain facilities in a dependable, reliable, safe, efficient and economic
manner.
Public Right-of-Way
The areas owned, occupied or used by the City for the purposes of furnishing retail and/or wholesale
Electricity, Gas, Water, Wastewater, Storm and Surface Water Drainage, Refuse and recycling or
communications commodity and/or distribution Service, and the means of public transportation, to the
general public, including but not limited to, the public alleys, avenues, boulevards, courts, curbs, gutters,
lanes, places, roads, sidewalks, sidewalk planter areas, streets, and ways.
Public Utility Easements
The areas occupied or used by the City for the purpose of providing Utility Service to the general public, and
all related Services offered by the City’s Utilities Department and/or Public Works Department, the rights of
which were acquired by easements appurtenant or in gross, or are other interests or estates in real property,
or are the highest use permitted to be granted by the nature of the City’s interest in and to the affected real
property. This term incorporates all public Service easements for Utility Services that have been recorded by
the City with the Recorder of the County of Santa Clara, California.
Public Works Department
See City of Palo Alto Public Works Department.
Rate Schedule
One or more Council-adopted documents setting forth the Charges and conditions for a particular class or
type of Utility Service. A Rate Schedule includes wording such as Schedule number, title, class of Service,
applicability, territory, rates, conditions, and references to Rules.
Recyclable Materials
Materials designated by the City as acceptable for recycling collection and processing.
Reserved Capacity
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 17
For a customer with one or more non-utility generators located on the customer’s side of the Point of
Common Coupling, the Reserved Capacity for each billing period is the lesser of 1) the sum of the
Maximum Generation for that period for all non-utility generation sources; or 2) the maximum average
customer demand in kilowatts taken during any 15-minute interval in the billing period provided that in case
the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval.
Residential Service
Utility Service provided to separately metered single family or multi-family, domestic dwelling.
Rules and Regulations
See Utilities Rules and Regulations
Scheduling Coordinator
An entity providing the coordination of power schedules and nominations to effect transportation and
distribution of Gas, Electric power and energy.
Secondary Service
CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level less than 1000
volts.
Service(s)
Utility Services offered by the City of Palo Alto include Electric, Fiber Optics, Gas, Water, Wastewater
Collection services provided by the Utilities Department (CPAU); and Refuse and Recycling, Wastewater
Treatment, and Storm and Surface Water Drainage Services provided by the Public Works Department.
Service Address
The official physical address of the building or facility assigned by CPAU’s Planning Department, at which
Customer receives Utility Services.
Service Charge
A fixed monthly Charge applicable on certain Rate Schedules that does not vary with consumption. The
Charge is intended to recover a portion of certain fixed costs.
Service Drop
The overhead Electric Service conductors from the last pole or other aerial support to and including the
splices, if any, connecting to the service entrance conductors at the building or other structure. Or, in the case
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 18
of Fiber Optic Drops, the overhead Fiber Optics cable from the last pole or other aerial support to the
building or other structure to and including the termination box.
Services or Service Lines
Facilities of CPAU, excluding transformers and Meters, between CPAU’s infrastructure and the Point of
Delivery to the Customer.
Service Territory
The geographic boundaries within the City of Palo Alto limits served by the physical Distribution System of
the CPAU.
Short Circuit (Current) Contribution Ratio (SCCR)
The ratio of the Generating Facility’s short circuit contribution to the short circuit contribution provided
through CPAU’s Distribution System for a three-phase fault at the high voltage side of the distribution
transformer connecting the Generating Facility to CPAU’s system.
Simplified Interconnection
An Interconnection conforming to the minimum requirements as determined under Rule 27, Section I.
Single Line Diagram; Single Line Drawing
A schematic drawing, showing the major Electric switchgear, Protective Function devices, wires,
Generators, transformers and other devices, providing sufficient detail to communicate to a qualified
engineer the essential design and safety of the system being considered.
Special Facilities
See CPAU’s Rule and Regulation 20 governing Special Facilities.
Splice
A point where two separate sections of Fiber are physically connected.
Standard Refuse Container
A Standard Refuse Container shall have the meaning described in the Palo Alto Municipal Code. A
Standard Container shall also include a wheeled container with a capacity of not to exceed 32 gallons.
Standby Service
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 19
Back-up Energy Services provided by CPAU.
Storm and Surface Water Drainage
Utility Service provided to residents and business owners in the City of Palo Alto.
Storm and Surface Water Drainage Service is provided by the City of Palo Alto Public Works Department.
Supplemental Review
A process wherein CPAU further reviews an Application that fails one or more of the Initial Review Process
screens. The Supplemental Review may result in one of the following: (a) approval of Interconnection;
(b) approval of Interconnection with additional requirements; or (c) cost and schedule for an Interconnection
Study.
System Integrity
The condition under which a Distribution System is deemed safe and can reliably perform its intended
Functions in accordance with the safety and reliability rules of CPAU.
Tax
Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed by any
Agency, including the City.
Telemetering
The electrical or electronic transmittal of Metering data in real-time to CPAU.
Temporary Service
Service requested for limited period of time or of indeterminate duration such as, but not limited to, Service
to provide power for construction, seasonal sales lots (Christmas trees), carnivals, rock crushers or paving
plants. Temporary Service does not include Emergency, breakdown, or Standby Service.
Therm
A Therm is a unit of heat energy equal to 100,000 British Thermal Units (Btu). It is approximately the
energy equivalent of burning 100 cubic feet (often referred to as 1 ccf) of natural Gas. Since Meters measure
volume and not energy content, a Therm factor is used to convert the volume of Gas used to its heat
equivalent, and thus calculate the actual energy use. The Therm factor is usually in the units therms/ccf. It
will vary with the mix of hydrocarbons in the natural Gas. Natural Gas with a higher than average
concentration of ethane, propane or butane will have a higher Therm factor. Impurities, such as carbon
dioxide or nitrogen lower the Therm factor.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 20
Transfer Trip
A Protective Function that trips a Generating Facility remotely by means of an automated communications
link controlled by CPAU.
Transmission Pathway
Those areas of the Public Right-of-Way, the Public Utility Easements and the Leased Service Properties in
which the Dark Fiber Infrastructure is located.
Trap
Any approved equipment or appliance for sealing an outlet from a house-connection sewer to
prevent the escape of sewer Gas from a main line through a building connection (service) sewer.
Underground Utility District
An area in the City within which poles, overhead electric or telecommunication wires, and associated
overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC.
Unintended Island
The creation of an Island, usually following a loss of a portion of CPAU’s Distribution System, without the
approval of CPAU.
Unsafe Operating Conditions
Conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of System
Integrity or operation outside pre-established parameters required by the Interconnection Agreement.
Utilities Department
See City of Palo Alto Utilities Department.
Utilities Director
The individual designated as the Director of Utilities Department under Section 2.08.200 of Chapter 2.08 of
Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the director
of utilities.
Utility(ies) Rules and Regulations, Rules and Regulations
The compendium of Utilities Rules and Regulations prepared by the City’s Utilities and Public Works
Departments and adopted by ordinance or resolution of the Council pursuant to Chapter 12.20 of the Palo
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 7-1-2012 2-5-2013
Sheet No 21
Alto Municipal Code, as amended from time to time.
Utility(ies) Service(s), Service(s)
Electric, fiber optics, water, gas, wastewater collection services provided by the City of Palo Alto Utilities
Department (CPAU) and Refuse and Recycling, Wastewater Treatment and Storm and Surface Water
Drainage services provided by the City of Palo Alto Public Works Department.
Utilities User Tax (UUT)
City of Palo Alto Tax imposed on Utility Charges to a Water, Gas, and/or Electric Service user. This may
include Charges made for Electricity, Gas, and Water and Charges for Service including Customer Charges,
Service Charges, Standby Charges, Charges for Temporary Services, Demand Charges, and annual and
monthly Charges, as described in Chapter 2.35 of the Palo Alto Municipal Code.
Wastewater
Utility Service provided to residents and business owners in the City of Palo Alto. Wastewater Utility
Services include collection and treatment of Wastewater. Wastewater Collection Service is provided by the
City of Palo Alto Utilities Department, and Wastewater Treatment Service is provided by the City of Palo
Alto Public Works Department.
Water
Utility Service provided to residents and business owners in the City of Palo Alto for retail u se. Water
Service is provided by the City of Palo Alto Utilities Department.
Water Column (WC)
Pressure unit based on the difference in inches between the heights of water columns as measured in a
manometer. 6” WC = 0.217 psi; 7” WC = 0.25 psi.
Yard Trimmings
Yard Trimmings means those materials defined in Section 5.20.010 of the Palo Alto Municipal Code.
(END)
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-1 dated 7-1-2009 Sheet No E-4-1
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):
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW) $5.31 $15.23 $20.54
Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.08171
Winter Period
Demand Charge (per kW) $4.80 $9.04 $13.84
Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.07318
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.
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-2 dated 7-1-2009 Sheet No E-4-2
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
penaltyAdjustment”, 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
Adjustment 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%.
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-3 dated 7-1-2009 Sheet No E-4-3
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.
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue meter and that occasionally require backup
power from the City due to non-operation of the non-utility generation source.
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-4 dated 7-1-2009 Sheet No E-4-4
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3)
occurs when one or more of the non-utility generators on the Customer’s side of the
City’s revenue meter are not operating, the Maximum Demand will be reduced by the
sum of the Maximum Generation of those non-utility generators, but in no event shall
the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only
in the event of an interruption in utility Service and which are not used to offset
Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-TOU-1 dated 7-1-2009 Sheet No E-4-TOU-1
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 Adjustments 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):
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW)
Peak $3.12 $8.96 $12.08
Mid-Peak 1.99 5.65 7.64
Off-Peak 1.13 3.26 4.39
Energy Charge (per kWh)
Peak $0.10963 $0.03242 $0.00321 $0.14526
Mid-Peak 0.05617 0.01623 0.00321 0.07561
Off-Peak 0.04298 0.01218 0.00321 0.05837
Winter Period
Demand Charge (per kW)
Peak $2.77 $5.10 $7.87
Off-Peak 1.49 2.94 4.43
Energy Charge (per kWh)
Peak $0.07003 $0.02296 $0.00321 $0.09620
Off-Peak 0.04088 0.01313 0.00321 0.05722
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-TOU-2 dated 7-1-2009 Sheet No E-4-TOU-2
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
of bill calculation and proration, refer to Rule and Regulation 11.
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-TOU-3 dated 7-1-2009 Sheet No E-4-TOU-3
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 PenaltyAdjustment
Time of Use customers must not have had a Power Factor penalty Adjustment 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 penaltyAdjustment.
Should the City of Palo Alto Utilities Department find that the Customer’s Service should be
subject to Power Factor penaltiesAdjustments, 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.
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-TOU-4 dated 7-1-2009 Sheet No E-4-TOU-4
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.
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue meter and that occasionally require backup
power from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the
non-utility generators on the Customer’s side of the City’s revenue meter are not
operating, the Maximum Demand will be reduced by the sum of the Maximum
Generation of those non-utility generators, but in no event shall the Customer’s
Maximum Demand be reduced below zero.
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-TOU-5 dated 7-1-2009 Sheet No E-4-TOU-5
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only
in the event of an interruption in utility Service and which are not used to offset
Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-G-1 dated 7-1-2009 Sheet No E-4-G-1
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):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $5.31 $15.23 $20.54
Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.08171
Palo Alto Green Charge (per 1000 kWh block) 15.00
Winter Period
Demand Charge (per kW) $4.80 $9.04 $13.84
Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.07318
Palo Alto Green Charge (per 1000 kWh block) 15.00
(100% Renewable Green option):
Commodity Distribution
Public
Benefits
Palo
Alto
Green Total
Summer Period
Demand Charge (per kW) $5.31 $15.23 $20.54
Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.0150 0.09671
Winter Period
Demand Charge (per kW) $4.80 $9.04 $13.84
Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.0150 0.08818
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-G-2 dated 7-1-2009 Sheet No E-4-G-2
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.
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-G-3 dated 7-1-2009 Sheet No E-4-G-3
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
penaltyAdjustment”, 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
Adjustment 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.
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-G-4 dated 7-1-2009 Sheet No E-4-G-4
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.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue meter and that occasionally require backup
power from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3)
occurs when one or more of the non-utility generators on the Customer’s side of the
City’s revenue meter are not operating, the Maximum Demand will be reduced by the
sum of the Maximum Generation of those non-utility generators, but in no event shall
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-4-G-5 dated 7-1-2009 Sheet No E-4-G-5
the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only
in the event of an interruption in utility Service and which are not used to offset
Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
LARGE COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-1 dated 7-1-2009 Sheet No E-7-1
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):
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (kW) $6.42 $12.55 $18.97
Energy Charge (kWh) 0.05662 0.01825 0.00321 0.07808
Winter Period
Demand Charge (kW) $5.50 $6.04 $11.54
Energy Charge (kWh) 0.04990 0.01898 0.00321 0.07209
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.
LARGE COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-2 dated 7-1-2009 Sheet No E-7-2
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.
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
LARGE COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-3 dated 7-1-2009 Sheet No E-7-3
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
penaltyAdjustment”, 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
Adjustment 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.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue meter and that occasionally require backup
power from the City due to non-operation of the non-utility generation source.
LARGE COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-4 dated 7-1-2009 Sheet No E-7-4
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.4)
occurs when one or more of the non-utility generators on the Customer’s side of the
City’s revenue meter are not operating, the Maximum Demand will be reduced by the
sum of the Maximum Generation of those non-utility generators, but in no event shall
the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only
in the event of an interruption in utility Service and which are not used to offset
Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-TOU-1 dated 7-1-2009 Sheet No E-7-TOU-1
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 Adjustments 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):
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW)
Peak $4.24 $8.25 $12.49
Mid-Peak 2.06 4.13 6.19
Off-Peak 1.17 2.06 3.23
Energy Charge (per kWh)
Peak $0.07029 $0.02296 $0.00321 $0.09646
Mid-Peak 0.05867 0.01901 0.00321 0.08089
Off-Peak 0.04870 0.01567 0.00321 0.06758
Winter Period
Demand Charge (per kW)
Peak $3.04 $3.38 $6.42
Off-Peak 1.59 1.68 3.27
Energy Charge (per kWh)
Peak $0.05617 $0.02142 $0.00321 $0.08080
Off-Peak 0.04663 0.01767 0.00321 0.06751
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-TOU-2 dated 7-1-2009 Sheet No E-7-TOU-2
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.
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-TOU-3 dated 7-1-2009 Sheet No E-7-TOU-3
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 PenaltyAdjustment
Time of Use customers must not have had a Power Factor penalty Adjustment 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 penaltyAdjustment.
Should the City of Palo Alto Utilities Department find that the Customer’s Service should be
subject to Power Factor penaltiesAdjustments, 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.
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-TOU-4 dated 7-1-2009 Sheet No E-7-TOU-4
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.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue meter and that occasionally require backup
power from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the
non-utility generators on the Customer’s side of the City’s revenue meter are not
operating, the Maximum Demand will be reduced by the sum of the Maximum
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-TOU-5 dated 7-1-2009 Sheet No E-7-TOU-5
Generation of those non-utility generators, but in no event shall the Customer’s
Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only
in the event of an interruption in utility Service and which are not used to offset
Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-G-1 dated 7-1-2009 Sheet No E-7-G-1
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):
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW) $6.42 $12.55 $18.97
Energy Charge (per kWh) 0.05562 0.01825 0.00321 0.07808
Palo Alto Green Charge (per 1000 kWh block) 15.00
Winter Period
Demand Charge (per kW) $5.50 $6.04 $11.54
Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.07209
Palo Alto Green Charge (per 1000 kWh block) 15.00
(100% renewable green option):
Commodity Distribution
Public
Benefits
Palo Alto
Green Total
Summer Period
Demand Charge ( per kW) $6.42 $12.55 $18.97
Energy Charge (per kWh) 0.05562 0.01825 0.00321 0.0150 0.09308
Winter Period
Demand Charge (per kW) $5.50 $6.04 $11.54
Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.0150 0.08709
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-G-2 dated 7-1-2009 Sheet No E-7-G-2
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.
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-G-3 dated 7-1-2009 Sheet No E-7-G-3
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
penaltyAdjustment”, 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
Adjustment 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
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-G-4 dated 7-1-2009 Sheet No E-7-G-4
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.
9. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(9)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue meter and that occasionally require backup
power from the City due to non-operation of the non-utility generation source.
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 2-5-2013
Supersedes Sheet No E-7-G-5 dated 7-1-2009 Sheet No E-7-G-5
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3)
occurs when one or more of the non-utility generators on the Customer’s side of the
City’s revenue meter are not operating, the Maximum Demand will be reduced by the
sum of the Maximum Generation of those non-utility generators, but in no event shall
the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only
in the event of an interruption in utility Service and which are not used to offset
Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
EXCERPTED FINAL MINUTES OF THE OCTOBER 3, 2012
UTILITIES ADVISORY COMMISSION MEETING
ITEM 1: ACTION: UAC Recommendation that Council Adopt a Resolution Approving the
Continuation of the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program
Public Comment:
Craig Lewis, representing the CLEAN Coalition, stated that the Palo Alto CLEAN has had no
takers so far, but that the program could be tweaked to be successful. The CLEAN Coalition had
hoped when the program started that property owners ra ther than developers would develop
and own projects, eliminating the need for a lease payment. He said the price offered seems to
have been too low and developers and that property owners were not attracted by the rate of
return from a project in Palo Alto. He believed property owners would be more interested in
leasing their rooftops to a third party developer. He stated that the lease payment to building
owners translates to a 3 cent/kilowatt-hour (₵/kWh) increase in price so that a price of
17 ₵/kWh or higher would be required to get local solar projects. He recommended
implementing a Volumetric Price Adjustment (VPA) whereby non-participation in the program
over some period of time (e.g. a month) would result in an automatic increase in the price unt il
participants were attracted.
Resource Planner Jon Abendschein provided a summary of the written report. He stated that
the City has supported local solar photovoltaic (PV) system installations since 1999 and the PV
Partners program has resulted in the City being one of the top utilities nationwide for PV
system installations. Abendschein stated that, despite a large amount of interest, the CLEAN
program has not had any participants, primarily because the PV Partners is a more cost -
effective option for most facilities and the returns for CLEAN program are insufficient.
Abendschein explained the staff recommendation is to extend the program at the current 14
₵/kWh price, eliminate the 100 kW minimum size, and ramp up efforts to market the PV
Partners program. Since the program was evaluated last year, and the price was set at 14
₵/kWh, the City's projection of the avoided cost has fallen to 11.6 ₵/kWh so that additional cost
to ratepayers is $158,000 per year.
Abendschein explained that the alternat ives to the recommendation were considered and
included increasing the price, lowering the price, or eliminating the program. Increasing the
price would increase the cost to ratepayers, while lowering the price would not result in any
participation. He also stated that staff had examined other types of renewable energy sources,
but did not find any other energy sources aside from solar that were viable in Palo Alto aside
from City-owned sources that could be developed without a CLEAN program.
Commissioner Melton said that originally the program had been priced at the City's avoided
cost, but now the price was 20% higher than the avoided cost. He asked what the City’s pricing
policy was, and at what price would the cost of the program be too high compared to the City’s
avoided cost. He did not want the program to entirely lose its relationship to avoided costs.
Director Valerie Fong stated that the City Council had been comfortable with a small premium
over avoided cost when the program was adopted, but had not provided specific policy
direction on the maximum acceptable premium.
Commissioner Eglash asked how many PV systems had been installed in Palo Alto since the
CLEAN program had been adopted. Abendschein stated that there had been from 25 -50
systems installed in residences, but he did not have the exact numbers. Commissioner Eglash
said that many people were continuing to install solar even without Palo Alto CLEAN. He said
the goal was not to have a feed -in tariff (FIT) simply to have a FIT. It was to stimulate solar
development. He said the PV Partners program was economically more attractive and that
solar was being installed at a healthy rate even without Palo Alto CLEAN. That implied that Palo
Alto CLEAN was obsolete and unnecessary. He said the cost of solar was falling substantially,
and 3rd party developers were offering excellent prices. He was against raising the price, but he
was happy leaving the program operating as it was if it did not cost much to maintain it.
Commissioner Waldfogel asked what the equivalent cost of the PV Partners program was.
Abendschein said the avoided cost was the same, but if PV Partners were translated into a FIT
price it would be equivalent to 20 -24 ¢/kWh. PV Partners was a State mandated program,
however. Commissioner Waldfogel asked whether the size of the PV Partners program was
also a State mandate. Abendschein said it was.
Vice Chair Foster asked who paid for the PV Partners program. Director Fong stated the City
did. Vice Chair Foster asked whether it was better to have people participating in PA CLEAN or
PV Partners, since PV Partners was more expensive. Director Fong stated that PA CLEAN
participation would not relieve the City of its SB1 obligation, which the PV Partners program
fulfilled. Abendschein added that even if customers chose to participate in Palo Alto CLEAN,
the PV Partners capacity would still be available. Vice Chair Foster asked how much the
Brannon Solar project factored into the avoided cost calculation. Abendschein sai d it was a
small part of the calculation. Vice Chair Foster asked whether the staff recommended program
would allow people to fund solar on each other’s roofs if they chose to. Abendschein said the
funding source was not important as long as they sold the energy to the City.
Vice Mayor Scharff asked what it would cost to continue the program. Abendschein said the
staff time involved in maintaining the program without marketing it was minimal, but that the
staff proposal had involved some staff time for marketing which would be absorbed by existing
staff. Utility Marketing Services Manager Joyce Kinnear said that Key Account Representatives,
who market the City’s programs, including energy efficiency, would spend time on marketing
Palo Alto CLEAN, which would replace some of the time they spent marketing other programs
like energy efficiency.
Commissioner Foster stated that the program is an innovative program. The City should be
doing it and would like to see an increase in the price to get more participation. He was not
sensing much support for that proposal, so he would support the staff r ecommendation. He
would be opposed to eliminating the program.
Chair Cook thanked the CLEAN Coalition for support, but would not want to move much further
away from the avoided cost. He would support the staff recommendation, but would want to
review it again at some point in time, rather than have the program continue indefinitely.
Commissioner Melton remarked that the goal is to increase the amount of renewable power
generated within city limits, so he supported continuing the program despite the s mall increase
in price.
ACTION:
Vice Chair Foster made a motion to support staff's recommendation. Melton seconded the
motion.
Commissioner Eglash offered a friendly amendment to review the program in one year. Vice
Chair Foster and Commissioner Melton accepted the amendment.
Commissioner Waldfogel asked if the failure of the program could be attributed to a marketing
shortcoming. Abendschein said it was a matter of expanding the marketing to the specific
customers who the program would work for. Commissioner Waldfogel stated that he believed
that anyone who was eligible for the program had already heard about the program and had
determined it was not worthwhile. He was uncomfortable continuing to spend money to
market the program.
Vice Chair Foster said that some level of marketing should exist as not all have heard of the
program and it is being expanded to more customers.
The motion passed by a vote of 5-1 with Commissioner Waldfogel voting no.
EXCERPTED DRAFT MINUTES OF THE NOVEMBER 7, 2012
UTILITIES ADVISORY COMMISSION MEETING
ITEM 1: PRESENTATION: Presentation on Standby Electric Rates for the City’s Energy/Compost
Facility
Resource Planner Jon Abendschein gave a presentation on standby rates. He stated that
utilities generally have standby electric rates so that customers who have on-site generators
pay for their reliance on backup power provided by the utility. Most utilities have a standby
rate, but the City of Palo Alto Utilities (CPAU) has not needed to have one due to a lack of
previous proposals to develop large or non-renewable generators. Renewable generators
smaller than one megawatt (MW) are exempt from standby rates under State Law. The Public
Works Department, however, was seeking proposals for its Energy/Compost (E/C) Facility
project, which could involve on-site generation, and would need to know the CPAU standby
rate in order to evaluate proposals. Abendschein stated that the standby rate is designed to
recover distribution system costs, generating capacity costs, and billing and administrative
costs. The costs the standby rate was intended to recover were part of the demand charges in
the E-4 and E-7 retail rate schedules, and the standby charge would be designed to recover all
of the distribution system demand charge and the portion of the generation demand charge
related to providing reserve generating capacity. Staff expected to propose a rate based on the
generator size, and had calculated a preliminary standby rate for E-7 customers of $13.51/kW
in the summer billing periods and $6.86/kW in the winter. Abendschein gave an example
calculation of a customer bill for a customer with an on-site generator. He noted that with no
standby rate, the utility would not recover costs unless the generator had an outage during the
month, and that cost recovery would be irregular, dependent on the frequency of generator
outages. With a standby rate the customer’s share of the utility’s costs were properly collected
each month regardless of outages. He also showed that the proposed rate was in-line with
those of other California utilities.
Commissioner Foster asked who this rate was needed for, and whether it was only necessary
for the Energy/Compost Facility. Abendschein stated that it would apply to any non-renewable
generator or large renewable generator in Palo Alto, but that the Energy/Compost Facility was
the only project he was currently aware of that might involve such a facility. Commissioner
Foster asked Abendschein to summarize why the ra te was necessary. Abendschein stated that
the rate was necessary for the utility to recover its costs associated with providing standby
service. The State prohibited CPAU from recovering those costs for small renewable
generators, but the rate was still necessary for other generators.
Commissioner Hall asked whether the standby rate would provide an incentive for a customer
to build their own gas-fired generator to reduce their electric bill. Abendschein stated that the
rate was designed to recover the utility’s costs and was not an incentive. He stated that gas -
fired generators were unlikely to be cost-effective due to the low electric rates compared to the
CPAU gas rates.
Commissioner Waldfogel asked if the rate could be avoided if the customer built more than
1 MW of on-site generation capacity but used multiple renewable generators, keeping each
generator smaller than 1 MW. Abendschein said he believed the State’s exemption applied to
the total generation behind the customer meter, not each individual generator, so the rate
could not be avoided under that scenario. Commissioner Waldfogel then asked how the
reduced customer load would affect the CPAU RPS requirements. Assistant Director, Resource
Management Jane Ratchye stated that CPAU’s RPS requ irements were based on sales, so the
reduced customer load would reduce the RPS requirement some. Commissioner Waldfogel
also asked what would happen if the generator ran infrequently in a month, asking whether the
customer would be charged both the standby rate as well as the applicable retail demand rate.
Abendschein said the customer would pay only one or the other, not both.
Commissioner Melton asked whether staff had reviewed both investor-owned and publicly-
owned utilities’ rates when developing the rate. Abendschein said staff had surveyed large and
small publicly-owned utilities’ rate schedules as well as Pacific Gas and Electric’s (PG&E’s) rate.
Commissioner Melton asked whether staff had reviewed the CPUC rules applicable to PG&E
and related to standby rates and asked whether there were any that should be incorporated
into the CPAU rates and policies. Abendschein said he had looked at PG&E's rate and found it
very complex. He said it included some features not necessary for CPAU’s rate sched ule, but
that there were some other features he had incorporated. Staff had done a comprehensive
review of State regulations as well. Commissioner Melton then asked would this rate would be
an incentive for customers to install gas-fired generation like Bloom Energy fuel cells to avoid
the City's electric charges. Abendschein stated that since fuel cells ran on natural gas they were
unlikely to be cost-effective due to the low electric rates compared to the CPAU gas rates. Fuel
cells were also relatively high cost solutions and were currently dependent on significant
rebates and incentives in other utilities’ territories.
Commissioner Hall asked whether the E/C Facility developer could the market the power
outside the City. Abendschein said that it is possible, but unlikely. Commissioner Hall asked
whether staff had conceived of a situation in which part of the E/C Facility output was used on
site and the remainder was exported. Abendschein said that the owner would pay the standby
charge for the portion of the output used on site and a wheeling charge for the remainder.
EXCERPTED DRAFT MINUTES OF THE DECEMBER 5, 2012
UTILITIES ADVISORY COMMISSION MEETING
ITEM 1: ACTION: Recommendation that Council Adopt a Resolution Amending Utility Rule and
Regulation 2 (Definitions and Abbreviations) and the Six Rate Schedules Covering Medium and
Large Commercial Customers (E-4 and E-7) to Include Standby Service Charges
Chair Cook stated that the UAC received a presentation and had a discussion at its last meeting
and had few questions at the time. After receiving co nfirmation from the other commissioner,
he requested that commissioners commence with any questions and that there was no need
for the prepared presentation.
Commissioner Waldfogel stated that the rate being proposed is highly technical in nature and
that the UAC may not have fully understood all of its details, but is being asked to weigh in on
the rate. Director Fong stated that the details are in the rate schedule, but noted that the UAC
does rely on the descriptions of the rate provided by staff in th e report.
Vice Chair Foster asked if anyone would be on the proposed standby rate now. Resource
Planner Jon Abendschein stated that the first project that could be under the rate would be the
waste to energy facility that is being evaluated by the Public Works Department. Director Fong
stated that any customers with large generators would be subject to the rate. Abendschein
added that he does receive calls from time to time from customers who are considering adding
a generator on their site.
ACTION:
Commissioner Waldfogel moved to support the staff's recommendation. Vice Mayor Foster
seconded the motion. The motion carried unanimously (6-0) with Commissioner Hall absent.