HomeMy WebLinkAboutStaff Report 4289
City of Palo Alto (ID # 4289)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 12/17/2013
City of Palo Alto Page 1
Summary Title: Changes to Large Commercial Customer Gas Rates
Title: Utilities Advisory Commission Recommendation that the City Council
Adopt a Resolution to 1) Terminate the City’s Natural Gas Direct Access
Program by Repealing Gas Rate Schedule G -4; 2) Eliminate Fixed and Custom
Gas Commodity Rates for Large Commercial Customers by Repealing Gas Rate
Schedules G -11 and G -12; and 3) Effect the Changes by Amending Gas Rate
Schedules G -3 and G-8 and Utility Rules and Regulations 2, 3, 5 and 13
From: City Man ager
Lead Department: Utilities
Recommendation
Staff and the Utilities Advisory Commission (UAC) recommend that the Finance Committee
recommend that the City Council adopt a resolution (Attachment A) to:
1. Terminate the City’s gas direct access program by repealing gas rate schedule G-4 (Large
Commercial Gas Transportation Service);
2. Eliminate fixed and custom gas rates for large commercial customers by repealing gas rate
schedules G-11 (Large Commercial Fixed-term Commodity Gas Service), and G-12 (Large
Commercial Custom Commodity Gas Service); and
3. Effect the changes by amending Utility Rules and Regulations 2 (Definitions and
Abbreviations), 3 (Description of Utility Services), 5 (Service Contracts), and 13 (Shortage of
Supply and Interruption of Utility Services), and amending gas rate schedules G-3 (Large
Commercial Gas Service) and G-8 (Gas for Electric Generation Service).
Executive Summary
Both the commodity cost management of the City’s gas portfolio and the City’s rate offerings to
large commercial gas customers have evolved over the years depending on market needs and
industry trends.
In the era of deregulation, the City introduced gas “direct access”, whereby certain large
commercial customers could elect to take transportation-only service under Rate Schedule G-4,
City of Palo Alto Page 2
by purchasing gas from a third party on the open market, and having it delivered to the City of
Palo Alto Utilities (CPAU). However, the technical challenges of implementing this rate rendered
it cost-prohibitive, and no eligible large customer ever purchased gas from a third party
supplier. Rate Schedules G-11 (Large Commercial Fixed-term Commodity Gas Service) and G-12
(Large Commercial Custom Commodity Gas Service) were designed to give large commercial
gas customers the ability to directly hedge their gas costs, something the City was already doing
for the small commercial and residential customers through the managed portfolio. Today, all
of the City’s gas customers are served under a monthly market price -based pass-through rate,
and no large commercial customers have elected to fix the commodity rate for any portion of
their gas needs for the past 5 years.
Given the impracticality of gas direct access and the lack of interest in the other commodity
rates, staff recommends saving both staff time and market price subscription costs by
terminating gas direct access by eliminating Rate Schedules G-4, G-11, and G-12. At the same
time, certain changes are needed on Rate Schedules G -3 and G-8 to remove references to the
direct access rates; no changes are being made to the other rates on those schedules.
Background
The monthly market price pass-through rate for large natural gas customers (G-3) and the
managed commodity portfolio rate for large natural gas customers (G-7) were both established
by Resolution #7522 in 1995. The G-3 rate is still in effect today, and all large commercial gas
customers are currently served under that rate.
In 1998 Council approved a direct access program enabling large commercial gas customers to
purchase gas directly from third party suppliers (CMR 148:99). The program was offered when
the energy markets were being deregulated and customers were demanding a choice of
suppliers. No customer has ever elected the direct access rate schedule, G-4, because there
has never been an economic advantage to doing so. This is discussed further in a later section
of this report. At this time, there is no regulatory requirement for municipal utilities to offer
direct access.
In 2000, Council approved two rate schedules, G-11 (Large Commercial Fixed-term Commodity
Gas Service) and G-12 (Large Commercial Custom Commodity Gas Service) (CMR 259:01). The
Fixed-term Rate, G-11, offers a fixed commodity rate for the customer’s total gas usage for a
12- or 24-month term. Later Council modified this rate to include a risk premium for the
volume uncertainty risk assumed by the City, created by the possibility that customers could
choose alternative suppliers at any time, while CPAU purchased gas under long term contracts.
The custom rate option, G-12, allowed customers to be served under a custom commodity
pricing structure. Both of these rates, G-11 and G-12, were selected by large gas commercial
customers in the years that followed, although no customers are currently serv ed under either
rate.
City of Palo Alto Page 3
As a result of the energy crisis and the resulting sky rocketing gas prices of 2000 and 2001 the
City adopted a disciplined market price hedging strategy whereby blocks of gas were purchased
at fixed or capped prices for delivery up to three years in the future. Since large gas customers
had the option to switch to direct access, the City was exposed to the risk of them seeking an
alternate supplier if the City purchased gas that was higher than the market price of gas, leaving
the remaining customers to pay for the above market priced gas. To mitigate this risk, Council
modified the rules in 2001 (CMR 259:01) such that customers electing the portfolio rate (G -7)
gave up the option to elect direct access at a later time.
Since no large customers elected the portfolio rate (G-7), in 2003 Council eliminated the G-7
rate (CMR 483:03). This action was taken because large commercial customers were able to
manage their gas supply costs by electing to be served under rate schedules G -11 or G-12
instead of relying on the managed portfolio rate.
The number of large natural gas customers eligible for G-3, G-11, and G-12 rates has varied over
the years, but has been between 8 and 10. There are currently 10 eligible customers and all
receive gas under the G-3 rate schedule. These customers made up about 20% of the City’s gas
load in Fiscal Year 2012.
Discussion
Termination of Gas Direct Access via Elimination of G-4 (Large Commercial Gas Transportation
Service)
Elimination of the G-4 rate will not cause gas rates to change for any CPAU customers.
Although the City has offered direct access to large commercial gas customers since 1998, this
service has never been selected by a customer. The first reason is that the City’s competitive
process for purchasing gas yields a market-based commodity rate for Palo Alto gas customers
that is difficult to beat by outside suppliers. The City has contracts with multiple highly -rated
counterparties resulting in healthy competition for the City’s business each time gas is
purchased. The cost of gas commodity is passed on to Palo Alto customers through rates ,
leaving little to no room for third party suppliers to offer a lower price.
Second, because of the City’s physical location on the PG&E pipeline sys tem, the logistics of a
customer in Palo Alto receiving gas from a third party are complicated and, therefore, cost -
prohibitive. Palo Alto transports gas over PG&E’s backbone and local transmission pipelines.
From PG&E’s perspective, Palo Alto is the shipper on the system and the party responsible for
balancing the City’s entire demand with supply on a daily and monthly basis. Gas suppliers
cost-effectively serve customers on the PG&E system by managing a large pool of demand, but
because Palo Alto’s retail customers are not metered by PG&E and are not recognized by PG&E
City of Palo Alto Page 4
as shippers, Palo Alto’s retail customers would need to be managed separately from the gas
supplier’s pool. Suppliers would much rather sell gas to Palo Alto’s gas utility than manage
serving individual customers within the City.
Elimination of G-11 (Large Commercial Fixed-term Commodity Gas Service) and G-12 (Large
Commercial Custom Commodity Gas Service)
Eliminating the G-11 and G-12 rates will not cause gas rates to change for any CPAU customers.
No customer has been served under G-11 since 2007. No customer has been served under G-
12 since 2009.
Given the lack of interest in G-11 and G-12, it appears that large gas customers prefer a
monthly market pass through price. If that chan ges in the future and large gas customers want
to manage market price risk, they can utilize a third-party financial agreement to hedge against
gas market price uncertainty. To do that, the customers could contact a natural gas supplier (or
bank) and hedge their gas costs using futures contracts to swap the exposure to the market
price index with fixed-price financial transactions.1
Eliminating G-11 and G-12, rates that no customer has selected in recent years, will save staff
resources. Even with no customers served under these rates, staff time is required to develop
indicative prices and the risk premium for the G-11 rate on a weekly basis, update the website
with those indicative prices, forecast individual large customer gas usage, and manage more
complicated models for tracking and managing credit risk for potential hedge positions related
to these rates. In addition, keeping these rates active requires staff to wait to purchase the
index-priced gas until just before the month begins in case a lar ge customer elects to be served
under G-11 or G-12. Absent those choices, staff can make longer-term index transactions,
reducing administrative time.
Summary of Rule Changes
Modifications to four Utility Rules are needed as a result of the proposed rat e eliminations.
First, several definitions related to gas direct access will be deleted in Rule 2, “Definitions and
Abbreviations”. Second, gas direct access will be struck from under “Types of Service” in Rule 3,
“Description of Utility Services”. Third, also proposed to be stricken are several references to
direct access in Rule 5, “Service Contracts” and contract pricing guidelines regarding custom
commodity rates and fixed-term rates, both of which are irrelevant if the proposed rate
eliminations are approved. Fourth, it is proposed to delete references to gas direct access in
1 As an example, assume that the customer who wishes to hedge gas costs purchases a gas futures contract for
January 2015 for $0.50 per therm. When January 2015 arrives, the market price for gas is $1.00/therm. The
customer pays $1.00 per therm to Palo Alto for physical gas and sells the futures contract for $1.00 per therm
resulting in an effective gas price of $0.50 per therm (the original price of the futures contract).
City of Palo Alto Page 5
Rule 13, “Shortage of Supply and Interruption of Utility Services.” There are a few other minor
clean-ups that have also been included in the attached Rules, in redline form.
Summary of Changes to Utility Rate Schedules
Both gas rate schedules G-3 (Large Commercial Gas Service) and G-8 (Gas for Electric
Generation Service) refer to gas direct access. In addition, gas rate schedule G-8 refers to G-11.
CPAU will continue to offer gas rate schedules G-3 and G-8, but the proposal to eliminate gas
direct access and Rate Schedule G-11 requires editing of gas rate schedules G-3 and G-8 to
make them consistent with the decision to terminate the gas direct access program.
Commission Review and Recommendation
On November 6, 2013, the UAC unanimously (6-0) approved staff’s recommendation. Chair
Cook was absent. Vice Chair Foster indicated that the recommended action made sense since
no customers were on the rates to be eliminated, the proposed rule changes were for
consistency and the result would be a streamlined process. Commissioner Hall stated that he
supported the recommendation, but noted that the list of definitions (Rule and Regulation 2)
did not include definitions for “gas transportation” or “gas distribution” and recommended
including those to add clarity for readers of the rate schedules. Staff intends to review all
definitions as part of an upcoming rules and regulations clean -up.
Resource Impact
Even if no customer elects G-11 or G-12, the estimated staff resources to continue to offer the
rates is 0.1 FTE plus $1,500 per month that is spent on market volatility information used to
calculate the volumetric risk premium for G-11. Staff time increases when customers elect G-
11 or G-12. If these rates were eliminated, these costs would be saved and staff resources
could be re-assigned to other projects.
There is no immediate staff resource savings by eliminating G-4. Implementing G-4, however,
would require a large amount of staff time that would be estimated and included in the set-up
fee charged to the third party supplier.
Policy Implications
This recommendation sets no new Council policy and is consistent with the Council-approved
Utilities Strategic Plan.
City of Palo Alto Page 6
Environmental Review
Adoption of the recommended resolution does not meet the definition of a project, pursuant to
Section 21065 of the California Environmental Quality Act.
Attachments:
Attachment A: RESO Approving Termination of Gas Direct Access and Contract Rates
and Modification to Utilities Rules and Regulation (PDF)
Attachment B: Rule 2 Definitions effective 01-01-2014 (PDF)
Attachment C: Rule 03 effective 01-01-2014 (PDF)
Attachment D: Rule 05 effective 01-01-2014 (PDF)
Attachment E: Rule 13 effective 01-01-2014 (PDF)
Attachment F: Utility Rate Schedule G-3 effective 01-01-2014 (PDF)
Attachment G: Utility Rate Schedule G-8 effective 01-01-2014 (PDF)
Attachment H: Excerpted Draft UAC Minutes of November 6, 2013 Meeting (PDF)
ATTACHMENT A
* NOT YET APPROVED *
131016 dm 6051983 1
Resolution No. _________
Resolution of the Council of the City of Palo Alto Terminating the City’s Natural Gas
Direct Access Program by Repealing Utility Gas Rate Schedule G-4, Eliminating Fixed
and Custom Gas Commodity Rates for Large Commercial Customers by Repealing
Gas Rate Schedules G-11 and G-12, and Effecting the Changes by Amending Gas
Rate Schedules G-3, G-8 and Utility Rules and Regulations 2, 3, 5 and 13
A. In 1998, the City Council (“Council”) approved a direct access program, including the
adoption of Gas Rate Schedule G-4 (Large Commercial Gas Transportation Service) enabling
large commercial gas customers to purchase gas directly from third party suppliers (CMR
148:99), in response to energy market deregulation and in an effort to support customer
choice.
B. No customer has ever been served under the City of Palo Alto Utilities’ (CPAU’s) gas
direct access program and Gas Rate Schedule G-4 for economic and practical reasons.
C. Eliminating Gas Rate Schedule G-4 will not cause gas rates to change for any CPAU
customers.
D. In 2000, Council approved two rate schedules, G-11 (Large Commercial Fixed-Term
Commodity Gas Service) and G-12 (Large Commercial Custom Commodity Gas Service) (CMR
259:01), to offer large commercial customers additional choices in gas rate management.
E. No customer has been served under G-11 since 2007, or G-12 since 2009, and
customers have other alternatives for managing gas commodity costs.
F. Eliminating Gas Rate Schedules G-11 and G-12 will not cause gas rates to change for
any CPAU customers.
G. Staff resources will be saved by eliminating Gas Rate Schedules G-4, G-11 and G-12.
H. Modifications to four Utility Rules and Regulations and two additional gas rate
schedules are needed as a result of the proposed rate eliminations, to ensure consistency with
current rate offerings.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-4 (Large Commercial Gas Transportation Service) is hereby repealed effective
as of January 1, 2014.
ATTACHMENT A
* NOT YET APPROVED *
131016 dm 6051983 2
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-11 (Large Commercial Fixed-Term Commodity Gas Service) is hereby repealed
effective as of January 1, 2014.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-12 (Large Commercial Custom Commodity Gas Service) is hereby repealed
effective as of January 1, 2014.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities
Rule and Regulation 2 (Definitions and Abbreviations) is hereby amended as attached and
incorporated. Utility Rule and Regulation 2, as amended, shall become effective January 1,
2014.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities
Rule and Regulation 3 (Description of Utility Services) is hereby amended as attached and
incorporated. Utility Rule and Regulation 3, as amended, shall become effective January 1,
2014.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities
Rule and Regulation 5 (Service Contracts) is hereby amended as attached and incorporated.
Utility Rule and Regulation 5, as amended, shall become effective January 1, 2014.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities
Rule and Regulation 13 (Shortage of Supply and Interruption of Utility Services) is hereby
amended as attached and incorporated. Utility Rule and Regulation 13, as amended, shall
become effective January 1, 2014.
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended as attached and shall
become effective January 1, 2014.
SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-8 (Gas for Electric Generation Service) is hereby amended as attached and
shall become effective January 1, 2014.
//
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ATTACHMENT A
* NOT YET APPROVED *
131016 dm 6051983 3
SECTION 10. The Council hereby finds that the adoption of this resolution does
not meet the definition of a project, pursuant to Section 21065 of the California Environmental
Quality Act, thus no environmental review is required.
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
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 1
A. ABBREVIATIONS
AMR - Automated Meter Reading
AER - Advance Engineering Request
Btu - British Thermal Unit
ccf - Hundred Cubic Feet
CEC - California Energy Commission
CPAU - City of Palo Alto Utilities
CPUC - California Public Utilities Commission.
DA - Direct Access
ERU - Equivalent Residential Unit
ESP - Energy Service Provider
FERC - Federal Energy Regulatory Commission
GDA - Gas Direct Access
GSP - Gas Service Provider
GSPA - Gas Service Provider Agreement
kVar - Kilovar
kVarh - Kilovar-hours
kW - Kilowatt
kWh - Kilowatt-hour
MW - Megawatt
MMBtu - One million Btus.
NEC - National Electric Code, Latest Version
NRTL - Nationally Recognized Testing Laboratory
PAMC - Palo Alto Municipal Code
PSIG - Per square inch gauge
PST - Pacific Standard Time
RWQCP - Regional Water Quality Control Plant
UUT - Utilities Users Tax
B. GENERAL DEFINITIONS
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 2
Account
The identification number in CPAU’s billing system for Utility Services.
Agency
Any local, county, state or federal governmental body or quasi-governmental body, including, without
limitation, the CPUC, the FERC and any joint powers agency, but excluding the City and any board,
commission or council of the City.
Applicant
An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same,
requesting CPAU to supply any or all of the following:
1. Electric Service
2. Water Service
3. Gas Service
4. Wastewater Collection
5. Refuse and Recycling Collection
6. Storm and Surface Water Drainage Service
7. Fiber Optics Service
Or, an entity submitting an Application for Interconnection pursuant to Rule 27.
Application (for Interconnection of Generating Facilities)
An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating
Facility.
Bidweek Price Index
The price reported in Natural Gas Intelligence “NGI’s Bidweek Survey”, California “PG&E Citygate”
under the column “avg.” for the calendar month.
Billing Period
Also “service period” or “billing cycle”. The normal Billing Period for CPAU Customers is
approximately 30 days, with variations occurring due to staff availability, holiday scheduling, field
verification of Meter readings, or any other billing-related issues requiring additional investigation prior
to issuance of the bill..
British Thermal Unit
Also “Btu”. The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 3
equals 100,000 Btu.
Business Day
Any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City.
Certification Test
A test pursuant to Rule 27 that verifies conformance of certain equipment with approved performance
standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs.
Certification; Certified; Certificate
The documented results of a successful Certification Test.
Certified Equipment
Equipment that has passed all required Certification Tests.
Charge
Any assessment, cost, fee, surcharge or levy for Utility Service other than a Tax, including metered and
unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required
Customer financial obligations for Service.
Charter
The Charter of the City of Palo Alto.
City Attorney
The individual designated as the City Attorney of the City under Section 2.08.120 of Chapter 2.08 of
Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City
Attorney.
City’s Collector
The Person(s) authorized under Section 5.20.040 of the Palo Alto Municipal Code to provide collection,
removal and disposal of solid waste and Recyclable Materials pursuant to one or more written contracts
with the City.
City Manager
The individual designated as the City Manager of the City under Section 2.08.140 of Chapter 2.08 of
Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City
Manager.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 4
City of Palo Alto, or City
The government of the City of Palo Alto, a chartered City and a municipal corporation duly organized
and validly existing under the Laws of the State of California, with a principal place of business located
at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. For the purposes of these Rules and
Regulations, the term “City” may include services provided by both the City of Palo Alto Utilities
Department and the City of Palo Alto Public Works Department.
City of Palo Alto Public Works Department (Public Works)
The City Department responsible for providing Refuse and Recycling, Wastewater Treatment and Storm
and Surface Water Drainage Utility Services. Other Utility Services such as Water, Gas, Electric,
Wastewater Collection, and Fiber Optics are provided by the City of Palo Alto Utilities Department.
City of Palo Alto Utilities Department (CPAU)
The City Department responsible for providing Water, Gas, Electric, Wastewater Collection and Fiber
Optic Utility Services. Other Utility Services such as Refuse and Recycling, Wastewater Treatment and
Storm and Surface Water Drainage are provided by the City of Palo Alto Public Works Department.
Code
The words "the Code" or "this Code" shall mean the Palo Alto Municipal Code.
Commercial Service
Commercial Utility Service is provided to businesses, non-profit organizations, public institutions, and
industrial Customers. The term also applies to Utility Services through Master Meters serving multi-
family Residential dwellings and common areas of multi-family facilities.
Compostable Materials
Organic materials designated by the City as acceptable for collection and processing.
Cubic Foot of Gas (cf)
The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73
pounds per square inch absolute, occupies one cubic foot.
Curtailment
The act of reducing or interrupting the delivery of natural Gas.
Customer
The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from
the City of Palo Alto, or in whose name Service is rendered for a particular Account as evidenced by the
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 5
signature on the Application, contract, or agreement for Service. In the absence of a signed instrument,
a Customer shall be identified by the receipt of any payment of bills regularly issued in the name of the
Person, corporation, or Agency regardless of the identity of the actual user of the Utility Service(s).
Dark Fiber
A Fiber Optic cable provided to end-users or resellers by CPAU without any of the light transmitters,
receivers, or electronics required for telecommunications over the Fiber. Infrastructure for Fiber Optic
activation is provided by the reseller or end-user.
Dark Fiber Infrastructure
Components of the CPAU Fiber Optic Distribution System required to provide Service to Customers
(licensees), that are attached, owned, controlled or used by the City, located overhead or underground
within the Public Right-of-Way, the Public Utility Easements and Leased Service Properties.
Dedicated Distribution Transformer
A Distribution Transformer that is dedicated to serving a single premise.
Demand
The highest rate of delivery of Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA)
occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless
otherwise specified within a monthly billing cycle).
Demand Charge
An electrical Charge or rate that is applied to a metered Demand reading expressed in Kilowatts to
compute a Demand Charge component of a Customer’s Electric bill.
Demarcation Point
The Demarcation Point for a project shall be the Customer side of the panel onto which the CPAU Fiber
terminates within the Customer Premises, unless otherwise specified in the Proposal for Dark Fiber
Services.
Direct Access (DA)
The election by a Customer to procure its Gas Supply Services, from an Energy Service Provider, other
than CPAU. In this situation, a Customer deals directly with an ESP for commodity supply, while
distribution and applicable transmission services would continue to be provided by CPAU.
Direct Access Service Request (DASR)
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 6
The form required to initiate Direct Access Service.
Distribution Services
Includes, but is not limited to, Utility Service provided by the Distribution System and other Services
such as billing, meter reading, administration, marketing, and Customer Services. Does not include
Services directly related to the Interconnection of a Generating Facility as per Rule 27.
Distribution System
The infrastructure owned and operated by CPAU which is capable of transmitting electrical power, other
than Interconnection Facilities, or transporting Water, Wastewater, or Gas within the City of Palo Alto.
The Electric Distribution System transmits power from the City’s Interconnection with PG&E to
CPAU’s Meter located on the Customer’s Premises. The Gas Distribution System transports Gas from
PG&E receiving stations to CPAU’s Meter located on the Customer Premises. The Water Distribution
System transports Water from the San Francisco Water Department receiving stations and CPAU wells
to the meter located on the Customer Premises. The Wastewater Collection System transports sewage
from the Customer’s Premises to the Water Quality Control Plant.
Distribution and Transmission Services
Services provided by CPAU to effect the physical delivery of Energy Services provided by the Energy
Services Provider from the Point of Receipt to the Direct Access Customer’s Service Address.
Effluent
Treated or untreated Wastewater flowing out of a Wastewater treatment facility, sewer, or industrial
outfall.
Electric, Electric Service
Utility Service provided to residents and business owners in the City of Palo Alto consisting of
generation, transmission, and distribution of electrical power for retail use. Electric Service is provided
by the City of Palo Alto Utilities Department.
Emergency
An actual or imminent condition or situation, which jeopardizes CPAU’s Distribution System Integrity.
Emergency Service
Electric Service supplied to, or made available to, Load devices which are operated only in Emergency
situations or in testing for same.
Energy Services
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 7
Energy commodity and any applicable ancillary Services used to generate and transport such commodity
from its origin to the City’s Point of Receipt. May also mean the sale of value added Services associated
or related to the Provision and/or usage of energy commodity.
Equivalent Residential Unit (ERU)
This is the basic unit for computing storm and surface water drainage fees. All single-family Residential
properties are billed the number of ERU’s specified in the table contained in Utility Rate Schedule D-1,
according to parcel size. All other properties have ERU's computed to the nearest 1/10 ERU using this
formula: No. Of ERU = Impervious Area (sq. ft.) / 2,500 sq. ft.
Fiber Optic, Fiber Optic Service
A solid core of optical transmission material. Fiber Optic Service that is provided by the City of Palo
Alto Utilities Department is referred to as Dark Fiber.
Fiber Optic Backbone
The high-density portion of the Dark Fiber Infrastructure installed and owned by the City.
Force Majeure
The occurrence of any event that has, had or may have an adverse effect on the design, construction,
installation, management, operation, testing, use or enjoyment of the City’s Utility Services, which is
beyond the reasonable control of the parties and which event includes, but is not limited to, an Act of
God, an irresistible superhuman cause, an act of a superior governmental authority, an act of a public
enemy, a labor dispute or strike or a boycott which could not be reasonably contemplated by the City or
Customer affected thereby, a defect in manufactured equipment (including, but not limited to, the Dark
Fibers), fire, floods, earthquakes, or any other similar cause.
Full Service; Fully Bundled Service
Provision by CPAU of both Distribution and Transmission Services and Energy or Gas
Commodity Services to its Customer(s).
Function
Some combination of hardware and software designed to provide specific features or capabilities. Its
use, as in Protective Function, is intended to encompass a ran ge of implementations from a single-
purpose device to a section of software and specific pieces of hardware within a larger piece of
equipment to a collection of devices and software.
Gas
Any combustible gGas or vapor, or combustible mixture of gaseous constituents used to produce heat by
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 8
burning. It shall include, but not be limited to, natural Gasgas, Gas gas manufactured from coal or oil,
Gas gas obtained from biomass or from landfill, or a mixture of any or all of the above.
Gas, Gas Service
Utility Service provided to residents and business owners in the City of Palo Alto consisting of
procurement, transmission, and distribution of Gas for retail use. Gas Service is provided by the City of
Palo Alto Utilities Department.
Gas Direct Access (GDA)
The election by a Customer to procure its natural Gas, and related natural Gas Services, from a Gas
Service Provider, other than CPAU. In this situation, a Customer obtains natural Gas commodity
directly from a GSP, but local transmission of the natural Gas commodity is effectuated by CPAU in
accordance with the terms of CPAU’s Natural Gas Service Agreement with PG&E. Also, Distribution
Services would continue to be provided by CPAU.
Gas Direct Access Service Request (GDASR)
The form required to initiate Gas Direct Access Service.
Gas Service Provider (GSP)
The Person who procures, schedules, nominates and arranges transport of natural Gas to Gas Direct
Access Customers, including its successors and assigns.
Gas Service Provider Agreement (GSPA)
The contract between CPAU and the Gas Direct Access Customer’s Gas Service Provider that
establishes the terms and conditions under which Gas Services may be provided to the Gas Direct
Access Customer.
Generating Facility
All Generators, electrical wires, equipment, and other facilities owned or provided by Producer for the
purpose of producing Electric power. This includes a solar or wind turbine electrical generating facility
that is the subject of a Net Energy Metering and Interconnection Agreement and Rule and Regulation
29.
Generator
A device converting mechanical, chemical or solar energy into electrical energy, including all of its
protective and control Functions and structural appurtenances. One or more Generators comprise a
Generating Facility.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 9
Gross Nameplate Rating; Gross Nameplate Capacity
The total gross generating capacity of a Generator or Gen erating Facility as designated by the
manufacturer(s) of the Generator(s).
Initial Review
The review by CPAU, following receipt of an Application, to determine the following: (a) whether the
Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be
made to qualify for Interconnection with a Supplemental Review determining any additional
requirements.
Inspector
The authorized Inspector, agent, or representative of CPAU.
Interconnection; Interconnected
The physical connection of a Generating Facility in accordance with the requirements of the City’s
Utilities Rules and Regulations so that Parallel Operation with CPAU’s Distribution System can occur
(has occurred).
Interconnection Agreement
An agreement between CPAU and the Producer providing for the Interconnection of a Generating
Facility that gives certain rights and obligations to effect or end Interconnection. For the purposes of the
City’s Utilities Rules and Regulations, the Net Energy Metering and Interconnection Agreement, and the
Power Purchase Agreements authorized by the City Council may be considered as Interconnection
Agreements for purposes of defining such term.
Interconnection Facilities
The electrical wires, switches and related equipment that are required in addition to the facilities
required to provide Electric Distribution Service to a Customer to allow Interconnection.
Interconnection Facilities may be located on either side of the Point of Common Coupling as appropriate
to their purpose and design. Interconnection Facilities may be integral to a Generating Facility or
provided separately.
Interconnection Study
A study to establish the requirements for Interconnection of a Generati ng Facility with CPAU’s
Distribution System.
Internet Exchange
Any Internet data center for telecommunications equipment and computer equipment for the purposes of
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 10
enabling traffic exchange and providing commercial-grade data center services.
Interstate Transportation (or Transmission)
Transportation of Gas on a pipeline system under the regulation of the FERC.
Island; Islanding
A condition on CPAU’s Electric Distribution System in which one or more Generating Facilities deliver
power to Customers using a portion of CPAU’s Distribution System that is electrically isolated from the
remainder of CPAU’s Distribution System.
Junction
A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting
communication cables.
Junction Site
The area within the Transmission Pathway at which a Junction is located.
Kilovar (kVar)
A unit of reactive power equal to 1,000 reactive volt-amperes.
Kilovar-hours (kVarh)
The amount of reactive flow in one hour, at a constant rate of Kilovar.
Kilowatt (kW)
A unit of power equal to 1,000 watts.
Kilowatt-hour (kWh)
The amount of energy delivered in one hour, when delivery is at a constant rate of one Kilowatt; a
standard unit of billing for electrical energy.
Law
Any administrative or judicial act, decision, bill, Certificate, Charter, Code, constitution, opinion, order,
ordinance, policy, procedure, Rate, Regulation, resolution, Rule, Schedule, specification, statute, tariff,
or other requirement of any district, local, municipal, county, joint powers, state, or federal Agency, or
any other Agency having joint or several jurisdiction over the City of Palo Alto or City of Palo Alto
Utilities or Public Works Customers, including, without limitation, any regulation or order of an official
or quasi-official entity or body.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 11
Licensed Fibers
One or more fibers comprising a part of the Dark Fiber Infrastructure that are dedicated to the exclusive
use of the Customer under the Provisions of the Dark Fiber License Agreement, Proposal to Dark Fiber
Services Agreement and the Utilities Rules and Regulations.
Licensed Fibers Route
A defined path of Licensed Fibers that is identified by specific End Points.
Load(s)
The Electric power Demand (kW) of the Customer at its Service Address within a measured period of
time, normally 15 minutes, or the quantity of Gas required by a Customer at its Service Address,
measured in MMBtu per Day.
Main Wastewater Line
Any Wastewater line not including a building connection (Service) sewer.
Master-metering
Where CPAU installs one Service and Meter to supply more than one residence, apartment dwelling
unit, mobile home space, store, or office.
Maximum Generation
For a customer with a non-utility generator located on the customer’s side of the Point of Common
Coupling, the Maximum Generation for that non-utility generator during any billing period is the
maximum average generation in kilowatts taken during any 15-minute interval in that billing period
provided that in case the generator output is intermittent or subject to violent fluctuations, the City may
use a 5-minute interval.
Meter
The instrument owned and maintained by CPAU that is used for measuring either the Electricity, Gas or
Water delivered to the Customer.
Metering
The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive
power in kVar at a point, and its display to CPAU as required by Rule 27.
Metering Equipment
All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for
Metering.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 12
Meter Read
The recording of usage data from Metering Equipment.
Minimum Charge
The least amount for which Service will be rendered in accordance with the Rate Schedule.
Momentary Parallel Operation
The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or
less.
Nationally Recognized Testing Laboratory (NRTL)
A laboratory accredited to perform the Certification Testing requirements under Rule 27.
Net Energy Metering
Net Energy Metering means measuring the difference between the electricity supplied through CPAU’s
Electric utility Distribution System and the electricity generated by the customer-generator’s facility and
delivered to CPAU’s Electric utility Distribution System over a specified twelve-month period.
Net Generation Metering
Metering of the net electrical power of energy output in kW or energy in kWh, from a given Generating
Facility. This may also be the measurement of the difference between the total electrical energy
produced by a Generator and the electrical energy consumed by the auxiliary equipment necessary to
operate the Generator.
Net Nameplate Rating
The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating
Facility as designated by the manufacturer(s) of the Generator(s).
Non-Islanding
Designed to detect and disconnect from an Unintended Island with matched Load and generation.
Reliance solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non-
Islanding.
Occupied Domestic Dwelling
Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is
occupied by a Person or Persons.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 13
Parallel Operation
The simultaneous operation of a Generator with power delivered or received by CPAU while
Interconnected. For the purpose of this Rule, Parallel Operation includes only those Generating
Facilities that are Interconnected with CPAU’s Distribution System for more than 60 cycles (one
second).
Performance Test, Performance Tested
After the completion of any Fiber Interconnection work, the City will conduct a Performance Test of
each Fiber constituting a part of the proposed leased fibers to determine its compliance with the
Performance Specifications.
Performance Specifications
These specifications will include, but not be limited to, criteria relating to end-to-end optical time
domain reflectometer data plots that identify the light optical transmission losses in each direction along
the leased fibers whenever the testing is possible, measured in decibels at a wavelength of 1310 or 1550
nanometers for singlemode Fiber, as a Function of distance, measured in kilometers.
Person
Any individual, for profit corporation, nonprofit corporati on, limited liability company, partnership,
limited liability partnership, joint venture, business, family or testamentary trust, sole proprietorship, or
other form of business association.
PG&E Citygate
The PG&E Citygate is the point at which PG&E’s backbone transmission system connects to PG&E’s
local transmission system.
Point of Common Coupling (PCC)
The transfer point for electricity between the electrical conductors of CPAU and the electrical
conductors of the Producer.
Point of Common Coupling Metering
Metering located at the Point of Common Coupling. This is the same Metering as Net Generation
Metering for Generating Facilities with no host load.
Point of Delivery (POD)
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 14
Unless otherwise specified, the following definitions apply: For Electric, that location where the Service
lateral conductors connect to the Customer’s Service entrance equipment; for overhead Services, the
POD is at the weather-head connection; for under-ground Services, the POD is located at the terminals
ahead of or at the Meter; for multiple Meter arrangements with connections in a gutter, the POD is at
the Meter terminals (supply-side); for multiple Meter arrangements in a switchboard, the POD is
typically at the connectors in the utility entrance section; for Natural Gas, the POD is the point(s) on the
Distribution System where the City delivers natural Gas that it has transported to the Customer.
Point of Interconnection
The electrical transfer point between a Generating Facility and the Distribution System. This may or
may not be coincident with the Point of Common Coupling.
Point of Receipt
The designated location at which CPAU receives Gas supplied by a GSP on behalf of a GDA Customer.
The Point of Receipt for Gas will be designated in the GSPA.
Point of Service (POS)
Where CPAU connects the Electric Service lateral to its Distribution System. For Fiber Optics Service,
this is where CPAU connects the Fiber Service to the backbone. This point is usually a box located in or
near the street or sidewalk and can be in the Public Right-of-Way. This point is at a mutually agreed
upon location established at the time of installation.
Pole Line
Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs,
platforms, cross arms braces, transformers, insulators, cutouts, switches, communication circuits,
appliances attachments, and appurtenances, located above ground and used or useful in supplying
Electric, communication, or similar or associated Service.
Power Factor
The percent of total power delivery (kVA) which does useful work. For billing purposes, average Power
Factor is calculated from a trigonometric function of the ratio of reactive kilovolt-ampere-hours to the
Kilowatt-hours consumed during the billing month. Power Factor is a ratio that reflects the reactive
power used by a Customer. CPAU maintains an overall system Power Factor above 95% to reduce
distribution system losses caused by low Power Factor.
Power Factor Adjustment
CPAU must install additional equipment to correct for Customers that maintain a low Power Factor, and
may make a Power Factor Adjustment to a Customer’s bill to account for those costs and the additional
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 15
energy costs and losses incurred by CPAU due to the Customer’s low Power Factor.
Premises
All structures, apparatus, or portion thereof occupied or operated by an individual(s), a family, or a
business enterprise, and situated on an integral parcel of land undivided by a public street, highway, or
railway.
Primary Service
CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level equal to or
greater than 1000 volts.
Producer
The entity that executes an Interconnection Agreement with CPAU. The Producer may or may not o wn
or operate the Generating Facility, but is responsible for the rights and obligations related to the
Interconnection Agreement.
Proposal for Dark Fiber Services
A project-specific Service agreement that acts as a supplemental document for the Dark Fib er License
Agreement. This Service agreement shall include the proposed Interconnection fees, applicable Fiber
licensing fees, term of the Service, and summary of licensed Fiber elements.
Protective Function(s)
The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with
other Functions) whose purpose is to protect against Unsafe Operating Conditions.
Provision
Any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction,
recital, reservation, representation, term, warranty, or other stipulation in a contract or in Law that
defines or otherwise controls, establishes, or limits the performance required or permitted by any party.
Prudent Utility Practices
The methods, protocols, and procedures that are currently used or employed by utilities to design,
engineer, select, construct, operate and maintain facilities in a dependable, reliable, safe, efficient and
economic manner.
Public Right-of-Way
The areas owned, occupied or used by the City for the purposes of furnishing retail and/or wholesale
Electricity, Gas, Water, Wastewater, Storm and Surface Water Drainage, Refuse and recycling or
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 16
communications commodity and/or distribution Service, and the means of public transportation, to the
general public, including but not limited to, the public alleys, avenues, boulevards, courts, curbs, gutters,
lanes, places, roads, sidewalks, sidewalk planter areas, streets, and ways.
Public Utility Easements
The areas occupied or used by the City for the purpose of providing Utility Service to the general public,
and all related Services offered by the City’s Utilities Department and/or Public Works Department, the
rights of which were acquired by easements appurtenant or in gross, or are other interests or estates in
real property, or are the highest use permitted to be granted by the nature of the City’s interest in and to
the affected real property. This term incorporates all public Service easements for Utility Services that
have been recorded by the City with the Recorder of the County of Santa Clara, California.
Public Works Department
See City of Palo Alto Public Works Department.
Rate Schedule
One or more Council-adopted documents setting forth the Charges and conditions for a particular class
or type of Utility Service. A Rate Schedule includes wording such as Schedule number, title, class of
Service, applicability, territory, rates, conditions, and references to Rules.
Recyclable Materials
Materials designated by the City as acceptable for recycling collection and processing.
Reserved Capacity
For a customer with one or more non-utility generators located on the customer’s side of the Point of
Common Coupling, the Reserved Capacity for each billing period is the lesser of 1) the sum of the
Maximum Generation for that period for all non-utility generation sources; or 2) the maximum average
customer demand in kilowatts taken during any 15-minute interval in the billing period provided that in
case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval.
Residential Service
Utility Service provided to separately metered single family or multi-family, domestic dwelling.
Rules and Regulations
See Utilities Rules and Regulations
Scheduling Coordinator
An entity providing the coordination of power schedules and nominations to effect transportation and
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 17
distribution of Gas, Electric power and energy.
Secondary Service
CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level less than 1000
volts.
Service(s)
Utility Services offered by the City of Palo Alto include Electric, Fiber Optics, Gas, Water, Wastewater
Collection services provided by the Utilities Department (CPAU); and Refuse and Recycling,
Wastewater Treatment, and Storm and Surface Water Drainage Services provided by the Public Works
Department.
Service Address
The official physical address of the building or facility assigned by CPAU’s Planning Department, at
which Customer receives Utility Services.
Service Charge
A fixed monthly Charge applicable on certain Rate Schedules that does not vary with consumption. The
Charge is intended to recover a portion of certain fixed costs.
Service Drop
The overhead Electric Service conductors from the last pole or other aerial support to and including the
splices, if any, connecting to the service entrance conductors at the building or other structure. Or, in the
case of Fiber Optic Drops, the overhead Fiber Optics cable from the last pole or other aerial support to
the building or other structure to and including the termination box.
Services or Service Lines
Facilities of CPAU, excluding transformers and Meters, between CPAU’s infrastructure and the Point of
Delivery to the Customer.
Service Territory
The geographic boundaries within the City of Palo Alto limits served by the physical Distribution
System of the CPAU.
Short Circuit (Current) Contribution Ratio (SCCR)
The ratio of the Generating Facility’s short circuit contribution to the short circuit contribution provided
through CPAU’s Distribution System for a three-phase fault at the high voltage side of the distribution
transformer connecting the Generating Facility to CPAU’s system.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 18
Simplified Interconnection
An Interconnection conforming to the minimum requirements as determined under Rule 27, Section I.
Single Line Diagram; Single Line Drawing
A schematic drawing, showing the major Electric switchgear, Protective Function devices, wires,
Generators, transformers and other devices, providing sufficient detail to communicate to a qualified
engineer the essential design and safety of the system being considered.
Special Facilities
See CPAU’s Rule and Regulation 20 governing Special Facilities.
Splice
A point where two separate sections of Fiber are physically connected.
Standard Refuse Container
A Standard Refuse Container shall have the meaning described in the Palo Alto Municipal Code. A
Standard Container shall also include a wheeled container with a capacity of not to exceed 32 gallons.
Standby Service
Back-up Energy Services provided by CPAU.
Storm and Surface Water Drainage
Utility Service provided to residents and business owners in the City of Palo Alto.
Storm and Surface Water Drainage Service is provided by the City of Palo Alto Public Works
Department.
Supplemental Review
A process wherein CPAU further reviews an Application that fails one or more of the Initial Review
Process screens. The Supplemental Review may result in one of the following: (a) approval of
Interconnection; (b) approval of Interconnection with additional requirements; or (c) cost and schedule
for an Interconnection Study.
System Integrity
The condition under which a Distribution System is deemed safe and can reliably perform its intended
Functions in accordance with the safety and reliability rules of CPAU.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 19
Tax
Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed by
any Agency, including the Cit y.
Telemetering
The electrical or electronic transmittal of Metering data in real-time to CPAU.
Temporary Service
Service requested for limited period of time or of indeterminate duration such as, but not limited to,
Service to provide power for construction, seasonal sales lots (Christmas trees), carnivals, rock crushers
or paving plants. Temporary Service does not include Emergency, breakdown, or Standby Service.
Therm
A Therm is a unit of heat energy equal to 100,000 British Thermal Units (Btu). It is approximately the
energy equivalent of burning 100 cubic feet (often referred to as 1 ccf) of natural Gas. Since Meters
measure volume and not energy content, a Therm factor is used to convert the volume of Gas used to its
heat equivalent, and thus calculate the actual energy use. The Therm factor is usually in the units
therms/ccf. It will vary with the mix of hydrocarbons in the natural Gas. Natural Gas with a higher than
average concentration of ethane, propane or butane will have a higher Therm factor. Impurities, such as
carbon dioxide or nitrogen lower the Therm factor.
Transfer Trip
A Protective Function that trips a Generating Facility remotely by means of an automated
communications link controlled by CPAU.
Transmission Pathway
Those areas of the Public Right-of-Way, the Public Utility Easements and the Leased Service Properties
in which the Dark Fiber Infrastructure is located.
Trap
Any approved equipment or appliance for sealing an outlet from a house-connection sewer to
prevent the escape of sewer Gas from a main line through a building connection (service) sewer.
Underground Utility District
An area in the City within which poles, overhead electric or telecommunication wires, and associated
overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC.
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 20
Unintended Island
The creation of an Island, usually following a loss of a portion of CPAU’s Distribution System, without
the approval of CPAU.
Unsafe Operating Conditions
Conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of
System Integrity or operation outside pre-established parameters required by the Interconnection
Agreement.
Utilities Department
See City of Palo Alto Utilities Department.
Utilities Director
The individual designated as the Director of Utilities Department under Section 2.08.200 of Chapter
2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of
the director of utilities.
Utility(ies) Rules and Regulations, Rules and Regulations
The compendium of Utilities Rules and Regulations prepared by the City’s Utilities and Public Works
Departments and adopted by ordinance or resolution of the Council pursuant to Chapter 12.20 of the
Palo Alto Municipal Code, as amended from time to time.
Utility(ies) Service(s), Service(s)
Electric, Ffiber optics, Wwater, Ggas, Wwastewater collection services provided by the City of Palo
Alto Utilities Department (CPAU) and Refuse and Recycling, Wastewater Treatment and Storm and
Surface Water Drainage services provided by the City of Palo Alto Public Works Department.
Utilities User Tax (UUT)
City of Palo Alto Tax imposed on Utility Charges to a Water, Gas, and/or Electric Service user. This
may include Charges made for Electricity, Gas, and Water and Charges for Service including Customer
Charges, Service Charges, Standby Charges, Charges for Temporary Services, Demand Charges, and
annual and monthly Charges, as described in Chapter 2.35 of the Palo Alto Municipal Code.
Wastewater
Utility Service provided to residents and business owners in the City of Palo Alto . Wastewater Utility
Services include collection and treatment of Wastewater. Wastewater Collection Service is provided by
the City of Palo Alto Utilities Department, and Wastewater Treatment Service is provided by the City of
DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 12-15-20143
Sheet No 21
Palo Alto Public Works Department.
Water
Utility Service provided to residents and business owners in the City of Palo Alto for retail use. Water
Service is provided by the City of Palo Alto Utilities Department.
Water Column (WC)
Pressure unit based on the difference in inches between the heights of water columns as measured in a
manometer. 6” WC = 0.217 psi; 7” WC = 0.25 psi.
Yard Trimmings
Yard Trimmings means those materials defined in Section 5.20.010 of the Palo Alto Municipal Code.
(END)
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 1
A. GENERAL
Rule and Regulation 3 describes Services that are offered within the jurisdictional boundaries of
the City of Palo Alto. For Rules specific to each type of Service, please refer to the following
Rules and Regulations:
Rule and Regulation 20 – Special Electric Utility Regulations
Rule and Regulation 21 – Special Water Utility Regulations
Rule and Regulation 22 – Special Gas Utility Regulations
Rule and Regulation 23 – Special Wastewater Utility Regulations
Rule and Regulation 24 – Special Refuse and Recycling Utility Regulations
Rule and Regulation 25 – Special Storm and Surface Water Drainage Utility Regulations
Rule and Regulation 26 – Special Fiber Optics Utility Regulations
B. ELECTRIC SERVICE
1. BASIS OF SERVICE
a. Unless otherwise provided in a Rate Schedule or contract, CPAU’s Electric rates
are based upon the furnishing of Electric Service to Customer Premises at a single
Point of Delivery at a single voltage and phase classification. Unless specified
otherwise, each Point of Delivery shall be metered and billed separately under the
appropriate Rate Schedule. Any additional Service supplied to the same
Customer at other Points of Delivery or at a different voltage or phase
classification shall be separately metered and billed.
b. The type of distribution Service (voltage, Secondary, Primary) available at any
particular location may be determined by inquiry to a CPAU Engineering
representative.
c. If the Customer, for his or her convenience, requests Secondary or Primary
Services at an alternate Point of Delivery other than the normal Point of Delivery
as determined by CPAU, the Customer is responsible for all cost of providing
Secondary or Primary Services at such alternate location.
d. CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment
downstream of the Utility Meter.
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 2
e. See Rule and Regulation 20. "Special Electric Utility Regulations" regarding
special Service requirements.
2. LOCATION OF POINT OF SERVICE
a. SECONDARY SERVICE
1. OVERHEAD SERVICE AT SECONDARY VOLTAGES
The Point of Service for Overhead Service at secondary voltages will normally be
located at a power pole on the perimeter of the parcel to be served, which is, in
CPAU’s judgment, most conveniently located and in compliance with CPAU
standards and specifications and applicable building and electrical codes.
2. UNDERGROUND SERVICE AT SECONDARY VOLTAGE
The Point of Service for Underground Service at secondary voltages will
normally be located at the Secondary connectors of the transformer serving the
Customer’s Load, or in the Secondary hand hole, if available.
b. PRIMARY SERVICE
The Point of Service for Primary Service will normally be at the point near the
property line of the premises to be served which is, in CPAU’s judgment, most
conveniently located with respect to CPAU’s transmission or distribution
facilities.
c. EXCEPTIONS
If several buildings are occupied and used by one Customer in a single business or
other activity, CPAU may, at its discretion, furnish Service for the entire group of
buildings through one Service connection at one Point of Service.
3. EQUIPMENT REQUIREMENTS
All new equipment in underground areas required to provide electric service to a
Customer shall be pad-mounted. In addition, any three-Phase electric service connection
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 3
and any electric service connection rated at 400 Amps or greater which is located either
in an underground or overhead area must be served from a pad-mounted transformer.
The Utilities Director, or his/her designee, may authorize: 1) an exception to the above
provisions when, in his/her opinion, a pad-mounted equipment installation in any
particular instance would not be feasible or practical or 2) installation of electric service
equipment in locations with limited access by utility equipment. Such installations will
be considered “Special Facilities” as defined in Rule and Regulation 20, and the
Applicant will be responsible for the costs described in that rule and outlined in the
Service Contract as described in Rule and Regulation 5.
If the Applicant wants a Point of Delivery other than at the location determined by
CPAU, CPAU will work with the Applicant to assist in the selection of the alternate Point
of Delivery location for the electric service equipment within the boundaries of the
Applicant’s property. When the Applicant chooses a Point of Delivery location other
than the location which has been determined by CPAU, the Applicant must acknowledge
that such an alternate Point of Delivery location will cause CPAU personnel to incur
delays when performing repairs or service restoration during emergencies. In addition to
being responsible to pay for the initial cost of installation of such electric service
equipment in an alternate location, the Applicant shall also be responsible to pay for any
future additional labor, equipment, and material costs incurred by CPAU necessary to
facilitate replacement, removal, or relocation of any electric service equipment which has
been installed in an alternate Point of Delivery location at the Applicant’s request.
Any installation intended to assist in “screening” of electric service equipment by
landscaping or structures must be constructed in a manner which meets all of CPAU’s
clearance standards. The plans for such screening must be approved by the City of Palo
Alto and CPAU prior to beginning work on the screening installation.
The Applicant shall provide a Public Utility Easement in recordable form for installation
of such facilities within the boundaries of the property. All pad-mounted equipment will
be subject to CPAU’s aesthetic guidelines.
4. EMERGENCY AND STANDBY SERVICES
CPAU may provide back up Emergency, and other Standby Service to Customers as
Special Facilities. See Rule and Regulation 20 "Special Electric Utility Regulations"
regarding special Service requirements.
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 4
5. SERVICE DELIVERY VOLTAGE
The following are the standard Service voltages normally available. Not all standard
Service voltages are available at each Point of Delivery. These Service voltages are
available in locations that already have this Service voltage and have sufficient capacity,
as determined by CPAU, to serve the new Load. Any equipment installed on 120/240, 3
wire or 240/120, 4-wire Services shall have the capability of converting to a 120/208, 3
wire or 208 Y/120, 4-Wire Service.
a. DISTRIBUTION OF VOLTAGE
Alternating-current Service will be regularly supplied at a nominal frequency of
approximately 60-Hertz (cycles per second).
Single-Phase Three-Phase Three-Phase
Secondary Secondary Primary
120/240, 3 -wire 240/120, 4-wire* 12,470, 3-wire
120/208, 3-wire 240, 3-wire*
208 Y/120, 4-wire
480 Y/277, 4-wire
*Only available in special conditions as determined by the Electric Engineering
Manager.
b. All voltages referred to in this Rule and appearing in some Rate Schedules are
nominal Service voltages at the Point of Delivery. CPAU’s facilities are designed
and operated to provide sustained Service voltage at the Point of Delivery, but the
voltage at a particular Point of Delivery will vary within satisfactory operating
range limits.
c. In areas where a certain standard Secondary voltage is being delivered to one or
more Customers, CPAU may require an Applicant for new Service in such areas
to receive the same standard voltage supplied to existing Customers.
d. CPAU may change the voltage at which Service is delivered, including converting
existing 4160 volt Primary Service to 12,470 volt Service. If CPAU notifies the
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 5
Customer that a Service voltage change is necessary, the Customer will be
required to provide Service equipment capable of accepting the new voltage and
meeting other CPAU requirements. Costs to provide suitable Customer’s Service
entrance equipment and any other associated equipment to receive Service at the
new voltage shall be borne by the Customer.
6. VOLTAGE AND FREQUENCY CONTROL
a. Under normal Load conditions, CPAU’s distribution circuits will be operated so
as to maintain Service voltage levels to Customers within plus or minus 5 percent
of the nominal Service voltage at the Point of Delivery. Subject to the limitations
above, CPAU will maintain the voltage balance between phases as close as
practicable to 2.5% maximum deviation from the average voltage between the
three phases.
b. Voltages may be outside the limits specified above when the variations:
1. arise from Service interruptions;
2. arise from temporary separation of parts of the system from the main
system;
3. are minor momentary fluctuations and transient voltage excursions of
short duration which may occur in the normal operation of CPAU system;
4. are beyond CPAU’s control.
c. Due to conditions beyond the control of CPAU, the Customer, or both, there will
be infrequent and limited periods when voltages will occur outside of the nominal
Service voltage ranges. Utilization equipment may not operate satisfactorily
under these conditions, and protective devices in the equipment may operate to
protect the equipment.
d. Where the operation of the Customer’s equipment requires stable voltage
regulation or other stringent voltage control beyond that supplied by CPAU in the
normal operation of its system, the Customer, at its own expense, is responsible
for installing, owning, operating, and maintaining any special or auxiliary
equipment on the Load side of the Service delivery point as deemed necessary by
the Customer.
e. The Customer shall be responsible for designing and operating its Service
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 6
facilities between the Point of Delivery and the utilization equipment to maintain
proper utilization voltage at the line terminals of the utilization equipment.
f. The Customer shall not impose a Load on CPAU’s system that will cause the
voltage limits in this section to be exceeded for an adjacent Service delivery point.
g. When there is reasonable indication of a problem, CPAU shall test for excessive
fluctuations at its own expense. Voltage checks requested by the Customer more
than once in any twelve month period shall be paid by the Customer, unless
CPAU determines that excessive voltage fluctuation exists.
h. CPAU may institute measures to prevent the continuous operation of equipment
detrimental to Service to other Customers or may discontinue Electric Service to
the offending Customer. (See Rule and Regulation 20, Special Electric Utility
Regulations).
i. Customers are responsible for protecting their connected Loads, audio, video, and
electronic equipment, including computers, from sudden voltage or frequency
fluctuations outside nominal Service and frequency ranges. Such protection may
include, but is not limited to, surge protectors.
7. GENERAL LOAD LIMITATIONS
a. SINGLE-PHASE SERVICE
1. Single-phase Service normally will be 3-wire, 120/240 volts (or 3-wire,
120/208 volts at certain locations as now or hereafter established by
CPAU) where the size of any single motor does not exceed 7-1/2
horsepower (10 horsepower at the option of CPAU). For any single-phase
Service, the maximum Service size shall be 400 ampere. If the Load
exceeds the capability of a 400 ampere single phase Service the Service
shall be three-phase.
2. In locations where CPAU maintains a 120/208 volt secondary system, 3-
wire single-phase Service normally shall be limited to that which can be
supplied by a main switch or Service entrance rating of 200 amperes.
Single-phase Loads in these locations in excess of that which can be
supplied by a 200 ampere main switch or Service entrance rating normally
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 7
will be supplied with a 208Y/120 volt, three-phase, 4-wire Service. b. THREE-PHASE SERVICE (480 VOLTS OR LESS) Minimum Load Maximum Demand Normal Voltage Requirements Load Permitted
240/120 5 hp, 3-phase connected 400 Amperes
240 5 hp, 3-phase connected 400 Amperes
208Y/120 Demand Load 75 kVA 500 kVA
480Y/277 Demand Load 112 kVA 2,500 kVA (See Note 1)
Note 1. Applicants or existing Customers with a planned or existing single or
multiple building development having a maximum Demand in excess of 2500
kVA, as determined by CPAU, will be required to take delivery at the available
primary voltage and are required to provide their own primary switchgear and
transformer(s). Determination of maximum Demand and Service voltage will be
made by CPAU and the decision of the Electric Engineering Manager will be
final.
1. Where three-phase Service is supplied, CPAU reserves the right to use
single-phase transformers, connected open-delta or closed-delta, or three-
phase transformers.
2. Three-phase Service will be supplied on request for installations
aggregating less than the minimum listed above, but not less than 3
horsepower (hp), three-phase Service, where existing transformer capacity
is available. If three-phase Service is not readily available, or for Service
to Loads less than 3 hp, Service shall be provided in accordance with
CPAU’s applicable Rule 20 on Special Power Service requirements.
3. Residential customers requesting three-phase service shall be responsible
for all labor and material costs required to provide service, including the
cost of the transformer. These installations are not considered “Special
Facilities” as described in Rule and Regulation 20.
4. An Applicant or existing Customer requiring Service with a maximum
Demand in excess of 1000 kVA, as determined by CPAU, shall be served
by a padmount transformer. No submersible or vault-installed
transformers in excess of 1000 kVA will be installed by CPAU. Where an
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 8
existing underground Service must be upgraded beyond 1000 kVA, the
Customer shall be required to provide adequate space for installation of
the padmount transformer. In the event the Customer is unable to provide
adequate space for the padmount transformer, then the Customer shall
make arrangements at his or her expense to receive Service at primary
voltage.
c. THREE-PHASE SERVICE (OVER 2,000 VOLTS)
The following three-phase primary voltage may be available as an isolated
Service for a single Applicant; and where that Applicant’s Demand Load justifies
such voltage. The determination will be made by CPAU.
Minimum Demand Maximum Demand
Normal Voltage Bank Installed Load Permitted
4,160 500 kVA 3,600 kVA
12,470 1,000 kVA 11,000 kVA
Note: 4,160 volt Services will not be furnished for new Services.
8. TEMPORARY SERVICE
Temporary Service is Electric Service which, in CPAU’s opinion, is of an indefinite
duration at the same location, or for operations of a speculative character or of
questionable permanency, or any other Service which is estimated to last less than one
year. CPAU will furnish Temporary Service if the furnishing of such Service will not
create undue hardship for CPAU, or its Customers, and the following conditions are met:
a. The Applicant for such Temporary Service shall apply for Service on an
Application form provided by CPAU Engineering and shall pay to CPAU in
advance the cost of installing and removing any facilities necessary in connection
with the furnishing of such Service by CPAU.
b. Each Applicant for Temporary Service shall prepay a Temporary Service Fee in
accordance with Electric Service Connection Fees Rate Schedule E-15.
c. Nothing in this Rule and Regulation shall be construed as limiting or in any way
affecting the right of CPAU to collect from the Customer an additional sum of
money by reason of the Temporary Service furnished or to be furnished or
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 9
removed hereunder.
d. If the Temporary Service connection time exceeds one-year, the Applicant shall
apply for an extension of the Temporary Service. The Director of Utilities or
his/her designee will determine if the Service should be reclassified as a
permanent Service.
9. SERVICE DOWNSTREAM OF METER
CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment downstream of
the Utility Meter.
C. FIBER OPTIC SERVICE
Fiber Optic Service includes the custom construction and licensing of single mode Fiber routes
between points within the City of Palo Alto. It is the Customer’s responsibility to establish all
electronic devices and networks required to pass data over their licensed CPAU Dark Fiber
routes.
1. LICENSING SERVICES
All Dark Fiber routes are licensed in accordance with the currently approved Dark Fiber
Rate Schedules, and in compliance with the Utilities Rules and Regulations. See Rule and
Regulation 26, “Special Fiber Optic Utility Regulation,” regarding special Service
requirements. All CPAU fibers terminate within the jurisdictional boundaries of the City
of Palo Alto.
2. OTHER SERVICES
CPAU offers custom Dark Fiber construction and ancillary Services such as Fiber Optic
cable splicing, engineering feasibility studies, and when specifically requested by the
Customer, multimode Fiber cable installations.
3. QUALITY
Dark Fiber routes in the City of Palo Alto comprised of single mode Fiber comply with
generally accepted industrial standards and specifications. All construction is done using
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 10
industry accepted techniques and procedures. All constructed routes are Performance
Tested to assure the industry quality standards are met.
D. WATER SERVICE
1. SOURCE OF SUPPLY
CPAU’s primary source of Water is the Hetch Hetchy aqueduct system, managed by the
San Francisco Public Utilities Commission (SFPUC). CPAU wells also provide
Emergency supply. See Rule and Regulation 21, “Special Water Utility Regulation”
regarding special Service requirements.
2. QUALITY
Hardness generally varies between 1 and 4 grains per gallon depending on the source.
An analysis of the mineral content of the Water is available upon request from CPAU
Engineering.
3. PRESSURE
Water pressure varies from 30 to 125 pounds per square inch. CPAU maintains an
average of 50 pounds per square inch, with the maximum and minimum pressures being
experienced at the lower and higher elevations of the Distribution System. CPAU
assumes no responsibility for loss or damage due to lack of Water pressure but agrees to
furnish such pressures as are available in its general Distribution System. If low Water
pressure occurs due to additional on-site development, it shall be the responsibility of the
property owner to replace the existing Water Service with a new Water Service designed
for the current site. All costs of the required new Service upgrade shall be borne by the
property owner.
4. TREATMENT
CPAU currently does not treat Water supplied by the SFPUC. The pH of the Water
supplied is adjusted by the SFPUC to reduce its corrosive action.
5. SERVICE DOWNSTREAM OF METER
CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment downstream of
the Utility Meter.
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 11
E. GAS
1. TYPES OF SERVICES
CPAU offers two general types of Gas Service:provides Full Service and Gas Direct
Access Service. Full Service includes Gas supply, transportation, and Distribution
Services. Gas Direct Access Service is an unbundled Service where CPAU provides
Distribution Services and outside Gas Service Providers supply Gas-commodity and
transport. In order to initiate Gas Direct Access Service, Customers must complete a Gas
Direct Access Service Request form. Gas Service Providers will be required to execute a
Gas Service Provider Agreement (GSPA). Operational requirements as well as delivery
specifications, administrative fees, security deposits, Metering requirements and other
requirements will be addressed in the GSPA.
2. KIND AND HEATING VALUE
CPAU purchases natural Gas from several/various natural Gas suppliers. The heating
value of natural Gas supplied varies depending upon the Gas fields being drawn upon. At
times of insufficient supply, some artificial Gas may be supplied or mixed with the
natural Gas. The average monthly heating value in British Thermal Units (Btu)-dry basis
per cubic foot of the natural Gas served may vary within the limits of 750 to 1150 Btu.
This average heating value is converted to a Therm factor for use as one of the factors
used in calculating a composite multiplier for billing purposes. The Therm factor will be
based upon the heat factor used by CPAU’s supplier of natural Gas for the preceding
month.
Gas is supplied by CPAU either at standard “low pressure” or at “medium pressure”.
Low pressure Service is available at all points where Gas is supplied. Where available
from existing high pressure mains, at the option of CPAU, high pressure Service may be
supplied. However, CPAU reserves the right to lower the pressure or to discontinue the
delivery of Gas at high pressure.
The standard pressure for low pressure is seven inches of Water Column (WC), which is
approximately 1/4 pound per square inch (psi) above atmospheric pressure. In limited
circumstances, increased pressure may be provided for domestic use at 14” Water
Column. This increased pressure will only be provided for domestic use if the houseline
size required is greater than 2” diameter, or CPAU determines, based upon satisfactory
information from the manufacturer, provided by the Customer, that an appliance to be
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 12
located in the residence requires increased pressure at the inlet that cannot be obtained by
resizing or relocating the houseline. Increased pressure may be provided for commercial
uses only if the use of the houseline size required is greater than 4” diameter, or evidence
as described above establishes that equipment on the site requires increased pressure at
the inlet that cannot be obtained by resizing or relocating the houseline. For commercial
uses, the available pressures are 7” WC, 14” WC (approximately 1/2 psi), 1 psi, 2 psi and
5 psi.
All increased pressure above 7”WC requires review and approval of the Engineering
Manager, a plumbing permit and testing of the existing Gas piping with a building
Inspector present in accordance with the latest adopted version of the California
Plumbing Code
See Rule and Regulation 22, “Special Gas Utility Regulations” regarding special Service
requirements.
3. DETERMINATION OF THERMS TO BE BILLED
The unit of measure for billing is the Therm which is defined as the quantity of Gas
having a heating value of 100,000 Btu. Gas Meters measure volume of Gas in ccf at
ambient temperature and pressure conditions. Therms are derived from the metered data
by subtracting the Meter reading for the previous reading cycle from the current reading.
The difference (uncorrected ccf) is multiplied by the pressure factor required to convert
the measured consumption volume to a standard volume (at standard temperature and
pressure conditions). This standard volume, in pressure-corrected ccf, is then multiplied
by the Therm factor (a variable determined by periodic analysis of CPAU’s Gas supply)
to produce the final number of Therms billed. The composite correction factor (the
product of the Therm factor and the pressure correction factor) is shown on bills under
the heading “multiplier.”
4. SERVICE DOWNSTREAM OF METER
CPAU assumes no duty or liability for inspecting, validating or approving the safe
operating condition of the Customer’s Service, appliances, or equipment downstream of
the Utility Meter.
F. WASTEWATER COLLECTION AND TREATMENT
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 13
1. COLLECTION
CPAU operates and maintains a Wastewater Collection System separate from the storm
and surface Water Collection System. A connection to the Wastewater Collection
System is required for all water users where wastewater service is available.
For the disposal of Wastewater from basements and floors below ground level, it will be
necessary for the Customer to provide pumps or ejectors for satisfactory drainage, as
approved by the Water-Gas-Wastewater Engineering Manager. If the elevation of the
basement floor is above the rim elevation of the next upstream manhole, Applicant shall
provide a survey by a licensed Civil Engineer indicating the elevations of the basement
floor and the rim elevation of the next upstream manhole. Submission of this survey and
approval by the Engineering Manager is required for exemption from the pump/ejector
requirement.
2. REGULATION
Chapter 16.09 of the Municipal Code regulates the discharge into the Wastewater
Collection System of substances other than domestic Wastewater. See Rule and
Regulation 23, “Special Wastewater Utility Regulations” regarding special Service
requirements.
3. TREATMENT
The collection system transports the Wastewater to the Palo Alto Regional Water Quality
Control Plant for treatment. At this tertiary treatment plant, the City of Palo Alto
processes the Wastewater from Mountain View, Los Altos, Los Alto Hills, Stanford
University, and East Palo Alto Sanitary District, as well as its own. The treatment is
performed in accordance with the National Pollution Discharge Elimination Permit issued
by the San Francisco Bay Area Regional Water Quality Control Board before the treated
water is discharged into the San Francisco Bay Estuary.
4. LIMITATION OF SERVICE
CPAU reserves the right to limit the size of connection and the quantity of wastes
disposed and to prohibit the use of the sewer for disposal of toxic or hazardous wastes
detrimental to the Wastewater system or treatment plant.
G. REFUSE AND RECYCLING COLLECTION
1. REGULATION
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 14
All solid waste and Recyclable Materials are governed by Chapter 5.20 of the Palo Alto
Municipal Code, regulations promulgated by the City Manager pursuant to Chapter 5.20,
these Rules and Regulations and the contract between the City and the City’s Collector.
See Rule and Regulation 24, “Special Refuse and Recycling Regulations” regarding
special Service requirements.
2. REFUSE COLLECTION
The City’s Collector provides collection of solid waste, Recyclable Materials,
compostables and Yard Trimmings. A minimum of one collection per week of solid
waste is required of all occupied Premises. An occupied premise is one to which Water,
Gas and/or Electric Service is rendered.
The automatic solid waste Service level is one Standard Container for Residential
Customers and two Standard Containers for Commercial Customers. The minimum
Service for Residential Premises is one twenty gallon can or wheeled cart provided by the
City’s Collector.
The City’s Collector will provide wheeled carts at Customer’s request for curbside solid
waste collection, which are subject to the same rate structure and volume capacity as the
Standard Container. Customers opting for a wheeled cart must use one provided by the
City’s Collector-to ensure compatibility with collection vehicles. Contents of wheeled
carts shall not exceed a weight of 200 pounds.
Each Customer shall receive collection Service on a City specified day of each week.
Solid waste in excess of the Service level subscribed by the Customer will be removed by
the City’s Collector, for an additional Charge, upon Customer request or notification.
Customers exceeding their subscribed Service level repeatedly are required to subscribe
to additional collection Service at the City-established rates.
H. STORM AND SURFACE WATER DRAINAGE
1. RESPONSIBILITY AND PURPOSE
The City of Palo Alto Public Works Department is responsible for all Drainage Facilities
in the street and public right of way that collect storm and surface Water and convey it to
the major channels and creeks within the jurisdictional boundaries of the City of Palo
Alto. Examples include curbs and gutters, catch basins, pipelines, culverts, street,
DESCRIPTION OF UTILITY SERVICES
RULE AND REGULATION 3
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Sheet No 15
channels and pumping stations. The purpose of the Storm and Surface Water control
facilities is to improve the quality of control, or protect life or property from any storm,
flood or surplus waters. See Rule and Regulation 25, “Special Storm and Surface Water
Drainage Regulations,” regarding special Service requirements.
2. STORM DRAINAGE FEE
A Storm Drainage fee shall be payable to the City monthly by the owner or occupier of
each and every developed parcel in accordance with Rule and Regulation 25.
(END)
SERVICE CONTRACTS
RULE AND REGULATION 5
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Original Sheet No 1
A. TYPES OF SERVICE CONTRACTS
For all Utility Services provided, the City may require a written agreement for new or existing
Customers. Contracts may apply to standard, custom, or special Service offerings. The
following is an illustrative list of special Services that may be the subject(s) of a contract.
Additional Services may require contracts not listed here, at the discretion of the Director of
Utilities.
1. Line Extensions
2. Temporary Service
3. Special Facilities
4. Utility Service to special districts and institutions
5. Work performed for other agencies at their expense
6. Transporting Gas to Customers on behalf of Gas Service Providers (GSP)
76. Transmission service
87. Special Metering and/or Billing Services
89. Special Energy Services
910. Long-term Service agreements greater than 3 years
1011. Loans and leases to finance efficiency improvements at a Customer’s site
112 Loans and leases to improve power quality or reliability at a Customers’ site
123. Standby Service
134. Purchase, lease, installation, connection or maintenance of on-site or distributed
generation
145. All Fiber Optic Services
156. Reserve Electric Capacity
B. CONTRACT APPLICATION PROCEDURES
1. Customers shall complete and execute applicable form(s) or letter(s), as necessary.
2. Depending on the type of Service contract and at the request of CPAU, Customers shall
request consideration for a special contractual agreement in writing to the Director of
Utilities and/or the Director of Public Works specifying their objectives, including the
desired terms and conditions of the contract.
3. Customers shall pay all applicable fees and deposits in accordance with the terms of the
contract.
4. Customers shall comply with the City’s insurance requirements.
C. CONTRACT PRICING GUIDELINES
For Electricity and Gas contracts, only the commodity portion of the rate will be established by
contract under custom commodity rates and fixed-term commodity rates. All other Rate
Schedule components and other non-bypassable Charges may be changed by Council action at
SERVICE CONTRACTS
RULE AND REGULATION 5
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 15-13-20143
Original Sheet No 2
any time.
(END)
SHORTAGE OF SUPPLY AND INTERRUPTION
OF UTILITY SERVICES
RULE AND REGULATION 13
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 16-1-20140
Sheet No. 1
A. GENERAL
CPAU will make reasonable efforts to deliver continuous and sufficient Utility Service to its
Customers, but CPAU does not guarantee the continuity or sufficiency of supply. CPAU will not be
liable for Service interruption, shortage or insufficiency of Utility supply, or any loss or damage
occasioned thereby.
B. INTERRUPTION OF UTILITY SERVICE
1. When interruptions occur, CPAU will endeavor to reestablish Service with the shortest
possible delay consistent with the safety of its Customers, staff and the general public.
2. CPAU will have the right to suspend Service temporarily for the purpose of making repairs
or improvements to the system. When CPAU finds it necessary to schedule an interruption
to its Service, it will, where feasible, notify all Customers to be affected of the approximate
time and the anticipated duration of the interruption. CPAU will endeavor to schedule
interruptions at hours that will be least inconvenient to the Customers and consistent with
economical Utility operations.
C. SHORTAGE OF ELECTRICITY SUPPLY
During times of threatened or actual shortage of supply, CPAU will apportion the available supply
among its Customers based on operating conditions, public health and safety. The Director of
Utilities is authorized to adjust Emergency Load shedding plans to reflect changes in personnel,
Distribution Systems, Utility Services, or other factors, when, in the opinion of the Director of
Utilities such adjustments will lead to better protection of the public health and general welfare.
D. OVERSUPPLY OR POWER SURGES ON THE ELECTRIC DISTRIBUTION SYSTEM
Power surges may occur due to conditions beyond the control of CPAU or its Customers. CPAU
will make reasonable efforts to minimize power surges occurring on the CPAU Distribution System,
but CPAU does not guarantee that power surges will not occur. CPAU recommends that Customers
protect their connected Loads and equipment from power surges. CPAU shall not be liable for any
loss or damage occasioned by power surges.
SHORTAGE OF SUPPLY AND INTERRUPTION
OF UTILITY SERVICES
RULE AND REGULATION 13
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 16-1-20140
Sheet No. 2
E. FIBER OPTIC SERVICE INTERRUPTION
CPAU will make reasonable efforts to deliver continuous Fiber Optic Service to its Customers, but it
will not guarantee uninterrupted Service. CPAU will not be liable for interruption of Service or any
loss or damage occasioned thereby. For interruptions over 72 hours, CPAU will pro-rate the monthly
license fee based on a pro-ration of the time down.
F. SHORTAGE OF GAS SERVICE
CPAU may reduce, interrupt, or allocate Gas supply Services for operational reasons in the event of
projected or actual supply or capacity shortages.
CPAU will exercise good faith efforts to furnish and deliver continuous Service and a sufficient
quantity of Gas to Customers, but CPAU does not guarantee continuity of Service or sufficiency of
quantity. CPAU shall not be liable for any interruption, shortage, or insufficient supply, or any loss
or damage of any kind or character caused by such, if caused by Force Majeure or any other cause
beyond CPAU’s reasonable control. CPAU shall be the sole judge of whether it is operationally able
to receive and/or deliver Gas on its Distribution System. CPAU shall not be liable to the Customer
for damages, or otherwise, as the result of any interruption, reduction, or allocation of Gas
transportation capacity or delivery Service.
CPAU may, in the exercise of reasonable judgment, reduce receipts or deliveries of Gas in order to
test, alter, modify, enlarge, or repair any part of the Distribution System or any facility or property
related to the operation of the Distribution System. In all such cases, CPAU shall give the
Customers reasonable notice as circumstances will permit, and CPAU shall complete such repairs or
improvements as soon as practicable and with minimal inconvenience to Customers. In the event of
localized constraints, Customers in unconstrained areas may continue to receive Service; provided,
however that CPAU may take whatever steps it determines are operationally necessary in the event a
constraint on the Distribution System threatens Service to Customers.
Reductions and/or interruptions of Gas Service to Gas Direct Access Customers is addressed in the
Gas Service Provider Agreement.
SHORTAGE OF SUPPLY AND INTERRUPTION
OF UTILITY SERVICES
RULE AND REGULATION 13
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 16-1-20140
Sheet No. 3
G. GAS CURTAILMENT PRIORITIES
In the event of a projected or actual supply Curtailment, Customers will be curtailed in the following
order of precedence:
1. Large Commercial Accounts
2. Small Commercial Accounts
3. Residential Accounts
H. WATER SHORTAGE EMERGENCY RESPONSE
During times of threatened or actual shortage of supply, CPAU will activate the Water Shortage
Contingency Plan, incorporated into the City of Palo Alto’s Emergency Response Plan. These plans
are consistent with both county and state Emergency planning procedures.
During a short-term Water shortage Emergency, the City Water shortage response team is activated.
Members include water, fire, planning, health, Emergency Services, public affairs, parks and
recreations, and the City Manager’s Office. This team has identified specific water-critical
Customers such as hospitals, nursing facilities, and schools. An organizational structure is in place
to deliver potable Water to distribution sites, activate Water purification equipment, employ standby
generators and auxiliary pumps and use Emergency Water conveyance and supply storage facilities.
During long-term water shortages due to drought, the Utilities Department will implement a four-
stage reduction strategy. Reduction targets will be set for all Customer classes depending on the
severity and duration of the shortage. Reduction targets will be established by Council to provide a
minimum of 50% of normal supply during a severe or extended Water shortage.
(END)
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-1 Effective 11x-1x1-20143
dated 71-1-20123 Sheet No G-3-1
A. APPLICABILITY:
This schedule applies to large commercial Customers who use at least 250,000 therms per year at
one site and to City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides natural gas service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: $361.18
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................................... $0.10-$2.00
2. Administrative .............................................................................................$0.0074
3. Transportation ...............................................................................................$0.0435
Distribution Charge: .............................................................................................................$0.5562
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s meter. The
Commodity charge will fall within the minimum/maximum range set forth in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one site. A site consists of one or more
contiguous parcels of land with no intervening public right-of- ways (e.g. streets).
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-2 Effective 11x-1x1-20143
dated 71-1-20123 Sheet No G-3-2
3. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo
Alto full-service rate schedule. Customers served under this rate schedule may elect Gas
Direct Access at any time.
{End}
GAS FOR ELECTRIC GENERATION SERVICE
UTILITY RATE SCHEDULE G-8
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 111x-11x-2008143
Supercedes Sheet No. G-COG-1 dated 11-1-2008 Sheet No G-8-1
A. APPLICABILITY:
This schedule applies to customerCustomer-owned power generating facilities who have
retained gas direct access eligibility. Gas supplied under this schedule is only available for the
electric generation portion of the customerCustomer’s load purchases.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides natural gas service.
C. UNBUNDLED RATES: Per Service
Monthly Customer Charge: $345.00
Per Therm Charges (To be added to Customer Charge Per Therm
Supply Charge:
Commodity Charge ............................................................................................ $0.10-$2.00
Administrative Fee ....................................................................................................$0.0227
PG&E Local Transportation .....................................................................................$0.0212
Distribution Charge:
Palo Alto Local Distribution .....................................................................................$0.1870
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 customerCustomer’s
bill statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s meter. The
Commodity charge will fall within the minimum/maximum range set forth in Section C.
(A) Commodity Charges
The Commodity Charge for qualifying customers under this schedule may be
GAS FOR ELECTRIC GENERATION SERVICE
UTILITY RATE SCHEDULE G-8
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 111x-11x-2008143
Supercedes Sheet No. G-COG-2 dated 11-1-2008 Sheet No G-8-2
determined based on one of two methods:
a. Weighted-Average Commodity Rate (available to all customers):
i. The Commodity Charge will be equal to the City's weighted average
cost of gas calculated at the PG&E City Gate for gas purchased by the
City at first of the month and daily market prices for that month.
ii. The commodity charge will fall within the minimum/maximum range
set forth in Section C, and include the cost of transporting the gas to
the PG&E City Gate.
iii. Election of this commodity charge basis does not have a term, and
constitutes the default billing basis for delivery should the customer
not elect or renew a Fixed-Term Commodity Rate, as specified below;
b. Fixed-Term Commodity Rate (available to customers with generation loads
over 250,000 therms annually)
i. The Commodity Charge and the term of said charge will be set at the
time when the customer signs a letter acknowledging the term and
price agreed upon with CPAU. The Commodity Charge shall be based
upon the customer class average load shape, a risk premium, and
market prices: The Commodity Charge will fall within the range set in
Section C of this Schedule and will be for gas delivered to PG&E City
Gate.
ii. The Commodity Charge shall be fixed for a 12 or 24-month term.
iii. Qualifying customers who choose to be charged under this commodity
charge basis are required to sign a letter with CPAU committing to a
price and term and to adhere to rules and regulations set forth in
CPAU Rule and Regulation No. 5 (Contracts). The letter shall
indicate the estimated gas consumption over the term of the contract
rate. This consumption shall be served solely by CPAU.
iv. Should the customer elect a Fixed-Term Commodity option, the
customer must remain on the term rate for the term indicated on the
Confirmation Schedule, providing the customer continues to receive
GAS FOR ELECTRIC GENERATION SERVICE
UTILITY RATE SCHEDULE G-8
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 111x-11x-2008143
Supercedes Sheet No. G-COG-3 dated 11-1-2008 Sheet No G-8-3
distribution services from the City. The confirmation Schedule shall
indicate the Customer's approximate gas usage (load) over the term of
the contract. This load shall be served solely by CPAU.
(B) The other components of the rate: Administrative Fees, Transportation Charges,
Distribution Charges and Monthly Customer Charges may be modified
periodically with the Council's approval.
a. The Administrative Fee is equal to the allocable administrative and overhead
costs incurred by the City in providing the gas service.
b. PG&E Local transportation charge is equal to the cost of transporting gas
from PG&E City Gate to the Palo Alto City Gate.
2. Special Conditions
Service under this schedule is subject to discontinuance in whole or in part, for
operational reasons, or if the City experiences supply or capacity shortages. The City
will exercise reasonable diligence and care to furnish and deliver continuous service and
a sufficient quantity of gas to customers, but does not guarantee continuity of service or
sufficiency of quantity. The City shall not be liable for any damage caused by
interruption of service , if the interruption of service is caused by Force Majeure an act of
God, Fire, Strikes, riots, war, or any other cause that is beyond the City’s control.
{End}
EXCERPTED DRAFT MINUTES OF THE NOVEMBER 6, 2013
UTILITIES ADVISORY COMMISSION MEETING
ITEM 2: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend
that the City Council Adopt a Resolution to 1) Terminate the City’s Natural Gas Direct Access
Program by Repealing Gas Rate Schedule G-4; 2) Eliminate Fixed and Custom Gas Commodity
Rates for Large Commercial Customers by Repealing Gas Rate Schedule G -11 and G-12; and 3)
Effect the Changes by Amending Gas Rate Schedules G-3 and G-8 and Utility Rules and
Regulations 2, 3, 5 and 13
Vice Chair Foster indicated that the recommended action made sense since no customers were
on the rates to be eliminated, the proposed rule changes were for consistency and the result
would be a streamlined process.
ACTION:
Vice Chair Foster moved the staff recommendation and Commissioner Chang seconded the
motion. The motion carried unanimously (6-0) with Chair Cook absent.
Commissioner Hall stated that he supported the recommendation, but noted that the long
definitions section (Rule and Regulation 2) did not include definitions for gas transportation or
gas distribution and recommended including those to add clarity for readers. Director Fong
indicated that these definitions can be added either as this report goes forward or when we do
a larger clean-up of the rules and regulations.