HomeMy WebLinkAboutStaff Report 221-06City of Palo Alto
Manager’ Report
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TO:HONORABLE CITY COUNCIL
FROM:CITY 5~LNAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
MAY 15, 2006 CMR: 221:06
ADOPTION OF A RESOLUTION APPROVING THE FACILITIES
STUDY AGREEMENT WITH PACIFIC GAS AND ELECTRIC
COMPANY IN AN AMOUNT NOT TO EXCEED $220,000 TO
DETERSfiNE THE FEASIBILITY AND DEVELOP A COST ESTIMATE
OF CONVERTING THE PALO ALTO TO RAVENSWOOD
ELECTRICAL TRANSMISSION LINE FROM 115 KV TO 230 KV
RECOMMENDATION
Staff recommends that the City Council adopt the Resolution approving the Facilities Study
Agreement with Pacific Gas and Electric Company (PG&E) in an amount not to exceed
$220,000 to determine the feasibility and develop a cost estimate of converting the Palo Alto to
Ravenswood electrical transmission line from 115 kV to 230 kV, including the amount of
$200,000 for the study and $20,000 for unforeseen additional services.
BACKGROUND
The electrical transmission charge assessed by the California Independent Systems Operator
(CASIO) for the use of the electrical transmission grid is based on the voltage at which
electricity is delivered to the City. At present the City pays a Transmission Access Charge (TAC)
of approximately $6 for every Megawatt-hour (MWh) of electricity delivered to the City. This is
equivalent to an annual cost of approximately $6 million.
If the City upgrades the connection voltage from the present 115 kV level to the 230 kV level,
the annual TAC cost to the City is expected to drop from $6 million/year to approximately $3
million/year.
CMR:221:06 Page 1 of 3
DISCUSSION
The connection voltage upgrade from 115 kV to 230 kV will require PG&E to upgrade its 115
kV double circuit transmission line from PG&E’s Ravenswood substation to a PG&E-owned
substation adjacent to the City’s Colorado substation. In order to study the upgrade of the line
and undertake the necessary reconfigurations, the City and PG&E have developed a Facilities
Study Plan (Attachment C).
The Study Plan has the following elements:
1. Assessment of the feasibility of converting the lines.
2.Cost estimates and work scope for converting the lines from 115 kV to 230 kV.
3.Cost estimates and work scope for modifying PG&E’s Ravenswood Substation to
accommodate the new 230 kV lines and for removing PG&E’s Palo Alto Switching
Station.
4.Cost estimates and work scope to maintain reliable transmission service during the
conversion.
5. Construction schedule.
Terms and conditions for the City’s electrical interconnection with PG&E are outlined in the
NCPA/City Interconnection Agreement with PG&E (CMR:298:02 of July 15, 2002). The
Facilities Study Agreement will be governed by terms and conditions outlined in this Federal
Energy Regulatory Commission ~ERC)-approved Interconnection Agreement.
Staff is also studying an alternative to this project by evaluating the potential of connecting to the
230 kV electrical grid on the west side of town through the 230 kV substation at the Stanford
Linear Accelerator Center (SLAC). A contract to study this option will be brought to Council in
the coming months.
RESOURCE IMPACT
The estimated cost of the study is $200,000 and this amount has been included in the Utilities
Department budget (Capital Improvement Program Project EL-06001). The full $200,000
payment will be made to PG&E upon Council approval of the agreement. Since it is a cost-
based study, if the actual cost incurred by PG&E in conducting this study is less than $200,000,
the unspent amount will be returned to the City. There is also a possibility that actual costs may
be higher. An additional $20,000 to cover such unforeseen events has also been included in the
project budget.
The decision whether or not to implement the upgrade will depend on the study assessment of
the cost of the upgrade versus the cost of the SLAC alternative upgrade, compared with a
potential cost savings of $3 million per year.
CMR:221:06 Page 2 of 3
POLICY IMPLICATIONS
This study supports Strategy 1 of the Utilities Strategic Plan, to ensure a high level of system
reliability in a cost effective and timely manner.
EI~,WIRONMENTAL REVIEW
Execution of the Agreement does not constitute a project for the purposes of the California
Environmental Quality Act (CEQA).
ATTACHMENTS
A: Resolution Approving the Facilities Agreement with Pacific Gas and Electric Company
B: Facilities Study Agreement with PG&E
C: Facilities Study Plan
PREPARED BY:Debra Lloyd, Resource Planner
Tom Finch, Senior Power EnNneer
Shiva Swaminathan, Senior Resource Planner
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
CARL YEATS
Director Services
EMILY HARRISON
Assistant City Manager
CMR:221:06 Page 3 of 3
****NOT YET APPROVED****
ATTACHMENT A
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF
PALO ALTO APPROVING THE FACILITIES STUDY
AGREEMENT WITH PACIFIC GAS AND ELECTRIC
COMPANY IN AN AMOUNT NOT TO EXCEED $220,000
TO DETERMINE THE FEASIBILITY AND DEVELOP A
COST ESTIMATE OF CONVERTING PALO ALTO TO
RAVENSWOOD ELECTRICAL TRANSMISSION LINE
FROM 115 KV TO 230 KV
WHEREAS, the City of Palo Alto ("City"), a municipal
utility and a chartered city, is electrically interconnected to
the transmission system owned by Pacific Gas and Electric
Company (PG&E) under terms and conditions of the September 2002
Interconnection Agreement ("IA");
WHEREAS, to continue to reliably serve the electrical
load of the City at a reasonable cost, the City wishes to study
the feasibility of upgrading the 115 kV line from the City’s
Colorado substation to PG&E’s Ravenswood substation;
WHEREAS, the City has negotiated with PG&E to conduct a
Facilities Study Plan and to enter into a Facilities Study
Agreement ("Agreement") under the terms and conditions
established in the IA;
NOW, THEREFORE, the Council of the City of Paio Alto
hereby RESOLVE as follows:
SECTION i. The Council hereby approves the Facilities
Study Agreement with PG&E, in an amount not to exceed $220,000
to determine the feasibility and develop a cost estimate of
converting the Pa!o Alto to Ravenswood electrical transmission
line from 115 kV to 230 kV, including the amount of $200,000 for
the study and $20,000 for unforeseen additional services.
SECTION 2. The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act and no environmental assessment is
required.
INTRODUCED AND PASSED:
AYES:
060509 cs 00727
****NOT YET APPROVED****
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
St. Assistant City Attorney
Mayor
APPROVED:
City Manager
Director of Utilities
Director of Administrative
Services
060509 cs 0072710 2
ATTACHMENT
Facilities Study Agreement
The City of Palo Alto (City) and Pacific Gas and Electric (PG&E) have reviewed the study
plan for the conversion of PG&E’s Ravenswood - Palo Alto 115 kV Lines to 230 kV service,
at the request of Palo Alto. PG&E shall perform the tasks and PG&E and the City shall
abide by the terms and conditions set forth in the Facilities Study Plan, attached hereto and
incorporated by reference. This Study is being undertaken within provisions established
under the September 2002 Interconnection Agreement between PG&E and the Northern
California Power Agency .....
fCITY OF PALO ALTO:",,\. PACIFIC ELECTRIC:
BY:
FRANK BENEST, City Manager
APPROVED AS TO FORM:
GRANT KOLLING, Senior Assistant City Attorney
APPROVED BY:
’ (Name#l, Title)
Title)
EMILY HARRISON, Assistant City Manager
APPROVED BY:MAILING ADDRESS:
CARL YEATS, Director of Administrative Services
MAILING ADDRESS:
City of Palo Alto - Utilities Department
Attn: Girish Balachandran, Assistant Director
250 Hamilton Avenue.
Palo Alto, CA 94303
Dated this __ day of
2006.
Dated this __ day of
2006.
ATTACHMENT C
Facilities Study Plan
City of Palo Alto
WE DELIVER ENERGY.
May 15, 2006
2.
3.
4.
5.
6.
7.
7.2
7.3
7.4
8.
Table of Contents
Introduction ...........................................................................................................................1
Study Fee ..............................................................................................................................1
Facilities Study Schedule ......................................................................................................1
Cost Estimates ......................................................................................................................2
Interconnection Costs ...............................................................................................................................2
Project Information and Interconnection Plan ......................................................................2
Facilities Study Assumptions ................................................................................................5
Facilities Study Scope ...........................................................................................................6
Feasibility Assessment .............................................................................................................................6
Substation Evaluation ...............................................................................................................................7
Transmission Line Evaluation ..................................................................................................................7
Construction Schedule .............................................................................................................................7
Deliverables ..........................................................................................................................7
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CITY OF PALO ALTO~
RAVENSWQOD - PALO ALTO 115 KV LINE CONVERSION TO 230 KV FACILITIES STUDY PLAN
MAY 31, 2006
At the request of the City of Palo Alto (City), Pacific Gas & Electric (PG&E) will perform a
Facilities Study (FS) to determine the feasibility and develop a cost estimate to convert, as
requested by Palo Alto, PG&E’s existing 115 kV double circuit tower line (DCTL) between
PG&E’s Ravenswood and Palo Alto Substations from 115 kV to 230 kV. This FS will consist
of the following Tasks:
Assessment of the feasibility of converting the lines.
Cost estimates and work scope for modifying PG&E’s Ravenswood Substation to
terminate the new 230 kV lines, and feasibility and cost estimates to remove PG&E’s
Palo Alto Switching Station.
o Cost estimates and work scope for converting the lines from 115 kV to 230 kV and
extending to Colorado Substation, including cost estimates and work scope to
maintain reliable transmission service during the conversion.
4. Construction schedule
This FS Study Plan will form the basis for the Facilities Study Agreement (FSA) by defining the
scope, content, assumptions, and terms of reference of the FS.
The Facilities Study will provide interconnection cost estimates, as specified in Section 4.1, to
be used in a Special Facilities Agreement, should Pato Alto and PG&E agree to proceed with
construction.
PG&E has estimated a study fee of $200,000 for performing this FS. PG&E will suspend work
on the FS in the event that the final cost is expected to exceed $200,000, at which time PG&E
will provide the City with a revised budget and will not resume work on the FS until such time
as the City accepts the revised budget (City will inform PG&E of decision within 60 days).
tn the event that the City does not accept the increase in budget, PG&E will provide the City
with the FS results to date and will return the balance of study fee to the City within 60 days.
The final cost to complete this FS will be based on actual cost. PG&E will provide the City a
record of actual costs for performing this FS within 60 days of completion of the FS. PG&E will
bill the City the remaining balance if the actual cost is higher than the estimated $200,000 and
the City was informed of and accepted the revised budget. If the actual cost is less than the
estimated study fee, or if the FS is terminated on completion of Task 1, the Feasibility
Assessment, PG&E will return the balance to the City within 60 days of delivery of the final FS
Report.
CITY OF PALO ALTO
RAVENSWOOD - PALO ALTO 115 KV LINE CONVERSION TO 230 KV FACILITIES STUDY PLAN
MAY 31, 2006
Establish study commencement date based on receipt of
FSA.
PG&E and City to agree on transmission arrangement to be
assumed during the period of construction for the Feasibility
Assessment. City to provide proposed Colorado Substation
layout. ’
Completion of Feasibility Assessment
Issue Initial Report on Feasibility Assessment results and
budget status to City
City reviews Initial Report and determines whether to
continue or terminate the FS.
Completion of Substation Cost Estimates, Transmission
Line Cost Estimates, and Construction Schedule
Issue final FS Report
June 1,2006
TBD
12 Weeks from date of
agreement on
transmission
arrangement during
the period of
construction.
30 Days after receipt
of Initial Report
9 Weeks after City
gives notice to
continue FS + any
delay from suspension
of FS due to cost
increase and time to
restart work after
notification
All costs provided will be estimates only. Charges for implementing this interconnection and
facility modifications, if the City decides to proceed, will be made based upon the actual costs
incurred.
4.1 Interconnection Costs
A decision quality engineering cost estimate (with a theoretical confidence level of +/- 25%)
will be provided. Cost estimates will include any substation and transmission line facilities
required to interconnect the City at 230 kV. The interconnection costs will include PG&E
required 115 kV and 230 kV line protection, and removal of facilities in PG&E’s Palo Alto
Switching Station. The estimate will not include any facilities constructed, owned, and
operated by the City.
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CITY OF PALO ALT(~ ~
RAVENSWQQD - PALQ ALTO 115 KV LINE CONVERSION TO 230 KV FACILITIES STUDY PLAN
MAY 31,2006
The City is presently interconnected to PG&E’s transmission system at PG&E’s Palo Alto
Switching Station. There are three 115 kV lines that connect the Palo Alto Switching Station to
the rest of PG&E’s transmission grid. A simplified one-line of the existing system is shown in
Figure 5-1. A diagram showing the location of the existing facilities is shown in Figure 5-2.
Ravenswood
Cooley Landing
PG&E Ownership
230 kV
115 kV
Existing Ties Between City of Palo Alto
& PG&E Transmission Systems
Palo Alto Ownership
PG&E Palo Alto
Switching Station
Pa,o Alto Colorado
Switching Station
Figure 5-1: Simplified One-line of Existing System
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CITY OF PALO ALTO
RAVENSWOOD - PALO ALTO 115 KV LINE CONVERSION TO 230 KV FACILITIES STUDY PLAN
MAY 31, 2006
Owner:. PGE
~lS ID: 71~
®East Paio A
Figure 5-2: Location of Transmission Facilities
The City has requested that PG&E determine the feasibility and costs of converting the Palo
Alto - Ravenswood 115 kV DCTL to 230 kV operations. This existing DCTL is about 4.3 miles
long. After the conversion, the system would be similar to the simplified one-line shown in
Figure 5-3.
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CITY OF PALO ALTO~
RAVENSWOOD - PALO ALTO 115 KV LINE CONVERSION TO 230 KV FACILITIES STUDY PLAN
MAY 31,2006
Ravenswood J-,- J,-,
Cooley Landing
230 kV
115 kV Assumptions for Palo Alto
Switching Station and Colorado
Substation to be a~eed upon
prior to start of Facilites Study.
Figure 5-3: Simplified One-line of Proposed System
PG&E will conduct the FS using the following assumptions:
As part of the FS, PG&E and City staff will meet, study, and mutually agree on the
transmission arrangement to be assumed for service to Colorado Substation during
the period of construction, including operation of the existing Cooley Landing - Palo
Alto 115 kV circuit.
¯The Ravenswood - Palo Alto 1 !5 kV Lines will be converted to 230 kV operation, to
the 230 kV takeoff structures within Palo Alto’s Colorado Substation. The City will
provide the takeoff structures.
The 115 kV connection from Cooley Landing Substation to Colorado Substation will
be maintained and operated normally open for use as a back-up circuit after the
Ravenswood-Palo Alto 115 kV circuits are converted to 230 kV operation.
The City will engineer, procure, construct, own, and maintain its project facility.
CITY OF PALO ALTO
RAVENSWOOD - PALO ALTO 115 KV LINE CONVERSION TO 230 KV FACILITIES STUDY PLAN
MAY 31, 2006
The feasibility study and cost estimates will include the interconnection of the two
lines at Ravenswood 230 kV bus and the conversion of the two lines from
Ravenswood Substation to the takeoff structures at Colorado Substation.
¯Prior to the start of the feasibility assessment, the City will provide their proposed
Colorado Substation layout for the construction period and for when construction is
complete.
¯The cost estimates will include removal of any PG&E facilities such as the Palo Alto
Switching Station.
¯The FS will provide complete 115 kV and 230 kV protection requirements including
the line circuit breakers at Colorado Substation.
The FS will focus on the feasibility, cost estimates and work scope for facilities required to
convert PG&E’s Palo Alto - Ravenswood 115 kV Lines to 230 kV operations. The study will
include the interconnection of the converted lines to PG&E’s 230 kV bus at Ravenswood. The
study will also include cost estimates for at the removal of PG&E’s Palo Alto Switching Station.
The study will not include any facilities requiring conversion or modification at the City’s
Colorado Substation. The following tasks will be included in the study:
7.1 Feasibility Assessment
The Feasibility Assessment would include the following:
[]Determine feasibility of interconnecting two additional 230 kV Lines at
Ravenswood Substation.
[]Feasibility of installing agreed upon transmission arrangement to Colorado
Substation during conversion.
[]Reviewof Land Rights.
[]Assessment of Right of Way (ROW), including feasibility of widening ROW for
230 kV operation
[]Area preliminary report on the biology to assess land acquisition and construction
hurdles.
¯Transmission Line report on conversion using same alignment including likely
tower replacement.
¯Assessment of clearance issues including issues with the proposed transmission
arrangement during the conversion.
¯Drive and/or Fly the lines to assess constructability.
CITY OF PALO ALTORAVENSWOOD - PALO ALTO 115 KV LINE CONVERSION TO 230 KV FACILITIES STUDY PLAN
MAY 31, 2006
Determination of permitting requirements, including EIR/Regulatory
requirements.
7.2 Substation Facilities Cost Estimates
The Substation Estimates would include the following:
¯Determine preliminary protection requirements.
¯Develop costs for interconnection of two new 230 kV lines at Ravenswood
Substation.
¯Develop costs for removal of PG&E’s Palo Alto Switching Station.
7.3 Transmission Line Facilities Estimates
The Transmission Line Evaluation would include the following:
¯Cost estimate to modify or replace towers for 230 kV operation.
¯Cost estimate to reconductor lines for 230 kV operation.
¯Cost estimate to prepare and file a Certificate of Public Necessity and Convenience
(CPCN).
Cost estimate to obtain additional Right of Way.
Cost estimate to provide transmission arrangement to Colorado Substation during
the period of construction as agreed by the City while the Ravenswood - Palo Alto
Lines are being converted to 230 kV.
7.4 Construction Schedule
The construction schedule would include the following:
¯Schedule to remove Palo Alto Switching Station.
¯Schedule to convert the Ravenswood - Palo Alto 115 kV lines to 230 kV.
¯Estimated date of operation for the 230 kV interconnection.
The deliverables shall include the following:
¯An initial FS Report detailing findings of the Feasibility Assessment as defined in
Section 7.1 and budget status.
¯A final FS Report detailing findings of the Study as defined in Sections 7.1 through
7.4.
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