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Home My WebLink About1999-05-03 City Council (11)BUDGET ’99- ’01 City City of Palo Alto Manager’s Report TO: ATTENTION: HONORABLE CITY COUNCIL FINANCE COMMITTEE FROM: DATE: CITY MANAGER MAY 3, 1999 DEPARTMENT: UTILITIES CMR: 222:99 SUBJECT:PROPOSED ELECTRIC RATE DECREASE AND RECOMMENDATION TO APPROVE A REVISED CALAVERAS RESERVE TARGET AND GUIDELINES REPORT IN BRIEF This report requests Council approval of an overall 15 percent or $10 million decrease in electric rates and to discontinue the transition cost recovery charge (TCRC) on customer bills. Based on a proposed downward revision of the Calaveras Reserve target, continued funding of the Calaveras Reserve by the TCRC is unnecessary. The revised target results from an updated stranded cost analysis and reflects a recent Northern California Power Agency refinancing of the Calaveras Hydroelectric Project which lowered debt. Also, to monitor the Calaveras Reserve balance in the future, staff recommends Council adopt specific reserve guidelines. The 15 percent reduction in electric rates is a system-wide average and actual bill impact on residents and businesses will vary based on the costs of serving customers at different usage levels. The proposed bill decrease for an average residential, commercial, and industrial customer will be approximately 10 percent, 15 percent, and 15 percent respectively. The proposed effective date of this rate change is July 1, 1999. However, a delay could occur, depending on the status of the conversion of the billing system. With this rate change, Palo Alto residents and businesses will continue to benefit from among the lowest electric rates in the Bay Area. CMR:222:99 Page 1 of 8 RECOMMENDATION Staff recommends that Council: o o Direct staff to prepare a resolution effective July 1, 1999 amending rate schedules to reduce electric rates approximately 15 percent or $10 million annually. Direct staff to prepare a resolution effective July 1, 1999, revising Utilities Rule and Regulation Nos. 2, 19, and 20 Approve a revised Calaveras Reserve target of approximately $65 million to be achieved by December 31,2001. Approve the proposed Calaveras Reserve maximum and minimum guideline policy. Suspend the Transition Cost Recovery Charge from customer bills. BACKGROUND During the budget process for FY 97-98, the City Council adopted a policy regarding stranded investment costs for the electric utility. Stranded investment costs are capital and operating costs of generation and transmission facilities which are forecast to become uneconomic in a deregulated environment. The centerpiece of Pal. Alto’s strategy to recover potential stranded costs is to fund a stranded cost reserve, the Calaveras Reserve which will subsidize stranded costs through 2032. The primary sources of funding of the Calaveras Reserve have been the savings from Electric Fund operating and capital budgets and wholesale power cost savings. To generate additional sales revenue to accelerate funding of the Calaveras Reserve, Council approved a 4 percent system-wide electric rate increase on July 1, 1997 (CMR:219:97). As part of that rate proposal, Council separated Pal, Alto’s electric rates into four cost components. One of these components, the transition cost recovery charge, supplements funding of the Calaveras Reserve until its December 31, 2001 target level is reached. The current target for the Calaveras Reserve is $93 million and was approved by Council in 1997- 98. However, an updated stranded cost analysis performed this year by staffhas resulted in a reduced target which can be met without continued funding of the Calaveras Reserve by the TCRC. DISCUSSION Recommended Calaveras Reserve Target of $65 million Based on this year’s updated stranded cost analysis, the Calaveras Reserve target for CMR:222:99 Page 2 of 8 December 31, 2001 would be reduced to approximately $65 million (2002 dollars). On a net present value basis, $65 million would offset approximately 73 percent of the total Calaveras debt service obligations between 2001 and 2032. The updated Calaveras Reserve target reflects the following changes from last year’s calculation: [] [] Reduced debt service costs for the Calaveras Hydroelectric Project due to the 1998 Northern California Power Agency debt refinancing. An updated energy price forecast primarily based on market quotes. Inclusion of California Oregon Transmission Project (COTP) potential stranded costs beyond December 31, 2001. Proposal for Calaveras Reserve Guidelines Recent projections indicate that the Calaveras Reserve will end the current fiscal year with a balance of approximately $71 million and, if Council approves this rate proposal, would decline to approximately $65 million by December 31, 2001. Since the Calaveras Reserve target will be achieved earlier than anticipated, it is relevant to address how the Calaveras Reserve balance will be evaluated in future years and provide guidelines for this reserve. Between 2002 and 2032, the projected target balance of the Calaveras Reserve will rise and fall periodically in recognition of the uneven debt service schedule. The target balance is based on a net present value calculation to arrive at the projected cash balance needed in the Calaveras Reserve in each year to cover future stranded costs. During this period, the rate of withdrawal or additions to the reserve may be affected by a combination of positive and negative factors which differ from the underlying assumptions. Higher or lower market prices, the actual yield on interest earnings and other factors such as additional refinancing of the Calaveras Hydroelectric project or the Northern California Power Agency step-up provisions may result in additions or reductions to the target reserve balance. To manage this reserve in the future, it is prudent to add guidelines to the Calaveras Reserve similar to those used for rate stabilization reserves. The application of reserve guidelines to the Calaveras Reserve will provide maximum and minimum levels each year. With such guideline levels, the Calaveras Reserve balance can be compared to its annual target and steps can be taken to maintain the balance within guidelines. In the event that the Calaveras Reserve falls below its target balance in a given year, the Electric Supply and/or Distribution Rate Stabilization Reserves may be used to help restore the Calaveras CMR:222:99 Page 3 of 8 Reserve to its target balance. Likewise, the Electric Supply and Distribution Rate Stabilization Reserves may serve as depositories of surpluses in the Calaveras Reserve above its maximum guideline. For the Calaveras Reserve, staff proposes a 10 percent maximum guideline above the annual target balance and a 10 percent minimum guideline below the annual target balance. Attachment 1 indicates the proposed target balances and maximum and minimum guideline levels for each year through 2032. Staff plans to continue to monitor the Calaveras Reserve balance during the annual budget process, due to changing assumptions on long range market price forecasts, the long term value or cost of the Calaveras Hydroelectric Project, California Oregon Transmission Project or other relevant factors. However, staff believes the proposed guidelines will provide an adequate range in which the Calaveras Reserve may float. In the event that an overall positive or negative long-term trend develops that indicates a revision to the Calaveras Reserve target would be prudent, staff will propose such an action. If the reserve target is revised upward, staff may propose to fund the balance through transfers from the Supply and/or Distribution Rate Stabilization Reserve(s) instead of reinstating the TCRC. Alternatively, if the reserve target is revised downward, staff may propose a rate refund or transfer the surplus to the Supply and/or Distribution Rate Stabilization Reserve(s). Electric Rate Decrease Proposal In 1997, Palo Alto established four electric cost components on customer bills: the power supply charge, distribution charge, transition cost recovery charge, and public benefits charge. Each cost component has projected costs and revenues which may increase or decrease individually. The proposed $10 million rate decrease represents the net revenue change in the sum of all four components. While elimination of the TCRC reduces revenue approximately $16.4 million, the three remaining charges are proposed to increase which partially offset the revenue decrease in the TCRC. Table 1 below provides a breakdown of the revenue change by component: CMR:222:99 Page 4 of 8 TABLE 1 1. Power Supply Charge " 2. Transition Cost Recovery Charge 3. Distribution Charge 4. Public Benefits Charge Total $25,500,000 16,450,000 23,300,000 1,050,000 $66,300,000 REVENUE: :~..PROPOSED" $2,800,000 $28,300,000 (16,450,000) $2,800,000 850,000 ($10,000,000) 0 26,100,000 1,900,000 $56,300,000 In spreading the $10 million decrease among the customer classes, the following rate making objectives were considered: (1) recover the costs of service by customer class, (2) maintain competitive distribution and power supply charges, and (3) fund public benefit programs in compliance with AB1890. Based on these objectives, residential customers bills will decrease approximately 4 percent to 16 percent, depending on usage level. The effect of the proposed rate decrease on all customer classes is shown in Table 2. Attachment 2 provides an electric rate comparison for residential and small commercial customers in the Bay Area. This comparison .indicates that Palo Alto’s electric rates remain competitive with those charged in nearby cities. While this recent rate comparison indicates that Palo Alto’s electric rates remain below those charged by PG&E, the City’s current rate advantage for commercial and industrial customers is in large part due to Palo Alto’s relatively low cost Federal power. However, in comparing current distribution rates, PG&E appears to be lower for non-residential customers. During FY 1999-00, staff plans to evaluate the differences between Palo Alto and PG&E distribution rates to gain a detailed understanding for the rate differentials and evaluate options to make Palo Alto’s electric distribution rates more competitive. CMR:222:99 Page 5 of 8 TABLE 2 Effect of Decrease on Customer Bills ~cuSTOMERI Small Residential Average Residential Large Residential Small Commercial Medium Commercial Large Industrial 300 5OO 3000 5OO 500000 55OOOO0 $13.56 24.48 203.70 30.85 22,012.00 241,434.00 (S0.63) (2.71) (37.83) (5.70) (5,132.00) (49,540.00) (4.4%) (lO.O) (15.7) (15.6) (18.9) (17.0) (57%) (56) (50) (54) (42) (33) Proposed Rate Schedule and Rule Changes Some minor changes to several Utility Rules are proposed below. They are primarily related to the City’s Electric Direct Access program. The specific changes are shown in bold on the attached rules. Rule 2- Revises definition of Default Rate Schedule to recognize that not all rate schedules have a 12 month term. Eliminates definition of Direct Access Service Provider Agreement (DASPA) and defines an Energy Service Provider (ESP) Agreement (CMR: (196:98). Rule 19- Replaces the term "DASPA" with "ESP Agreement". Rule 20 section H- Eliminates restrictions on customers electing different rate options such as the Open Season and Customer Rate Selection Period. Clarifies default rate CMR:222:99 Page 6 of 8 schedule. Introduces option for electric customers to make a one-time lump sum payment for non-standard or special facilities. In accordance with the Direct Access Plan, the next phase will provide the Direct Access option to commercial customers with electric loads between 500 kilowatts and 1000 kilowatts. Attached to this report are the applicable Rate Schedules E-11 and E-12 for Direct Access and Standby power to address this size customer. Also, revisions to Rate Schedule E-10 are recommended to comply with legal requirements for net metering service. Finally, staff recommends elimination of Rate Schedules E-5 and E-6 which offer flat rates year- round. There are no customers currently being served on these schedules and staff plans to introduce fixed rate options during FY99-00 as part of the staff policy recommendation on long-term customer contracts. RESOURCE IMPACT Adoption of this rate proposal will reduce electric revenues approximately $10 million on an annual basis. POLICY IMPLICATIONS Adoption of staff’s recommendations would revise the Calaveras Reserve target from $93 million to $65 million and establish a formula to establish maximum and minimum level guidelines for the Calaveras Reserve through the year 2032. TIMELINE The proposed effective date for this rate change is July 1, 1999 but may be impacted by the status of the conversion of the existing billing system to the Customer Information System (CIS). Staff resources are prioritized for this important conversion. However, a possibility exists that this rate decrease will be delayed beyond July 1, 1999. ENVIRONMENTAL REVIEW Adoption of the resolutions to decrease electric.rates and amend rules and regulations does not constitute a project under the California Environmental Quality Act. ATTACHMENTS Attachment 1- Proposed Calaveras Reserve Targets and Guidelines Attachment 2- Electric Rate Comparison ¯Utility Rate Schedules E-l, E-2, E-4, E-7, E-8, E-9, E-10, E-11, E-12, E-13, E-17 Utility Rules 2, 19, and 20 CMR:222:99 Page 7 of 8 PREPARED BY:Lucie Hirmina, Manager, Utilities Rates Randy Baldschun, Assistant Director of Utilities Administrative Services DEPARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: EDWAP~ J. MRIZt~ iDirector of Utilities [E FL Manager CMR:222:99 Page 8 of 8 ATTACHMENT 1 PROPOSED CALAVERAS RESERVE TARGETS AND GUIDELINES 99-00 00-01 01-02 02-03 03 -04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 $67,858 64,615 65,290 67,779 70,540 72,919 73,116 71,760 70,345 68,879 67,379 65,111 62,041 58,830 55,483 51,992 48,367 44,570 40,607 36,471 32,153 27,642 $61,100-$74,600 58,200-71,100 58,800-71,800 61,000-74,600 63,500-77,600 65,600-80,200" 65,800-80,400 64,600-78,900 63,300-77,400 62,000-75,800 60,600-74,100 58,600-71,600 55,800-68,200 52,900-64,700 49,900-61,000 46,800-57,200 43,500-53,200 40,100-49,000 36,500-44,700 32,800-40,100 28,900-35,400 24,900-30,400 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 22,930 18,004 12,854 9,807 8,564 7,323 6,085 4,851 3,624 2,405 1,199 0 20,600-25,200 16,200-19,800 11,600-14,100 8,800-10,800 7,700-9,400 6,600-8,100 5,500-6,700 4,400-5,300 3,300-4,000 2,200-2,600 1,100-1,300 0-0 A-FI-ACHME NT 2 Palo Alto Average Monthly Residential Bill (Based on 750 kWh a month) $40.80 Santa Clara $55.10 SMUD $61.93 Alameda SDGE PG&E SCE $71.99 ~$79.62 $85.43 $91.14 Average Monthly Small Commercial Bill (Based on 1000 Kwh a month) Palo Alto $58.65 SMUD $83.96 Alameda $97.58 SDGE ~ $104.21 Santa Clara $110.53 SCE $115.23 PG&E $129.96 RESIDENTIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-1 APPLICABILITY: .. This schedule applies to sep~ately metered single-family residential dwellings receiving retail energy services from the City of Palo Alto Utilities. A "single-family residential dwelling" is designated as any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. C. UNBUNDLED RATES: pei" Kilowatt-Hour Commodi _ty Distribution Public Benefits Total First 300 kWh $ 0.0194 $0.0245 $0.0013 $0.0452 Next 300 kWh 0.0234 0.0296 0.0016 0.0546 Over 600 kW 0.0311 0.0392 0.0021 0.0724 Minimum Charge, Per Month ...................................................$1.00 Special Remote Meter Register Charge, Per Month ..................................$1.00 D. SPECIAL NOTES: 1.Calculation of Cost Components The actual bill-amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts. On a customer’s bill statement, the bill amount may be broken down into three cost components as calculated under Section C, or alternatively, by estimates based on percentages shown below for each of the components: Power Supply Charge, Distribution Charge, and Public Benefits Charge. These estimated percentages reflect forecasted annual costs. The breakdown of the bill amount into estimated cost components is provided for the customer’s information and does not affect how much a customer pays. These cost components and their percentages are shown here: Issued by the City Council Supersedes Sheet No. E-l-1 dated 7-1-97 CITY OF PALO ALTO¯ UTILITIES Effective 7-1-99 Sheet No. E-l-1 RESIDENTIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-1 (Continued) Illustrative Cost Component Percentag~ a.Power Supply Charge b.Distribution Charge c.Public Benefits Charge 42.9% 54.1% ,2.9% Note: Effective 7-1-97, the City Council approved imposition of a non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. 2.Solar Energy Discount Upon approval by the City, a 10 percent (10%) discount will be applied to a customer’s electric bill if such customer has installed a solar energy system and met the following criteria before April 1, 1987: The solar energy system is in conformance with the City’s performance and aesthetic standards. The solar energy system is designed to provide for 50 percent or more of the residential domestic water heating or space heating requirements. c. Appropriate City permits are acquired. Issued by the City Council Supersedes Sheet No. E-l-1 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-l-2 SMALL COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 APPLICABILITY: This schedule applies to non-demand metered electric service for small commercial customers and master-metered multi-family facilities.. B.TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.RATES: Unbundled Seasonal Energy Rates: Per Kilowatt-Hour Commodity.Distribution Public Benefits Total Summer $0.0254 $0.0347 $0.0016 $0.0617 Winter 0.0229 0.0311 0.0016 0.0556 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. On a customer’s bill statement, the bill amount may be broken down into three cost components as calculated under Section C, or alternatively, by estimates based on percentages shown below for each of the components: Power Supply Charge, Distribution Charge, and Public Benefits Charge. These estimated percentages reflect forecasted annual costs. These cost components and their percentages are shown here: Illustrative Cost Component Percentag~ a.Power Supply Charge b.Distribution Charge c.Public Benefits Charge 41.2% 56.1% 2.7% Note: Effective 7-1-97, the City Council approved imposition of a non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all Issued by the City Council Supersedes Sheet No. E-2-1 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-2-1 SMALL COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 (Continued) distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. .. 2.Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period is partly in the summer period and partly in the winter period, the billing will be computed by prorating the total kWh usage, and the applicable rates thereto between the two seasonal periods, according to the ratio of the number of days in each seasonal period to the total number of days in the billing period. 3. Minimum Charge. A minimum charge of $1.00 per month will apply to all accounts. 4.Solar Energy Discount Upon approval by the City, a 10 percent (10%) discount will be applied to a customer’s electric bill if such customer has installed a solar energy system and met the following criteria before April 1, 1987: The solar energy system is in conformance with the City’s performance and aesthetic standards. bo The solar energy system is designed to provide for 50 percent (50%) or more of the residential domestic water heating or space heating requirements. c. Appropriate City permits are acquired. {End} Issued by the City Council Supersedes Sheet No. E-2-2 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-2-2 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 A. APPLICABILITY: . This schedule applies to demand metered secondary electric service for commercial customers with a maximum demand below 1,000 kilowatts. This schedule applies to three-phase electric service and may include service to master-metered multi-family facilities. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.RATES: Seasonal Demand and Energy Rates: Per Meter Per Month Summer Period Demand Charge (kW) Energy Charge (kWh) Commodity.Distribution Public Benefits Total $1.803 $7.697 $9.50 0.0206 0.0123 $0.0016 0.0345 Winter Period Demand Charge (kW) Energy Charge (kWh) 1.694 4.556 6.25 0.0185 0.0114 0.0016 0.0315 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. On a customer’s bill statement, the bill amount may be broken down into three cost components as calculated under Section C, or alternatively, the Power Supply cost will be based on the rates above, but the other two cost components: Distribution Charge and Public Benefits Charge by estimates based on percentages as shown below. Issued by the City Council Supersedes Sheet No. E-4-1 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-4-1 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 (Continued) The breakdown of the bill amount into estimated cost components is provided for the customer’s information and does not affect how much a customer pays. Illustrative Cost Components Summer Winter a.Commodity Charge Demand Charge (per kW) Energy Charge (per kWh) b.Distribution Charge c.Public Benefits Charge $1.803 $1.694 0.0206 0.0185 94.9%93.3% 5.1%6.7% Note: Effective 7-1-97, the City Council approved imposition of a non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period is partly in the summer period and partly in the winter period, the billing will be computed by prorating the total kWh usage, kW demand, and the applicable rates thereto between the two seasonal periods, according to the ratio of the number of days in each seasonal.’period to the total number of days in the billing period. 3.Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy .has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter which does not reset after a definite time interval may be used at the City’s option. Issued by the City Council Supersedes Sheet No. E-4-2 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-4-2 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 (Continued) The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. Aft’ exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. 4.Minimum Charge A minimum charge of $1.00 per month will apply to all accounts. 5. Solar Energy Discount Upon approval by the City, a 10 percent (10%) discount will be applied to a customer’s electric bill if such customer has installed a solar energy system and met the following criteria before April 1, 1987: The solar energy system is in conformance with the City’s performance and-aesthetic standards. The solar energy system is designed to provide for 50 percent (50%) or more of the residential domestic water heating or space heating requirements. 3. Appropriate City permits are acquired. 6.Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing VAR-hour or any other applicable metering to’ calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill will include a "power factor penalty,’~ if applicable. The penalty adjustment will be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to. kilovoltampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. Issued by the City Council Supersedes Sheet No. E-4-3 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-4-3 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 (Continued) 7.Changing Rate Schedules Customers may request a rate schedule change at any time, but only once during a twelve-month period if the change is between City of Palo Alto full-service rate schedules. The 12 months limitation does not apply ira customer elects a Direct Access rate schedule and is served by another Energy Service Provider. Qualified customers may elect Direct Access at any time. 8.Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 ½ percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. {End} Issued by the City Council Supersedes Sheet No. E-4-4 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-4-4 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 A. APPLICABILITY: This schedule applies to demand metered secondary service for large commercial customers with a maximum demand of at least 1,000KW per month per site and have sustained this demand level at least 3 consecutive months during the last twelve months. B.TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.RATES: Seasonal Demand and Energy Rates: Per Meter Per Month Summer Period Demand Charge (kW) Energy Charge (kWh) Commodity Distribution Public Benefits Total $2.271 $6.23 $8.50 0.0203 0.0121 $0.0016 0.0340 Winter Period Demand Charge (kW) Energy Charge (kWh) 2.032 2.968 5.00 0.0182 0.0117 0.0016 0.0315 D. SPECIAL NOTES: 1.Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts. On a customer’s bill statement, the bill amount may be broken down into three components as calculated under Section C, or alternatively, the Power Supply Charge will be based on the rates in Section C, but the other two cost components: Distribution Charge and Public Benefit Charge by estimates based on percentages as shown below. The breakdown of the bill amount into estimated cost components is provided for the customer’s information and does not affect how much a customer pays. Issued by the City Council Supersedes Sheet No. E-7-1 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-7-1 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 (Continued) Illustrative Cost Components a.Commodity Charge Demand Charge (per kW) Energy charge (per kWh) b.Distribution Charge c.Public Benefits Charge Summer .Winter $2.271 $2.032 0.0203 0.0182 93.5%91.7% 6.5%8.3% Note: Effective 7-1-97, the City Council approved imposition of a non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all di’stribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. 2.Seasonal Rate Changes The S .ummer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period is partly in the summer period and partly in the winter period, the billing will be computed by prorating the total kWh usage, kW demand, and the applicable rates thereto between the two seasonal periods, according to the ratio of the number of days in each seasonal period to the total number of days in the billing period. 3. Request for Service A customer may request service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4.Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. Issued by the City Council Supersedes Sheet No. E-7-2 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-7o2 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 (Continued) The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in ease the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter which does not reset after a definite time interval may be used at the City’s option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. 5.Minimum Charge A minimum charge of $1.00 per month will apply to all accounts. 6.Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install VAR-hour or any other applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months, When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer’s bill prior to the computation of .any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovoltampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. 7.Changing Rate Schedules Customers may request a rate schedule change at any time during the year. However, if a customer discontinues service for an account(s) on Rate Schedule E-7, such account(s) will remain ineligible to resume service under E-7 in the future. Issued by the City Council Supersedes Sheet No. E-7-3 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-7-3 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 (Continued) 8.Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 ½ percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. {End} Issued by the City Council Supersedes Sheet No. E-7-4 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-7-4 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-8 A. APPLICABILITY: This schedule applies to demand metered electric service for commercial customers’ accounts with demand of at least 1000 kW per month and have sustained this level of usage for at least three consecutive months during the most recent 12 months period. B.TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.RATES: Seasonal Rates with a Monthly Market-based Power Supply Charge: Per meter Per Month Summer Period Demand Charge (kW) Energy Charge (kWh) Commodity Distribution Public Benefits $2.271 $6.23 0.005-0.40 0.0121 $0.0016 Total $8.50 Customer Charge Winter Period Demand Charge (kW) Energy Charge (kWh) Customer Charge 2.032 2.968 0.005-0.040 0.0117 0.0016 50.00 5.00 50.00 D. SPECIAL NOTES: 1.Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts. On a customer’s bill statement, theamount may be broken down into three components as calculated under Section C, or alternatively, the Power Supply Charge will be based on the rates in Section C, but the other two cost components: Distribution Charge and Public Benefits Charge by estimates based on percentages as shown below. The breakdown of the bill Issued by the City Council Supersedes Sheet No. E-8-1 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-8-1 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-8 (Continued) amount into estimated cost components is provided ’for the customer’s information and does not affect how much a customer pays. IHustrative Cost Components a.Power Supply Charges Demand Charge (per kW) Energy Charge (per kWh) b.Distribution Charge c.Public Benefits Charge Summer Winter $2.19 $2.19 Within a range of $0.005 - $0.0400 93.5%91.7% 6.5%8.3% Note: Effective 7-1-97, the City Council approved imposition of a non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. 2. Market Price The Power Supply Charge will have two components: Demand (per kW) and Energy (per kWh). The .energy component (market-based energy) is equal to the monthly NYMEX COB Futures Closing Price minus $0.0086 per kWh. NYMEX COB Futures’ Closing Price is the settlement price for the NYMEX COB futures contract On the last trading day of the month. The last day of trading is the fourth business day prior to the first day of the delivery month (e.g. June 1999, NYMEX COB futures contract trading closes on May 26, 1999). 3.Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period is partly in the summer period and partly in the winter period, the billing will be computed by prorating the total kWh usage, kW demand, and the applicable rates thereto between the two seasonal periods, according to the ratio of the number of days in each seasonal period to the total number of days in the billing period. Issued by the City Council Supersedes Sheet No. E-8-2 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-8-2 LARGE COMMERCIAL ELECTRIC SERVICE ..UTILITY RATE SCHEDULE E~8 (Continued) 4. ¯ Special Metering Equipment and Customer Charge Service under this rate schedule requires the City’s installation of automatic meter reading equipment to enable billing on a calendar month. The City of Palo Alto Utilities normally installs standard metering equipment to provide regular service. Service trader this rate schedule requires additional equipment that is in addition to the standard metering and billing equipment. The Customer Charge provided in Section C, includes the estimated additional costs of the required additional equipment as well as the cost of administration of this service option. A customer may be required to provide dedicated telephone service to facilitate remote meter access. 5.Changing Rate Schedules Customers may request a rate schedule change at any time during the year to any other applicable Palo Alto full-service rate schedule. Qualified customers may ele(t Direct Access at any time. 6.Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter which does not reset after a definite time interval may be used at the City’s option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. 7.Minimum Charge The customer charge will be considered the minimum charge. Issued by the City Council Supersedes Sheet No. E-8-3 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-8-3 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-8 (Continued) 8.Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 ½ percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the fight to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected bysuch change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. 9.Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install VAR-hour or any other applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovoltampere hours consumed during the month. Where-time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. {End) Issued by the City Council Supersedes Sheet No. E-8-4 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-8-4 LARGE COMMERCIAL DIRECT ACCESS ELECTRIC SERVICE UTILITY RATE SCHEDULE E-9 APPLICABILITY: This rate schedule applies to the City of Palo Alto Utilities (CPAU) non-residential customers who are eligible to receive their energy supply from an Energy Service Provider other than CPAU. To meet the eligibility criteria, the customer facility has to use at least 1000 KW per month and have sustained this level of usage for at least three consecutive months during the most recent 12 months. ., B. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.RATES: Per Meter Per Month Customer Charge Distribution Charges Demand (per kW) Energy (per kWh) Public Benefits Charge (per kWh) Note: $75.00 4.60 0.0119 0.0016 Effective 7-1-97, the City Council approved imposition ofa non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. SPECIAL NOTES: 1.Request for Direct Access Service A customer who meets the CPAU qualifying criteria and who chooses Direct Access service shall complete a "Direct Access Service Request (DASR)" form and be on sheet E-9-1. The customer charge includes charges for special metering equipment and data validation needed for this service. In addition, the customer will be Issued by the City Council Supersedes Sheet No. E-9-1 dated 1-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-9-1 e LARGE COMMERCIAL DIRECT ACCESS ELECTRIC SERVICE UTILITY RATE SCHEDULE E-9 (Continued) responsible for payment of transmission, scheduling and administration charges through its Energy Service Provider. Special terms and conditions shall be covered by separate agreement between CPAU and the Energy Service Provider. A customer can request Direct Access service at any time during the year. Full Electric Service Request If the customer’s Energy Service Provider (ESP) fails to deliver the required energy or the customer is not satisfied with the ESP and wishes to leave the ESP on short notice, then the customer will be charged for the use of energy under the CPAU applicable Standby Service Rate Schedule E-13 for a specific period in accordance with the rate schedule. If the customer decides to choose CPAU as its ESP, the customer shall request this service in writing and will ’be placed on an applicable CPAU electric rate schedule in accordance with Rule 20, Section H. Electricity Supply Requirements An ESP supplying Direct Access customers shall be required to deliver an amount of energy (kilowatt-hours) equal to the estimated Consumption plus an additional amount to the City gate each month to cover energy losses arising in the distribution of that commodity supply to the customers’ facilities. The energy losses are estimated to be 2 ½ percent for customers receiving service from CPAU at the primarylevel and 5 percent for customers receiving service at the secondary level. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 5 percent on the CPAU distribution bill for available line voltages above 1 kilovolt will be allowed. CPAU retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change its system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by CPAU subject to a maximum kVA size limitation. Issued by the City Council Supersedes Sheet No. E-9-2 dated 1-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-9-2 LARGE COMMERCIAL DIRECT ACCESS ELECTRIC SERVICE UTILITY RATE SCHEDULE E-9 (Continued) Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, CPAU has the option to install VAR-hour or any other applicable metering to calculate power factor. CPAU may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovoltampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. e Additional Charges If, as a result of nonperformance of the outside Energy Service Provider (ESP), (e.g. failure to schedule sufficient power), the City incurs additional costs through our contractual arrangements with PG&E, Northern California Power Agency (NCPA), Western Area Power Administration, or otherwise, we will pass all of these costs onto the ESP. Depending on the performance of the ESP, these charges could be excessive. The ESP may pass these charges onto the customer. {End} Issued by the City Council Supersedes Sheet No. E-9-3 dated 1-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-9-3 NET ENERGY METERING SERVICE UTILITY RATE SCHEDULE E-10 Co APPLICABILITY: This schedule is applicable to residential or commet.cial customers who have maximum demand of less than 20 kilowatts and who own solar or wind turbine electrical generating facilities or hybrid systems of both located on customers’ premises, with capacity of not more than 10 kilowatts and are intended to offset part or all of the customers’ own electrical requirements. Eligible customers for this rate schedule under the above conditions must sign a Net Energy Metering Agreement. TERRITORY: Within the incorporated limits of the city of Palo Alto and land owned or leased by the City. SPECIAL CONDITIONS: 1.Metering Equipment Net energy metering shall be accomplished using a single utility meter capable of registering the flow of electricity in two directions. If the customer’s existing meter is not capable of measuring the flow of electricity in two directions, the customer is responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions. Additional meters to monitor the flow of electricity in each direction may be installed with the consent of the customer, at the expense of CPAU. The additional meters can be used only to provide information necessary to accurately bill or credit the customer. 2.Net Energy Metering and Billing Net Energy Metering is defined as measuring the difference between the electricity supplied by CPAU through the electric distribution system to the eligible customer- generator and the electricity generated by the eligible customer-generator and fed back into CPAU’s distribution system over a 12 month period. At the end of a 12 month period following the date of the final interconnection, and at each anniversary date thereafter, CPAU will bill the customer-generator for the net energy consumed during the 12 month period based on the average rate for the applicable class. In the event the energy generated exceeds the energy provided by CPAU during the 12 month period, no payment shall be made to the customer for the excess energy delivered to CPAU’s distribution system. This condition may be modified if the customer has signed a contract to sell electricity to CPAU. CPAU shall provide every Issued by the City Council Supersedes Original sheet No. E-I O-1, dated 1-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-10-1 NET ENERGY METERING SERVICE UTILITY RATE SCHEDULE E-10 (Continued) eligible customer-generator with net electricity consumed information on each regular bill. At the customer’s request, CPAU will permit the customer to pay monthly for the net energy consumed. Interconnection An. eligible customer-generator must execute and comply with the requirements Of CPAU "Interconnection Agreement for Net Energy Metering". The customer- generator must meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronic Engineers, and accredited testing laboratories such as Underwriters Laboratories and as well as rules of the California Public Utilities Commission regarding safety and reliability. {End} Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-99 Original Sheet No. E-10-2 MEDIUM COMMERCIAL DIRECT ACCESS ELECTRIC SERVICE UTILITY RATE SCHEDULE E-11 (Continued) and data validation needed for this service. In addition, the customer will be responsible for payment of transmission, scheduling and administration charges. The amount of the transmission, scheduling and administration charges will depend on which type of Direct Access program the customer has selected. Special terms and conditions shallbe covered by separate agreement between CPAU and the Energy Service Provider. A customer can request Direct Access service at any time during the year. 2.Full Electric Service Request If the customer’s Energy Service Provider (ESP) fails to deliver the required energy or the customer is not satisfied with the ESP and wishes to leave the ESP on short notice, then the customer will be charged for the use of energy under the CPAU applicable Standby Service Rate Schedule E-12 for a specific period in accordance with the rate schedule. If the customer decides to choose CPAU as its ESP, the customer shall request this service in writing and will be placed on an applicable CPAU electric rate schedule as specified in Rule 20, Section H. 3.Electricity Supply Requirements An ESP supplying Direct Access customers shall be required to deliver an amount of energy (kilowatt-hours) equal to the estimated consumption plus an additional amount to the City gate each month to cover energy losses arising in the distribution of that commodity supply to the customers’ facilities. The energy losses are estimated to be 2 ½ percent for customers receiving service from CPAU at the primary level and 5 percent for customers receiving service at the secondary level. 4.Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 5 percent on the CPAU distribution bill for available line voltages above 1 kilovolt will be allowed. CPAU retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change its system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by CPAU subject to a maximum kVA size limitation. Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-99 Original Sheet No. E-11-2 MEDIUM COMMERCIAL DIRECT ACCESS ELECTRIC SERVICE UTILITY RATE SCHEDULE E-11 (Continued) Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, CPAU has the option to install VAR-hour or any other applicable metering to calculate power factor. CPAU may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovoltampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. o Additional Charges If, as a result of nonperformance of the outside Energy Service Provider (ESP), (e.g. failure to schedule sufficient power), the City incurs costs through our contractual arrangements with PG&E, Northern California Power Agency (NCPA), Western area Power Administration (WAPA) or otherwise, we will pass all of these costs onto the ESP. Depending on the performance of the ESP, these charges could be excessive. The ESP may pass these charges onto the customer. (End.] Issued by the City Council Effective 7-1-99 c~T¥ oF PALO ALTO Original Sheet No. E-11-3UTILITIES MEDIUM COMMERCIAL ELECTRIC STANDBY SERVICE UTILITY RATE SCHEDULE E-12 APPLICABILITY: This schedule applies to existing Direct Access customers with a maximum metered demand between 500 and 999 kW per month who return to CPAU for commodity supply service on short notice either due to default of their outside Energy Service Provider or by choice of the customer. Co De TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: Flat Rates with a Market-based Power Supply Charge: Schedule Activation (one-time fee) Per Meter Per Month Customer Charge Power Supply Charge Demand (per kW) Energy (per kWh) Distribution Charges Demand (per kW) Energy (per kWh) Public Benefits Charges $200.00 $75.00 1.749 D~lyDJCOB Firm On Peakminus $0.0086 6.13 0.0119 0.0016 Note: Effective 7-1-97, the city Council approved imposition ofa non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. SPECIAL CONDITIONS: 1.Schedule Activation A Schedule Activation charge applies each time the customer begins service on the Standby Service Rate Schedule. Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-99 Original Sheet E-12-1 MEDIUM COMMERCIAL ELECTRIC STANDBY SERVICE UTILITY RATE SCHEDULE E-12 (Continued) Availability of Service Service under this schedule is provided on an as-available basis. Service under this schedule is for a minimum of one month. If the customer wants to keep CPAU as its power supplier, the customer has to request in writing to be billed under the terms of an electric rate schedule that is applicable to the load for which the customer iseligible. Billing under another rate schedule would begin with the next billing cycle. During the interim, the bill amount is calculated as the sum of the charges in Section C above. If the customer chooses to continue as a Direct Access customer, the customer has to choose an ESP within three months, otherwise, the customer will be transferred at CPAU’s discretion to a CPAU full-service rate schedule suitable for the customer’s load. {End} Issued by the City Council Effective 7-1-99 CITY OF PALO ALTOU T I L I T I E S Original Sheet No. E-12-2 LARGE COMMERCIAL ELECTRIC STANDBY SERVICE U__TILITY RATE SCHEDULE E-13. APPLICABILITY: This schedule applies to existing Direct Access customers with a maximum metered demand of at least 1000 kW per month who return to CPAU for commodity supply service on short notice either due to default of their outside Energy Service Provider or by choice of the customer. Co TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: Do Flat Rates with a Market-based Power Supply Charge: Schedule Activation (one-time fee) Per Meter Per Month Customer Charge Power Supply Charge Demand (per kW) Energy (per kWh) Distribution Charge Demand (per kW) Energy (per kWh) Public Benefits Charge $200.00 75.00 2.152 Dally DJCOB Firm onPeakminus $0.0086 4.60 0.0119 0.0016 Note: Effective 7-1-97, the City Council approved iml~osition of a non-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electric distribution customers. Effective 7.-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. SPECIAL CONDITIONS: 1.Schedule Activation ¯A Schedule Activation charge applies each time the customer begins service on the Standby Service Rate Schedule. Issued by the City Council Sui~ersedes Sheet No. E-13-1 dated 1-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-13-1 LARGE COMMERCIAL ELECTRIC STANDBY SERVICE UTILITY RATE SCHEDULE E-13 (Continued) Availability of Service Service under this schedule is provided on an as-available basis. Service under this schedule is for a minimum of one month. If the customer wants to keep CPAU as its power supplier, the customer has to request in writing to be billed under the terms of an electric rate schedule that is applicable to the load for which the customer .is eligible. Billing under another rate schedule would begin with the next billing cycle. During the interim, the bill amount is calculated as the sum of the charges in Section C above. If the customer chooses to continue as a Direct Access customer, the customer has to choose an ESP within three months, otherwise, CPAU will transfer the customer at CPAU’s discretion to an applicable rate schedule in accordance with Rule 20, Section H. Issued by the City Council Supersedes Sheet No. E-13-2 dated 1-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-99 Sheet No. E-13-2 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-17 A. APPLICABILITY: This schedule applies to demand metered electric service for commercial customers’ accounts with demand between 500 kW and 999 kW per month and have sustained this level of usage for at least three consecutive months during the most recent 12 months period. B.TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.RATES: Seasonal Rates with a Monthly Market-based Power Supply Charge: Per Meter Per Month Summer Period Demand Charge (kW) Energy Charge (kWh) Commodity.~ ,Public Benefits $1.803 $7.697 0.005-0.400 0.0123 $0.00i6 Customer Charge Winter Period Demand Charge (kW) Energy Charge (kWh) 1.694 4.556 0.005-0.400 0.0114 0.0016 $9.50 50.00 6.25 Customer Charge 50.00 D. SPECIAL NOTES: 1.Calculation of Cost Components The actual bill amount is calculated as the sum of the charges in Section C above and adjusted for any applicable discount or power factor. The breakdown of the bill amount into three estimated cost components may be provided for the customer’s information and does not affect how much the customer pays. The Power Supply Charge will be based on the rates in Section C, but the other two Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-99 Original Sheet No. E-17-1 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E- 17 (Continued) cost components: Distribution Charge and Public Benefits Charge by estimates based on percentages as shown below. ’ Illustrative Cost Components a.Power Supply Charges Demand Charge (per kW) Energy Charge (per kWh) b.Distribution Charge c.Public Benefits Charge Summer Winter $1.803 $1.694 Within a range of $0.005 - $0.0400 94.9%93.3% 5.1%6.7% Note: Effective 7-1-97, the City Council approved imposition of a n0n-bypassable Transition Cost Recovery Charge (TCRC) applicable to all electkic distribution customers. Effective 7-1-99, the City Council established the TCRC at zero dollars and authorized suspension of the TCRC to all distribution customers. Therefore, this rate schedule has been revised to exclude the TCRC cost component during this suspension. 2. Market Price The Power Supply Charge will have two components: Demand (per kW) and Energy (per kWh). The energy component (market-based energy) is equal to the monthly NYMEX COB Futures Closing Price minus $0.0086 per kWh. NYMEX COB Futures Closing Price is the settlement price for the NYMEX COB futures contract on the last trading day of the month. The last day of trading is the fourth business day prior to the first day of the delivery month (e.g. June 1999, NYMEX COB futures contract trading closes on May 26, 1999). 3.Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period is partly in the summer period and partly in the winter period, the billing will be computed by prorating the total kWh usage, kW demand, and the applicable rates thereto between the two seasonal periods, according to the ratio of the number of days in each seasonal period to the total number of days in the billing period. Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-99 Original Sheet No. E-17-2 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-17 (Continued) 4.Special Metering Equipment and Customer Charge Service under this rate schedule requires the City’s installation of automatic meter reading equipment to enable billing on a calendar month. The City of Palo Alto Utilities normally installs standard metering equipment to provide regular service. Service under this rate schedule requires additional equipment that is in addition to the standard metering and billing equipment; The Customer Charge provided in Section C includes the estimated additional costs of the required additional equipment as well as the cost of administration of this service option. A customer may be required to provide dedicated telephone service to facilitate remote meter access. Changing Rate Schedules Customers may request a rate schedule change at any time during the year but only once during a twelve-month period if the change is between the City of Palo Alto full-service rate schedules. The 12 month limitation does not apply if a customer elects a Direct Access rate schedule and is served by another Energy Service Provider. Qualified customers may elect Direct Access at any time. 6.Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter which does not reset after a definite time interval may be used at the City’s option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. 7.Minimum Charge The customer charge will be considered the minimum charge. Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-99 Original Sheet No. E-17-3 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDI ILE E- 17 (Continued) 8.Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 ½ percent for available line voltages above 2 kilovolts will be allowed proyided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s eleetricai requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice ~to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. 9.Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install VAR-hour or any other applicable metering to calculate power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovoltampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. {End} Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-99 Original Sheet No. E-17-4 DEFINITIONS AND ABBREVIATIONS RULEAND REGULATION 2 ABBREVIATIONS: ADQ - AMR - Btu - ccf - CPAU - CPUC - DA - - EFO - ERU - ESP - FERC - GDA - GSP - GSPA - - kVarh - kW - kWh - MDQ - MW - OFO - PAMC - PG&E - PT - RWQCP - UUT - Average Daily Quantity Automated Meter Reading British Thermal Unit hundred cubic feet City of Palo Alto Utilities California Public Utilities Commission. Direct Access Emergency Flow Order Equivalent Residential Unit Energy Service Provider Federal Energy Regulatory Commission Gas Direct Access Gas Service Provider Gas Service Provider Agreement Kilovar Kilovar-hours Kilowatt Kilowatt-hour Maximum Daily Quantity Megawatt One million Btus. Operational Flow Order Palo Alto Municipal Code Pacific Gas and Electric Company Pacific Standard Time Regional Water Quality Control Plant Utilities Users Tax CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 1 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION GENERAL DEFINITIONS: Account The identification number in CPAU’s billing system for utility services. Administrative Services Director The individual designated as the director of administrative services under Section 2.08.150 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 administrative 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. Aggregated Load The combined Load of all Eligible Customers, measured in MMBtu per Day, served by a Gas Service Provider within the City. Average Daily Quantity Also "ADQ". The monthly contracted for quantity of natural gas with the City divided by the number of Customer’s operating days in that month. 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: 2. 3. 4. 5. 6f 7. Electric Service Water Service Gas Service Sewage Collection Refuse and Recycling Collection Storm Drain Service Fiber Optic Service Backbone Transmission System That portion of PG&E’s system used to transport gas from PG&E’s interconnection with interstate pipelines, other local distribution companies, and the Caiifomia gas fields to PG&E’s CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. -2 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 local transmission and distribution system as defmed by Rule 1 of PG&E’s gas tariffor applicable sections. Balancing Agent CPAU’s Gas Balancing Agent as designated by PG&E form 79-869, "Customer Authorization for Agent to Act for Customer with Respect to Gas Balancing and Rule 14 Services and Obligations" or replacement form. Balancing Service CPAU’s service to accommodate imbalances between actual Customer Gas usage and Customer- owned gas delivered to CPAU. Billing Period Also "service period" or "billing cycle". The normal billing cycle for CPAU Customers is monthly. The number of days in the billing cycle or billing period is determined by the number of days between meter reads. A Customer’s meters are read approximately every 27-33 days. On an average basis, a billing period is 30 days. The Billing Period for Gas Direct Access Customers will coincide with PG&E’s billing cycle for gas transportation. Billing Therms The number of billing units for natural gas that is based on the metered consumption (in ccf) multiplied by the product of an altitude pressure adjustment and a Btu factor (heating content of natural gas which varies monthly). One (1) therm equals 100,000 Btu. British Thermal Unit Also "Btu". The standard unit for measuring a quantity of thermal energy. Business Day Any Day, except a Saturday, Sunday, or any Day observed as a legal holiday by the City. Capacity The total quantity of natural gas that can be transported over the applicable portions of PG&E’s pipeline system or the Distribution System for a specified period of time or at point(s) of intercormection. Charge Any assessment, cost, fee or levy for natural gas, gas transportation or related services, energy, or energy-related services other than a Tax, including any Transition Cost Recovery Charge, Public CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 3 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Benefits Charge, and other such mandated or required public surcharges. 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 Clerk The individual designated as the city clerk of the City under Section 2.08.110 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Clerk. 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 Mtmicipal Code, and any Person who is designated the representative of the City Manager. City of Palo Alto Also "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. City of Palo Alto Utilities The term CPAU shall mean. all utilities operated by the City of Palo Alto. Such utilities shall include, but not be limited to, water, gas, electric, sewage collection, refuse collection, storm drain, and fiber optics. The City of Palo Alto is the legal entity which owns and is responsible for the City of Palo Alto Utilities. City’s Pool(s) The identification number(s) assigned to CPAU by PG&E in CPAU’s Natural Gas Service Agreement which may be used to nominate gas for delivery to CPAU. Code CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 4 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 The words "the Code" or this Code" shall mean the Palo Alto Municipal Code. Core Customer All residential Customers, commercial and industrial Customers physically connected to the Distribution System whose natural gas use is less than 250,000 Therms per year, and all commercial and industrial Customers physically connected to the Distribution System whose gas use is 250,000 Therms per year or greater and who are not served under a Noncore Rate Schedule. Core Market Customer A customer who purchases full gas service from CPAU under one rate schedule that includes gas supply, distribution services from CPAU, and pipeline transportation services. Commercial Service Commercial utility service is provided to businesses, non-profit organizations, and industrial customers. In addition, applies to utilities services through a master meter serving multi-family residential dwellings. Cubic Foot of Gas Also "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 in whose name service is rendered for a particular account as evidenced by the signature on the application, contract, or agreement for service. In the absence of a signed instrument, a customer shall be identified by the receipt of any payment of bills regularly issued in the name of the person, corporation, or agency regardless of the identity of the actual user of the service. Customer Fiber Customer single mode and/or multi-mode fiber optic cables that can be installed to interconnect to locations within City of Palo Alto limits, but outside of CPAU established single mode network path. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 5 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Customer-Owned Generation An electric generator owned by the Customer, interconnected with and operating in parallel with CPAU facilities. Dark Fiber A strand of optic transmission material within a fiber optic cable that is provided by CPAU without any of the light transmitters, receivers, or electronics required for telecommtmications over the fiber. Day Any calendar day, unless a Business Day is specified, commencing at 12:00:00 a.m. PST on a calendar day and ending at 12:00:00 a.m. PST on the following calendar day. Decatherm A unit of energy equal to ten Therms or one million Btu (MMBtu). Default Rate Schedule The rate schedule to which a Customer is assigned automatically by CPAU ,~ ,,,,-,,-,,o,t’- in the event a Customer does not elect a specific rate schedule determined by CPAU to be available at that time. 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. Direct Access Also "DA". The election by a Customer to procure its electricity, and related energy 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 6 DEFINITIONS AND ABBREVIATIONS _RULE AND REGULATION 2 Direct Access Metering Also "DA Metering". An electromechanieal device capable of recording or transmitting energy use to effect Direct Access, including any communication system or services needed to allow the access to meter read information. Such metering shall conform to the standards and specifications currently adopted by CPAU. Direct Access Plan Also "DA Plan." The document detailing the processes and procedures adopted by CPAU to effect and allocate participation in Direct Access within CPAU’s Service Territory, including phase-in schedule, eligibility criteria and --’o,~,,,,,-~,,, r,,,-,,,,-oo,,o, as it may be amended from time to time. Direct Access Service Request Also "DASR". The form required to initiate Direct Access Service. Distribution Services Includes, but is not limited to, utility service provided by the Distribution System and other services such.as billing, meter reading, administration, marketing, and customer services. Distribution System The infrastructure owned and operated by CPAU which is capable of transmitting electrical power or transporting water, wastewater, or gas within the City of Palo Alto. The electric distribution system transmits power from the City’s interconnection with Pacific Gas and Electric Company to CPAU’s meter located on the Customer’s premises. The gas distribution system transports gas from Pacific Gas and Electric Company 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 7 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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. Diversion See PG&E Rule 14 or replacement Rule. Effluent Partially or completely treated sewage flowing out of any sewage treatment facility. Eligible Customer Any Person who is authorized by the City to receive gas from a GSP Or energy from an ESP, or both. Emergency Flow Order Also, "EFO". See PG&E’s Rule 14 or replacement Rule. Emergency Service Electric Service supplied to, or made available to, load devices which are operated only in emergency situations or in testing for same. Energy Services Energy commodity and any applicable ancillary services used to generate and transport such commodity from its origin to the City’s Point of Receipt. May also mean the sale of value added services associated or related to the provision and/or usage of energy commodity. Energy Service Provider Also "ESP." The agent employed by the DA Customer obligated to proem’e, schedule, nominate, and transport Energy Services. ESP shall also include any and all agents or contractors employed or utilized by ESP in performance of its obligations, including scheduling coordinator(s). Energy Service Provider Agreement Also "ESP Agreement". The contract between CPAU and the DA Customer’s Energy Service Provider that delineates the terms and conditions under which the ESP can provide CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 8 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Energy Services to the DA Customer. Equivalent Residential Unit Also "ERU". This is the basic unit for computing storm drainage fees. All single-family and duplex units are billed 1 ERU and are considered to have an impervious area of 2,500 square feet. All other non-residential properties have ERU’s computed to the nearest 1/110 ERU using this formula: No Of ERU=Impervious Area (sq.ft.) / 2,500 sq.ft. Full Service Provision by CPAU of both Distribution and Transmission Services and Energy or Gas Commodity Services to its Customer. Also known as "Fully Bundled Service". Gas Any combustible gas or vapor, or combustible mixture of gaseous constituents used to produce heat by burning. It shall include, but not be limited to, natural gas, gas manufactured from coal or oil, gas obtained from biomass or from land fill, or a mixture of any or all of the above. Gas Day Any calendar day, commencing at 7:00:00 a.m. Pacific Standard Time on a calendar day and ending at 7:00:00 a.m. Pacific Standard Time on the following calendar day. Gas Direct Access Also "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 Also "GDASR". The form required to initiate Gas Direct Access Service. Gas Service Provider Also "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 Also "GSPA". The contract between CPAU and the Gas Direct Access Customer’s Gas Service CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 9 DEFINITIONS AND ABBREVIATIONS ¯ RULE AND REGULATION 2 Provider that establishes the terms and conditions trader which Gas services may be provided to the Gas Direct Access Customer. Imbalance Charge A fee that is imposed by CPAU as a result of actions taken by the GSP when the confirmed gas nominations which are accepted and scheduled by PG&E do not match the Gas Direct Access Customer’s Load. Inspector The authorized inspector, agent, or representative of CPAU. Interstate Transportation (or Transmission) Transportation of natural gas on a pipeline system under the regulation of the FERC. Intrastate Transportation (or Transmission) Transportation of natural gas on the PG&E system under the regulation of the CPUC. 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 ofkilovar. 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 Parties to this Contract, in effect either at the Commencement Date or during the Term hereof, including, without limitation, any regulation or order of an official or quasi-official entity or body CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 10 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 governing the applicable service provided by the City to which a Customer may be subject or bound. 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. Load Profiling A methodology which may be employed by CPAU, in lieu of DA Meeting, to compute the bill for all DA Customers who have accounts that do not require, or are exempt fi’om, Direct Access Metering. The methodology may include application of a class-average hour-by-hour load profile to determine a monthly average usage profile appropriate for that class of customer. Local Transmission System PG&E’s pipelines used to accept gas from the Backbone Transmission System, and transport it to the Distribution System. Main Sewer Line Any sewer 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 Daily Quantity Also "MDQ". The maximum quantity of Gas that can be nominated daily, as specified in Exhibit A of the Gas Service Provider Agreement. Meter The instnmaent owned and maintained by CPAU that is used for measuring either the electricity, gas or water delivered to the Customer. Meter Read The recording of usage data from metering equipment Minimum Charge CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 11 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 The least amount for which service will be rendered in accordance with the rate schedule. Noncore Customer A commercial or industrial customer whose gas use is 250,000 Therms per year or greater and who is served under a non-core Rate Schedule. . 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. Operational Flow Order Also "OFO". See PG&E’s Rule 14 or replacement Rule. Person Any individual, for profit corporation, nonprofit corporation, limited liability company, partnership, limited liability partnership, joint venture, business trust, sole proprietorship, or other form of business association. PG&E City Gate The point at which PG&E’s Backbone Transmission System connects to PG&E’s local transmission and distribution system. Point of Delivery (POD) Unless otherwise specified, that location on the Customer’s Premises where the CPAU circuit and Customer’s electrical wiring are interconnected or the point(s) on the Distribution System where the City delivers natural gas that it has transported to the Customer. Point of Receipt The designated location at which CPAU receives energy supplied by an ESP and/or Scheduling Coordinator on behalf of a DA Customer or the designated location at which CPAU receives gas supplied by a GSP on behalf of a GDA Customer. The Points of Receipt for energy will be designated in the ESP Agreement r,, o~ ^ ...... ,.,~.^ ~T,-,~, ¯ ~_: .... ~’~---"-" the Palo Alto City Gate meter or other specified point(s). The Point of Receipt for gas will be the City’s Pool or other specified point(s). Pole Line Overhead wires and overhead structures, including poles, towers, support wires, conductors, CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No.. 12 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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. Pool A nomination tool provided by PG&E that allows the aggregation of natural gas supply from several sources. Pool Manager The Person designated by the City to perform a variety of tasks related to management of the City’s Pool, which may include nominations through the City’s Pool, imbalance tracking, accounting, and billing. 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 d~uring the billing month. 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. 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 13 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Public Benefits Charge Mandated charge on electric bills to fund qualifying energy and low-income customer programs and services that benefit the public good in accordance with AB 1890. Public Works Department City of Palo Alto department responsible for providing storm drain, wastewater treatment, and refuse and recycling services. Rate Schedule One or more tariff sheets 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 The material is recyclable if it is easily collected and processed and there is a demand for it. The most common recyclable materials are paper, glass, metal, and some plastics. Recyclable materials are processed, manufactured, and reused in order to regain material for human use. Residential Service Utility service provided to separately metered single family or multi-family, domestic dwelling. Scheduling Coordinator An entity providing the coordination of power schedules and nominations to effect transportation and distribution of 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 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. Services or Service Lines CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 14 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Facilities of CPAU, excluding transformers and meters, between CPAU’s transmission or distribution system 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. Shrinkage The volume of natural gas expressed as a percentage that is not delivered to a Customer due to the physical operation of the Interstate Transmission System or the Distribution System, or both. Sole Discretion An individul will base a decision upon factors as is deemed appropriate by that individual, and that individual will not be required to state any reason for the decision.. Standby Service Back-up energy services provided by CPAU to a DA customer who retums to CPAU for commodity supply service on short notice either due to ESP not providing commodity supply service or by choice of the Customer. Tax Any assessment, charge, imposition, license, or levy (including any utility users tax) and imposed by any Agency, including the City. 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 (xmas trees), carnivals, rock crushers or paving plants. Temporary service does not include emergency, breakdown or standby service. Therln A unit used to measure a quantity of heat for natural gas that is equal to 100,000 British Thermal Units (Btu). Tolerance Band The percentage of gas usage, on a Monthly basis, as set by PG&E in its Schedule G-BAL or replacement tariff at which PG&E and CPAU will provide Balancing Service at no additional Charge. CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No.-15 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Transition Cost Recovery Charge Also "TCRC." ?,I-,,nd^,~tcd charge on all electric bills to fund the CPAU repayment of costs of fixed and variable costs of above-market generation which may be characterized as~,stranded costs". 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. Uncontrollable Force Any cause beyond the control of the party affected, including but not restrcted to, failure of or threat of failure of facilities, flood, earthquake, storm, drought, fire, lightening, epidemic, war, riot, civil disturbance, or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or action by public authority, which by exercise of due diligence such party could not reasonable have been expected to avoid and which by exercise of due diligence it shall be unable to overcome. Underground Utility District An area in the City within which poles, overhead wires, and associated overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC. Utilities Department City of Palo Alto department responsible for providing water, gas, electric, wastewater collection, and fiber optic services. Utilities Director The individual designated as the director of utilities 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 Rules and Regulations The compendium of utility rules and regulations prepared by the Department of Utilities 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. Utilities User Tax Also "UUT". City of Palo Alto tax imposed on utility charges to a water, gas, and/or electric service user. Charges include charges made for metered energy and water and charges for service including customer charges, service charges, standby charges, charges for temporary services, demand charges, and annual and monthly charges. In 1987, Palo Alto voters approved CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES SheetNo.-16 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 a 5 percent tax on utility charges for water, gas, and electricity to raise revenue for general governmental purposes of the City of Palo Alto. A reduced tax of 3 percent was approved for qualifying high volume users. The tax does not apply to Refuse, Storm Drain, or Wastewater Collection charges. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 17 DIRECT ACCESS R_.ULE AND REGULATION 19 GENERAL: This Rule and Regulation sets forth the terms and conditions under which the City of Palo Alto Utilities (CPAU) shall render Distribution and Transmission Services to Customers who elect to be served under Direct Access through the applicable CPAU Direct Access electric service rate schedule. Direct Access shall refer to the election by a Customer to procure their electricity, and related energy services, from an Energy Service Provider (ESP) other than CPAU. CPAU shall apply eligibility and ;clcction criteria to qualify participants in Direct Access, pursuant to its adopted Direct Access Implementation Plan, as it may be amended from time to time. All defined terms are identified in this Rule by capitalization of the first letters, as described in Rule and Regulation 2, or as otherwise defined herein. 1.CUSTOMER RESPONSIBILITIES o The Direct Access Customer (DA Customer), or its assigned ESP, assumes the responsibilities for procuring electric Energy Services and for the transmission of such purchases to the Point of Receipt designated by CPAU. CPAU is fully and completely discharged from these responsibilities; the DA Customer’s ESP must carry out these responsibilities. CPAU RESPONSIBILITIES CPAU shall.be responsible for providing Distribution and applicable Transmission Services for the DA Customer’s procured energy from the designated Points of Receipt to the DA Customer’s service address(s). In addition, CPAU will provide standby power as provided in the applicable CPAU Electric Standby Service Rate Schedule LIABILITY IN CONNECTION WITH ESP SERVICES (A)If the ESP defaults on its electric ’supply obligations to a DA Customer, and as a result of this default, CPAU purchases and CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. DIRECT ACCESS RULE AND REGULATION 19 supplies energy to the DA Customer, the Customer shall be liable for payment to CPAU for such energy. .. (B)CPAU shall not be liable to the Customer and ESP for any damages caused by CPAU’s conduct in compliance with, or as permitted by, CPAU’s rules, regulations, rate schedules, and associated legal and regulatory requirements related to DA Service. Damages in this section shall include losses, harm, costs, opportunities lost, and detriment, both direct and consequential, suffered by the Customer. (c)CPAU shall not be liable to the Customer for any damages caused to the Customer by any failure by an ESP to comply with CPAU’s rules, regulations, rate schedules, and associated legal and regulatory requirements related to DA Service. CPAU shall not be liable to the Customer for any damages caused by an ESP’s failure to perform any commitment to the Customer, including, but not limited to the obligation to provide Energy Services to the Customer. The ESP shall not be liable to the Customer for any damages caused by CPAU’s failure to perform any commitment to the Customer. (E)An ESP is not CPAU’s agent for any purpose. CPAU shall not be liable to the Customer for any damages resulting from any acts, omissions, or representations made by an ESP in connection with soliciting Customers for DA Service or performing any of its functions in rendering DA Service. CPAU is not the ESP’s agent for any purpose. The ESP shall not be liable to the Customer for any damages resulting from any acts, omissions, or representations made by CPAU in connection with soliciting Customers for DA Service or performing any of its functions in rendering DA Service. 4.RATES AND FEES FOR DIRECT ACCESS CPAU service rates and fees for Direct Access are found under the applicable ,CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 2 DIRECT ACCESS RULE AND REGULATION 19 Direct Access electric service rate schedule. The applicable rates shall apply to each Account participating in Direct Access...Unless otherwise provided in the applicable rate schedule or contract, CPAU will not aggregate distribution services for individual accounts for purposes of billing under the applicable Direct Access rate schedule. Separate rates for Standby Power service are found under the applicable CPAU Standby Power service rate schedule. These charges compensate CPAU for non-standard variances in power scheduling or for ESP’s nonperformance of its contractual obligations related to provision of Energy Services. 5.INITIATION OF DIRECT ACCESS Direct Access service shall begin on the service date indicated on the DASR, as solely determined by CPAU, and subject to activation of required agreements, installation of DA Metering and other applicable requirements for Direct Access. DIRECT ACCESS CUSTOMER REQUIREMENTS: To participate in Direct Access, the DA Customer shall initiate and implement the agreements, equipment installations and other prerequisites necessary to effect Direct Access. The requirements are: 1.DASR SUBMISSION The-DASR shall undergo a review and verification process by CPAU. Upon CPAU’s acceptance of the DASR, the DA Customer shall initiate and implement remaining requirements for Direct Access. ESP AGREEMENT Contract for Energy Services - The DA Customer shall enter into an agreement with its ESP for procurement of Energy Services for the Load(s) selected for Direct Access, effective on the Initial Service Date for Direct Access. CPAU shall not be a party to this agreement. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No.-3 DIRECT ACCESS RULE AND REGULATION 19 DA METERING REQUIREMENTS Account Load of 50 kW or More - Upon DASR approval, CPAU shall provide and install DA Metering, at DA Customer’s expense, for any Account which lacks appropriate metering equipment and records a maximum demand equal to or greater than 50 kW or, absent demand metering capabilities and records, for any Account that records a maximum monthly usage of greater than or equal to 12,000 kilowatt-hours (kWh) at any time during the past 12 consecutive monthly Billing Periods. At its sole option, CPAU may adopt or apply exemptions to this requirement. Account Load less than 50 kW - In lieu of installing DA Metering, Load Profiling may be used, based on a methodology adopted by CPAU, for any Account that records a maximum demand of less than 50 kW or, absent demand metering capabilities or records, for any Account that records a maximum monthly usage of less than 12,000 kWh in each Billing Period during the past 12 consecutive monthly Billing Periods. DA Customer may still request CPAU to provide and install DA Metering at its expense for such Accounts. (c)Meter Installation - Metering for Direct Access service, if needed, shall be provided and installed by CPAU, at DA Customer’s expense, within a reasonable period after DASR acceptance, subject to availability of resources including equipment and installers. CPAU shall notify the DA Customer if meter installation cannot be performed within a reasonable period. The DA Customer shall install, at its expense, a communications line to the meter as needed. At its sole option, CPAU may adopt or apply exceptions to meter and communication line installation requirements. Whole Meter Service - Direct Access service is applicable for 100 percent of the load served by individual single meters. Individual single meter loads may not be split between different ESPs. (E)Master-Metered Customers - Individual master-metered Customers, i.e., multi-family residential dwellings and mobile home parks, who provide CITY OF PALO ALTO UTILITIES Issued by the City Council . Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No.-4 DIRECT ACCESS RULE AND REGULATION 19 sub-metered tenant billings may participate in Direct Access as a single account. A master-metered Customer may not partition the electric loads of a single master meter to receive Direct Access Service and Full Service for one metered service; thus, the entire load of a single master meter must receive service under one electric service rate schedule. Load Aggregation - Two or more DA Customers may jointly submit for Aggregation by an ESP only the Loads of individual, single Meters that have been accepted sclcctcd for Direct Access. CPAU requirements for rate schedule eligibility, metering, billing and Distribution and Transmission Services apply to each individual DA Customer Account, not to the jointly aggregated Load. CUSTOMER INFORMATION: CPAU shall provide Customer-specified usage reports to parties specified by the DA Customer, subject to the following provisions: 1.°STANDARD USAGE REPORT The standard usage report shall include Customer Name Service Address, Account Number, Meter number, SIC Code, past 12 months of Account usage and billing history, and any other Customer-specific information as solely determined WRITTEN AUTHORIZATION The inquiring party must have written authorization from the DA Customer to release such information to the inquiring party. At the DA Customer’s request, this authorization may also indicate if Customer reports may be released to other parties as specified by the DA Customer. RELEASE OF INFORMATION Upon DA’Customer authorization, CPAU shall provide a standard usage report to CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 5 DIRECT ACCESS Do RULE AND REGULATION 19 parties authorized by the DA Customer, up to twice per year at no charge. Thereafter and for any additional standard or non-standard reports provided to authorized parties, CPAU reserves the right to charge service fees, pursuant to applicable municipal fee and rate schedules. CPAU DISTRIBUTION AND TRANSMISSION SERVICES: At all times during the term of Direct Access service to a Customer, CPAU shall be responsible for providing Distribution and, when requested by the customer, Transmission Services for DA Customers. Transmission Service and associated charges are subject to change to reflect modifications, revisions or terminations of CPAU’s contractual agreements and rights or any other changed circumstances. These Distribution and Transmission Services shall consist of the following: 1.DELIVERY OF ESP-SUPPLIED ENERGY CPAU shall be responsible for transmitting the DA Customer’s ESP-supplied electric energy from the Points of Receipt to the DA Customer’s Service Address(es) using its contractual rights and physical distribution system and according to terms and conditions specified in CPAU’s ~ ..... °--’:-- .~/with the ESP Agreement. DISTRIBUTION SERVICE (c) Distribution Facilities - CPAU shall be responsible for specifying, procuring, installing, maintaining and testing CPAU-owned equipment and facilities within the Service Territory that are used in providing Distribution Services, including but not limited to transformers, utility poles and lines, and metering equipment. Inquiries - CPAU shall be responsible for responding to all inquiries related to physical service, emergency system conditions, outages and safety, Contractual Transmission Services - When applicable, CPAU shall use its contractual rights to transmission pursuant to its Interconnection Agreement with PG&E, its participation agreement CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTOUTILITIgS Sheet No. - 6 DIRECT ACCESS CPAU 1. RULE AND REGULATION 19 with the Transmission Agency of Northern California and any other transmission rights as CPAU may acquire from time to time to deliver services requested by DA customers. CPAU reserves the right to modify, amend or terminate any of its contractual rights at its sole discretion. Any amendments or termination of CPAU’s existing transmission agreements may necessitate modifications to Direct Access service and the ESP Agreement ~. METERING, METER READING AND BILLING SERVICES: METERING RESPONSIBILITIES CPAU retains the responsibility for specifying, procuring, installing, reading, maintaining and testing all DA Metering installed on its Distribution System, following CPAU’s applicable standards, practices, rules and regulations as they may be amended from time to time. CPAU may select a subcontractor such as a "Meter Data Management Agent" (MDMA) to perform any or all functions related to meter management. METERING EQUIPMENT OWNERSHIP CPAU retains sole title to all DA Metering installed on its Distribution system. ALTERNATE METERING DA Customer may install their own metering equipment on its own facilities and shall have sole responsibility for specifying, procuring, installing, maintaining and testing such meters and for ensuring that such meters do not interfere with the operation ofCPAU’s DA Metering. The DA Customer retains title to its own metering equipment. CPAU retains the right to access, inspect, test or read such meters to ensure that they do not interfere with the operation of CPAU’s DA Metering. COST OF METERING The charges for obtaining and installing DA Metering are addressed in the applicable CPAU Direct Access electric service rate schedule or contract. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 7 DIRECT ACCESS o 10. _RULE AND REGULATION 19 APPLICABLE RULES CPAU’s applicable rules and regulations on meter reading, unauthorized energy use and preparation of bills will continue to apply with the additional provisions as provided in this section. READING INTERVALS DA Metering shall provide the DA Customer’s electric demand and usage data at 15-minute intervals, or other reading interval determined by CPAU. BILLING DATA Billing data, based on meter reads, shall be made available to CPAU, ESP, and Schedule Coordinator billing systems through electronic data transfer, verification and communication methodologies and protocols adopted by CPAU. PREPARATION OF BILLS CPAU may use the reading obtained on the last regular reading day of each monthly Billing Period to determine the bill for applicable Distribution and Transmission Services for that Billing Period. BILLING SERVICES CPAU shall be responsible for billing, collecting and responding to inquiries or disputes from DA Customers for charges and any applicable taxes or surcharges related to Distribution and Transmission Services rendered. DA Customers must refer to their ESP for billing services related to Energy Services rendered. DA CUSTOMER PAYMENT RESPONSIBILITIES The DA Customer is ultimately and solely responsible for the payment of applicable charges for services rendered under Direct Access, including but not limited to CPAU’s Distribution and Transmission Service charges, their ESP’s Energy Service charges, and state and local surcharges and taxes applicable to all services rendered. Such surcharges and taxes include, but are not limited to, CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 8 DIRECT ACCESS 11. RULE AND REGULATION 19 CPAU’s Public Benefits and Transition Cost Recovery charges and the City of Palo Alto’s Utility User Tax. .. PAYMENT & COLLECTION OF BILLS For billing and payments related to Distribution and Transmission Services rendered, CPAU’s applicable rules and regulations on rendering and payment of bills, nonpayment, and discontinuance and restoration of service shall apply to DA Customers. Fo 12.DISPUTED BILLS For disputed bills related to Distribution and Transmission Services rendered, CPAU’s applicable rules and regulations on disputed bills shall apply to DA Customers. CPAU bears no responsibility to respond toor resolve any billing disputes related to provision of Energy Services by the DA Customer’s ESP. CHANGES IN DIRECT ACCESS SERVICE: CHANGES IN ENERGY SERVICES The DA Customer, or its ESP, shall provide CPAU with at least 30 calendar days notice in advance of the next Billing Period of any material change in service, subject to CPAU approval, including but not limited to: CHANGE IN ELECTRIC POWER PROCUREMENT Notice shall be provided to CPAU if a material, permanent change in future electric power requirements is anticipated. This excludes any standard hourly Load deviations experienced in procuring and scheduling Energy Services. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 9 DIRECT ACCESS Go RULE AND REGULATION 19 CHANGE IN ENERGY SERVICE PROVIDER Notice shall be provided to CPAU ofa DA Customer’s intent to change their ESP. The new ESP shall comply with all applicable requirements for providing Energy Services under Direct Access, including signing of a ]gA-SgA ESP Agreement if not already existing. 4.VACATING OF PREMISES Notice shall be provided to CPAU of a DA Customer’s intent to vacate its current premises. A DA Customer’s vacating of its premises shall be considered a voluntary termination of Direct Access for the existing Account and Service Address. Participation in Direct Access for a DA Customer’s new premises is subject to CPAU’s then current eligibility and selection criteria. Direct Access at the existing Account and Service Address shall not be assignable to the new occupant of the Service Address. INTERRUPTIONS AND CURTAILMENTS: H° It may be necessary for CPAU to shed or curtail energy supply loads in order for CPAU to respond to anticipated or actual facilities repairs or improvements, supply shortages, outages or other conditions that impact the delivery of electric power. CPAU shall attempt to provide reasonable notification to the DA Customer of such conditions, pursuant to its rules and regulations and standard procedures, but shall not be liable if such notification is not provided. CPAU shall attempt to reestablish Distribution and Transmission Services with the shortest possible delay. SUSPENSION OR .TERMINATION OF DIRECT ACCESS: At it option, CPAU may suspend or terminat~ Direct Access service to a DA Customer in accordance with this section. 1.SUSPENSION CONDITION: NONPERFORMANCE OF ESP CPAU may suspend Direct Access service to a DA Customer if the ESP fails to procure and schedule Energy Services for more than 10 consecutive days, is in default on payments to CPAU, or otherwise fail to perform its obligations CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 10 .DIRECT ACCESS RULE AND REGULATION 19 pursuant to this Rule or the ~ ESP Agreement. ’. (A)CPAU shall immediately notify the DA Customer of the suspension. (B)The suspension term shall be for at least 30 calendar days, as solely determined by CPAU, after which the ESP must resume performance of its obligations. Resumption of Direct Access shall coincide with the first day of the next complete Billing Period following suspension. (c)During the term of the suspension, the DA Customer shall be returned to Full Service at CPAU’s applicable default rate schedule. (D)If nonperformance by the ESP totals more than two times in the past 12 months, Direct Access for the affected Account(s) shall be immediately terminated and the DA Customer returned to CPAU’s Full Service at the applicable default rate schedule. TERMINATION OF DIRECT ACCESS CPAU may terminate Direct Access under conditions described in this section. The DA Customer shall be returned to the CPAU’s Full Service under applicable default rate schedules, except where physical disconnection may apply in the case of DA Customer default. VOLUNTARY TERMINATION The DA Customer shall provide sufficient notice to CPAU to voluntarily terminate Direct Access using CPAU’s Termination of Direct Access form. CPAU shall determine the effective date of termination. The DA Customer shall be solely responsible for notifying its ESP of its desire to terminate and solely liable for any outstanding contractual obligations or other consequences of the termination of its agreement.with its ESP for Energy Services. (B)INVOLUNTARY TERMINATION DUE TO DA CUSTOMER DEFAULT CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. DIRECT ACCESS (c) RULE AND REGULATION 19 CPAU shall immediately terminate Direct Access if the DA Customer is in default for nonpayment of bills related.to Distribution and Transmission Services rendered, unsafe conditions, ~aud, service without proper application, noncompliance with City’s rules, or failure to establish credit, pursuant to CPAU’s applicable rules and regulations. DA Customer also may be subject to Distribution and Transmission Service disconnection. ESP DEFAULT CPAU shall immediately terminate Direct Access if the ESP has been suspended more than two times in the past 12 months or otherwise breaches the DASPA ESP Agreement or CPAU’s applicable rules and regulations. DA Customer shall not be subject to Distribution and Transmission Service disconnection due to ESP default. (D) (E) SURVIVAL OF OBLIGATIONS Upon termination of Direct Access, the DA Customer shall remain liable for all respective amounts payable or other obligations under Direct Access for services rendered by CPAU which may have accrued or may be accruing at the time of termination. RETURN TO DIRECT ACCESS If the DA Customer wishes to participate again in Direct Access after a previous termination of Direct Access, the DA Customer’s ability to participate shall be subject to applicable eligibility ~ criteria, contractual agreements and other requirements existing at that time, pursuant to CPAU’s Direct Access Implementation Plan, ~ applicable rules and regulations, CPAU rate schedules or their successors. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALOALTO ’ UTILITIES Sheet No.-12 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 PROTECTIVE DEVICES: It shall be the Applicant’s responsibility to furnish, install, inspect and keep in good and safe condition at their own risk and expense, all appropriate protective. devices of any kind or character, which may be required to properly protect the Applicant’s facility. CPAU shall not be responsible for any loss or damage occasioned or caused by the negligence, or wrongful act of the Applicant or any of the agents, employees or licensees of the property owner in omitting, installing, maintaining, using, operating or interfering with any such protective devices. It shall be the Applicant’s responsibility to install approval protective devices as may be necessary to coordinate properly with CPAU’s protective devices to avoid exposing other Customers to unnecessary service interruptions. Applicants who request primary voltage service shall install circuit breakers with over-current and ground fault relays. It shall be the Applicant’s responsibility to equip three-phase motor installations with appropriate protective devices, or use motors with inherent features, to completely disconnect such motors from its power supply, giving particular consideration to the following: -. Protection in each set of phase conductors to prevent damage due to overheating in the event of overload. Proteetio~a to prevent automatic restarting of motors or motor-driven machinery which has been subject to a service interruption and, because of the nature of the machinery itself or the product it handles, cannot safely resume operation automatically. (c)Open-phase protection to prevent damage due to overheating in the event of loss of voltage on one phase. (D)Reverse-phase protection where appropriate to prevent uncontrolled reversal of motor rotation in the event of accidental phase reversal. (Appropriate installation would include, but are not limited to, motors CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 1 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 driving elevators, hoists, tramways, cranes, pumps, conveyors, etc.). The available short-circuit current varies from one location to another, and also depends on the ultimate design characteristic of CPAU’s supply and service facilities. Consult CPAU for the ultimate maximum short-circuit current at each service terminal point. Any non-CPAU-owned emergency standby generation equipment that can be operated to supply power to facilities that are also designed to be supplied from CPAU’s system shall be controlled with suitable protective devices by the Applicant to prevent parallel operation with CPAU’s system in a fail-safe manner, such as the use of a double-throw switch to disconnect all conductors, except where there is a written agreement or service contract with CPAU permitting such parallel operation. o Unprotected service entrance conductors within a building shall be installed in approved conduit and shall not exceed thirty (30) feet in length. INTERFERENCE WITH SERVICE: 1.GENERAL CPAU reserves the right to refuse to serve new loads or to continue to supply existing loads of a size or character that may be detrimental to CPAU’s operation or to the service of its Customers. Any Customer who operates or plans to operate any equipment such as, but not limited to pumps, welders, saw mill apparatus, furnaces, compressors or other equipment where the use of electricity is intermittent, causes intolerable voltage fluctuations, or otherwise cause intolerable service interference, must reasonably limit such interference or restrict the use of such equipment upon request by CPAU. The Customer is required either to provide and pay for whatever corrective measures are necessary to limit the interference to a level established by CPAU as reasonable, or avoid the use of such equipment, whether or not the equipment has previously caused interference. HARMFUL WAVEFORM CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 2 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 Customers shall not operate equipment that superimposes a current of any frequency or waveform from CPAU’s system, or draws current from CPAU’s system of a harmful waveform, which causes interference with CPAU’s operations, or the service to other Customers, or inductive interference to communication facilities. Upon reasonable notification from CPAU, the Customer shall be required, at his/her sole expense, to correct any harmful waveform condition including, but not limited to: Excess current drawn upon equipment start-up causing voltage sags adversely affecting CPAU or other CPAU Customer. Current drawn with high harmonic currents causing transformer or conductor overheating. (c)Current drawn causing voltage distortion adversely affecting CPAU or other CPAU Customers. = (D) (E) Harmonic current drawn in excess of 5% total harmonic distortion will require correction. Harmonic current drawn which causes transformer overheating, even if root-mean-square (RMS) loading is acceptable, will require correction. CUSTOMER’S RESPONSIB~ITY Any Customer causing service interference to others must diligently pursue and take timely corrective action after being given notice and a reasonable time to do so by CPAU. If the Customer does not take timely corrective action, or continues to operate the equipment causing the interference without restriction or limit, CPAU may, without liability, after giving five (5) days written notice to Customer, either install and activate control devices on its facilities that will temporarily prevent the detrimental operation or discontinue electric service until a suitable permanent solution is provided by the Customer and it is operational. MOTOR STARTING CURRENT LIMITATIONS CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 3 SPECIAL ELECTRIC UTILITY REGULATIONS _RULE AND REGULATION 20 The starting of motors shall be controlled by the Customer as necessary to avoid causing voltage fluctuations that will be detrimental to the operation of CPAU’s distribution or transmission system, or to the service of any of CPAU Customers. (B)If the starting current for a single motor exceeds the value listed in National Electric Code Table 430-151 or the resulting voltage disturbance causes or is expected to cause detrimental service to others, a suitable means must be employed, at the Customer’s expense, to limit voltage fluctuations to a tolerable level. C.PHASE BALANCING: Where three-wire single phase or polyphase service is supplied, the Load must be balanced as nearly as practicable between the two sides or several phases, respectively. In no case is the load on one side of a three-wire single-phase service to be greater than twice that on the other, or the Load on any one phase of a polyphase service greater than twice that of any other. POWER FACTOR CORRECTION: The Customer is required to provide, at its own expense, power factor correction equipment to improve average power factor to at least the level set forth in the applicable rate schedule with respect to avoiding a power factor penalty. SERVICE SWITCH AND METER TEST DEVICES: All service switches and similar devices, irrespective of voltage, required by law in connection with a service and meter installation on Customer’s Premises shall be furnished, installed and maintained by the Customer. A "service-disconnecting means", as defmed by the National Electric Code section 230-70(a), must be installed adjacent to the meter(s) and on the exterior of the building except as allowed by this rule. Where meter transformers are furnished by CPAU as part of the meter installation, CPAU will also furnish the means of safe testing required by law;. but where such CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 4 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 transformers are not used and the said means for safe testing is required, the Customer will be expected to provide a type of service switch incorporating the same. Detailed information will be furnished by CPAU upon application. SPECIAL POWER SERVICE REQUIREMENTS: 1.GENERAL Where a customer desires voltage control within unusually close limits, CPAU may require that CPAU’s provision of such voltage control will be at the Customer’s own expense for any special or additional equipment required. 2.NONSTANDARD OR EXCESSIVE CUSTOMER REQUIREMENTS (A)In order to prevent damage to CPAU’s equipment and impairment of its service, the Customers shall give CPAU notice before making any additions to his connected load so that CPAU, at its option, may provide such facilities as may be necessary for furnishing the increased service. (B)If a Customer’s load is of sufficient magnitude that it impairs the ability of the system to serve normal load in the opinion of the electrical Engineering Manager, the Customer may be required to impose peak loads during "off-peak" hours of CPAU’s electrical system, or take service from CPAU’s 60 kilovolt system, or both. SPECIAL FACILIT~S: CPAU normally installs only those standard facilities which it deems are necessary to provide regular service in accordance with the rate schedules. Where the Applicant requests CPAU to install facilities and CPAU agrees to make such an installation, the additional costs thereof, as estimated by CPAU, shall be bome by the Applicant, including such continuing ownership costs as may be applicable. In lieu of paying the continuing ownership costs, an Applicant has the option of making a one-time lump sum payment based on CPAU’s calculation of the net present value of the ownership costs. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No..$ SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 Special facilities are: Facilities requested by an Applicant which are in addition to or in substitution for standard facilities which CPAU would normally provide for delivery of service at one point, through one meter, at one voltage class under its rate schedules; or A pro rata.portion of the facilities requested by an Applicant, for the sole use of such Applicant, which would not normally be allocated for such sole use. Unless otherwise provided by CPAU’s rate schedules, special facilities will be installed, owned and maintained by CPAU as an accommodation to the Applicant only if acceptable for operation by CPAU and the reliability of service to CPAU’s other Customers is not impaired. CUSTOMER SELECTION OF RATE AND SERVICE OPTIONS: CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO’ALTO UTILITIES Sheet No.-6 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 e CHANGING RATE SCHEDULES Opportunities or restrictions for Customers to change service between rate schedules will be described on the applicable rate schedules. DEFAULT RATE SCHEDULE Customers who elect Direct Access and subsequently choose or require full service from CPAU will be served under the applicable Default Rate Schedule determined by CPAU except as provided herein: (A)If less than 30 days written notice is provided CPAU of the Applicant’s intent to return to full service with CPAU, CPAU may provide service on the applicable standby service rate schedule for a minimum 30 days; (B)If, after providing 30 days written notice, the Applicant: (:z) Meets eligibility, requirements and elects an applicable CPAU rate schedule or; Elects service under an approved contract. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-99 CITY OF PALO ALTO UTILITIES Sheet No. - 7