HomeMy WebLinkAboutStaff Report 4001
City of Palo Alto (ID # 4001)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 8/20/2013
City of Palo Alto Page 1
Council Priority: Environmental Sustainability
Summary Title: Modifications to PaloAltoGreen Program
Title: Utilities Advisory Commission Recommendation that the City Council
Adopt a Resolution Approving Modifications to the PaloAltoGreen Program
and Assoc iated Electric Rate Schedules and Directing Staff to Develop a
PaloAltoGreen Gas Program
From: City Manager
Lead Department: Utilities
Recommendation
Staff requests that the Finance Committee recommend that Council adopt one of the following
resolutions:
1. A resolution terminating the PaloAltoGreen Program (Attachment A);
2. A resolution (Attachment B):
a. Suspending the PaloAltoGreen Program’s Full Needs program for all electric
customers; and
b. Reducing rates for PaloAltoGreen’s Commercial Customer Block Program to $2 per
1,000 kWh block, or 0.2 cents per kilowatt-hour (₵/kWh); or
3. A resolution (Attachment D) decreasing the PaloAltoGreen Program’s rates for
residential and commercial electric customers, while continuing to provide all
customers the option to purchase 100% renewable energy:
a. Full Needs Rate Decrease: rate premium of 0.2₵/kWh levied on the full electric
requirements of a customer to purchase renewable energy certificates (RECs) for the
large hydroelectric supply portion of the City’s supply mix.
b. Commercial Customer Blocks Rate Decrease: purchase rate of $2 per 1,000 kWh
block, or 0.2₵/kWh.
The Utilities Advisory Commission (UAC) recommends that the Council approve Option #2
above to suspend the PaloAltoGreen Program’s Full Needs program and to maintain the
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PaloAltoGreen Program’s Commercial Customer Block Program with a price of $2 per 1,000
kWh block, or 0.2₵/kWh.
Additionally, staff and the UAC recommend that the Finance Committee recommend that the
Council direct staff to develop a PaloAltoGreen Gas Program to provide an opportunity for
participants to reduce or eliminate greenhouse gas emissions related to their natural gas usage,
to be implemented by July 2014.
Finally, staff recommends that the Finance Committee recommend that the Council direct s taff
to return with a recommendation by March 2014 on how to allocate surplus revenues, if any,
associated with the PaloAltoGreen program.
Summary
The PaloAltoGreen (PAG) program provides customers an opportunity to purchase renewable
energy equivalent to 100% of their electric usage. The program was launched in 2003 and by
2008, PAG had the highest participation rate of any voluntary green rate program in the
country. The City continues to receive national recognition as a green leader for the program.
However, there are two primary issues with continuing PAG as designed. The first is that the
City’s electric supply portfolio is carbon neutral as of 2013. This means that residents and
businesses do not need to participate in PAG to eliminate the greenhouse gas (GHG) emissions
associated with their electric usage. This fact removes one of the motivating forces for
participation in the program. The second issue is that the City’s renewable (“green”) supplies
make up a large part of the standard electric portfolio. Since PAG participants pay to green up
all of their supply needs their contributions “green up” some resources that are already
renewable. However, PAG participants do receive a different energy supply mix than the
City’s standard default electric supply portfolio as PAG is supplied by 100% California solar
energy since the start of 2013.
One solution to these issues is to eliminate the PAG program for the electric portfolio. The City
could use the opportunity to further celebrate the decision to establish a fully carbon neutral
electric portfolio and move on to addressing other sustainability issues and means to reduce
GHG emissions. Alternatively, changes to the PAG program could be implemented as soon as
possible to continue the successful PAG program and brand. Changes to the electric program
could be made such that participants would only be paying to green up the non -renewable
(hydro) resources in the portfolio. The price for the proposed program could also drop
significantly from the current price.
This modification to the PAG program would continue to provide a 100% renewable energy
option to meet the community’s desire for a superior product over the City’s standard energy
product that, while carbon neutral, does not contain 100% qu alified renewable resources1 as
defined by the state’s Renewable Portfolio Standard (RPS). The program would continue to be
backed by the purchase of Renewable Energy Certificates (RECs) to offset the City’s large
1 To qualify as eligible for California’s Renewable Portfolio Standard (RPS), a generation facility must use one or
more of the following renewable resources or fuels: Biofuels, small (<30 MW) hydro, geothermal, ocean waves,
photovoltaic, solar thermal electric, and wind.
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hydroelectric supply, which accounts for about half of the City’s electric supply mix in average
hydro conditions, and which, while non-carbon-emitting, is not defined as “renewable” under
the State’s adopted definition. In addition, the non-residential program option to purchase
RECs in blocks to meet a portion of the participant’s load would continue, but at the new lower
price.
Another option is to retain only the “block purchase” part of the electric PAG program.
Commercial customers as well as multi-family customers participate in this program to achieve
and maintain LEED certification and to receive recognition from the Environmental Protection
Agency’s Green Power Partnership Program. The Full Needs component of the PAG program
could then either be terminated or suspended. Changes to PAG for the Electric Fund can be
implemented as early as September 2013 if approvals are expedited.
The UAC considered the options provided to modify or terminate PAG and voted not to
terminate, but rather to suspend, the PAG’s Full Needs program, and to continue the
Commercial Customer Block PAG program with a reduced price. This option allows for more
time to decide what to do with the PAG Full Needs program. These options could include
terminating the program, replacing the program with a PAG Gas program, or revising the
program in some way, including as a community solar donation program.
In addition, staff proposes developing a PaloAltoGreen Gas program that would provide
participants with an option to eliminate the carbon footprint associated with thei r use of
natural gas. The UAC supports the development of a PaloAltoGreen Gas program. If directed
by Council, staff will return to the UAC and Council with a detailed program design for a
PaloAltoGreen Gas program so that it can be implemented by July 2014.
Many local solar program ideas were examined and determined to be beneficial. Staff
determined that these programs merit further development and introduction as new programs,
but that they do not fit the PaloAlto Green program well and more time is needed for program
design. Staff is developing an overall local solar strategy under which these program s would be
evaluated and potentially developed. Staff plans to provide this plan to the UAC by the end of
2013 and to the Finance Committee and Council in early 2014.
Background
Recognizing the community’s desire to go beyond standard requirements for renewable supply,
CPAU customers have had the option to voluntarily pay more to receive 100% renewable
electricity since 2003. Through the PAG program, CPAU provides customers renewable energy
for 100% of their electric usage at a rate premium of 1.5 cents/kWh. Larger businesses can
purchase RECs in blocks of 1,000 kWh for $15 for any portion of their needs.
Participation rates in the program are the highest for similar programs throughout the nation,
earning CPAU recognition and many awards. Many municipal utilities, including those operated
by the Cities of Alameda and Santa Clara, have copied CPAU’s successful program. The success
of the program is attributed to the ability to provide a direct benefit to participants in the form
of reduced GHG emissions equivalent to all or a portion of their electricity consumption in a
simple and convenient manner. In 2012, approximately 20% of CPAU’s customers parti cipated
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in PAG representing 8% of the City’s total electric usage . Through program participation, PAG
participants reduced greenhouse gas (GHG) emissions by 30,224 tons2 in 2012 alone. Table 1
summarizes participation in the PAG program since 2003.
Table 1: PAG Participation
Number of Customers % of CPAU Customers % of Total City Load
Residential Non-Res Residential Non-Res Residential Non-Res Total
2003 1,762 52 7.2% 1.7% 0.3% 0.1% 0.4%
2004 2,903 104 11.8% 3.5% 1.6% 0.5% 2.2%
2005 3,626 112 14.8% 3.7% 2.3% 0.9% 3.2%
2006 4,415 158 21.0% 2.6% 2.7% 1.1% 3.9%
2007 5,413 188 23.0% 4.8% 2.7% 1.8% 4.6%
2008 5,748 222 23.3% 5.8% 3.9% 1.9% 5.8%
2009 5,849 246 23.0% 6.3% 4.1% 2.8% 6.9%
2010 6,102 243 24.2% 5.8% 4.6% 2.9% 7.5%
2011 5,440 231 21.1% 6.2% 4.2% 3.7% 7.9%
2012 5,162 210 20.1% 5.4% 4.0% 4.1% 8.1%
Participating in PAG allows CPAU’s commercial customers (including City facilities) to achieve
environmental recognition and certifications in line with their own corporat e sustainability
goals, including participation in the Environmental Protection Agency’s (EPA’s) Green Power
Partnership Program and the US Green Building Council Leadership in Energy & Environmental
Design (USGBC LEED) Program3.
From the launch of the program through 2012, CPAU purchased RECs for PAG from a
combination of 97.5% wind resources and 2.5% local solar energy. For the first eight years of
the program, the costs of RECs and PAG program marketing were nearly equal to the revenues
received from PAG participants. Due to lower than projected REC costs, cumulative revenues
have exceeded overall program costs through 2012 by about $630,000. Further, beginning in
2012, the market price for RECs declined significantly, resulting in much lower REC purchase
costs. This reduction in cost allowed CPAU to transition the program to 100% California -
sourced solar energy for 2013 while maintaining positive net revenue for the program. Table 2
below depicts the history of revenues and expenses (including staff costs) for the PAG program.
2 Based on the 2005 baseline emission factor of 879 pounds of carbon dioxide equivalent (CO2e) per MWh and
PAG participation at 75,805 MWh in 2012.
3 EPA Green Power Partnership Program details can be seen at: http://www.epa.gov/greenpower/index.htm.
USGBC LEED Program details can be seen at: http://www.usgbc.org/leed.
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Table 2: PAG Revenue and Expense History
Calendar
Year
Revenue
Collected
Total
Expenses
Net
Revenue
Cumulative
Net Revenue
2003 $61,006 $299,995 -$238,989 -$238,989
2004 $310,959 $489,747 -$178,788 -$417,778
2005 $458,445 $478,776 -$20,331 -$438,108
2006 $567,534 $510,418 $57,116 -$380,993
2007 $679,438 $685,947 -$6,509 -$387,502
2008 $836,263 $709,573 $126,690 -$260,812
2009 $1,003,707 $922,828 $80,879 -$179,933
2010 $1,066,259 $1,036,130 $30,129 -$149,804
2011 $1,132,337 $903,925 $228,412 $78,608
2012 $1,064,595 $513,719 $550,876 $629,484
2013* $520,000 $320,000 $200,000 $829,484
*Estimate for January through June 2013
The City Council recognized the need to modify the current PAG program due to the increasing
percentage of renewable resources in the City’s standard electric supply portfolio. In 2013,
long-term contracts for renewable energy are expected to supply about 21% of the City’s
needs. The City has executed additional long-term contracts that are expected to supply about
half of the City’s needs by 2017.
As part of the process to redesign PAG, staff provided a thorough assessment of alternatives to
the UAC in December 2012 and to Council on February 11, 2013 (Staff Report #3386).
Members of the UAC and City Council expressed the most interest in either a community solar
program or a bio-gas option. After talking with members of the community and surveying
current PAG participants, staff returned to the UAC in April 2013 with a two part
recommendation. First, staff proposed transitioning PAG to a solar donation program by 2014,
which would allow customers to donate funds to support the development of solar
photovoltaic systems at the site of Palo Alto community -based organizations, such as schools.
Secondly, staff proposed developing a new program to be implemented by January 2015 that
would allow participating customers to “green” their natural gas purchases through the use of
environmental offsets or the purchase of commercially-available biogas.
The discussion at the April 2013 UAC meeting centered on the need to design a program with
environmental benefits through reduced GHG emissions. While general support was expressed
for community solar, many questions arose about overall plans to develop solar lo cally. The
UAC provided general support for both recommended program offerings; however had many
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questions about the implementation. As such, the following motions were made and carried by
the UAC:
1. Recommend that Council approve a redesign of the PAG Pro gram to support a
community solar program to be implemented beginning January 2014, after staff
returns to the UAC with program design details or options for further discussion; and
2. Recommend that Council direct staff to develop a PAG Gas Program to provid e an
opportunity for participants to reduce or eliminate GHG emissions from natural gas
usage for Council consideration to be implemented beginning January 2015 and that
staff return to the UAC with program design details and options for further discussion .
Excerpted minutes of the UAC’s April 3, 2013 meeting are provided as Attachment H.
Subsequently, the Chair of the UAC appointed an ad -hoc subcommittee comprising two UAC
members to assist staff in evaluating PAG alternatives.
Evaluation of Alternatives
Staff met with the UAC subcommittee to discuss program alternatives, including the following
options for PAG:
1. Retire the Program
2. Modify the Program to provide 100% eligible renewable resources
3. Community Solar program(s)
4. PaloAltoGreen Gas program
5. Fuel Switching program
6. Electric Vehicle incentives
Staff and the subcommittee assessed each alternative according to the following objectives:
Participants must get value from participating either in the form of direct GHG
reductions or satisfaction in providing community benefits and value.
Program must offer benefits to Commercial customers who participate in PAG to meet
requirements set by EPA Green Power Partnership Program or USGBC LEED Program.
Program must provide environmental benefit (i.e., GHG emission reductions which go
“above and beyond”).
Program must be easy to implement and implementable with current resources.
Program costs can be recovered and will not be subsidized by non-participants.
To be marketable, the program must be simple and easy to explain, reasonably priced,
and transparent to participants.
Program must be available to all customers.
Program must be implementable by January 2014.
A description of each alternative and their corresponding merits is included in Attachment F. A
brief summary of these alternatives follows.
1. Retire the Program
The major reasons that residents and businesses participate in PAG are to receive renewable
energy for their electric needs and to reduce the carbon footprint associated with their electric
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consumption. As of 2013, these reasons are no longer as compelling since the default electric
supply is carbon neutral and consists of renewable resources and large hydroelectric resources.
One option is to declare victory and retire the PAG program, recognizing that the program has
served its purpose.
However, when the UAC reviewed PAG program options, including retiring the program, in
December 2012, the idea of retiring the program was strongly opposed by at least one UAC
Commissioner who indicated that the PaloAltoGreen “brand” was too valuable to simply retire
and that it would waste over 10-years of built up goodwill and willingness on the part of the
community to fund environmental programs. When the Council reviewed PAG program
options at a study session in February 2013, similar sentiment was expressed by some.
In addition, the program has value for the larger commercial customers who buy blocks of
renewable energy through the PAG program to achieve LEED certification and/or to receive
corporate recognition through the Environmental Protection Agency’s (EPA’s) Green Power
Partnership Program.
2. Modified Program to Provide 100% Eligible Renewable Resources
A modified PAG program recognizes the significant renewable resources in the default electric
supply portfolio. The program would green up only the large hydroelectric resources that are
not eligible renewables by California’s definition. The program would be structured like the
current program and, therefore, is implementable immediately (as soon as changes are
approved).
3. Community Solar Program Options
There are many possible designs for community solar programs, which would fund local solar
installations. One option is a donation program whereby participants contribute funds toward
building PV systems or solar hot water heating systems on community buildings such as schools
or other community and/or nonprofit facilities. In another option, participants would pay for a
share of the cost of a larger system that would be installed on a local building. This w ould be
valuable for customers who may not be good candidates for solar PV on their own homes or
businesses (due to shading, orientation, or other roof issues) and could be cheaper per KW
installed due to economies of scale. Alternately, participants could provide up-front funding
for the cost of a PV system that would be installed on a local building and in return receive
income derived from the sale of the energy produced from the system.
4. PaloAltoGreen Gas Program Options
This program would be similar to the current electric program, but would allow participants to
“green up” their natural gas usage instead of their electric usage. The gas usage would be
greened up with purchases of either biogas or environmental offsets. This program option
would not be ready for implementation by January 2014 due to the need to work through the
policy issues around the use of environmental offsets and the need to create a new gas rate
option in the billing system.
5. Fuel Switching Program
In this program, participants would contribute to a fund to offer rebates or other incentives to
encourage customers to replace gas-using appliances with electric-using appliances.
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6. Electric Vehicle incentives
In this program, participants would contribute to a fund to provide incentives to encourage
customers to replace gasoline-using vehicles with Electric Vehicles (EVs).
The UAC subcommittee and staff agreed that programs to provide incentives for fuel switching
and EVs were not good fits for PAG as the participants would not necessa rily directly receive
anything for their contributions. In addition, those programs do not have a strong nexus
between a participant’s electric or gas usage and some of the program’s resulting impacts.
Additionally, the UAC subcommittee assessed the merits of terminating the PAG program at the
end of 2013. Doing so would allow the City to declare victory in having received national
recognition for the nation’s top voluntary green program and staff resources could be allocated
to the development of a PAG Gas program and/or other worthwhile projects. The UAC
subcommittee concluded that participation and environmental benefits could still be achieved
through PAG and that the continuity and name recognition are important factors in the success
of the City’s overall sustainability goals.
The subcommittee further recognized that a key objective for continuing to offer PAG should be
to maintain current participation levels and to be able to implement a revised program by
January 2014. The subcommittee generally supported community solar programs constructed
either as donations to schools or as programs for customers who can’t benefit from current
solar programs (i.e. those with homes without good solar access). However, those programs do
not fit well with the current PAG structure whereby participants make no term commitment
and can enter and exit the program at any time. In addition, there is insufficient time to
complete the design of a community solar program, including identifying any upgrades needed
to the billing system, in order to be able to launch a program by January 2014.
At its July 31, 2013 meeting, the UAC considered the options for the PAG program modifications
and voted unanimously to recommend that Council continue PAG’s Commercial Customer Blo ck
program at a reduced rate of 0.2 ₵/kWh and suspend PAG’s Full Needs program until a
replacement program is designed.
Discussion
Need to Redesign the PAG Program
Participants in the current program are paying to “green up” with RECs the standard electric
supply portfolio. However, starting in 2013, the standard portfolio is carbon neutral, and
consists of long-term renewable resources, long-term hydroelectric resources, and short-term
renewables (using REC purchases) such that participants are greening u p already green or
carbon-free hydroelectric resources. This fact is the primary reason that the program needs to
cease or be redesigned. In addition, program revenues exceed program costs so, at a
minimum, the price to participate could be reduced.
One of the primary conclusions staff reached after the assessment and discussions with the
subcommittee was that many of the community solar options examined are worth pursuing,
and while these programs don’t fit the PAG program objectives and constraints, the y could be
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pursued separately from PAG. Finally, these programs would not be ready to roll out by
January 2014.
Local Solar Strategy
In addition, the City Manager has requested an overall solar strategy for the City. Staff has
started to develop this umbrella strategy, which will identify all potential programs to increase
penetration of local solar energy installations. The components of the solar strategy will
include recommendations for new programs to be implemented in the future. It will also
include a discussion of market segments and how each can be reached to further a goal to
maximize locally sited solar energy systems. As such, staff will evaluate community solar
programs in the larger context of the City’s overall solar strategy. Staff will return to the UAC
and Council with the overall Palo Alto solar plan by the end of 2013. Table 3 below shows a
preliminary outline of the local solar strategy.
Table 3: Elements of Overall Local Solar Strategy
Market Segment Program Program Beneficiary
Home and building
owners with good
solar access who use
energy generated on-
site
Existing program – PV Partners, in which
CPAU pays a rebate and allows for net
metering
Participants benefit from net
metering, reducing their
utility bills.
Building owners with
roof space or parking
lots that could be
used to site solar
systems
Existing program – Palo Alto CLEAN
(feed-in tariff) program, in which CPAU
pays for the solar energy produced
Building owners receive
revenue from a roof or
parking lot lease.
CPAU receives the renewable
energy for RPS requirements.
Community members
who support schools
Potential new program – Community
Solar Donation program, in which either
solar PV or solar hot water heating
systems are “crowd funded” from
community members
Participants support schools
and receive community
goodwill.
Schools receive free systems
and will experience reduced
utility bills.
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Market Segment Program Program Beneficiary
Home and building
owners who do not
have good solar
access, renters,
building tenants, or
others who want to
use the solar energy
generated to offset
their utility bills.
Potential new program – Community
Solar Share program, in which
participants receive a share of the energy
produced by a new solar energy system
in proportion to their investment.
Participants benefit from
“virtual net metering”.
Under virtual net metering,
the owner of the solar system
tracks the energy production
per individual share of the
system and the utility would
credit participants' energy
bills for their portion of solar
production just as they would
for individually-metered
systems.
Home and building
owners who do not
have good solar
access, renters,
building tenants, or
others who want to
receive the value from
the solar energy
generated.
Potential new program – Community
Solar Investment program, in which
participants receive a share of the
payments from energy produced by the
system in proportion to their investment.
Participants receive revenue
from sale of renewable
energy for their investment.
Building owners receive
revenue from a roof or
parking lot lease.
CPAU receives the renewable
energy for RPS requirements.
City-owned facilities
and parking garages
and surface parking
lots.
There are many ways that the City can
install solar on city-owned facilities,
including issuing RFPs for developers to
install systems on specific sites. The City
may elect to own and operate the solar
installations or purchase the energy from
a third-party using a power purchase
agreement (PPA). A plan containing an
assessment of whether or not and how
solar could be installed on each facility
would need to be developed. Separate
discussions would be held with the
parking districts to gauge their interest in
program participation.
The City would benefit from
receiving revenue from a roof
or parking lot lease and
reduced utility bills.
Alternatives
Staff recommends that PAG be either eliminated , suspended or revised as soon as possible to
recognize the renewable resources in the standard portfolio and provide a marketable
consumer and business product. Staff also recommends that it further develop a PAG Gas
program to be launched by July 2014. Continuing a modified program provides CPAU
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customers a choice in electric supply products to meet their own environmental objectives
conveniently and at a reasonable price. Int roducing a PAG Gas Program would result in greater
reductions in GHG emissions.
PAG – Participant’s Full Needs
The PAG program could be modified so that RECs would be purchased to cover only the large
hydroelectric portion of the City’s electric supply mix, as opposed to the entire supply mix as
the current program does. Green-e certifiable RECs generated in the Western Electric
Coordinating Council (WECC)4 would still be procured for the program. The amount of RECs
needed may vary from 35 to 60% depending on hydroelectric conditions. Figure 1 illustrates
the PAG participants’ supply mix under various hydroelectric conditions and shows that the
RECs that would need to be purchased are equivalent to the hydroelectric generation in the
portfolio.
Figure 1: PAG Supply Mix to Achieve 100% Renewables
Alternatively, the Full Needs program option could be suspended temporarily allowing staff
sufficient time to develop an alternative product to meet participants’ environmental
objectives. Suspension of the program would cease further collection of revenues associated
with the PAG rate premium and no additional RECs would be procured for the Full Needs
program. This option allows for more time to decide what to do with the PAG Full Needs
program. These options could include terminating the program, replacing the program with a
PAG Gas program, or revising the program in some way, including as a community solar
donation program. When these options are examined in more detail, Council could also decide
what to do with the extra funds that have been collected from the program participants.
4 WECC is the Regional Entity responsible for coordinating and promoting electric system reliability in the Western
Interconnection. WECC's service territory extends from Canada to Mexico, including the provinces of Alberta and
British Columbia, the northern portion of Baja California, Mexico, and all or portions of the 14 Western states
between.
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PAG – Renewable Blocks (Participant’s Partial Needs)
Currently, many non-residential PAG participants elect to purchase renewable energy in blocks
of 1,000 kWh at a fixed rate of $15 per block. This option allows participants to procure custom
quantities to meet their own sustainability objectives. Many businesses currently participate in
the EPA’s Green Power Partnership program, which has specific eligibility requirements.
Attachment G is the brochure for EPA’s Green Power Partnership programs. The requirements
for businesses to be designated a Green Power Partner or member of the Green Power
Leadership Club are contained in the brochure and are shown below in Table 4 below . One of
the key requirements for participation in the Green Power Partnership programs is that
businesses voluntarily purchase green power above what their utility provides as a standard
product. As stated in the EPA’s Green Power Partnership requirements brochure
(http://www.epa.gov/greenpower/documents/gpp_partnership_reqs.pdf): “EPA recognizes
only voluntary green power purchases and on-site generation that increase Partners’ green
power use above mandatory requirements, such as state renewable portfolio standards (RPS),
mandates placed on utilities, or load-serving entities or consent decrees. All green power use
counted by the GPP must be incremental to what the Partner would have bought absent
proactive green power procurement.” The PaloAltoGreen program complies with these
requirements.
The City has been a Green Power Partner since 2006 and is in the Green Power Leadership Club
for buying PAG blocks for 50% of the energy usage of all of its facilities.
Table 4: EPA Green Power Partnership Program Requirements
As with the current program, the 100% renewable energy procured with RECs for the block PAG
program would meet the requirements of the EPA’s Green Power Partner ship programs so that
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participants would still be eligible to receive the EPA Green Power Partner or Green Power
Leadership Club designation, depending upon how many blocks they purchase. The new PAG
renewable block program would continue, but the price c ould be reduced to reflect lower
administrative and REC costs.
As with the Full Needs program, Green-e certifiable RECs within the WECC region would be
procured. Staff would also ensure that the RECs procured for the block rate also meet EPA’s
Green Power Partnership program requirements, LEED requirements, and any other renewable
resource eligibility requirements.
Both the PAG “full needs” and “renewable blocks” products could be implemented immediately
using existing resources and within the constraints of CPAU’s billing system. Table 5 is summary
of the two PAG renewable energy products.
Table 5: Modified PAG Program Options
Full Needs Commercial Customer Blocks
Participation
Goals
All customers eligible
target residential & small commercial
4% of electric load
All customers on E2, E4, E7, E18 rate
schedules
target large commercial, City and public
facilities
3% of electric load
Benefit/Value RECs purchased for the amount
equivalent to large hydroelectric
resource portion of CPAU’s supply mix
support renewable energy projects
RECs support renewable energy projects
Allows continued participation in EPA’s
Green Power Partner Programs
Participation useful for achieving LEED
certification
Participants’
Supply Mix/
Power Content
Label
100% Qualifying Renewable
Amount of RECs depends on portion
of supply met by large hydroelectric
resources.
Depends on the number of REC blocks
purchased relative to participant’s load.
Balance of supply met by CPAU’s supply
mix
Supply Source Green-e certified or certifiable RECs
purchased within the WECC
Green-e certified or certifiable RECs
purchased within the WECC
Meets EPA’s eligibility requirements
Rate Green rate premium of 0.2 ₵/kWh, on
100% of customer load
$2 per 1000 kWh block
Bill Impact $0.81 per month for median
residential customer usage
Depends on number of renewable
blocks purchased
Administration &
Implementation
Administration, marketing and verification done by contractor
REC procurement done in-house
Enrollment Existing PAG participants would continue in program, but may leave at any time
New participants could sign up at any time
Net Revenue Estimates for Continuing a Modified PAG Program
As shown in Table 2, since 2008 the PAG program has operated with positive net revenue,
therefore recovering all program expenses. The expenses are based on actual REC purchases,
actual invoices from the City’s third-party contractor, and an estimation of staff time and
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overhead. Since the start of the program the contractor provided program marketing an d
administration and prepared information for the annual auditing for the program. In addition,
the contractor provided the RECs for the program until 2006. Starting in 2007, City staff took
over procuring RECs, requiring more City resources, but allowing for competitive procurement
of the RECs.
If the PAG program were modified as described, staff anticipates lower costs associated with
the third-party marketing and administration services and no start-up expenses. The estimated
expenses for a modified PAG are about $350,000 per year. This estimate assumes the
following:
Participation level of 7% of total electric load (same as expected for CY 2013);
Reduced administrative and marketing expenses from CY 2013;
Average hydroelectric conditions; and
REC cost of 0.2 ₵/kWh
A breakdown of the revenue and expenses are shown in Table 6 if both the Full Needs and the
Commercial Block programs were continued and changes were implemented as of October 1,
2013.
Table 6: Estimated PAG Net Revenue for Calendar Years 2013 and 2014 for Modified Program
Current
Program (no
changes)
If price changed to
0.5 ₵/kWh starting
October 1, 2013
If price changed to
0.2 ₵/kWh starting
October 1, 2013
CY 2013 CY 2013 CY 2014 CY 2013 CY 2014
PAG Retail Revenue $1,050,000 $875,000 $350,000 $825,000 $140,000
Expenses:
Vendor Admin/Marketing $245,000 $200,000 $150,000 $200,000 $150,000
Staff costs/Overhead $135,000 $125,000 $100,000 $125,000 $100,000
REC Purchases $270,000 $225,000 $100,000 $225,000 $100,000
Total Expenses: $650,000 $550,000 $350,000 $550,000 $350,000
Net Revenue: $400,000 $325,000 $0 $330,000 -$210,000
The break-even price for a modified program is about 0.5 ₵/kWh, but there are significant
cumulative net revenues from the current program that can be applied to future expenses. If
the program were changed as described, staff recommends a PAG premium of 0.2 ₵/kWh for
both products. For the Full Needs product, the charge will be assessed on the entire usage of
the customer, but RECs will only be purchased for the hydroelectric portion of the usage. For
the block product, RECs are purchased for the number of blocks selected. There are higher
administrative costs per customer for the smaller customers on the Full Needs product. The
non-residential participants who choose to purchase the RECs in blocks are significantly larger
City of Palo Alto Page 15
and the administrative cost per kWh is lower for that product because the quantity of RECs for
this program is known ahead of time and doesn’t fluctuate with usage
Net Revenue is very sensitive to REC prices and is also sensitive to participation levels, other
expenses and hydroelectric conditions. Table 7 illustrates net revenue under various scenarios
with a program price of 0.2 ₵/kWh. The Table shows that net revenue can be as low as
negative $640,000 per year (under high administrative and REC costs and wet hydroelectric
conditions where more RECs are needed). To the extent costs exceed revenues, the
accumulated net revenue from the current PAG program is sufficient to cover costs.
Table 7: Annual Modified PAG Program Net Revenue Scenarios (with price at 0.2 ₵/kWh)
Scenario Avg. Hydro Dry Hydro Wet Hydro
Expected Administrative, Marketing and REC Costs
Revenues $140,000 $140,000 $140,000
Expenses $350,000 $330,000 $355,000
Net Revenue -$210,000 -$190,000 -$215,000
Higher Administrative, Marketing and REC Costs
Revenues $140,000 $140,000 $140,000
Expenses $720,000 $680,000 $780,000
Net Revenue -$580,000 -$540,000 -$640,000
Higher Participation & Expected Administrative, Marketing and REC Costs
Revenues $180,000 $180,000 $180,000
Expenses $400,000 $380,000 $410,000
Net Revenue -$220,000 -$200,000 - $230,000
If Council chooses to suspend or terminate the PAG program, and if there are excess cumulative
net revenues (total revenues minus total costs) after the current PAG program is retired, staff
would allocate those funds in keeping with Council -approved program goals. Options include
procuring more renewable energy, RECs or offsets to support renewable energy pro jects or to
reduce community GHG emissions, or making other expenditures in keeping with the overall
goals of the program. Returning the accumulated net revenues to participants is also possible,
but could be administratively costly and would not result in a significant refund for individual
participants.
PAG Program Net Revenue Estimates if Full Needs Option Suspended
If the Full Needs option were suspended at the end of September 2013, and the rate premium
for the Block program reduced to 0.2 ₵/kWh ($2 per 1,000 kWh), then the net revenue for CY
City of Palo Alto Page 16
2013 would drop to $321,000 as shown in Table 8. Further, if this option is implemented, staff
would recommend not hiring a third party administrator and administrative costs would be
limited to procuring RECs and communicating to existing participants on the block rate option.
Table 8: Estimated Annual Net Revenue if Full Needs program is Suspended
(and Block Program Price Changed to 0.2 ₵/kWh starting October 1, 2013)
CY 2013 CY 2014
PAG Retail Revenue $801,500 $60,000
Expenses:
Vendor Admin/Marketing $115,000 $0
Staff costs/Overhead $95,000 $25,000
REC Purchases $270,000 $60,000
Total Expenses: $480,000 $85,000
Net Revenue: $321,500 -$25,000
Bill Impact
At a rate of 0.2 ₵/kWh, the PAG premium for the median residential customer is less than one
dollar per month. Table 9 shows the monthly bill impact with a 0.2₵/kWh PAG premium for
participants with different usage levels compared to the current premium. If the Full Needs
option is suspended, there will be no monthly bill impact since the rate premium will be zero.
Table 9: PAG Estimated Residential Monthly Cost
Monthly Electric
Consumption
(kWh)
Monthly Bill
without PAG
rate premium
Current PAG rate
premium (@1.5 ₵/kWh)
Proposed PAG rate
premium (@0.2 ₵/kWh)
$/month % $/month %
407 $42.50 $6.10 14.4% $0.81 1.9%
650 $76.33 $9.75 12.8% $1.30 1.7%
1,000 $137.23 $15.00 10.9% $2.00 1.5%
PaloAltoGreen Gas Program
A PAG Gas Program would serve to meet the community’s desire to support further reduct ions
in GHG emissions and to achieve these reductions in connection with their own carbon
footprint. At the April 2013 UAC meeting, staff proposed that it develop a PAG Gas Program for
implementation by January 2015 to allow time to design an acceptable p rogram and ensure
that all internal and billing systems could be modified to enable it to be implemented. At this
time, staff proposes to speed the program implementation up so that it could be introduced by
July 2014.
City of Palo Alto Page 17
As discussed with the UAC in April 2013, staff evaluated two ways in which to achieve GHG
reductions through a green gas program, including through 1) direct support of biogas; and 2)
purchase of environmental offsets.
Preliminary analysis showed the additional cost for 100% biogas purchases for a median
residential customer is too high for customers to accept, especially with added costs for
program administration. The analysis showed that a PAG Gas program backed by purchasing
environmental offsets is less expensive than purchasing biogas and could be implemented in a
relatively short amount of time. The impact on participants’ bills will depend on the type of
environmental offset procured which can vary widely depending on offset program,
certification, protocol and project source.
For offsets approved by the California Air Resources Board (CARB) and not certified for AB32
compliance, the current price is about $15 per metric ton (MT) of carbon dioxide equivalent
(CO2e). Since one therm of natural gas produces 0.0053 tons of CO2e, offsets costing $15/ton
add a cost of 7.9₵/therm. If program administration and marketing costs are added, the
premium for a PAG Gas program could be about 12₵/therm. The increased monthly cost for a
residential gas customer at 12₵/therm is shown in Table 10.
Table 10: Residential Natural Gas Bill Impact with Environmental Offsets
Gas Usage
(therms/month)
Current
Monthly bill *
Monthly bill
with a premium
of 12₵/therm
Increased monthly bill with
a premium of 12₵/therm
$/month %
10 $18.27 $19.47 $1.20 6.6%
18 (summer median) $24.99 $27.15 $2.16 8.6%
25 $33.44 $36.44 $3.00 9.0%
30 $35.06 $38.66 $3.60 10.3%
54 (winter median) $55.20 $61.68 $6.48 11.7%
100 $114.42 $126.42 $12.00 10.5%
* Assumes gas commodity cost of 40 ₵/therm
If the participation rate for a PaloAltoGreen Gas program is 20% of residential customers and
5% of non-residential customers (as it was for the electric PAG program in 2012), then about
10% of the City’s natural gas usage (about 3 million therms/year) would be covered with
environmental offsets, resulting in a reduction of GHG emissions totaling 16,000 metric tons.
If directed by Council, staff will finalize the program design including seeking UAC and Finance
Committee recommendation and Council approval of the PAG Gas rate and the types of offsets
allowed to be used for the program. Following that, staff will establish the necessary
agreements to procure offsets, hire a third party administrator and marketer, develop program
materials, recommend rate premiums and make the nece ssary modifications to CPAU’s billing
system to allow for the implementation of the PAG Gas Program by as early as July 2014.
City of Palo Alto Page 18
Commission Review and Recommendation
At the July 31, 2013 UAC meeting, staff requested that the UAC recommend that Council
approve one of the following three options to be implemented as soon as possible:
1. Terminate PAG;
2. Terminate PAG’s Full Needs program, but maintain the Commercial Customer Block
Program and reduce the price to 0.2 ₵/kWh; or
3. Approve changes to PAG with two rate options:
a. Full Needs: rate premium of 0.2 ₵/kWh levied on the full electric requirements of a
customer to purchase renewable energy certificates (RECs) for the large
hydroelectric supply portion of the City’s supply mix; and
b. Commercial Customer Blocks: Purchase rate of $2 per 1,000 kWh block.
In addition, staff recommended that the UAC recommend that Council d irect staff to develop a
PaloAltoGreen Gas Program to be implemented by July 2014.
The draft notes from the UAC’s lengthy discussion regarding the merits of each alternative
presented are provided in Attachment I. There was almost no support for terminating the
program altogether and the Commission was split on the proposal for the Full Needs program
option to green up only the hydro portion of the supply m ix. Rather than terminate, the UAC
supported suspending the Full Needs program until a satisfactory replacement can be found.
Ultimately the UAC voted unanimously to recommend that Council:
1. Suspend the Full Needs option of the PAG program;
2. Continue the Commercial Customer Block program with a rate premium of 0.2 ₵/kWh;
and
3. Direct staff to develop a PaloAltoGreen Gas Program to be implemented by July 2014.
Resource Impact
Approval of the UAC’s recommendation to suspend collection of revenue from PAG full need
participants and to reduce the rate for the block renewable purchases to 0.2 ₵/kWh will result in
reduced PAG revenues for FY 2014. The FY 2014 budget accounted for expenses related to REC
purchases and hiring of a third party administrator. No addit ional staff resources are
anticipated to carry out the revisions to the PAG program.
Termination of the program would cease all revenues and expenses for the PAG program
effective the date of program termination.
No additional staff resources are associated with the development of a PAG Gas program. Any
resource impacts from such a program will be defined when a recommendation for that
program is available for Council consideration.
Policy Impact
Approval of the modifications to the PAG Program and the directive to develop a PAG Gas
Program is consistent with the Council-approved LEAP Objectives; Strategies and
City of Palo Alto Page 19
Implementation Plan; supports the Council-approved 2011 Utilities Strategic Plan’s
environmental sustainability objective; and is consistent with the City’s Climate Protection Plan.
Environmental Impact
Modifying, suspending, or terminating the PAG Program will reduce the amount of RECs
purchases made, which will reduce the level of support provided by program participants for
the development and financial health of the renewable energy industry. If the Commercial
Customer Block program continues, RECs will continue to be purchased on behalf of those
customers. With respect to GHG emissions, in calendar year 2012, the reduction in GHG
emissions associated with the program was 30,233 metric tons. However, given that the
electric supply portfolio is carbon neutral starting in calendar year 2013, GHG emission counting
protocols do not allow RECs to provide “negative GHG emissions”.
The environmental impacts associated with implementing a PAG Gas program will be
determined during the development stage of that program.
Modifying, suspending, or terminating the PAG Program does not meet the California
Environmental Quality Act‘s (CEQA) definition of a “project” under California Public Resources
Code Sec. 21065, thus no environmental review is required.
Next Steps
If the Finance Committee supports the UAC and staff’s recommendation, the modifications can
be implemented as soon as they are approved by Cou ncil, which is expected to be in September
2013. Regardless of Council’s decision, current PAG customers will be informed of any changes
to the program and have the option to opt out of the program (as they do at any time). Staff
will evaluate the need to hire a new PAG contractor to administer, market and verify the
program to meet certification protocols and to possibly assist with the development and
marketing of a PaloAltoGreen Gas Program.
If directed by Council, staff will continue to develop the PAG Gas program design elements and
return to the UAC in December 2013 with a recommendation and program design details.
Last, staff is in the process of developing an overarching Palo Alto local solar plan and strategies
to meet the community’s interest to develop solar locally. A draft plan is expected to be ready
for UAC review in December 2013 and Finance Committee review in December 2013 or January
2014.
Attachments:
Attachment A: Resolution Approving Termination of PAG (PDF)
Attachment B: Resolution Approving Suspension of PAG Full Needs and Modification to
Block Rate (PDF)
Attachment C: Modified Rate Schedules E-2G, E-4G, E-7G, E-18G for Block Purchases
(PDF)
Attachment D: Resolution Approving Modifications to PAG Full Needs and Modification
to Block Rate (PDF)
City of Palo Alto Page 20
Attachment E: Modified Rate Schedules E-1G, E-2G, E-4G, E-7G, E-18G for Option to
Full Needs and Block Purchases (PDF)
Attachment F: PaloAltoGreen Redesign analysis (PDF)
Attachment G: EPA Green Power Partnership Brochure (PDF)
Attachment H: Excerpted Final UAC Minutes of April 3, 2013 Meeting (PDF)
Attachment I: Excerpted Draft UAC Minutes of July 31, 2013 Special Meeting (PDF)
ATTACHMENT A
* NOT YET APPROVED *
130813 dm 6051929
Resolution No. _________
Resolution of the Council of the City of Palo Alto Terminating the
PaloAltoGreen Program Effective _____ and Repealing Rate
Schedules E-1-G, E-2-G, E-4-G, E-7-G and E-18-G
A. In an effort to provide City of Palo Alto Utilities (“City”) electric customers the
option to voluntarily reduce greenhouse gas emissions associated with their electricity use, in
2003 the City launched the PaloAltoGreen Program;
B. City electric customers can opt in to the PaloAltoGreen Program in two ways.
The “Full Needs” option allows all customers to receive renewable energy equivalent to 100
percent of their needs in exchange for paying an additional 1.5 cents per kilowatt hour (“kWh”)
assessed on their full load. The “Commercial Customer Block” rate gives commercial customers
the option to receive renewable energy in blocks of 1,000kWh in exchange for paying an
additional 1.5 cents per 1,000 kWh;
C. Approximately 20 percent of the City’s electric utilities customers participate in
PaloAltoGreen, representing approximately 8 percent of the City’s electric load and making the
PaloAltoGreen Program one of the most successful green energy programs in the United States;
D. In March 2011, the Council unanimously approved the Long-term Electric
Acquisition Plan (LEAP), a strategic planning document focused on how the City’s Utilities
Department (CPAU) can successfully balance environmental and economic sustainability as it
provides electric service to CPAU customers. Council approved an update to the LEAP in April
2012 (Resolution 9241). As part of LEAP Climate Protection Strategy #5, Council directed staff
to evaluate PaloAltoGreen program design and recommend modifications, as appropriate,
including constructing PaloAltoGreen to assist in meeting Renewable Portfolio Standard (“RPS”)
goals.
E. In March 2013, the Council unanimously approved the Carbon Neutral Plan
(Resolution 9322) directing staff to achieve carbon neutrality for the electric portfolio by 2013
through a combination of hydroelectric resources, long-term renewable resources and short-
term renewable energy resources and/or renewable energy certificates (“RECs”). The Carbon
Neutral Plan also included direction to redesign PaloAltoGreen in the context of achieving
carbon neutrality for the electric supply portfolio.
F. The City’s increasing RPS and the adoption of the Carbon Neutral Plan require an
evaluation of the continued effectiveness of PaloAltoGreen as currently implemented.
PaloAltoGreen participants no longer need to participate in the program to eliminate the
greenhouse gas emissions associated with their electric usage, as much of the City’s electric
portfolio is now renewable.
ATTACHMENT A
* NOT YET APPROVED *
130813 dm 6051929
G. At the July 31, 2013 Utilities Advisory Commission (UAC) meeting, staff
presented alternatives to redesign PaloAltoGreen, and the UAC voted unanimously (six in favor
and one absent) to recommend that the Council suspend the PaloAltoGreen Full Needs
program for all customers and reduce the Commercial Customer Block rate from 1.5 cents per
1,000 kWh to 0.2 cents per 1,000 kWh.
H. On August 20, 2013, the Finance Committee voted _________________________ to
_______ effective ______________.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-1-G (Residential Green Power Electric Service) is hereby repealed.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-2-G (Small Commercial Green Power Electric Service) is hereby repealed.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4-G (Medium Commercial Green Power Electric Service) is hereby repealed.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7-G (Large Commercial Green Power Electric Service) is hereby repealed.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-18-G (Municipal Green Power Electric Service) is hereby repealed.
//
//
//
//
//
//
//
//
//
ATTACHMENT A
* NOT YET APPROVED *
130813 dm 6051929
SECTION 6. The Council finds that the adoption of this resolution repealing
PaloAltoGreen’s electric rates is not subject to the California Environmental Quality Act (CEQA)
because repeal of these rates does not meet the definition of a “project” pursuant to California
Public Resources Code Sec. 21065(b)(8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
ATTACHMENT B
* NOT YET APPROVED *
130813 dm 6051930
Resolution No. _________
Resolution of the Council of the City of Palo Alto Suspending
PaloAltoGreen’s Full Needs Program for All Electric Customers and
Reducing Rates for PaloAltoGreen’s Commercial Electric Customers
by Repealing Rate Schedule E-1-G and Amending Rate Schedules E-2-
G, E-4-G, E-7-G and E-18-G
A. In an effort to provide City of Palo Alto Utilities (“City”) electric customers the
option to voluntarily reduce greenhouse gas emissions associated with their electricity use, in
2003 the City launched the PaloAltoGreen Program.
B. City electric customers can opt in to the PaloAltoGreen Program in two ways.
The “Full Needs” option allows all customers to receive renewable energy equivalent to 100
percent of their needs in exchange for paying an additional 1.5 cents per kilowatt hour (“kWh”)
assessed on their full load. The “Commercial Customer Block” rate gives commercial customers
the option to receive renewable energy in blocks of 1,000kWh in exchange for paying an
additional 1.5 cents per 1,000 kWh.
C. Approximately 20 percent of the City’s electric utilities customers participate in
PaloAltoGreen, representing approximately 8 percent of the City’s electric load and making the
PaloAltoGreen Program one of the most successful green energy programs in the United States.
D. In March 2011, the Council unanimously approved the Long-term Electric
Acquisition Plan (LEAP), a strategic planning document focused on how the City’s Utilities
Department (CPAU) can successfully balance environmental and economic sustainability as it
provides electric service to CPAU customers. Council approved an update to the LEAP in April
2012 (Resolution 9241). As part of LEAP Climate Protection Strategy #5, Council directed staff
to evaluate PaloAltoGreen program design and recommend modifications, as appropriate,
including constructing PaloAltoGreen to assist in meeting Renewable Portfolio Standard (“RPS”)
goals.
E. In March 2013, the Council unanimously approved the Carbon Neutral Plan
(Resolution 9322) directing staff to achieve carbon neutrality for the electric portfolio by 2013
through a combination of hydroelectric resources, long-term renewable resources and short-
term renewable energy resources and/or renewable energy certificates (“RECs”). The Carbon
Neutral Plan also included direction to redesign PaloAltoGreen in the context of achieving
carbon neutrality for the electric supply portfolio.
F. The City’s increasing RPS and the adoption of the Carbon Neutral Plan require an
evaluation of the continued effectiveness of PaloAltoGreen as currently implemented.
PaloAltoGreen participants no longer need to participate in the program to eliminate the
greenhouse gas emissions associated with their electric usage, as much of the City’s electric
portfolio is now renewable.
ATTACHMENT B
* NOT YET APPROVED *
130813 dm 6051930
G. At the July 31, 2013 Utilities Advisory Commission (UAC) meeting, staff
presented alternatives to redesign PaloAltoGreen, and the UAC voted unanimously (six in favor
and one absent) to recommend that the Council suspend the PaloAltoGreen Full Needs
program for all customers and reduce the Commercial Customer Block rate from 1.5 cents per
1,000 kWh to 0.2 cents per 1,000 kWh.
H. On August 20, 2013, the Finance Committee voted ________________________
to _________________ effective ______________.
I. On September 16, 2013, this Council did, on the motion of Council Member
____, seconded by Council Member ____, by a vote of ____, temporarily suspend
PaloAltoGreen’s Full Needs program for all customers and reduced PaloAltoGreen’s
Commercial Customer Block rate to $2 per 1,000 kWh block, or 0.2 cents per kilowatt-hour.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municip al Code, Utility Rate
Schedule E-1-G (Residential Green Power Electric Service) is hereby repealed effective as of
September 19, 2013, until further action of the Council of the City of Palo Alto.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-2-G (Small Commercial Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-2-G, as amended, shall become effective
September 16, 2013.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-4-G (Medium Commercial Green Power Electric Service) is hereby amended to read
as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become effective
September 16, 2013.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-7-G (Large Commercial Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become effective
September 16, 2013.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-18-G (Municipal Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-18-G, as amended, shall become effective
September 16, 2013.
SECTION 6. The Council finds that the adoption of this resolution suspending
PaloAltoGreen’s residential rates and reducing PaloAltoGreen’s commercial rates is not subject
ATTACHMENT B
* NOT YET APPROVED *
130813 dm 6051930
to the California Environmental Quality Act (CEQA), pursuant to California Public Resources
Code Sec. 21065 because such action does not meet the definition of a “project” pursuant to
California Public Resources Code Sec. 21065(b)(8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-2-G-1 dated 117-1-20089 Sheet No E-2-G-1
A. APPLICABILITY:
This schedule applies to non-demand metered electric service for small commercial
customers and master-metered multi-family facilities receiving retail energy services from
the City of Palo Alto Utilities under the Palo Alto Green plan. Palo Alto Green provides for
either the purchase of enough renewable energy credits (RECs) to match 100% of the energy
usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks.
These REC purchases support the production of renewable energy, increase the financial
value of power from renewal sources, and create a transparent and sustainable market that
encourages new development of wind and solar power.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides electric service.
C. UNBUNDLED RATES:
1. The 100% Renewable/ Full Green option was Suspended by City Council on 9-16-2013):
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Palo Alto
Green Total
Summer Period $0.08219 $0.05505 $0.00321 $0.0150 $0.15545
Winter Period 0.07406 0.04934 0.00321 0.0150 0.14161
2. (1000 kWh block option):
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Total
Summer Period $0.08219 $0.05505 $0.00321 $0.14045
Winter Period 0.07406 0.04934 0.00321 0.12661
Palo Alto Green Charge (per 1000 kWh block) 215.00
SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-2-G-2 dated 117-1-20089 Sheet No E-2-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 in both the Summer and
Winter Periods, usage will be prorated based upon the number of days in each seasonal
period, and the charges based on the applicable rates therein. For further discussion of bill
calculation and proration, refer to Rule and Regulation 11.
3. Palo Alto Green Participation
Customers choosing to participate shall fill out a Palo Alto Green Power Program application
provided by the Customer Service Center.
4. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months,
a maximum demand meter will be installed as promptly as is practicable and thereafter
continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve
consecutive months, whereupon, at the option of the City, it may be removed.
The maximum demand in any month will be the maximum average power in kilowatts taken
during any 15-minute interval in the month provided that in case the load is intermittent or
subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand
meter which does not reset after a definite time interval may be used at the City's option.
The billing demand to be used in computing charges under this schedule will be the actual
maximum demand in kilowatts for the current month. An exception is that the billing
demand for customers with Thermal Energy Storage (TES) will be based upon the actual
maximum demand of such customers between the hours of noon and 6 pm on weekdays.
{End}
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-4-G-1 dated 72-15-200913 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:
1. The 100% Renewable/ Full Green option was Suspended by City Council on 9-16-2013)
2. (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) 215.00
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) 215.00
(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
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-4-G-2 dated 72-15-200913 Sheet No E-4-G-2
Demand Charge (per kW) $4.80 $9.04 $13.84
Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.0150 0.08818
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 29-516-2013
Supersedes Sheet No E-4-G-3 dated 72-15-200913 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
Adjustment”, if applicable. The adjustment will be applied to a Customer’s bill prior to the
computation of any primary voltage discount. The Power Factor 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
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-4-G-4 dated 72-15-200913 Sheet No E-4-G-4
and sustainable market that encourages new development of wind and solar.
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.
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-4-G-5 dated 72-15-200913 Sheet No E-4-G-5
(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}
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-7-G-1 dated 72-15-200913 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:
1. The 100% Renewable/ Full Green option was Suspended by City Council on 9-16-2013)
2. (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) 215.00
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) 215.00
(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
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-7-G-2 dated 72-15-200913 Sheet No E-7-G-2
Demand Charge (per kW) $5.50 $6.04 $11.54
Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.0150 0.08709
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective from
November 1 to April 30. When the billing period includes use both in the Summer and the
Winter Periods, the usage will be prorated based on the number of days in each seasonal
period, and the charges based on the applicable rates therein. For further discussion of bill
calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Maximum Demand meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has dropped
below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the
City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts taken
during any 15-minute interval in the month provided that in case the load is intermittent or
subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand
meter which does not reset after a definite time interval may be used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts for the current month. An exception is that the Billing
Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual
Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays.
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-7-G-3 dated 72-15-200913 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
Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to the
computation of any primary voltage discount. The Power Factor 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 29-516-2013
Supersedes Sheet No E-7-G-4 dated 72-15-200913 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 29-516-2013
Supersedes Sheet No E-7-G-5 dated 72-15-200913 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}
MUNICIPAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-18-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-18-G-1 dated 117-1-20089 Sheet No E-18-G-1
A. APPLICABILITY:
This schedule applies to service for buildings and facilities owned and/or operated by the City of
Palo Alto receiving power under the Palo Alto Green plan.
B. TERRITORY:
This rate schedule applies anywhere the City of Palo Alto provides electric service.
C. UNBUNDLED RATES:
1. (The 100% Rrenewable/ Full gGreen option was Suspended by City Council on 9-16-2013):
Per kilowatt-hour
(kWh) Commodity Distribution
Public
Benefits
Palo
Alto
Green Total
Summer Period $0.06686 $0.04472 $0.00321 $0.0150 $0.12979
Winter Period 0.05369 0.03559 0.00321 0.0150 0.10749
2. (1000 kWh block option):
Per kilowatt-hour
(kWh) Commodity Distribution
Public
Benefits Total
Summer Period $0.06686 $0.04472 $0.00321 $0.11479
Winter Period 0.05369 0.03559 0.00321 0.09249
Palo Alto Green Charge (per 1000 kWh block 215.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill
statement, the bill amount may be broken down into appropriate cost components as
calculated under Section C.
MUNICIPAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-18-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-18-G-2 dated 117-1-20089 Sheet No E-18-G-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. Power Factor
For new or existing customers whose demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option to install applicable metering
to calculate a power factor. The City may remove such metering from the service of a
customer whose demand has been below 200 kilowatts for four consecutive months.
When such metering is installed, the monthly electric bill shall include a “power factor
penalty”, if applicable. The penalty adjustment shall be applied to a customer’s bill prior to
the computation of any primary voltage discount. The power factor penalty is applied by
increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for
each one percent (1%) that the monthly power factor of the customer’s load was less than
95%.
The monthly power factor is the average power factor based on the ratio of kilowatt hours to
kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed,
the monthly power factor shall be the power factor coincident with the customer's maximum
demand.
4. Palo Alto Green Participation
Customers choosing to participate shall fill out a Palo Alto Green Power Program application
provided by the Customer Service Center. Customers may request at any time, in writing, a
change to the number of blocks they wish to purchase under the Palo Alto Green plan.
Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs)
to match 100% of the energy usage at the facility every month, or for the purchase of 1000
kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable
energy, increase the financial value of power from renewal sources, and create a transparent
MUNICIPAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-18-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-18-G-3 dated 117-1-20089 Sheet No E-18-G-3
and sustainable market that encourages new development of wind and solar power.
5. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
allowed provided the City is not required to supply service at a particular line voltage where
it has, or will install, ample facilities for supplying at another voltage equally or better suited
to the customer's electrical requirements. The City retains the right to change its line voltage
at any time after providing reasonable advance notice to any customer receiving a discount
hereunder and affected by such change. The customer then has the option to change his
system so as to receive service at the new line voltage or to accept service (without voltage
discount) through transformers to be supplied by the City subject to a maximum kilovolt-
ampere (kVA) size limitation.
{End}
ATTACHMENT D
* NOT YET APPROVED *
130813 dm 6051931
Resolution No. _________
Resolution of the Council of the City of Palo Alto Decreasing the
PaloAltoGreen Program’s Rates for Residential and Commercial
Electric Customers Effective _____ by Amending Rate Schedules E-1-
G, E-2-G, E-4-G, E-7-G and E-18-G
A. In an effort to provide City of Palo Alto Utilities (“City”) electric customers the
option to voluntarily reduce greenhouse gas emissions associated with their electricity use, in
2003 the City launched the PaloAltoGreen Program.
B. City electric customers can opt in to the PaloAltoGreen Program in two ways.
The “Full Needs” option allows all customers to receive renewable energy equivalent to 100
percent of their needs in exchange for paying an additional 1.5 cents per kilowatt hour (“kWh”)
assessed on their full load. The “Commercial Customer Block” rate gives commercial customers
the option to receive renewable energy in blocks of 1,000kWh in exchange for paying an
additional 1.5 cents per 1,000 kWh.
C. Approximately 20 percent of the City’s electric utilities customers participate in
PaloAltoGreen, representing approximately 8 percent of the City’s electric load and making the
PaloAltoGreen Program one of the most successful green energy programs in the United States.
D. In March 2011, the Council unanimously approved the Long-term Electric
Acquisition Plan (LEAP), a strategic planning document focused on how the City’s Utilities
Department (CPAU) can successfully balance environmental and economic sustainability as it
provides electric service to CPAU customers. Council approved an update to the LEAP in April
2012 (Resolution 9241). As part of LEAP Climate Protection Strategy #5, Council directed staff
to evaluate PaloAltoGreen program design and recommend modifications, as appropriate,
including constructing PaloAltoGreen to assist in meeting Renewable Portfolio Standard (“RPS”)
goals.
E. In March 2013, the Council unanimously approved the Carbon Neutral Plan
(Resolution 9322) directing staff to achieve carbon neutrality for the electric portfolio by 2013
through a combination of hydroelectric resources, long-term renewable resources and short-
term renewable energy resources and/or renewable energy certificates (“RECs”). The Carbon
Neutral Plan also included direction to redesign PaloAltoGreen in the context of achieving
carbon neutrality for the electric supply portfolio.
F. The City’s increasing RPS and the adoption of the Carbon Neutral Plan require an
evaluation of the continued effectiveness of PaloAltoGreen as currently implemented.
PaloAltoGreen participants no longer need to participate in the program to eliminate the
greenhouse gas emissions associated with their electric usage, as much of the City’s electric
portfolio is now renewable.
ATTACHMENT D
* NOT YET APPROVED *
130813 dm 6051931
G. At the July 31, 2013 Utilities Advisory Commission (UAC) meeting, staff
presented alternatives to redesign PaloAltoGreen, and the UAC voted unanimously (six in favor
and one absent) to recommend that the Council suspend the PaloAltoGreen Full Needs
program and reduce the Commercial Customer Block rate from 1.5 cents per 1,000 kWh to 0.2
cents per 1,000 kWh.
H. On August 20, 2013, the Finance Committee voted ________________________
to _______________ effective ______________.
I. On September 16, 2013, this Council did, on the motion of Council Member
____, seconded by Council Member ____, by a vote of ____, decrease PaloAltoGreen’s rates for
both residential and commercial customers.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-1-G (Residential Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-1-G, as amended, shall become effective
September 16, 2013.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-2-G (Small Commercial Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-2-G, as amended, shall become effective
September 16, 2013.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-4-G (Medium Commercial Green Power Electric Service) is hereby amended to read
as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become effective
September 16, 2013.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-7-G (Large Commercial Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become effective
September 16, 2013.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-18-G (Municipal Green Power Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-18-G, as amended, shall become effective
September 16, 2013.
//
//
ATTACHMENT D
* NOT YET APPROVED *
130813 dm 6051931
SECTION 6. The Council finds that the adoption of this resolution decreasing
PaloAltoGreen’s electric rates are not subject to the California Environmental Quality Act
(CEQA), pursuant to California Public Resources Code Sec. 21065 because such action does not
meet the definition of a “project” pursuant to California Public Resources Code Sec.
21065(b)(8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-1-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-016-200913
Supersedes Sheet No E-1-G-1 dated 117-1-20089 Sheet No E-1-G-1
A. APPLICABILITY:
This schedule applies to separately metered single-family residential dwellings receiving
retail energy services from the City of Palo Alto Utilities under the Palo Alto Green plan.
Palo Alto Green provides for the purchase of enough renewable energy credits (RECs) to
match 100% of the energy usage at the premises every month. These REC purchases support
the production of renewable energy, increase the financial value of power from renewal
sources, and create a transparent and sustainable market that encourages new development of
wind and solar power.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides electric service.
C. UNBUNDLED RATES:
Per kilowatt-hour
(kWh)
Commodity
Distribution
Public
Benefits
Palo Alto
Green
Total
Tier 1 usage $0.05448 $0.03755 $0.00321 $0.002150 $0.11024
Tier 2 usage
100%-200% of Tier 1 0.07654 0.05045 0.00321 0.002150 0.14520
Tier 3 usage
Over 200% of Tier 1 0.10349 0.06729 0.00321 0.002150 0.18899
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.
RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-1-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-016-200913
Supersedes Sheet No E-1-G-2 dated 117-1-20089 Sheet No E-1-G-2
2. Calculation of Usage Tiers
Tier 1 electricity usage shall be calculated and billed based upon a level of 10 kWh per day,
prorated by meter reading days of service. As an example, for a 30-day bill, the Tier 1 level
would be 300 kWh. For further discussion of bill calculation and proration, refer to Rule and
Regulation 11.
3. Palo Alto Green Participation
Customers choosing to participate shall fill out a Palo Alto Green Power Program application
provided by the Customer Service Center.
{End}
SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-2-G-1 dated 117-1-20089 Sheet No E-2-G-1
A. APPLICABILITY:
This schedule applies to non-demand metered electric service for small commercial
customers and master-metered multi-family facilities receiving retail energy services from
the City of Palo Alto Utilities under the Palo Alto Green plan. Palo Alto Green provides for
either the purchase of enough renewable energy credits (RECs) to match 100% of the energy
usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks.
These REC purchases support the production of renewable energy, increase the financial
value of power from renewal sources, and create a transparent and sustainable market that
encourages new development of wind and solar power.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides electric service.
C. UNBUNDLED RATES:
1. 100% Renewable/Full Green option:
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Palo Alto
Green Total
Summer Period $0.08219 $0.05505 $0.00321 $0.002150 $0.15545
Winter Period 0.07406 0.04934 0.00321 0.002150 0.14161
2. (1000 kWh block option):
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Total
Summer Period $0.08219 $0.05505 $0.00321 $0.14045
Winter Period 0.07406 0.04934 0.00321 0.12661
Palo Alto Green Charge (per 1000 kWh block) 215.00
SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-2-G-2 dated 117-1-20089 Sheet No E-2-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 in both the Summer and
Winter Periods, usage will be prorated based upon the number of days in each seasonal
period, and the charges based on the applicable rates therein. For further discussion of bill
calculation and proration, refer to Rule and Regulation 11.
3. Palo Alto Green Participation
Customers choosing to participate shall fill out a Palo Alto Green Power Program application
provided by the Customer Service Center.
4. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months,
a maximum demand meter will be installed as promptly as is practicable and thereafter
continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve
consecutive months, whereupon, at the option of the City, it may be removed.
The maximum demand in any month will be the maximum average power in kilowatts taken
during any 15-minute interval in the month provided that in case the load is intermittent or
subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand
meter which does not reset after a definite time interval may be used at the City's option.
The billing demand to be used in computing charges under this schedule will be the actual
maximum demand in kilowatts for the current month. An exception is that the billing
demand for customers with Thermal Energy Storage (TES) will be based upon the actual
maximum demand of such customers between the hours of noon and 6 pm on weekdays.
{End}
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-4-G-1 dated 72-15-200913 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:
1. (100% Renewable/ Full 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
0.00215
0 0.09671
Winter Period
Demand Charge (per kW) $4.80 $9.04 $13.84
Energy Charge (per kWh) 0.05281 0.01716 0.00321
0.00215
0 0.08818
2. (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) 215.00
Winter Period
Demand Charge (per kW) $4.80 $9.04 $13.84
Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.07318
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-4-G-2 dated 72-15-200913 Sheet No E-4-G-2
Palo Alto Green Charge (per 1000 kWh block) 215.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges, and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate 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 29-516-2013
Supersedes Sheet No E-4-G-3 dated 72-15-200913 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
Adjustment”, if applicable. The adjustment will be applied to a Customer’s bill prior to the
computation of any primary voltage discount. The Power Factor 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 29-516-2013
Supersedes Sheet No E-4-G-4 dated 72-15-200913 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
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-4-G-5 dated 72-15-200913 Sheet No E-4-G-5
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 GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-7-G-1 dated 72-15-200913 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:
1.( 100% Rrenewable/Full Ggreen 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 0.002150 0.09308
Winter Period
Demand Charge (per kW) $5.50 $6.04 $11.54
Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.002150 0.08709
2. (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) 215.00
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) 215.00
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 29-516-2013
Supersedes Sheet No E-7-G-2 dated 72-15-200913 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 29-516-2013
Supersedes Sheet No E-7-G-3 dated 72-15-200913 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
Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to the
computation of any primary voltage discount. The Power Factor 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 29-516-2013
Supersedes Sheet No E-7-G-4 dated 72-15-200913 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 29-516-2013
Supersedes Sheet No E-7-G-5 dated 72-15-200913 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}
MUNICIPAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-18-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-18-G-1 dated 117-1-20089 Sheet No E-18-G-1
A. APPLICABILITY:
This schedule applies to service for buildings and facilities owned and/or operated by the City of
Palo Alto receiving power under the Palo Alto Green plan.
B. TERRITORY:
This rate schedule applies anywhere the City of Palo Alto provides electric service.
C. UNBUNDLED RATES:
1.( 100% Rrenewable/ Full Ggreen option):
Per kilowatt-hour
(kWh) Commodity Distribution
Public
Benefits
Palo
Alto
Green Total
Summer Period $0.06686 $0.04472 $0.00321
$0.0021
50 $0.12979
Winter Period 0.05369 0.03559 0.00321
0.00215
0 0.10749
2. (1000 kWh block option):
Per kilowatt-hour
(kWh) Commodity Distribution
Public
Benefits Total
Summer Period $0.06686 $0.04472 $0.00321 $0.11479
Winter Period 0.05369 0.03559 0.00321 0.09249
Palo Alto Green Charge (per 1000 kWh block 215.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill
statement, the bill amount may be broken down into appropriate cost components as
calculated under Section C.
MUNICIPAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-18-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-18-G-2 dated 117-1-20089 Sheet No E-18-G-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. Power Factor
For new or existing customers whose demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option to install applicable metering
to calculate a power factor. The City may remove such metering from the service of a
customer whose demand has been below 200 kilowatts for four consecutive months.
When such metering is installed, the monthly electric bill shall include a “power factor
penalty”, if applicable. The penalty adjustment shall be applied to a customer’s bill prior to
the computation of any primary voltage discount. The power factor penalty is applied by
increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for
each one percent (1%) that the monthly power factor of the customer’s load was less than
95%.
The monthly power factor is the average power factor based on the ratio of kilowatt hours to
kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed,
the monthly power factor shall be the power factor coincident with the customer's maximum
demand.
4. Palo Alto Green Participation
Customers choosing to participate shall fill out a Palo Alto Green Power Program application
provided by the Customer Service Center. Customers may request at any time, in writing, a
change to the number of blocks they wish to purchase under the Palo Alto Green plan.
Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs)
to match 100% of the energy usage at the facility every month, or for the purchase of 1000
kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable
energy, increase the financial value of power from renewal sources, and create a transparent
and sustainable market that encourages new development of wind and solar power.
MUNICIPAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-18-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 79-16-200913
Supersedes Sheet No E-18-G-3 dated 117-1-20089 Sheet No E-18-G-3
5. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
allowed provided the City is not required to supply service at a particular line voltage where
it has, or will install, ample facilities for supplying at another voltage equally or better suited
to the customer's electrical requirements. The City retains the right to change its line voltage
at any time after providing reasonable advance notice to any customer receiving a discount
hereunder and affected by such change. The customer then has the option to change his
system so as to receive service at the new line voltage or to accept service (without voltage
discount) through transformers to be supplied by the City subject to a maximum kilovolt-
ampere (kVA) size limitation.
{End}
Attachment F
1
PaloAltoGreen Redesign Options
Objectives of the Program:
1. Participants get value from participating
2. Environmental benefit (GHG emission reduction, goes “above and beyond”)
3. Implementable (costs can be covered, doable, implementable with current resources,
costs not subsidized by non-participants)
4. Marketable (can be offered at a reasonable cost, simple and easy to explain, transparent
to participants)
5. Community benefit
6. Available to all customers
7. Cost-effective to society
8. Ability to implement by January 2014
Program Ideas:
Community Solar PV Donation Program
For this program, participants contribute funds toward building PV systems on community
buildings such as schools or other community and/or nonprofit facilities. The projects will be
funded through the donations from participants through monthly contributions of $5 to $10
per month through the utility bill. In addition, members of the community or businesses could
donate additional funds on a one-time basis for the installation of the systems. When sufficient
funds are collected, the City will contract with a developer to build the PV systems. Participants
will vote to select sites from a set of locations identified as good candidates. The PV systems,
once installed, will be net metered. For example, if the PV installation is on a school, that
school will have reduced electric bills in direct relationship to the output of the system. The
facility chosen will not receive a rebate for the PV system, as it will be installed at no cost to the
customer.
Community Solar Hot Water Heater Donation Program
This would be similar to, or an offshoot of, the program described above, with the change that
the systems installed would be solar hot water heating systems. As in the program above, the
beneficiary would be the school or community facility on whose site the system was installed.
The primary difference is that the program would save natural gas, instead of electricity,
therefore reducing the community’s GHG emissions.
Community Solar Share Program
In this program, participants pay for a share of the cost of a larger system that would be
installed on a local building. This would be valuable for customers who may not be g ood
candidates for solar PV on their own homes or businesses (due to shading , or other roof or
access issues) and could be cheaper per KW installed due to economies of scale. For example,
100 participants could each pay 1% of the cost of a system and virt ually receive 1% of the
energy output from the PV system. The City’s Utility billing system may require modifications
to implement virtual net-metering to make the participant’s experience similar to customers
Attachment F
2
with PV on their own roof. The RECs for the renewable energy would be provided to the
participants.
Community Solar Investment Program
In this program, participants pay for a share of the cost of a PV system that would be installed
on a local building. For example, 100 participants could each pay 1% of the cost of a system
and receive income derived from the sale of the energy produced from the system. CPAU
would buy the energy via the Palo Alto CLEAN (feed-in tariff) program and use the renewable
energy in its electric supply portfolio.
Fuel Switching Program
Participants would pay an amount on their bill (either per kWh, or a fixed dollar amount per
month) and the money collected would fund rebates to encourage customers to replace gas-
using appliances with electric-using appliances.
Alternative Transportation Incentive Program
Since GHG emissions from mobile transportation constitute the largest category of GHG
emissions for the community, this is an obvious target for programs to reduce GHG emissions. A
program could be developed whereby participants would pay an amount on their bill (either
per kWh, or a fixed dollar amount per month) and the money collected would be used to
promote alternative transportation options such as providing rebates for electric vehicle s,
funding for community-based EV chargers, enhancing public transit options, or enhancing
bicycle paths around town.
PaloAltoGreen BioGas Program
Biogas could be procured from landfills or farming operations. Given a price for biogas of about
$1.00 per therm, the cost for a median customer would be about $10 per month if the biogas
purchases covered about half of their natural gas usage. There are many logistical details that
make implementing this program problematic, not the least of which is the ability to actu ally
procure biogas for $1.00 per therm that could be delivered into California’s natural gas
transportation network.
PaloAltoGreen Gas Offset Program
A PaloAltoGreen Gas program backed by purchasing environmental offsets is less expensive
than purchasing biogas and could be implemented in a relatively short amount of time. Offsets
would be certified by reputable groups such as the California Air Resources Board (CARB).
Participants would pay a small amount (10-15 cents/therm) to offset 100% of the GHG
emissions neutralized from their natural gas usage. Thus, the program would be very similar to
the current PaloAltoGreen Electric program.
Attachment F
3
Program What does the
participant
receive?
What is the
environmental
benefit?
What are the implementation
issues?
What are the
marketability issues?
Are there other
community
benefits?
Current
Program
Participants receive
RECs equal to their
electric usage (or,
for non-residential
customers, equal to
a portion of their
usage purchased in
blocks).
Even with a
carbon neutral
electric supply,
REC purchases
continue to
support
renewable
energy.
N/A Program has been extremely
successful with large take-
up rate. However, program
needs redesign due to high
RPS and carbon neutrality
Before carbon
neutral supply,
community
emissions were
reduced by the
amount of RECs
purchased.
Modified
Program
Participants receive
RECs equal to the
hydroelectric
portion of the
electric supply
portfolio. Block
purchasers continue
as with current
program.
Even with a
carbon neutral
electric supply,
REC purchases
continue to
support
renewable
energy.
No billing system changes would be
required.
Implementable immediately upon
program approval
Program will likely be
successful and, with a lower
price, may attract new
users. On the other hand,
many may decide to leave
the program due to the
carbon neutral supply
portfolio.
Similar to the
current program.
Community
Solar PV
Donation
Participants do not
receive renewable
energy or RECs.
Goodwill and
support of
community
organizations and
local schools.
Reduced energy
losses from long
distance
transmission.
No significant billing system
changes would be required. The
rate could either be based on kWh
used or be a flat monthly charge
(e.g. $5-10/month). However,
there is significant work to finalize
program design, including deciding
what role the City will play and how
much risk it is willing to take on.
New contracts with project
developers will need to be
developed. Staff or third-party
contractors will be needed to
identify project sites and secure all
necessary arrangements. Not able
to implement by January 2014
Since participants don’t
have direct benefits, this
may not appeal to all.
However, there is broad
community support for
schools and community
buildings, the program
beneficiaries.
Increased local solar
energy production.
And, the
beneficiaries would
have reduced
electric bills and
more money for
other community
benefits.
Attachment F
4
Program What does the
participant
receive?
What is the
environmental
benefit?
What are the implementation
issues?
What are the
marketability issues?
Are there other
community
benefits?
Community
Solar Hot
Water Heater
Donation
Same as above. Reduced GHG
emissions from
reduced natural
gas use for
heating.
Same as above. Same as above. Same as above.
Community
Solar Share
Participants would
receive energy and
RECs via virtual net
metering.
Reduced energy
losses from long
distance
transmission.
A change to the billing system
would be required, but program
could be done by a third party.
Other implementation issues exist
similar to those required for the
Community Solar PV Donation
Program.
Doesn’t fit the PAG model of
participants being able to
enter and exit the program
at any time.
Increased local solar
energy production.
Community
Solar
Investment
Participants receive
income from the
sale of the energy in
return for their
investment.
Reduced energy
losses from long
distance
transmission.
Same as above. Doesn’t fit the PAG model of
participants being able to
enter and exit the program
at any time.
Increased local solar
energy production.
Fuel Switching Participants don’t
necessarily receive
any direct benefit.
Reduced GHG
emissions from
reduced natural
gas use for
heating.
Changes to billing system depend
on program design – no changes
required if rate based on kWh used
or a flat monthly charge (e.g. $5-
10/month). However,
implementing such a program
would require policy choices of
how to direct the funds collected.
Not implementable by Jan. 2014.
Beneficiaries would be
customers who accessed the
fuel switching rebates,
which may not seem like a
worthy “cause” for
participants. Or, the
beneficiaries could be non-
profits or schools.
Attachment F
5
Program What does the
participant
receive?
What is the
environmental
benefit?
What are the implementation
issues?
What are the
marketability issues?
Are there other
community
benefits?
Alternative
Transportation
Incentives
Participants don’t
necessarily receive
any direct benefit.
Reduced GHG
emissions from
mobile
transportation.
Changes to billing system depend
on program design – no changes
required if rate based on kWh used
or a flat monthly charge (e.g. $5-
10/month).
Difficult to market as the
beneficiaries would be
existing and new EV owners,
bike riders, or transit takers
and not necessarily the
program participants. Also,
the nexus between
participant’s electric use and
alternative transportation is
difficult to make.
Community GHG
emissions reduced if
program resulted in
traditional vehicles
being replaced by
EVs or more car
trips replaced by
transit or bicycles.
PaloAltoGreen
BioGas
Participants receive
renewable gas
instead of fossil-fuel
based natural gas
for half of their
natural gas usage.
Reduced GHG
emissions for
portion of gas
usage.
Simple to implement as it’s almost
identical to current successful
program, except for entire gas
usage would not be covered.
However, supply of biogas is
difficult to find in the state and, if
found outside the state, expensive
to transport to California. Some
modifications to the billing system
required that would require time to
complete and test.
Easy to market and very
similar to current successful
program.
Community GHG
emissions reduced
by the amount of
biogas purchased.
PaloAltoGreen
Gas Offset
Participants receive
the offset to cover
the GHG emissions
of their natural gas
usage.
Reduced GHG
emissions equal
to all of gas
usage.
Simple to implement as it’s
identical to current successful
electric program. Policy issue to
finalize relate to what types of
offsets to use for the program.
Some modifications to the billing
system required that would require
time to complete and test.
Easy to market and almost
identical to current
successful program.
Community GHG
emissions reduced
by the amount of
offsets purchased.
What Is
Green
Power?
EPA’s
Green Power
Partnership
Addressing climate risk is increasingly recognized as an impor-
tant strategic issue for businesses and other organizations.
Green power use can reduce your organization’s climate risk and
identify your organization as an environmental leader
to important stakeholder groups, such as customers, Wall Street
analysts, shareholders, investors, government officials, and
employees. The U.S. Environmental Protection Agency’s (EPA’s)
Green Power Partnership is ready to assist you in determining
if switching to green power is right for your organization.
Join Now and Position Your
Organization for the Future
Clean Renewable
Energy
Green power is electricity
generated from environ-
mentally preferable renew-
able resources,
such as solar, wind,
geothermal, low-impact
biomass, and low-impact
hydro resources.
An Environmental
Choice
Conventional electricity
use can be one of
the most significant
environmental impacts
associated with your
organization’s operations.
Switching to green power
is one of the easiest
ways for an organization
to reduce its carbon
footprint.
Supporting
Domestic Energy
Supply
Using green power
helps to accelerate
the development of new,
domestic renewable
energy sources, while
playing an important role
in the security of America’s
energy supply.
An Environmental Choice for Your Organization
EPA’s Green Power Partnership is a voluntary program helping to increase the use
of green power among leading U.S. organizations. Organizations are encouraged to
purchase green power as a way to reduce the environmental impacts associated
with conventional electricity use.
The Green Power Partnership works with more than a thousand leading organizations,
including Fortune 500® companies, local, state, and federal government agencies,
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and universities. Partners are purchasing billions of kilowatt-hours (KWh) of green
power annually, which has the equivalent impact of removing the emissions
of hundreds of thousands of passenger cars from the road each year.
Your organization can benefit from partnering with EPA’s Green Power Partnership
by taking advantage of the credibility, expert advice, recognition, and up-to-date market
information that EPA provides.
Reducing the Risk of Climate Change
Differentiation and Competitiveness
Whole Foods Market, a leading grocery store chain, strives to “satisfy and delight”
its customers through inviting store environments, wise environmental practices, and
retail innovation. In part, Whole Foods is accomplishing this by implementing a store-
level green power purchasing strategy that allows store managers to respond to
local customer needs, stay competitive, and differentiate their retail environment from
competitors.
Climate Change Commitment and Energy
Price Stability
As part of its broader initiatives to demonstrate environmental leadership, Microsoft
instituted a company-wide commitment to achieve carbon neutrality beginning in fiscal
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carbon neutrality goal, as well as a sound business decision. Recognizing that climate
change presents significant risks to society, the environment, and its business, Microsoft
is investing in green power to reduce its carbon emissions.
A Cost-Effective Energy Strategy
The U.S. Air Force’s green power use of more than 280 million kWh annually is playing
an important part in controlling its long-term energy costs. The Air Force’s primary strat-
egy is to purchase renewable power from third-party financed projects developed on its
bases. For example, in 2013 the Air Force will purchase power from a 14.5 MW solar
photovoltaic array located on Davis Monthan Air Force Base in Arizona at an annual
cost savings of half a million dollars. The Air Force will use 173 acres of underutilized
property through a 25-year lease for this project.
Local Impact and Community Leadership
The University of Pennsylvania understands the important role it plays within the
local community and sees green power as an opportunity to demonstrate its environ-
mental leadership. By purchasing green power, the University of Pennsylvania is able
to effectively engage local stakeholders, protect the environment, and take a leadership
position in supporting a sustainable future. In the same way, other organizations
are also recognizing that green power purchasing is one of the easiest and most cost-
effective options to make a measurable impact within their local communities.
The above organizations have earned EPA recognition for their green power leadership.
For a full list of Green Power Leadership Award winners, please visit
www.epa.gov/greenpower/awards.
Why Are Organizations
Buying Green Power?
Benefits for Green
Power Partners
Expert Advice
EPA’s Green Power Partnership will
assist you in identifying the green
power products that best meet your
organization’s goals. EPA is committed
to making your green power purchase
as easy as possible by:
• Saving you time, effort, and cost by
identifying green power products
that meet your organization’s goals
• Providing relevant and timely
answers to your questions
Publicity and
Recognition
The Green Power Partnership actively
promotes and recognizes Green Power
Partners as environmental leaders.
Your organization can benefit from EPA’s
recognition and publicity efforts by:
• Identifying your organization as
an environmental leader
• Capturing positive attention in com-
munities where you operate
• Differentiating your organization
and its brand from the competition
• Increasing your organization’s com-
petitiveness through sustainable
management practices
Tools and Resources
EPA offers organizations a variety of
tools and information located on the
Partnership website (www.epa.gov/
greenpower). EPA’s tools and resourc-
es can be invaluable by:
• Explaining and taking the guesswork
out of your green power purchase
• Assisting you in promoting the con-
cept of green power internally and
externally
• Providing you with a means to
estimate the environmental benefits
of switching to green power
Credibility
Participation in the Green Power
Partnership signifies that your organiza-
tion’s green power use meets nationally
accepted standards in terms of size,
content, and resource base. Partnering
with EPA’s Green Power Partnership
can provide great value to your organi-
zation by:
• Allowing you to compare your
green power commitment to others
• Increasing stakeholders’ confidence
in your green power use
• Using green power is
an easy and effective
way for your organi-
zation to reduce the
environmental impact
of its operations.
• Long-term green
power contracts
can provide a hedge
against electricity
price volatility and
help ensure energy
price stability.
• Green power is an
effective way to dif-
ferentiate your orga-
nization and
its brand from com-
petitors.
• Green power use can
generate goodwill,
pride, and loyalty
among employees,
customers, and com-
munities.
• Green power use can
earn your organiza-
tion significant public
relations benefits,
including favorable
coverage in local
and national media.
Why Use
Green
Power?
EPA’s Green Power Partnership is ready to assist you in achieving your envi-
ronmental goals through the use of green power. The Green Power Partnership
offers the following assistance to organizations that join the Partnership.
Your Organization’s
Baseload
If your annual electricity use
in kilowatt-hours is...
Green Power Partner
Requirements
You must, at a minimum, use
this much green power
Green Power
Leadership Club
Requirements
You must, at a minimum,
use this much green power
> _100,000,001 kWh 3% of your use 30% of your use
10,000,001–100,000,000 kWh 5% of your use 50% of your use
1,000,001–10,000,000 kWh 10% of your use 100% of your use
< _1,000,000 kWh 20% of your use Not Applicable
Green Power Purchase Requirements
Office of Air and
Radiation (6202J)
In addition, the minimum Partner and Leadership Club purchase requirements must be
entirely met with power from “new” renewable facilities ((i.e., installed within the last 15 years).
EPA invites your organization to join the hundreds of other U.S.
organizations that are improving their environmental performance
and reducing the risks associated with climate change by switching
to green power.
It is easy for organizations to join EPA’s Green Power Partnership:
• A green power purchase involves little to no complicated logistics
• Minimal staff time is required to initiate or maintain a green power
purchase
• Joining the Partnership entails completing a simple voluntary
Partnership agreement—no contract
Join other leading U.S. organizations and partner with EPA today!
To join, organizations procure green power at a level that meets
or exceeds Partnership requirements (see below), sign a simple
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power use annually. More details: www.epa.gov/greenpower/join.
Join the Green Power Partnership
EPA-430-F-06-015
January 2013
www.epa.gov/greenpower
Earned
Recognition
The Green Power Partnership pro-
motes the actions of its Partners
through a variety of earned recogni-
tion opportunities.
• The Top 50 Partner List recog-
nizes those Partners using the most
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tion, the list provides Partners with
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the leadership of Partners within vari-
ous sectors. An organization holding
a position on a Top Sector List dem-
onstrates to stakeholders— employ-
ees, customers, and investors —that
their organization is an environmental
leader.
• The Green Power Leadership Awards
are competitive awards that recog-
nize outstanding commitments and
achievements in the green power
marketplace. EPA sponsors these
awards annually and recognizes mar-
ket participants in the following cate-
gories: EPA Green Power Purchasing,
Green Power Partner of the Year,
Green Power Community of the
Year, On-site Generation, Sustained
Excellence in Green Power, Green
Power Supplier of the Year, and
Innovative Green Power Program of
the Year.
For more information, contact
Blaine Collison at (202) 343-9139
or collison.blaine@epa.gov,
or visit our website at
www.epa.gov/greenpower
ATTACHMENT H
EXCERPTED FINAL MINUTES OF THE APRIL 3, 2013
UTILITIES ADVISORY COMMISSION MEETING
ITEM 2: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend
that City Council Approve a Redesign of the PaloAltoGreen Program
Assistant Director Jane Ratchye provided an overview of the written report. Overall the
recommendation is to end the current PaloAltoGreen program at the end of 2013. Starting in
January 2014, staff’s proposal is that the program would transitio n to a local solar donation
program and starting in January 2015, a new program would be rolled out targeting reducing
greenhouse gas emissions from natural gas usage. Ratchye noted that the written report
contained a typo in the second part of the recomm endation for the PaloAltoGreen Gas
program. The report stated that the program would be implemented in January 2014, but the
correct date is January 2015. This PaloAltoGreen Gas program would be developed during 2014.
Ratchye stated that the local solar program would use contributions from participants to install
solar systems on community buildings. The contributions would be fixed amounts such as $5 or
$10 per month. The City would identify potential locations (e.g. schools, non-profits, churches,
even City facilities) and participants would select, or vote, on which sites to fund. The collected
funds would be used to hire a developer to install the solar system on the facility. The systems
would be net metered and will be provided at no cost to the facility owner. The proposed
program is fundamentally a donation program with the primary beneficiary being the facility
that gets the free solar system.
Ratchye stated that the PaloAltoGreen Gas program could reduce, or eliminate, GHG emissions
from natural gas use of participants. There is not enough information yet to move forward, but
conceptually this program would be constructed similarly to the current PaloAltoGreen
program in that the cost would be based on the participant's natural gas usage wi th the cost on
a cents per them basis. The program could use physical biogas from dairies or landfills, but this
is challenging and quite expensive so that participants would only be able to cover 20 -25% of
their natural gas use at a reasonable cost. Alt ernately, the program could use environmental
offsets. At today's prices for offsets, a customer’s entire natural gas usage could be covered
under this type of program for a reasonable cost.
Ratchye explained that public feedback was sought in several ways, including from the UAC and
Council at study sessions. In addition, staff met with Bruce Hodge and Walt Hays, who
indicated that the program should target GHG emission reductions. A survey was sent to
current PaloAltoGreen participants, who supported both the local solar and the green gas
programs and were willing to pay about the same as they currently pay in the program.
Ratchye also indicated that some customers may drop out of the program, and depending on
the program, others may opt in.
Public Comment:
Bruce Hodge, Carbon Free Palo Alto, stated that the program proposed is not a true community
solar program but that a community solar program would be a good approach and a good
addition to the portfolio of programs offered by the City. In addition, over the next 20 years,
natural gas usage should be phased out and replaced with electricity usage, which can be
carbon free. He stated that there are synergies between PaloAltoGreen and a community solar
approach. He indicated that he was not excited about a program designed to use donations,
but preferred an all-inclusive community crowd sourced program. He stated that it was a top
priority to have a gas offset program this year. He encouraged the Commission to review the
paper he emailed the link for by someone who advocates discontinuing natural gas use in the
future.
Commissioner Melton asked why the community solar program is a net metering model, and
not a feed-in tariff program. He commented that since the building owner is the beneficiary,
the only facilities that make sense for the program are charitable organizations. Ratchye
agreed that the community would be more likely to support such organizations and expected
that many people would provide financial support to install solar systems o n schools since the
schools would benefit by having lower electric bills. Commissioner Melton added that other
facility owners can always participate in local solar installations through the CLEAN feed -in tariff
program.
About the green gas program, Commissioner Melton asked if physical biogas is difficult to find
or expensive, are there enough offsets available for such a program. Ratchye stated that the
green gas program is focused on reducing GHG emissions and that any products that reduce
GHG could be considered for the program. She mentioned that there are different types of
environmental offsets, including those that are certified by the California Air Resources Board
or other agencies. In addition, Renewable Energy Certificates (RECs) can be used for GHG
emissions reductions and they are available at a reasonable cost.
Vice Chair Foster stated that a two-track approach is excellent—both continuing with an
electric program, and then adding the gas program. He identified three options: charitable gift
program, “true” community solar, and buying power by paying a little more as in the current
PaloAltoGreen program. Vice Chair Foster indicated that he had been contacted by the Clean
Energy Collective (CEC), which is a true community solar program model. He cited challenges
with a charitable program and recommended looking at the traditional notion of community
solar. He stated that he was originally not supportive of a green gas program, but now would
like to look at it more.
Commissioner Hall stated that community solar on schools would be supported, but that he
was not supportive of solar on commercial buildings funded from donations. He added that
using churches could work, but could be frowned upon by some in the community. He said that
staff may want to look at modifying the program in the future, including using a developer for a
commercial solar. Commissioner Hall said that for green gas program, the City could look at
substituting gas for electricity. For example, air based heat pumps could be beneficial to
replace gas using heating appliances. He indicated that the concept was at least worth a paper
study or pilot program to be expanded later.
Chair Cook congratulated staff and noted that the City has come a long way with this progr am,
and that there is monumental support in the community for the program as the nation’s
leading voluntary green program. Chair Cook stated that the goal is to have GHG emissions
reductions. He supports the idea of contests to choose sites for the local solar program since it
would add to community engagement. However, he indicated that we need to move away
from burning things for our energy use and would like to move up the timing of the green gas
program. He likes local solar programs since the benef its accrue locally and with a green gas
program, benefits may not accrue locally.
Vice Chair Foster indicated that he supported the staff recommendation, but wants to work on
the exact details to be determined over the next several months. In addition, h e recommended
continuing with the 1.5 cent/kWh format and not a new mechanism that didn’t depend on a
participant’s energy use.
Chair Cook asked if current PaloAltoGreen program participants would be automatically
transferred over to the new program, or would they be asked to opt in. Ratchye indicated that
participants would be asked to opt in to the new program and that there would be outreach to
explain the change to existing program participants.
Commissioner Hall recommended that staff think broadly about the plan and stated that staff
should look at options, including a substitution of electricity for gas.
ACTION:
Commissioner Melton recommended separating the two parts of the action by the UAC and
developing separate motions for each part. Chair Cook agreed with this approach.
Vice Chair Foster made a motion to recommend that Council approve a redesign of the
PaloAltoGreen Program to support a community solar program to be implemented beginning
January 2014, after staff returns to the UAC with program design details or options for further
discussion. Commissioner Melton seconded the motion. The motion carried unanimously (4 -0)
with Commissioners Chang, Eglash, and Waldfogel absent.
Vice Chair Foster made a motion to recommend that Council direct staff to develop a
PaloAltoGreen Gas Program to provide an opportunity for participants to reduce or eliminate
greenhouse gas emissions from natural gas usage for Council consideration to be implemented
beginning January 2015 and that staff return to the UAC with program design details and
options for further discussion. Commissioner Hall seconded the motion. The motion carried (3 -
1) with Commissioner Melton opposed and Commissioners Chang, Eglash, and Waldfogel
absent.
EXCERPTED DRAFT MINUTES OF THE JULY 31, 2013
UTILITIES ADVISORY COMMISSION SPECIAL MEETING
ITEM 4: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend
that the City Council Terminate or Approve Changes to the PaloAltoGreen Program
Public Comment:
Bruce Hodge recommended retaining the electric program and transitioning to a green gas
program to get additional GHG emission reductions from the purchase of offsets. Also reducing
gas usage should be a focus. In addition, he supports focusing on new programs such as
community solar programs.
Walt Hays stated that the program should not be terminated since the City has spent so much
getting the brand established. He added that climate change is the threatening issue and a
program should be focused on reducing gas usage. He also supports the introduction of a
community solar program.
Senior Resource Planner Monica Padilla provided a presentation summarizing the written
report on modifications to the PaloAltoGreen (PAG) program.
Commissioner Eglash asked what is meant by having an objective of having the program
available to all customers. He stated that the Utility has used a broader portfolio approach to
provide programs for customers, but does not require any specific program to be relevant to all
customers. Assistant Director Jane Ratchye replied that this only meant that all customers are
provided an opportunity to participate in a voluntary green program.
Commissioner Waldfogel asked about the objective that a participant receive a benefit since he
believes that Renewable Energy Certificates (RECs) don't directly benefit participants, but
benefit the planet. Padilla stated that the idea was that participants who purchase and own the
RECs would get at least a "feel good" benefit knowing that they were part of the solution.
Commissioner Melton stated that he likes the option of terminating the full needs program
since he doesn't like idea of greening up hydropower since it is already a green resource, but he
does see the advantage of the program for commercial customers. He said he would support
environmental offsets for a green gas program if the offsets are high quality. Ratchye replied
that there are various types of environmental offsets and that the ones certified by the
California Air Resources Board (CARB) are thought to be of the highest quality and those are the
ones that staff is currently thinking would be used for a green gas program. Ratchye added that
staff would return to the UAC with further information when it returns with a green gas
program design proposal.
Commissioner Melton asked if the market for biogas is still not mature enough for the City’s
needs to back a green gas program. Ratchye indicated that biogas is very difficult to find and
expensive in California. She added that any biogas that is available is used where it’s produced
to generate renewable electricity. In addition, the biogas is not of high enough quality to be
inserted into the gas pipeline transmission and distribution pipelines and it is not practical to
clean up the gas to meet pipeline quality standards.
Commissioner Melton stated that he supports the option to terminate the full needs program,
but keep the commercial block program going. He also supports the development of a g reen
gas program if the environmental offsets are high quality.
Commissioner Waldfogel said that he agrees with Commissioner Melton's comments. He said
that the program has three components to the PAG program: the program, the brand, and the
movement. However, he said that the program met its objective and is now obsolete and
should be terminated. He added that we should figure out how to retain the participants. He
stated that one option is to suspend, or stop charging for, the program until we figure out our
next move.
Commissioner Chang asked if we know of any other entity that greens up a carbon neutral
portfolio. Padilla stated that she doesn't know of any. Commissioner Chang advised against
terminating the program. She stated that none of the options recommended seem like good
ones. She asked why there was a need to change the program by January 2014. Director Fong
stated that we could make a modification earlier than January, but that something needs to
change relatively soon since the portfolio is carbon neutral. Commissioner Chang stated that
she would support other options for the long term, but doesn't like the option of terminating
the program. She supports community solar programs and sees them as a way to hedge
electric costs for customers with locally sited renewables. She asked why staff did not consider
that type of program. Director Fong stated that these programs could be done as separate
programs, but the design doesn't lend itself to the PAG design. Padilla added that staff plans to
return by the end of year with a local solar strategy. Commissioner Chang added that she
supports the use of the highest quality environmental offsets if used for a PAG Gas program.
Commissioner Waldfogel asked whether Commissioner Chang supports the concept of fuel
switching from dirty gas to clean electricity. Commissioner Chang said that when we are at
100% renewable electric supply, she may support that type of fuel switching.
Commissioner Eglash stated that PAG was created to solve a spec ific problem and that problem
has now been solved. Having a carbon neutral portfolio is a happy situation. The question is
how to use PAG to address other environmental problems. He stated that staff and he have
concluded that community solar programs are not good fits for the PAG program. He stated
that the letter to the commission from Karl Knapp made many good points, including the fact
that large hydro does have environmental impacts and that climate change was not the original
driver for the PAG program. Commissioner Eglash pointed out that the program administration
costs are very high – administrative costs of $250,000 (not including the cost of the RECs), but
that the proposed revenue is only $140,000, which is not a sustainable practice. Commi ssioner
Eglash suggested continuing the program until a transition can be made to the PAG Gas
program or if a new program could be blended in with PAG. Commissioner Eglash stated that
the current program at the current price does not make sense – the program must change in
some way.
Vice Chair Foster stated that getting rid of the nation's top green program makes no sense and
is a non-starter. He said that substituting one form of renewable energy for another is not easy
to explain. He does support high quality environmental offsets for a green gas program. He
supports community solar programs but is persuaded that these are not a good fit for the PAG
program. He supports the solar PV donation program for schools and suggested using the
money from the program for this purpose. Vice Chair Foster recommends immediately
redirecting funds from the program to a program to install PV systems on Palo Alto Unified
School District (PAUSD) facilities. He also recommends cutting the premium in half with the
revenues directed to PV on schools. He also recommended developing PAG gas program and
continuing the non-residential PAG program for block purchases.
Commissioner Eglash asked why a solar donation program was not part of the
recommendation. Ratchye stated that the program would take longer to develop, but would be
part of the larger local solar strategy that staff plans to develop.
Vice Chair Foster said that the solar donation program should be very simple and be restricted
to PAUSD.
Chair Cook thanked staff, the UAC subcommittee and the public, particularly Bruce Hodge and
Walt Hays. Chair Cook noted that the program is number one in the country and does
something important and we should not terminate the program. The program should be cost
neutral, not a money loser – it should be priced at the break-even price of 0.5 cents per
kilowatt-hour (₵/kWh) and not be lowered to 0.2 ₵/kWh. Chair Cook supports retaining the
program at a lower price for both the full needs and the block programs as a transition and
developing a green gas program as soon as possible. He recommended using a big marketing
push for the new program to increase participation.
Commissioner Waldfogel asked Chair Cook if the REC purchases of the program are the key
piece, or should collections continue. Chair Cook said that the collections should continue, but
should not be used to purchase RECs. Director Fong stated that that approach would be
difficult.
Commissioner Eglash said the program should be priced at the 0.2 cents/kWh and that the
admin costs should be reduced.
Chair Cook said that we are collecting more money than we need now so that is not an issue.
Commissioner Melton agrees with Commissioner Waldfogel's comments regarding spending
money to buy RECs to green up green hydro power. He suggested that the revenue collected
could be used for seed money for putting PV on schools.
Vice Chair Foster stated that he hears general consensus for developing a green gas program
and for continuing the block program at a cost neutral. However, there does not seem to be
support for greening up green resources for the full needs program. The alternative is to either
use the funds for solar PV on schools or suspend the collection of funds for the full needs
program and stop buying RECs.
Commissioner Melton asked the subcommittee why the solar donation program wasn't
recommended. Commissioner Eglash stated that the committee felt that the program couldn't
be designed quickly enough and that a transition needed to happen relativel y quickly.
Commissioner Waldfogel commented that participants are willing to spend 1.5 ₵/kWh for
something very conceptual (i.e. RECs) and we leave money on the table by lowering the price.
ACTION:
First Motion:
Vice Chair Foster moved that the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014;
2. Approve changes to the PAG program for the commercial customer blocks at the
purchase rate of 0.2 ₵/kWh; and
3. Approve changes to the PAG full needs program to cut the rate to 0.75 ₵/kWh and use
the funds for PV systems or solar hot water heating program for PAUSD.
Commissioner Waldfogel proposed an amendment to modify the program so that the funds
collected would be used for seed funds for PV on PAUSD sites.
Commissioner Melton indicated he would support using the funds for seed money to fund solar
on PAUSD as suggested by Waldfogel.
Chair Cook seconded the amended motion.
Commissioner Eglash stated that he does not support the motion as it could have man y
negative ramifications in the future since the program suggested in the motion has not been
worked through by staff.
Substitute to the First Motion:
Commissioner Eglash made a substitute motion that the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014; and
2. Approve changes to the PAG program with two rate options:
a. Full Needs: rate premium of 0.2 ₵/kWh to purchase RECs for the large hydroelectric
supply portion of the City’s supply mix; and
b. Commercial Customer blocks: purchase rate of 0.2 ₵/kWh, or $2 for a 1,000 kWh
block.
Chair Cook seconded the substitute motion.
Vice Chair Foster noted that the dangers alluded to by Commissioner Eglash are not an issue
since there is time before Council makes the final decision.
The substitute motion did not carry (3-3) with Commissioners Waldfogel, Foster, and Melton
voting no.
Returning to the first motion,
Vice Chair Eglash proposed amending the motion as follows:
That the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014;
2. Approve changes to the PAG program for the commercial customer blocks at the
purchase rate of 0.2 ₵/kWh; and
3. Approve changes to the PAG full needs program to reduce the rate by 50% and use
those funds as a seed fund for a community local solar donation program (e.g., for
PAUSD schools) as directed by the City Council.
Chair Cook, the motion’s seconder, agreed to the amendment to the first motion.
Commissioner Eglash noted that the recommendation is contrary to staff's opinion since it
concluded that such a program won't be ready by January 2014. Melton replied that the
money could be put into a fund until the program could be ready and he realizes that it
wouldn't be ready by January 2014. Commissioner Eglash said that this means that collection
of funds would occur prior to the program being designed. Vice Chair Foster indicated that the
Council would decide the final details.
The first motion did not carry (3-3) with Commissioners Cook, Chang, and Eglash voting no.
Second Motion:
Commissioner Melton made a motion that the UAC recommend that Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014; and
2. Suspend the PAG Full Needs program, but maintain the PAG program’s Commercial
Customer Block program and reduce the price to 0.2 ₵/kWh, or $2 per 1,000 kWh block.
Vice Chair Foster seconded the motion.
Substitute to the Second Motion:
Commissioner Eglash made a substitute motion that the UAC recommend that the Council:
1. Direct staff to develop a PAG gas program to be implemented by July 2014; and
2. Approve changes to the PAG program with two rate options:
a. Full Needs: rate premium of 0.2 ₵/kWh to purchase RECs for the large hydroelectric
supply portion of the City’s supply mix; and
b. Commercial Customer blocks: purchase rate of 0.2 ₵/kWh, or $2 per 1,000 kWh
block.
Chair Cook seconded the substitute motion.
The substitute motion failed (3-3) with Commissioners Waldfogel, Foster, and Melton voting no.
Returning to the Second Motion, the motion passes unanimously (6-0).