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HomeMy WebLinkAboutStaff Report 8781 City of Palo Alto (ID # 8781) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/12/2018 City of Palo Alto Page 1 Summary Title: Approval of the 2016 Annual Power Source Disclosure Report Title: Adoption of a Resolution Approving and Attesting to the Veracity of the 2016 Annual Power Source Disclosure Report From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council adopt a resolution (Attachment A) approving the 2016 annual Power Source Disclosure report (Exhibit A to Attachment A) and attesting to its veracity. Background Senate Bill 1305 (SB 1305) was approved in 1997 to ensure that all retail suppliers of electricity disclose to consumers the sources of energy used to provide the electric service in an accurate, reliable and easy to understand manner. The SB 1305 Report is commonly referred to as the Power Source Disclosure (PSD) report. The City of Palo Alto submits an annual PSD Report to the California Energy Commission (CEC) by June 1st of each year. The information contained in this reporting is used to prepare the annual Power Content Label (PCL), which is mailed to our customers around October of each year and posted on the City’s website at https://www.cityofpaloalto.org/gov/depts/utl/residents/resources/pcm/power_content_label. asp and on the CEC’s website at http://www.energy.ca.gov/pcl/labels/. Discussion In 2017, the CEC regulation1 implementing SB 1305 was updated and the changes became effective in October 2016. The changes included a provision that requires utilities to engage a third-party certified public accountant to perform an audit to verify the specific purchases, resales, and self-consumption of energy by fuel type.2 The regulation includes an exemption from the audit requirement for publically owned electric utilities, “if the governing board of directors approves at a public meeting the submission to the Energy Commission of an 1 “Power Source Disclosure Program Regulations,” California Energy Commission, CEC-300-2017-048, October 2016. http://docketpublic.energy.ca.gov/PublicDocuments/14-OIR- 01/TN216978_20170412T103905_Power_Source_Disclosure_Program_Amended_Regulations.pdf. 2 California Code of Regulations Title 20, Section 1394(b)(1). City of Palo Alto Page 2 attestation of the veracity of the annual report.”3 Utilities Department staff submitted the City’s annual PSD report for calendar year 2016 (Exhibit A to Attachment A) to the CEC in May 2017, along with the associated attestation form. (Please note that purchases of “Unspecified Power” listed in the PSD report are matched up with unbundled renewable energy certificates (RECs) in order to achieve a carbon neutral supply portfolio, consistent with the Carbon Neutral Plan (Staff Report 3550).) The 2016 PCL was mailed to each electric customer as a bill insert in September 2017, in accordance with the regulation. The attached resolution (Attachment A) approves the annual PSD Report submission and provides the attestation to the veracity of the report as required for exemption from the third party audit requirement. Staff anticipates submitting the City’s annual PSD report for calendar year 2017 to the CEC around May 2018, and providing the 2017 PCL to electric customers around September 2018. Resource Impact Adoption of the attached resolution will not result in a financial impact to the City. Policy Implications Adoption of the attached resolution will enable the City to comply with the CEC regulation implementing SB 1305 (California Code of Regulations, title 20, sections 1391 to 1394). Environmental Review Adoption of the attached resolution is not subject to California Environmental Quality Act (CEQA) review as an administrative government activity that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)). Attachments:  Attachment A: Resolution Approving the City's 2016 Annual Power Source Disclosure Report 3 California Code of Regulations Title 20, Section 1394(b)(2). NOT YET APPROVED 180122 jb 6054052 Resolution No. _________ Resolution of the Council of the City of Palo Alto Approving and Attesting to the Veracity of the 2016 Annual Power Source Disclosure Report R E C I T A L S A. Senate Bill 1305 was adopted in 1997, establishing an Electricity Generation Source Disclosure Program, (“Power Source Disclosure Program”), which requires retail suppliers of electricity to annually submit a power source disclosure report to the California Energy Commission. B. The City of Palo Alto is a retail supplier of electricity as defined by the Power Source Disclosure Program (Ca. Code of Regs., title 20, section 1391). C. The Power Source Disclosure Regulation was updated effective October 31, 2016, requiring an annual audit by an outside certified public accountant of the information in the annual Power Source Disclosure Report, with an exception from this requirement for publically owned utilities, if the governing body of the publicly owned utility approves at a public meeting the submission to the California Energy Commission of an attestation of the veracity of the annual report. D. In May 2017, Utilities Department staff prepared and submitted the 2016 Annual Power Source Disclosure Report to the Energy Commission in accordance with the applicable regulations (Ca. Code of Regs, title 20, sections 1391-1394). The Council of the City of Palo Alto (“City”) RESOLVES: SECTION 1. To approve the submission and attest to the veracity of the 2016 Annual Power Source Disclosure Report (attached as Exhibit A to this resolution) which staff submitted to the California Energy Commission in May 2017. / / / / / / / / / / ATTACHMENT A NOT YET APPROVED 180122 jb 6054052 SECTION 2. The Council finds that the adoption of this resolution is not subject to California Environmental Quality Act (CEQA) review because adoption of this resolution is an administrative government activity that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ _______________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _______________________ Assistant City Attorney City Manager ___________________________ Utilities General Manager ___________________________ Director of Administrative Services dsn: 2016 PSD 05-10-17_PALO ALTO (JS edits v2) ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure Program For Year ending: 12/31/2016 GENERAL INSTRUCTIONS NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information you submit to be held in confidence, it will be necessary to submit an application for confidentiality. Fill out the schedules that apply to your company’s filing requirements. Please print, sign the attestation, scan and e-mail or mail the attestation to the address shown below. California Energy Commission 1516 9th St. MS-45 Sacramento, CA 95814 e-mail: <kevin.chou@energy.ca.gov> If you have questions, contact Kevin Chou at (916) 653-1628 or <kevin.chou@energy.ca.gov>. Company Name City of Palo Alto Utilities Exhibit A Unit No. Fuel Type Location (State or Province) WREGIS GU ID EIA ID FERC QF ID Gross MWh Procured MWh Resold or Self- Consumed Net MWh Procured WAPA - Nimbus Hydro Folsom, CA W1161 444 3,202 3,202 WAPA - Nimbus -- RECs only Hydro Folsom, CA W1161 444 5,032 5,032 WAPA - Lewiston Hydro CA W1108 142 142 WAPA - Lewiston -- RECs only Hydro CA W1108 260 260 WAPA - Stampede -- RECs only Hydro CA W1177 7066 518 518 Half Moon Bay (Ox Mountain)Landfill Gas Half Moon Bay, CA W2033 56895 42,691 42,691 Keller Canyon Landfill Gas Pittsburg, CA W2071 56897 15,144 15,144 Santa Cruz LFG Landfill Gas Watsonville, CA W2014 56428 9,811 9,811 San Joaquin Landfill Gas Linden, CA W3883 58436 26,786 26,786 Johnson Canyon Landfill Gas Gonzales, CA W3397 58397 10,460 10,460 New Spicer Meadows Hydro Tuolomne County, CA W1260 54554 2,552 2,552 High Winds Wind Solano County, CA W229 56075 38,813 38,813 Shiloh Wind Solano County, CA W231 56362 64,502 64,502 Foote Creek I (REC only)Wind Carbon County, WY W1363 30,000 30,000 Rolling Hills (REC only)Wind Carbon County, WY W928 60,000 60,000 Cedar Creek II (REC only)Wind Weld County, CO W1900 60,101 60,101 Northern Colorado Wind II (REC only)Wind Colorad W1305 996 996 Clearwater Paper - Lewiston (REC only)Biomass Lewiston, ID W128, 129 24,203 24,203 Collierville Large Hydro Murphys, CA W1258, 1259 54554 105,563 105,563 Hydro Solar -- self-consumed Solar Murphys, CA W1266 9 9 0 Hydro Solar -- RECs only Solar Murphys, CA W1266 9 9 WAPA - J.F.Carr Large Hydro CA W1164 2518 9,173 9,173 WAPA - Folsom Large Hydro CA W1156 thru 58 2518 32,706 32,706 WAPA - Keswick Large Hydro CA W1165 2518 27,190 27,190 WAPA - New Melones Large Hydro CA W1159, 1160 2518 14,445 14,445 WAPA - Shasta Large Hydro CA W1168 thru 72 2518 99,986 99,986 WAPA - Spring Creek Large Hydro CA W1174 2518 8,986 8,986 WAPA - Trinity Large Hydro CA W1175, 1176 2518 19,204 19,204 WAPA - O'Neill Large Hydro CA W1167, 1186 2518 721 721 PA Co-BUG Natural Gas Palo Alto, CA 57714 22 22 CRE-Frontier LLC Solar Newman, CA W4962 60039 28,576 28,576 EE Kettleman Land LLC Solar Kettleman City, CA W4695 57921 54,697 54,697 sPower-Elevation Solar Lancaster, CA W5298 59964 9,087 9,087 sPower-Hayworth Solar Bakersfield, CA W4719 59009 59,557 59,557 sPower-Western Antelope Solar Lancaster, CA W5300 59961 3,502 3,502 Exelon Generation Company LLC Unspecified Power 25,090 25,090 Nextera Energy Power Marketing LLC Unspecified Power 80,285 80,285 Powerex Unspecified Power 43,660 43,660 Shell Energy North America Unspecified Power 48,080 48,080 Short-term spot/market energy Unspecified Power (46,040)(46,040) 1,019,712 914,748 Total Retail Sales Total Net ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure Program June 2017 For the Year Ending December 31, 2016 SCHEDULE 1: RETAIL SALES Applicable to: Load Serving Entities ALL PROCUREMENTS (Specified and Unspecified) Facility Name INSTRUCTIONS: Enter information about power procurements supporting all electricity products for which your company is filing the Annual Report. If you need additional rows, add them from the INSERT menu. Please list all purchases (Specified and Unspecified purchases) as line items under the Facility Name heading. If a procurement was for unbundled RECs and include the term "REC Only" in parentheses after the facility name in the Facility Name column, and categorize the power as the fuel type of the generating facility from which the unbundled REC was derived. If procured power was from a transaction that expressly transferred energy only and not the RECs associated with that energy, identify the power as "Unspecified Power" in the Fuel Type column. If the power was purchased from a power pool or wholesaler that will be filing an Annual Report with the Energy Commission (schedules 3 and 4), identify the name of the pool / wholesaler under "Facility dsn: 2016 PSD 05-10-17_PALO ALTO (JS edits v2) Net Purchases (MWh) Percent of Total Retail Sales (MWh) Specific Purchases Renewable 369,531 40.4% Biomass & Biowaste 104,892 11.47% Geothermal - 0.0% Eligible hydroelectric 5,896 0.6% Solar 155,428 17.0% Wind 103,315 11.3% Coal - 0.0% Large hydroelectric 381,481 39.3% Natural Gas 22 0.0% Nuclear - 0.0% Other - 0.0% Total Specific Purchases 751,034 79.7% Unspecified Power (MWh)197,115 20.3% Total 948,149 100% Total Retail Sales (MWh)914,748 0 ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure Program June 2017 for the year ending December 31, 2016 SCHEDULE 2: ANNUAL POWER CONTENT LABEL CALCULATION Applicable to: Load Serving Entities INSTRUCTIONS: Total your specific purchases (by fuel type) and generic purchases from Schedule 1 and enter these numbers in the first column. The remainder of this sheet is automated. If for any fuel type (including generic) the numbers in the : INSTRUCTIONS: Total specific purchases (by fuel type) and enter these numbers in the first column. Null power purchases should be included with Unspecified Power. REC only purchases should be included as part of the fuel type they represent. The remainder of this schedule will be automatically populated with net generic purchase and total retail sales information from Schedule 1. Any difference between total net purchases and total retail sales will be applied pro-rata to each non-renewable fuel type. The pro-rata calculations will then be divided by total retail sales to calculate fuel mix percentages. COMMENTS: