HomeMy WebLinkAbout1999-06-21 City Council (14)City of Palo Alto
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:JUNE 21, 1999 CMR:294:99
SUBJECT:STATUS OF THE WESTERN AREA POWER ADMINISTRATION POST
2004 CONTRACT RENEWAL PROCESS
This is an informational report and no Council action is required.
BACKGROUND
The Western Area Power Administration (Western) has been the City’s major supplier of
electricity since the initiation of a forty (40) year contract in 1964. That contract is set to expire
on December 31, 2004. Western currently supplies 60 to 90 percent of Palo Alto’s electricity
needs. Staff has been working on a process to renew the contract for several years.
DISCUSSION
On Thursday June 10, U.S. Secretary of Energy Bill Richardson signed the Western Post 2004
Marketing Plan (Plan) culminating 5 years of analysis, public input, political activities and staff
effort. In the next two weeks the Federal Register will be published disclosing the contents of
the Plan. Staff will analyze the plan and begin the long process of assisting Western in
developing its new products and services. Staff will also be analyzing Palo Alto’s options with
regard to meeting the large portion of the City’s electric needs that Western may no longer
cover.
Staff will keep the Utilities Advisory Commission and Council informed as to policy and long
term planning issues as they arise.
RESOURCE IMPACT
This does not require a change in resources at this time. Resources will continue to be directed
at these efforts.
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POLICY IMPLICATIONS
There are no policy implications at this time.
PREPARED BY: Tom Kabat, Senior Resource Planner
Girish Balachandran, Manager, Supply Resources
DEPARTMENT HEAD APPROVAL: ~ :~---~’ ~2’_-~~----’
~I~HN ULRICH
Director of Utilities
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
CMR:294:99 Page 2 of 2