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HomeMy WebLinkAboutStaff Report 171-08TO: BUDGET ’08 - ’09 City of PaSo A to C ty Manager Report HONORABLE CITY COUNCIL FROM: ATTENTION: DATE: SUBJECT: CITY MANAGER DEPARTMENT: UTILITIES FINANCE COMMITTEE MARCH 18, 2008 CMR: 171:08 UTILITIES ADVISORY COMMISSION RECOMMENDATION TO ADOPT A RESOLUTION ADOPTING AN ELECTRIC RATE INCREASE AND AMENDING UTILITY RATE SCHEDULES E-l, E-l-G, E-2, E-2-G, E-4, E-4-G, E-4-TOU, E-7, E-7-G, E-7-TOU, E-14, E-16, E-18 AND E-18-G RECOMMENDATION Staff and the Utilities Advisory Commission (UAC) recommend that the City Council adopt the attached resolution to: (a)Approve a 14 percent increase to electric retail rates, for Fiscal Year (FY) 2008-09, effective July 1, 2008, which will increase annual revenues by $12.8 million; and (b)Approve the changes to the Electric Utility Rate Schedules (E-I, E-l-G, E-2, E-2-G, E- 4, E-4-G, E-4-TOU, E-7, E-7-G, E-7-TOU, E-14, E-16, E-18 and E-18-G), as attached. BACKGROUND In June 2007, the City Council approved a 5 percent electric revenue increase for FY 2007-08. The FY 2008-09 Budget that was approved in-concept included a 10 percent retail rate increase for the Electric Fund. During the FY 07-08 budget and retail rate development process in January 2007, average hydro- electric production for 2007 and healthy Electric Supply Rate Stabilization Reserve (E-SRSR) levels were projected, and as a result no supply rate increase was proposed for FY 2007-08 and the E-SRSR was budgeted for an $11 million drawdown. The FY 2007-08 revenue increase was allocated solely to the distribution portion of the electric rates in light of higher distribution costs and a low balance in the Electric Distribution Rate Stabilization Reserve (E-DRSR). CMR: 171:08 Page 1 of 6 During the winter and spring of 2007, drought conditions resulted in lower-than-projected hydroelectric production for FY 2007-08 and FY 2008-09. This situation resulted in the requirement to buy replacement energy from the market to meet City loads. To cover these higher costs, Council approved a mid-year budget increase of $8 million for FY 07-08 on February 19, 2008 [CMR:151:08]. Council also was advised of the increased electric supply costs due to the drought in January 22, 2008 [CMR: 122:08] when staff and the UAC recommended against a FY 07-08 mid-year rate increase, but warned that the rate increase proposal for FY 08-09 would likely be higher than the 10 percent approved in concept rate increase. DISCUSSION The proposed rate increase for FY 2008-09 represents a $12.8 million annual electric revenue increase, the main driver of which is higher commodity purchase costs. Of this, $12.5 million is to fund supply cost and the remaining $0.3 million will fund the State-mandated Electric Public Benefits budget. Staff also proposes to transfer an additiona! $4.4 million from the Calaveras reserve into the E-SRSR in order to meet the risk assessment level (see discussion below). Table 1 below shows the estimated revenues and expenses for the Electric Fund for FY 2008-09 as well as the actual revenues and expenses for FY 2006-07 and the adjusted budget revenues and expenses for FY 2007-08. 1 14 TABLE 1 - Electric Fund Sources and Uses of Funds ($000) % CHANGE IN TOTAL SYSTFJ~I RETAIL RATE --’RO JECTE3 -OTAL AV_--RA-.~E RATE .’,S,~W H ? =ROJ-__.CT-Z3 COMMSCITY CC, ST fS,K;’~H? SALES N ’SWH ~ERQEHTA,~E OF SJ=PLY bHDER CONTRACT =ROJECTED CHAHGE IN RE-AlL SALES REVEHJE Ut~liges Retail Sales Dark Fiber related revenues Surplus Energy Sales Service connection charges Other Revenues plus Transfers In * Interest plus gain or loss on investment Total Sources of Funds Purchases to ser~e load CVP O&M Loan Advance Surplus Energy Cost Joint Venture Debt Service Supply Operating Budget D}stribution Operating Budget Other Transfers Out Capital Improvement programs Operating Encumbrances & reconciliation Total Uses of Funds Fiscal Year Into,; (Out of) Reserves Actual 06-07 0,0% $ 0285 $0.~49 977 85,414 2,755 5,945 1,859 6,896 7,826 ! 12,725 50,078 8,135 4,196 8/.-43 4,617 17,4~4 12,732 11,420 2,~4 119,740 (t,ulU,, Adjusted In-Concept 07-08 5.0%t0.0% 0.092 $ 0.101 S 0.063 $0o061 97% 4,376 ~r’,,507 £9,902 ~,~, :3 2,585 2.502 700 7,532 6,767 11~,518 84.346 5.554 !.424 6.886 14.281 t3,978 132=356 ~ 1 .o3. ,~(5;781) Proiected 08-09 t4,0% S 0.105. S 0.069 993 83% I03.382 2,585 4,319 753 1 ! ,741 6,767 !29.54~ 70.91~ 7,200 2,140 8,892 5,397 21.958 14.150 11,525 *Other revenues includes CVP O&M loan payments CMR: 171:08 Page 2 of 6 Reserves and Risk Assessment Table 2 below summarizes the end of year balances for the E-SRSR, the E-DRSR and the Calaveras Reserve, the risk assessment level and the reserve guidelines. Staff presented the annual risk assessment of the Electric Fund to the UAC at its February 2008 meeting. Note that the risk assessment level is determined by assessing the short-term risks to the Electric Fund. The reserve guidelines were established to manage risks over the longer term. The $4.4 million additional transfer from the Calaveras Reserve will reduce this reserve from the Council approved target level, but it will still remain above the Council-approved minimum guideline level for FY 08-09. No change in the Calaveras Reserve guidelines needs to be made to effect this change. With the recommended revenue increase, the FY 2008-09 E-DRSR ending balance is forecast to be above both the risk assessment level and the minimum guideline level approved by the City Council. The total $12.8 million revenue increase proposed for FY 2008-09, when applied to electric supply costs, will bring the E-SRSR ending balance for FY 2008-09 up to the risk assessment level, but below the long-term minimum guideline level approved by the City Council. TABLE 2: Electric Reserve Balance, Guideline Levels and Risk Assessment Level ($M) FY 2006-07 (actual) Electric Supply Rate Stabilization Reserve End of Year Balance 60.6 Risk Assessment Level Minimum Guideline Level Maximum Guideline Level Electric Distribution Rate Stabilization End of Year Balance Risk Assessment Level Minimum Guideline Level Maximum Guideline Level Calaveras Reserve End of Year Balance Minimum Guideline Level Maximum Guideline Level 28.5 56.9 Reserve 7.8 FY 2007-08 (estimated) 41.6 44.2 29.3 58.5 FY 2008-09 (forecast) 33.8 35.4 70.9 6.3 4.0 6.6 16.6 7.2 4.6 6.7 16.7 5.4 10.9 71.8 70.4 64.6 64.6 63.3 62.0 89.8 87.9 86.1 An updated risk assessment will be performed as part of the budget process for FY 2009-10, and staff will evaluate the revenues, expenses and risks during the FY 2009-10 budget process to ensure that the Electric Utility remains financially sound. This assessment will include examination of potential modifications to the Calaveras Reserve guidelines. CMR: 171:08 Page 3 of 6 Allocation of Proposed Revenue Increase The proposed electric supply revenue increase of 14 percent, or $12.8 million, is to be applied evenly to both residential and non-residential customers. The average customer’s bill will increase 14 percent, and bills for higher users will increase more than 14 percent. Table 3 below shows the impact of this rate proposal on a typical monthly bill for various customer classes and consumption levels. The bill impact table does not include the bills for those who participate in the PaloAltoGreen program. TABLE 3: Effect of Proposed Electric Rate Increase on Customer Bills Monthly Proposed Monthly % Bill % PA Customer Type kWh Usage Monthly Bill Increase Increase Belmv Bill ($)($)PG&E Residential Small 300 $ 25.98 $ 2.29 12.0 (25.1) Residential Average 650 69.36 8.53 14.0 (27.1) Residential Large 1200 156.40 20.23 14.9 (39.9) Commercial Small 500 60.68 7.47 14.0 (30.2) Commercial Medium 200,000 21,894 2,697 14.0 (8.4) Commercial Large 5,500,000 501,260 61,705 t4.0 (10.1) Bill Comparison Table 4 below compares Palo Alto’s monthly electric bills for residential customers with those of PG&E and several other municipal electric utilities. The comparisons are for rates in effect on January 1, 2008. Staff does not know the rate increase plans for PG&E, but is aware that many of the municipal utilities have plans for electric rate increases this year. However, those increases are still being developed or are not yet approved and cannot be used for comparisons. TABLE 4 - Monthly Residential Electric Bill Comparison (rates as of January 1, 2008) Electric Usage Bill ($)(kWh) Small 300 31.15 Average 650 90.49 Large 1200 191.09 Delta from Palo Alto for ’57,8% ’48.8%average residential use ,, RosevillePaloPG&EAlto | Alameda Clara 30.35 77.58 168.91 -27.5% 23.19 .~9._6 60.83 96.02 136.17 250.04 5.2.~ 66.90 128.66 25.75 56.90 105.85 6.5% Delta Benchmark (%) -30.9% -27.5% -24.0% Palo Alto’s January 2008 rates for the average residential customers are significantly below PG&E’s rates. However, the difference was less for other municipal utilities and, in the case of Santa Clara, Palo Alto’s rates were higher. CMR: 171:08 Page 4 of 6 ALTERNATIVES Staff evaluated several rate increase options. One option was to increase electric rates enough to raise the E-SRSR to the risk assessment level without any additional transfers from the Calaveras Reserve. This option would have required a 19% rate increase, which was deemed unacceptably steep. Another option was to maintain the 10% approved in concept rate increase that was projected last year. The 10% rate increase projection assumed average hydroelectric generation, but drought conditions increased costs significantly above projections. A 10% rate increase would have resulted in an ending year balance in the E-SRSR of much less than the risk assessment level even with the maximum transfer from the Calaveras Reserve allowed under the current Council-approved guidelines for the Calaveras Reserve. Instead of either of these two alternatives, staff recommends an intermediary option, the proposed 14% rate increase. UTILITIES ADVISORY COMMISSION REVIEW AND RECOMMENDATIONS On March 5, 2008, the UAC voted unanimously (4-0 with one Commissioner absent), to recommend that the City Council: (a)Approve a 14 percent increase to electric retail rates, for FY 2008-09, effective July 1, 2008, which will increase annual revenues by $12.8 million; and (b) Approve the changes to the Electric Utility Rate Schedules, as attached. The UAC supported staff’s recommendation and noted that the recommendation was what the UAC had preferred of the three scenarios presented at the February UAC meeting. One Commissioner questioned staff’s recommendation to propose a higher increase in the residential rate for consumption in the higher usage tiers. Staff reiterated that the proposed rate structure was designed to encourage energy conservation. RESOURCE IMPACT Approval of this rate proposal will increase the Electric Fund retail sales revenues in FY 2008-09 by approximately $12.8 million. With this infusion of revenue, the balance in the E-SRSR is projected to be at the risk assessment reserve level in FY 2008-09. POLICY IMPLICATIONS This recommendation is consistent with current City policies. ENVIRONMENTAL REVIEW An increase in rates to meet operating expenses and financial reserve needs is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a)(1) and (3). CMR: 171:08 Page 5 of 6 ATTACHMENTS A. Resolution B. Electric Rate Schedules: E-!, E-l-G, E-2, E-2-G, E-4, E-4 TOU, E-4-G, E-7, E-7-TOU, E-7- G, E-!4, E-16, E-18, E-18-G C. Draft Minutes of the UAC meeting of March 5, 2008 PREPARED BY: REVIEWED BY: Eric Keniston, Utilities Rate Analyst Ipek Connolly, Senior Resource Planner Jane Ratchye, Assistant Director of Utilities, Resource Management DEPARTMENT HEAD: CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR: 171:08 Page 6 of 6 NOT YET APPROVED ATT ACHMEN RESOLUTION NO. RESOLUTION OF THECOUNCIL OF THE CITY OF PALO ALTO ADOPTING ANELECTRIC RATE INCREASE AND AMENDING UTILITYRATE SCHEDULES E-I, E-I-G, E-2, E-2-G, E-4, E-4-G, E-4-TOU, E-7, E-7-G, E-7-TOU, E-14, E-16, E-18, AND E-18-G WHEREAS, pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services and the fees and charges therefore; and WHEREAS, the Council has considered the need for an adjustment in electric rates to maintain the Electric Supply and Distribution Rate Stabilization Reserves above the levels determined by the annual risk assessment. NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION !. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-1 (Residential Electric Service) is hereby amended to read in accordance with sheet E-l-l, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-1-G (Residential Green Power Electric Service) is hereby amended to read in accordance with sheets E-l-G-1 and E-l-G-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 3. Pursuant to Section 12.20.0!0 of the Palo Alto Municipal Code, Utility Rate Schedule E-2 (Small Commercial Electric Service) is hereby amended to read in accordance with sheets E-2-1 and E-2-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-2-G (Small Commercial Green Power Electric Service) is hereby amended to read in accordance with sheets E-2-G-1 and E-2-G-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. 080311 syn 6050386 NOT YET APPROVED SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4 (Medium Commercial Electric Service) is hereby amended to read in accordance with sheets E-4-1 to E-4-3, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4-G (Medium Commercial Green Power Electric Service) is hereby amended to read in accordance with sheets E-4-G, E-4-G-3 and E-4-G-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4-TOU (Medium Commercial Electric Time of Use Service) is hereby amended to read in accordance with sheets E-4-TOU-1, E-4-TOU-2, E-4-TOU-3 and E-4-TOU-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7 (Large Commercial Electric Service) is hereby amended to read in accordance with sheets E-7-1, E-7-2 E-7-3, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7-G (Large Commercial Green Power Electric Service) is hereby amended to read in accordance with sheets E-7-G-1, E-7-G-2, E-7-G-3 and E-7- G-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7-TOU (Large Commercial Electric Time of Use Service) is hereby amended to read in accordance with sheets E-7-TOU-1, E-7-TOU-2, E-7-TOU- 3 and E-7-TOU-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION ll. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-14 (Street Lights) is hereby amended to read in accordance with sheets E- 14-1, E- 14-2, E- 14-3 and E- 14-4, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. 080311 syn 6050386 2 NOT YET APPROVED SECTION 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-16 (Unmetered Electric Service) is hereby amended to read in accordance with sheets E-16-1, E-16-2 and E-16-3, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1,2008. SECTION 13. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E- 18 (Municipal Electric Service) is hereby amended to read in accordance with sheets E-18-1 and E-18-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 14. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-18-G (Municipal Green Power Electric Service) is hereby amended to read in accordance with sheets E-18-G-1 and E-18-G-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2008. SECTION 15. The Council finds that the revenue derived from the authorized adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. // // // // // // // // 08031 I syn 6050386 NOT YET APPROVED SECTION 16. The Council finds that an increase in rates to meet operating expenses and financial reserve needs is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a)(1) and (3). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Deputy City Attorney City Manager Director of Utilities Director of Administrative Services 080311 syn 6050386 4 ATTA( RESIDENTIAL ELECTRIC SERVICE UTILITY RATE SCHEDU%E E-1 A.APPLICABILITY: This schedule applies to separately 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. No Co TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. UNBUNDLEDRATES: Per kilowatt-hour Commodity..Distribution Public Benefits Total First 300 kWh $0.05448 $0.02920 $0.00292 $0.08660 Next 300 kWh 0.07654 0.03878 0.00292 0.11824 Over 600 kWh 0.10349 0.05184 0.00292 0.15825 D.SPECIAL NOTES: 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 is broken down into three cost components as calculated under Section C: Commodity Charge, Distribution Charge, and Public Benefits Charge. 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 qualifying solar energy system prior to April 1, 1987. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-l-1 dated 7-1-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-l-1 RESIDENTIAL GREEN PO’WER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-1-G A.APPLICABILITY: This schedule applies to separately metered single-family residential dwellings receiving retail ener~c7 services from the City of Palo Alto Utilities under the Palo Alto Green plan. A "single-family residential dwelling" is designated as any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities. Palo Alto Green power provides for the purchase of 100% renewable green energy for participating customers. TERRITORY: Co Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. UNBUNDLED RATES: Pato Alto Per kilowatt-hour Commodity Distribution Public Benefits Green Total First 300 kwh $0.05448 $0.02920 $0.00292 $0.0!50 $0.10160 Next 300 kWh 0.07654 0.03878 0.00292 0.0150 0.13324 Over 600 kwh 0.10349 0.05184 0.00292 0.0150 0.17325 D.SPECIAL NOTES: 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 is broken down into four cost components as calculated under Section C: Commodity Charge, a Distribution Charge, a Public Benefits Charge, and a charge for Palo Alto Green. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E-1-G-f dated 7-7-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No. E-l-G-1 RESIDENTIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-1-G (Continued) 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 quali~ing solar energy system prior to April 1, 1987. o o Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Pro~am application provided by the Customer Service Center. Notice of Schedule Change This schedule supercedes and replaces the Residential Green Power Electric Services’ formerly designated as Utilities Rate Schedules E-l-G1, E-l-G2, and E-l-G3, effective per adoption of this schedule. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No E-f-G-2 dated 6-1-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No. E-l-G-2 SMALL COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 No Co APPLICABILITY: This schedule applies to non-demand metered electric service for small commercial customers and master-metered multi-family facilities. TERRITORY: Within the incorporated limits of the City of Palo Alto and land ow~aed or leased by the City. RATES: Unbundled Seasonal Energy Rates: Per kilowatt-hour Commodity Distribution Public Benefits Total Summer $0.08219 $0.04254 $0.00292 $0.12765 Winter 0.07406 0.03810 0.00292 0.11508 D°SPECIAL NOTES: 1.Calculation of Cost Components The actual bil! 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 is broken down into three cost components as calculated under Section C: Commodity Charge, Distribution Charge, and Public Benefits Charge. 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-2-f dated 7-1-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No. E-2-1 SMALL COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 (Continued) o 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 qualifying solar energy system prior to April 1, 1987. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-2-2 dated 7-1-2001 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No. E-2-2 SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2-G No No Co APPLICABILITY: This schedule applies to non-demand metered electric service for small commercial customers and master-metered multi-family facilities receiving retail energy services from the City of Palo Alto Utilities under the Palo Alto Green plan. Palo Alto Green power provides for either the purchase of 100% renewable ueen energy for participating customers, or for the purchase of 1000 kwh blocks. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. RATES: 1. Unbundled Seasonal Energy Rates (100% renewable green option): Palo Alto Per kilowatt-hour Commodity Distribution Public Benefits Green Summer $0.08219 $0.04254 $0.00292 $0.0150 Total $O.14265 Winter 0.07406 0.03810 0.00292 0.0150 0.13008 ° Per kilowatt-hour Summer Unbundled Seasonal Energy Rates(1000 kWh block option): Commodi~Distribution Public Benefits $0.08219 $0.04254 $0.00292 0.07406 0.03810 0.00292Winter Palo Alto Green Charge (per 1000 kwh block) Total $0.12765 0.11508 15.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-2-G-f dated 7-01-2007 CITY OF PALO ALTO UTILITIES Proposed Effective %01-2008 Sheet No. E-2-G-1 SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE Do SPECIAL NOTES: UTILITY KATE SCHEDULE E-2-G (Continued) ° o Calculation of Cost Components The actual bil! 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 is broken down into four cost components as calculated under Section C: Commodity Charge, a Distribution Charge, a Public Benefits Charge, and a charge for Palo Alto Green. 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. Solar Energ~ 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 qualifying solar energy system prior to April 1, 1987. o Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Pro~am application provided by the Customer Service Center. Notice of Schedule Change e ° fThis schedule supercedes and replaces the Small Commercial Green Power Electric S rvlces formerly designated as Utilities Rate Schedules E-2-G1, E-2-G2, and E-2-G3, effective per adoption of this schedule. [End CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-2-G-2 dated 7-07-2007 C~TY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No. E-2-G-2 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 A.APPLICABILITY: No This schedule applies to demand metered secondary electric service for commercial customers with a maximum demand below 1,000 kilowatts who have waived electric direct access eligibility. This schedule applies to three-phase electric service and may include sewice to master-metered multi- family facilities. TERRITORY: Co D° Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: Seasonal Demand and Energy Rates: Commodity Summer Period Demand Charge (kW)$5.3 ! Energy Charge (kWh)0.06083 Winter Period Demand Charge (kW)$4.80 Energy Charge (kWh)0.05281 Distribution Public Benefits Total $11.88 $17.19 0.01378 0.00292 0.07753 $6.98 $11.78 0.01325 0.00292 0.06898 SPECIAL NOTES: 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 components as calculated under Section C: Commodity Charge, Distribution Chmge and Public Benefit Charge. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-4-f dated 7-1-2007 CiTY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-4-1 MEDIUM COMMERCIAL ELECTRIC SERVICE o o o UTILITY tL4TE SCHEDULE E-4 (Continued) 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. 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 billins 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. 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 qualifying solar energy system prior to April 1, 1987. Po~ver 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 volt-ampere reactive (VARJ-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 be!ow 200 kilowatts for four consecutive months. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-2 dated 8-1-2001 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-4-2 MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 (Continued) 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 kilovolt-ampere_LkVA) hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shal! be the power factor coincident with the customer’s maximum demand. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable City of Palo Alto full-service rate schedule. Qualified customers may request service under E-4-G1, E-4-G2, or E-4-G3. Customers served under this rate schedule are not eligible for electric direct access and cannot request a rate schedule change to a full service rate schedule applicable to customers who are eligible for electric direct access (i.e. E-17). Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be. supplied by the City subject to a maximum kVA size limitation. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-4-3 dated 8-1-2001 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-4-3 MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G No Bo Co APPLICABILITY: This schedule applies to demand metered secondary electric service for commercial customers with a maximum demand below 1,000 kilowatts who receive power under the Palo Alto Green plan and have waived electric direct access eligibility. This schedule applies to three-phase electric service and may include service to master-metered multi-family facilities. Palo Alto Green power provides for either the purchase of 1000 kWh blocks, or the purchase of 100% renewable green energy for participating customers. TERRITORY: Within the incorporated limits of the City, of Pa!o Alto and land owned or leased by the City. RATES: 1. Unbundled Seasonal Demand and Energy Rates (1000 kWh block option): CommodiW Distribution Public Benefits Total Summer Period Demand Charge (kW)$5.31 Energy Charge (kWh)0.06083 Palo Alto Green Charge (per 1000 kWh block) Winter Period Demand Charge (kW)$4.80 Energy Charge (kWh)0.05281 Palo Alto Green Charge (per 1000 kWh block) 2. $11.88 $17.19 0.01378 0.00292 0.07753 15.00 $6.98 $11.78 0.01325 0.00292 0.06898 15.00 Unbundled Seasonal Demand and Energy Rates (100% renewable green option): Public Palo Alto Commodity_Distribution Benefits Green Total $5.31 $11.88 $17.19 0.06083 0.01378 0.00292 0.0150 0.09253 Summer Period Demand Charge (kW) Energy Charge (kWh) Winter Period Demand Charge (kW) Energy Charge (kWh) $4.80 $6.98 $11.78 0.05281 0.01325 0.00292 0.0150 0.08398 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-G-’I dated 7-1-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-4-G-1 MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE Do SPECIAL NOTES: UTILITY RATE SCHEDULE E-4-G (Continued) 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 four cost components as calculated under Section C: Commodity Charge, Distribution Charge, Public Benefits Charge and a charge for Palo Alto Green blocks. o 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. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter, which does not reset after a definite time interval may be used at the City’s option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 PM on weekdays. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-G-2 dated 6-%2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-4-G-2 MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE o UTILITY RATE SCHEDULE E-4-G (Continued) 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 qualifying solar energy system prior to April 1, 1987. 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 volt-ampere reactive (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 dropped belo~v 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 or (1/4) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt-hours to kilovolt-ampere (kVA) 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. Changing Rate Schedules Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Customers may request a rate schedule change at any time to any applicable full-service rate schedule. Qualified customers may elect E-4 or E-4-TOU. Customers served under this rate schedule are not eligible for electric direct access and cannot request a rate schedule change to a full service rate schedule applicable to customers who are eligible for electric direct access (i.e. E-17). CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-G-3 dated 6-’/-2003 CiTY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-4-G-3 MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE o UTILITY RATE SCHEDULE E-4-G (Continued) Notice of Schedule Change This schedule supercedes and replaces the Medium Commercial Green Power Electric Services’ formerly designated as Utilities Rate Schedules E-4-G1, E-4-G2, and E-4-G3, effective per adoption of this schedule. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change the system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-G-4 dated 6-1-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-4-G-4 MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU Ao Bo Co APPLICABILITY: This schedule applies to demand metered secondary electric service for commercial customers with a demand between 500 and 1,000 kilowatts per month, who have sustained this level of usage for at least three consecutive months during the most recent 12 month period, and who have waived electric direct access eligibility. This schedule applies to three-phase electric service and may include service to master-metered multi-family facilities. In addition, this rate schedule is applicable for customers who did not pay power factor penalties during the last 12 months. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: Seasonal Demand and Energy Rates:Per Meter Per Month Summer Period CommodiW Distribution Public Benefits Total Demand Charge (kW) Peak $3.12 $6.99 $10.11 Mid Peak 1.99 4.41 6.40 Off-Peak 1.13 2.54 3.67 Energy Charge(kWh) Peak $0.10963 $0.02529 $0.00292 $0.13784 Mid Peak 0.05617 0.01266 0.00292 0.07175 Off-Peak 0.04298 0.00950 0.00292 0.05540 Winter Period Demand Charge (kW) Peak $2.77 $3.94 $6.71 Mid Peak Off-Peak 1.49 2.27 3.76 Energy Charge(kWh) Peak $0.07003 $0.01773 $0.00292 $0.09068 Mid Peak Off-Peak 0.04088 0.01014 0.00292 0.05394 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-TOU-1 dated 7-1-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-4-TOU-1 MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE Do SPECIAL .NOTES: UTILITY RATE SCHEDULE E-4 TOU (Continued) 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 appropriate components as calculated under Section C. Definition of Time Periods SUMMER (Service from May 1 to October 31): Peak:12:00 noon to 6:00 p.m.Monday through Friday (except holidays) Mid Peak:8:00 a.m. to 12:00 noon 6:00 p.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak:9:00 p.m. to 8:00 a.m. All day Monday through Friday (except holidays) Saturday, Sunday, and holidays WINTER (Service from November 1 to April 30): Peak:8:00 a.m. to 9:00 p.m.Monday through Friday (except holidays) Off-Peak:9:00 p.m. to 8:00 a.m. All day Monday through Friday (except holidays) Saturday, Sunday, and holidays HOLIDAYS: "Holidays" for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGE: 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-TOU-2 dated 7-1-2002 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-4-TOU-2 MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU (Continued) o Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 ki!owatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The billin~ demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts taken during any 15-minute interval in each of the desig-nated Time periods as defined under Section D.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 qualifying solar energy system prior to April 1, 1987. Power Factor Penalty Time of Use customers must not have had a power factor penalty assessed on their service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere_~kVA) hours consumed during the month, and must not have fallen below 95% to avoid the power factor penalty. Should the City of Palo Alto Utilities Department find that the customer’s service should be subject to power factor penalties, the customer will be removed from the E-4-TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt demand and kilowatt-hour usage. Changing Rate Schedules Customers electing to be served under E-4 TOU must remain on said schedule for a minimum of 12 months. Should the customer so wish, at the end of 12 months, the customer may request a rate schedule change to any applicable City of Pa!o Alto full-service rate schedule. Qualified customers may request service under E-4, E-4-G1, E-4-G2, or E-4-G3. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-TOU-3 dated 1-1-2002 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-4-TOU-3 MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU (Continued) o Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-4-TOU-4 dated 1-7-2002 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-4-TOU-4 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 A.APPLICABILITY: Uo 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, who have sustained this demand level at least 3 consecutive months during the last twelve months, and who have waived electric direct access eligibility. TERRITORY: Co Do Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: Seasonal Demand and Energy Rates: Commodity Summer Period Demand Charge (kW)$6.42 Energy Charge (kWh)0.05662 Winter Period Demand Charge (kW)$5.50 Energy Charge (kWh)0.04990 SPECIAL NOTES: Distribution Public Benefits Total $9.54 $15.96 0.01388 0.00292 0.07342 $4.39 $9.89 0.01379 0.00292 0.06661 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 th~’ee components as calculated under Section C: Commodity Charge, Distribution Charge and Public Benefit Charge. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-7-1 dated 7-’1-2007 CiTY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-7-1 LARGE COMMERCIAL ELECTRIC SERVICE o o UTILITY RATE SCHEDULE E-7 (Continued) 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. Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 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. o 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. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-7-2 dated 8-1-2001 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-7-2 LARGE COMMERCIAL ELECT~C SERVICE UTILITY KATE SCHEDULE E-7 (Continued) kilowatts for three consecutive months, the City has the option to install volt-mnpere reactive LVAR)-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. W-hen such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalty adjustment shall be applied to a customer’s bill prior to the computation of any primary" voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovolt-ampere (kVA! 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. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule. Customers served under this rate schedule are not eligible for electric direct access and cannot request a rate schedule change to the full service rate schedule(s) applicable to customers who are eligible for direct access (E-8). Qualified customers may request service under E-7-G 1, E-7-G2, or E-7-G3. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-7-3 dated 8-1-200"1 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-7-3 Bo Co LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G APPLICABILITY: This schedule applies to demand metered service for large commercial customers who choose service under the Palo Alto Green plan. A customer may qualify for this rate schedule if the customer’s maximum demand is at least 1,000KW per month per site, who have sustained this demand level at least 3 consecutive months during the last twelve months, and who have waived direct access eligibility. Palo Alto Green power provides for the either the purchase of 1000 kWh blocks, or the purchase of 100% renewable green energy for participating customers. TERRITORY: Within the incorporated limits of the City of Palo Alto and land o~vned or leased by the City. RATES: Unbundled Seasonal Demand and Energy Rates (1000 kWh block option): CommodiW Distribution Public Benefits Summer Period Demand Charge (kW) Energy Charge (kWh) $6.42 $9.54 0.05562 0.01388 Palo Alto Green Charge (per 1000 kwh block) 0.00292 Winter Period Demand Charge (kW)$5.50 Energy Charge (kWh)0.04990 Palo Alto Green Charge (per 1000 kwh block) $4.39 0.01379 0.00292 Total $15.96 0.07342 15.00 $9.89 0.06661 15.00 Unbundled Seasonal Demand and Energy Rates (100% renewable green option): Public Palo Alto Commodity Distribution Benefits Green Summer Period Demand Charge (kW) Energy Charge (kWh) Winter Period Demand Charge (kW) Energy Charge (kWh) $6.42 $9.54 0.05562 0.01388 0.00292 0.0150 $5.50 $4.39 0.04990 0.01379 0.00292 0.0150 Total $15.96 0.08842 $9.89 0.08161 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-7-G-1 dated 7-1-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-7-G-1 LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE Do UTILITY RATE SCHEDULE E-7-G (Continued) 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 bil! statement, the bill amount may be broken down into four components as calculated under Section C: Commodity Charge, Distribution Charge, Public Benefit Charge and a charge for Palo Alto Green blocks. 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 dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter, which does not reset after a definite time interval may be used at the City’s option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 PM on weekdays. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-7-G-2 dated 6-1-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-7-G-2 LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE o o UTILITY RATE SCHEDULE E-7-G (Continued) Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are at one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. Po~ver 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 volt-ampere reactive (VARJ-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 dropped 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 or (1/4) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt-hours to kilovolt-ampere_(kVA) 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. Changing Rate Schedules a.Customers choosing to participate shall fill out a Green Power Program application provided by the Customer Service Center. b.Customers may request at any time, in writing, a change to the nmnber of Palo Alto Green blocks they wish to purchase under the Palo Alto Green plan. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-7-G-3 dated 6-1-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-7-G-3 LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE o UTILITY RATE SCHEDULE E-7-G (Continued) Co If a customer account discontinues to qualify %r this service for an account(s) on Utility Rate Schedule E-7-G, such account(s) may be charged under Utility Rate Schedule E-4-G or any other applicable rate schedule. do Customers may request a rate schedule change at any time to any applicable full service rate schedule. Customers served under this rate schedule are not eligible for electric direct access and cannot request a rate schedule change to the full service rate schedule(s) applicable to customers who are eligible for direct access (E-8). Qualified customers may request service under E-7 or E-7-TOU. Notice of Schedule Change This schedule supercedes and replaces the Large Commercial Green Power Electric Services’ formerly designated as Utilities Rate Schedules E-7-G1, E-7-G2, and E-7-G3, effective per adoption of this schedule. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed; provided, however, the City is not required to supply service at a qualified line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change the system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-7-G-4 dated 6-1-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-7-G-4 LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU A.APPLICABILITY: Bo 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, who have sustained this demand level at least 3 consecutive months during the last twelve months, and who have waived electric direct access eligibility. In addition, this rate schedule is applicable for customers who did not pay power factor penalties during the last 12 months. TERRITORY: Co Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: Seasonal Demand and Energy Rates:Per Meter Per Month Summer Period CommodiW Distribution Public Benefits Total Demand Charge (kW) Peak $4.24 $6.27 Mid Peak 2.06 3.14 Off-Peak 1.17 1.57 Energy Charge (kWh) Peak Mid Peak Off-Peak Winter Period $10.51 5.20 2.74 $0.07029 $0.01746 $0.00292 $0.09067 0.05867 0.01446 0.00292 0.07605 0.04870 0.01192 0.00292 0.06354 Demand Charge (kW) Peak $3.04 $2.46 Mid Peak - Off-Peak 1.59 1.22 $5.50 2.81 Energy Charge(kWh) Peak $0.05617 Mid Peak - Off-Peak 0.04663 $0.01557 $0.00292 $0.07466 0.01284 0.00292 0.06239 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-7-TOU-1 dated 7-1-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-7-TOU-1 LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU (Continued) D.SPECIAL NOTES: o Calculation of Charges The actua! 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 appropriate components as calculated under Section C. Definition of Time Periods SUMMER (Service from May 1 to October 31): Peak:12:00 noon to 6:00 p.m.Monday through Friday (except holidays) Mid Peak:8:00 a.m. to 12:00 noon 6:00 p.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak:9:00 p.m. to 8:00 a.m. All day Monday through Friday Saturday, Sunday, and holidays WINTER (Service from November 1 to April 30): Peak:8:00 a.m. to 9:00 p.m.Monday through Friday (except holidays) Off-Peak:9:00 p.m. to 8:00 a.m. All day Monday through Friday (except holidays) Saturday, Sunday, and holidays HOLIDAYS: "Holidays" for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGE: 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-7- TOU-2 dated 1-’/-2002 CITY OF PALQ ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-7-TOU-2 o o o LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU (Continued) Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2. Power Factor Penalty Time of Use customers must not have had a power factor penalty assessed on their service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere(kVA) hours consumed during the month, and must not have fallen below 95% to avoid the power factor penalty. Should the City of Palo Alto Utilities Department find that the customer’s service should be subject to power factor penalties, the customer will be removed from the E-7-TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt demand and kilowatt-hour usage. Changing Rate Schedules Customers electing to be served under E-7 TOU must remain on said schedule for a minimum of 12 months. Should the customer so wish, at the end of 12 months, the customer may request a rate schedule change to any applicable City of Palo Alto full-service rate schedule. Qualified customers may request service under E-7, E-7-G1, E-7-G2, or E-7-G3. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-7-TOU-3 dated 1-7-2002 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-7-TOU-3 LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU (Continued) o Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-7-TOU-4 dated 1-1-2002 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-7-TOU-4 STREET LIGHTS UTILITY RATE SCHEDULE E-14 Ao APPLICABILITY: This schedule applies to street and highway lighting installations owned by any governmental agency other than the City of Palo Alto. B. TERRITORY: Within the incorporated limits of the City of Pato Alto and land owned or leased by the City. -C. RATES: Buming Schedule: kWh’s Per Month All Night/Midnight Per Lamp Per Month - Class A Utility supplies energy and switching service only. All Night Midnight Lamp Rating: Mercury-Vapor Lamps 100 watts 42/20 $10.98 $ 8.11 175 watts 68/35 13.10 10.21 400 watts 154/71 26.96 20.79 High Pressure Sodium Vapor Lamps 120 volts 70 watts 100 watts 150 watts 240 volts 29/15 9.63 6.75 41/20 12.90 9.42 60/30 16.75 14.07 70 watts 34/17 10.77 8.11 100 watts 49/25 14.07 10.21 150 watts 70/35 16.75 1 ! .56 200 watts 90/45 18.68 14-.83 250 watts 110/55 21.20 15.01 310 watts 134/167 24.84 19.64 400 watts 167/84 30.43 22.53 Fluorescent Lamps 40 watts 15/8 4.05 3.27 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-14-1 dated 7-01-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-14-1 Burning Schedule: kWh’s Per Month All Night/Midnight Lamp Rating: Merculw-Vapor Lamps 100 watts 175 watts 250 watts 400 watts Incandescent Lamps 189 watts (2,500 L) 295 watts (4,000 L) 405 watts (6,000 L) 620 watts (10,000 L) Fluorescent Lamps 25 watts 40 watts 55 watts STREET LIGHTS UTILITY RATE SCHEDULE E-14 (Continued) Per Lamp Per Month - Class C Utility supplies energy and switching service and maintains entire system, including lamps and glassware. All Night Midnight 42/20 $12.33 $ 9.42 68/35 14.83 11.74 97/49 18.47 14.27 154/71 27.54 21.20 65/32 13.10 10.42 10!/5 16.75 13.10 139/70 21.20 17.52 212/106 29.47 24.44 12/6 4.82 3.67 15/8 4.99 4.05 18/9 5.78 4.25 Hiah Pressure Sodium Vapor Lamps 120 volts 70 watts 29/15 10.02 7.13 100 watts 41/20 13.47 9.83 150 watts 60/30 17.33 14.46 240 volts 70 watts 34/17 11.17 8.48 100 watts 49/25 ! 4.63 10.77 150 watts 70/35 17.33 12.14 200 watts 90145 ! 9.25 15.40 250 watts 110/55 21.58 15.80 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-14-2 dated 7-01-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-14-2 STREET LIGHTS UTILITY RATE SCHEDULE E- 14 (Continued) D.SPECIAL CONDITIONS: Type of Service: This schedule is applicable to series circuit and multiple street lighting systems to which the Utility will deliver current at secondary voltage. Unless otherwise agreed, multiple current will be delivered at 120/240 volts, three-wire, single-phase. In certain localities the Utility may supply service from 120/208 volt star-connected poly-phase lines in place of 240-volt service. Single phase service from 480-volt sources will be available in certain areas at the option of the Utility when this type of service is practical from the Utility’s engineering standpoint. All currents and voltages stated herein are nominal, reasonable variations being permitted. New lights will normally be supplied as multiple systems. Point of Delivery: Delivery will be made to the customer’s system at a point or at points mutually agreed upon. The Utility will furnish the service connection to one point for each group of lamps, provided the customer has arranged his system for the least practicable number of points of delivery. All underground connections will be made by the customer or at the customer’s expense. Switching: Switching will be performed by the Utility (on the Utility’s side of points of delivery) and no charge will be made for switching provided there are at least 10 kilowatts of lamp load on each circuit separately switched, including all lamps on the circuit whether served under this schedule or not; otherwise, an extra charge of $2.50 per month will be made for each circuit separately switched unless such switching installation is made for the Utility’s convenience or the customer furnishes the switching facilities and, if installed on the Utility’s equipment, reimburses the Utility for installing and maintaining them. Annual Burnin~ Schedule: The above rates apply to lamps which will be turned on and off once each night in accordance with a regular burning schedule agreeable to the customer but not exceeding 4,100 hours per year for all-night service and 2,050 hours per year for midnight service. Maintenance: The rates under Class C include all labor necessary for replacement of glassware and for inspection and cleaning of the same. Maintenance of glassware by the Utility is limited to standard glassware such as is commonly used and manufactured in reasonably large quantities. A suitable charge will be made for maintenance of glassware of a type entailing unusual expense. Under Class C, the rates include maintenance of circuits between lamp posts and of circuits and equipment in and on the posts, provided these are all of good standard construction; otherwise, CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-’14-3 dated 7-1-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-14-3 STREET LIGHTS UTILITY RATE SCHEDULE E- 14 (Continued) the Utility may decline to grant Class C rates. Class C rates applied to any agency other than the City of Palo Alto also include painting of posts with one coat of good ordinary paint as required to maintain good appearance but do not include replacement of posts broken by traffic accidents or otherwise. 10. 11. Multilamp Electroliers: The above charges are made on per-lamp basis. For posts supporting one or more lamps, where the lamps are less than nine feet apart, the above charges for Class C will be reduced by 6 percent (6%) computed to the nearest whole cent, for all lamps other than the first one. Operatin~ Schedules Other Than All-Night and Midnight: Rates for regular operating schedules other than all-night and midnight-will be the midnight rates plus or minus one-eleventh of the difference between the midnight and the all-night rate, computed to the nearest whole cent, for each half hour per night more or less than midnight service. This adjustment will apply only to lamps on regular operating schedules which do not exceed 4,500 hours per year. Street Light Lamps, Standard and Nonstandard Ratings: The rates for incandescent lamps under Class A are applicable for service to regular street lamps only and must be increased by 6 percent, computed to the nearest whole cent, for service to group-replacement street lamps. The rates under Class C are applicable to both regular and group-replacement street lamps. Continuous Operation: The rate for continuous 24-hour operation under Class A service will be twice the all-night rate. System O~vned In-Part by UtiliW : Where, at customer’s request, the Utility installs, owns, and maintains any portion of the lighting fixtures, supports, and/or interconnecting circuits, an extra monthly charge of one and one-fourth percent of the Utility’s estimate of additional investment shall be made. Rates For Lamps Not on Schedule: In the event a customer installs a lamp which is not presently represented on this schedule, the Utility will prepare an interim rate reflecting the Utility’s estimated costs associated with the specific lamp size. This interim rate will serve as the effective rate for billing purposes until the new lamp rating is added to Schedule E-14. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-14-4 dated 7-1-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-14-4 UNMETERED ELECTRIC SERVICE UTILITY RATE SCHEDULE E-16 A.APPLICABILITY: This schedule applies to unmetered electric service and other miscellaneous Electric Utility fees to various public agencies and private entities. B.TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.RATES: Service Description Customer Rate * Automatic Irrigation Systems: Hwy 101 & Embarcadero, Sand Hill Road State of California, Public Works $ 6.71 ea Highway Lighting & Sign Illumination State of California (A)Highway Lighting Electrolier (20,000 L) Electrolier (4000 L) & (7000 L) @ 23.36 ea @ 11.75 ea (B)Sign Lighting Sign (1,910 W) Signs (1,572 W) Signs (786 W) @ 78.00 ea @ 64.10 ea @ 32.05 ea Page Mill Expressway and El Camino Park & Ride Lot Lighting and Signal Santa Clara County 72.96 Automatic sprinklers at Oregon & Page Mill Expressway Public Works 35.57 * Rates are monthly unless otherwise indicated. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E- 16-1 dated 7-01-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-16-1 UNMETERED ELECTRIC SERVICE Service Description Traffic Signal (A)Controller (B)8" Lamp (C)12" & PVH Lamp (D)Pedestrian Head (E)Vehicle, System and Bike Sensor Loop Electric Service for Cathodic Protection Station UTILITY RATE SCHEDULE E- 16 (Continued’ Customer Rate PG&E $498.89ea 5.84 ea 7.49ea 9.99ea 19.97 ea 13.59 13. Cable TV Power Supply/Service Permit Fee for Electric Conduit Usage (A)Exclusive use (B)Non-Exclusive use Processing Fee for Electric Conduit Usage Permit Fee for Utility Pole Attachments (A)1 ft. of usable space (B)2 ft. of usable space (C)3 ft. of usable space (D)4 ft. of usable space Processing Fee for Utility Pole Attachments Utilities Broadband Local Area Network (A) Bandwidth Assignment (B) Carrier Usage Power supply to Groundwater Treatment Service Comcast Permittee Permittee Permit-tee Permittee City Departments City Departments 45.38 1.10/ft/yr 0.55/ft!yr Actual Cost $18.08/pole/yr $19.98/pole/yr $21.87/pole/yr $23.77/pole/yr $47.00/pole 210.80/MHZ 52.70/carrier 130.32 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-f6-2 dated 7-01-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No.E-16-2 UNMETERED ELECTRIC SERVICE UTILITY RATE SCHEDULE E- 16 (Continued) D.SPECIAL PROVISIONS: In the event a customer requests an electric service which the Utility determines will be an unmetered service, or miscellaneous fee, the Utility will charge an interim rate reflecting the Utility’s estimated costs associated with the specific service. The Utility may charge an existing rate contained on this Rate Schedule for an identical or similar type service, or prepare a new rate. This interim rate will serve as the effective rate for billing purposes until the service type is added to Rate Schedule E-16. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.E-f6-3 dated 7-01-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No.E-16-3 MUNICIPAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-18 Ao B° Co APPLICABILITY: This schedule applies to service for buildings and facilities ow~aed and/or operated by the City of Palo Alto. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: Unbundled Seasonal Energy Rates: Per kilowatt-hour Commodity Distribution Public Benefits Total Summer $0.06686 $0.03456 $0.00292 $0.10434 Winter 0.05369 0.02750 0.00292 0.08411 Do 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 is broken down into three cost components as calculated under Section C: Commodity Charge, Distribution Charge, and Public Benefits Charge. 2.Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective fi’om 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. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-’18-1 dated 7-1-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No. E-18-1 MUNICIPAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-18 (Continued) o 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 volt-ampere reactive (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 energ~ and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovolt_-ampere(kVA) 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 Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying-at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-18-2 dated 3-1-2002 CITY OF PALQ ALTO UTILITIES Proposed Effective 7-1-2008 Sheet No. E-18-2 MUNICIPAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-18-G No No Co Do APPLICABILITY: This schedule applies to service for buildings and facilities owned and/or operated by the City of Palo Alto receiving power under the Palo Alto Green plan. Palo Alto Green power provides for either the purchase of 1000 kwh blocks, or the purchase of 100% renewable green energy for participating customers. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. RATES: 1. Unbundled Seasonal Energy Rates (100% renewable green option): Palo Alto Per kilowatt-hour Commodity_Distribution Public Benefits Green Summer $0.06686 $0.03456 $0.00292 $0.0150 Winter 0.05369 0.02750 0.00292 0.0150 Total $0.11934 0.09911 ° Per kilowatt-hour Commodity Distribution Summer $0.06686 $0.03456 Winter 0.05369 0.02750 Palo Alto Green Charge (per 1000 kWh block SPECIAL NOTES: Unbundled Seasonal Energy Rates(lO00 kWh block option): Public Benefits $0.O0292 0.00292 Total $0.10434 0.08411 15.00 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 is broken down into four cost components as calculated under Section C: Commodity Charge, Distribution Charge, Public Benefits Charge, and a charge for Palo Alto Green blocks. °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. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-18-G-1 dated 7-01-2007 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No. E-18-G-1 o o MUNICIPAL GREEN POWER ELECTRIC SERVICE UTILITY P~_TE SCHEDULE E-18-G (Continued) 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 volt-ampere reactive (VAR_l-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 kilovolt-ampere (kVA) 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. Changing Rate Schedules Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-18-G-2 dated 6-01-2003 CITY OF PALO ALTO UTILITIES Proposed Effective 7-01-2008 Sheet No. E-18-G-2 ATTACHMENT C DRAFT UTILITIES ADVISORY COMMISSION MINUTES OF MARCH 5, 2008 CALL TO ORDER Chairman Rosenbaum called to order at 7:00 P.M. the scheduled meeting of the Utilities Advisory Commission (UAC). Present: Commissioners George Bechtel, Dexter Dawes, John Melton, Dick Rosenbaum, and Council Liaison Yiaway Yeh Absent: Commissioner Marilyn Keller ORAL COMMUNICATIONS NONE APPROVAL OF THE MINUTES Commissioner Bechtel expressed his approval as to the quality of the minutes for February. The minutes from the February 6, 2008, were unanimously approved. AGENDA REVIEW No changes to the agenda were requested. REPORT FROM COMMISSION MEETINGS/EVENTS There were no reports. Utilities Advisory Commission Minutes Approved on:Page 1 of 7 UTILITIES DIRECTOR REPORT Utilities Director Valerie Fong gave the following updates: Hydro Conditions: Northern Sierra precipitation is at 90% of average to date and reservoir levels are about 80% of average. As a result, hydro electric generation is expected to be below average if precipitation resumes median levels for the rest of the season. Local Cogen: The project proponent, a key customer, has retained an energy consultant io assist with project feasibility and development, however, neither firm is interested in owning the project and ownership interest was proposed to the City. The preliminary project design is for a 20 MW plant, with an initial capital cost of approximately $47M. COTP Transmission Asset Lay-off: Staff will be sending a formal offer letter to other owners of COTP transmission expressing the City’s interest to lay-off all 50 MW of City’s ownership share for 20 years at cost. Continuing updates will be provided to the UAC, and the offer and final contract will be subject to final Council approval. Western Geo Power: On 2/19 Council approved participation in an NCPA 3fd phase agreement to purchase up to 5 Average MW of a new Geysers area geothermal powerplant being developed by Western GeoPower. The City’s share of output will range from 2 to 4% of the City’s electric load depending on plant output and other member participation levels. Power flow is expected starting in 2010 and running through 2030. CIP: In response to Vice Chair Dawes question at last month’s UAC meeting, an update on the gas main replacement CIP was provided. The gas main replacement projects are an on-going expense of running the gas utility. Over the last 15 years or so the gas mains have been replaced at an accelerated rate due to the deterioration of ABS main pipelines. The replacement of the ABS mains is expected to be completed in 2012-13 timeframe. Once this is completed the ABS services will be replaced along with the on-going replacement of steel mains. Expenditures for pipeline replacement are expected to begin decreasing after the all ABS mains are replaced and then level out at a level that sustains the condition of the infrastructure. Utilities Advisory Commission Minutes Approved on:Page 2 of 7 The following upcoming meetings were noted: March 10, 2008 - Council Meeting (to establish UUD 45 and to approve the PPA with Ameresco for the Keller Canyon landfill gas to energy) March 17, 2008 - Council Joint Meeting with Senator Simitian March 18, 2008 - Finance Committee - Water, Gas and Electric Rate Increase April 2, 2008 - Next UAC Meeting UNFINISHED BUSINESS NONE NEW BUSINESS ITEM 1: ACTION ITEM: Proposed Water Rate Increase Effective July 1, 2008 Valerie Fong, Utilities Director, stated that no presentation was prepared, but that staff was available to answer questions on the report. As a prefatory comment, for residential customers, the 8 percent proposed increase was geared more towards higher tier water users, primarily as a conservation signal. Commissioner Melton questioned why the customer charge was not increasing at this time, and if it was staff’s intention to bring this charge up to cost-of-service study levels for residential customers gradually. Fong stated that all increases were on volumetric charges only this time for conservation reasons. Jane Ratchye, Assistant Director for Resource Management, clarified that, with conservation goals growing in importance, widening the price gap between residential tiers was a staff’s recommendation this year. This emphasis will be re- evaluated on an ongoing basis. Commissioner Dawes questioned the capital expenditures in Fiscal Year 2007-08 and the return of previously encumbered Capital Improvement Program (CIP) funds to the Rate Stabilization Reserve (RSR), and specifically whether the Emergency Water Supply and Storage project would be worked on this fiscal year. Utilities Advisory Commission Minutes Approved on:Page 3 of 7 Fong clarified that it would be, and that well rehabilitation and pump station upgrades could go forward independent of reservoir siting issues. Commissioner Dawes asked if the FY 07-08 ClP figures were for funds spent or funds committed, and Fong clarified they were committed funds. Commissioner Rosenbaum questioned the first sentence on page four, which appears to give reasons as to why water rates have been higher than surrounding areas. Commissioner Rosenbaum stated that the reasons given imply that Palo Alto has higher relative costs than others cities, and questioned whether that has been studied. Ratchye agreed that the sentence related more to cost drivers rather than cost comparisons with other cities. Commissioner Rosenbaum asked specifically about the level of allocated charges and general fund transfers in other cities. Ratchye posited that allocated charges were unknown, and transfers were probably very low. Commissioner Rosenbaum posited whether rate-payers would enjoy paying for such transfers, along with rents to the City, as they account for roughly $0.80 per one hundred cubic feet of water, and were "significant." Commissioner Rosenbaum suggested the charges may be too high, and perhaps a comparison study should be done to surrounding cities. Commissioner Dawes stated that the Auditors report shows Palo Alto’s water department costs have increased rapidly over the last few years and are now higher than the next highest city utility, which was "worrisome." Asked whether charges by the city to the water utility could be reduced, Fong commented these were not within her scope to modify or make recommendations on, and if the UAC wanted to not increase rates due to these costs, staff’s only recourse would be to drop CIP projects. Commissioner Dawes commented that perhaps the chair or vice-chair of the UAC should present to Council the problems they see with costs. Utilities Advisory Commission Minutes Approved on:Page 4 of 7 Commissioner Rosenbaum asked for a motion. Commissioner Dawes moved and Commissioner Bechtel seconded the water rate proposal. No further discussions were presented. Commissioner Rosenbaum asked for those in favor, and the motion passed unanimously. ITEM 2: ACTION ITEM: Proposed Natural Gas Rate Increase Effective July 1, 2008 Fong again stated that no presentation was prepared, but that staff was available to answer questions on the report. She noted that there were no proposed increases to the customer charge for gas. Commissioner Dawes questioned whether, based on projections of stable gas supply costs over the next few years, whether the proposed increase should be spread over multiple years. Commissioner Melton countered that a lower increase would take the RSR below the risk assessment level. Commissioner Rosenbaum asked if staff had comment, and Fong expressed staff’s agreement with Commissioner Melton, and added that there were no additional reserves to "back-up" the gas funds, unlike the electric fund (Calaveras). Commissioner Bechtel expressed concern for future projections showing no increases, and questioned whether staff would look at debt financing more projects to spread costs over time and keep rates down, perhaps having annual inflationary increases instead of large changes. Fong confirmed that staff was serious about pursuing debt financing for large projects, and may finance gas projects along with larger projects should the need arise. Commissioner Rosenbaum stated that normal maintenance operations should be funded through rates, and that larger maintenance programs or ClP spending explains why Palo Alto’s distribution costs were higher than Pacific Gas & Electric. Utilities Advisory Commission Minutes Approved on:Page 5 of 7 Commissioner Rosenbaum asked for a motion. Commissioner Dawes moved and Commissioner Melton seconded the gas rate proposal. No further discussions were presented. Commissioner Rosenbaum asked for those in favor, and the motion passed unanimously. ITEM 3: ACTION ITEM: Proposed Electric Rate Increase Effective July 1,2008 Fong again stated that no presentation was prepared, but that staff was available to answer questions on the report. Commenting that, as the February UAC meeting regarding electric scenarios indicated that the "middle of the road" option was what seemed to resonate with the UAC, this was what staff was proposing. Ratchye added that, in order to ensure that reserves will end at the risk assessment value for FY 08-09, additional funds are planned to be drawn from the Calaveras Reserve, but that the Cataveras Reserve fund balance would still be within Council approved guideline levels. Commissioner Dawes sought clarification as to whether staff could make such a transfer, and Commissioner Melton confirmed that, within a particular fund, staff can move money between RSR’s. Commissioner Melton commented that the discussion on this increase was really done last month, and the current proposal was exactly what the UAC asked for the last time. Commissioner Melton moved and Commissioner Bechtel seconded the electric rate proposal. Commissioner Rosenbaum asked why the higher residential tiers would see larger increases than the lower tiers, and what fraction of residential usage was in tier 3. Staff commented that it was quite a bit less than half, but the exact figures were not immediately in front of them. Commissioner Rosenbaum commented that a two tier pricing system may be more appropriate, and requested staff to look into that in the future. Fong commented that, as shown on Table 3, the impact to larger users was not that dramatic. Utilities Advisory Commission Minutes Approved on:Page 6 of 7 Commissioner Bechtel asked if there were any instances of a neighborhood needing a service change on the distribution side due to household consumption levels increasing, or whether there has been a significant increase in residential usage in general. Fong stated that she would have to ask the engineering department for confirmation, but generally that the system is sized to take growth into account. Ratchye stated that average usage has not increased dramatically over the last few years. Commissioner Rosenbaum, seeing no requests for further discussion, asked for those in favor, and the motion passed unanimously. Resident Lois Nisbet, at the conclusion of New Business, asked to address a question to the UAC: "Is there any ethical consideration for the fact that you charge for utilities when in fact you spend it on something else?" Commissioner Dawes asked if this was in regard to transfers, and Ms. Nisbet stated, "1 guess so." Commissioner Dawes stated that question should be brought before the City Council regarding this issue, as they set the policy regarding transfers. Commissioner Rosenbaum clarified that the transfer has been going on since the inception of the utility, although it was capped at a growth rate of 3 percent several years ago. The next schedule meeting is April 2, with everyone present. The May 7 meeting is set for a day meeting. Meeting adjourned at 8:00 P.M. Respectfully submitted, Marites Ward City of Palo Alto Utilities Utilities Advisory Commission Minutes Approved on:Page 7 of 7