HomeMy WebLinkAbout2004-04-12 City Council (4)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:APRIL 12, 2004 CMR:196:04
TITLE:PALOALTOGREEN PROGRAM PROGRESS AND SUMMARY
This is an informational report and no Council action is required.
BACKGROUND
On June 1, 2003, City of Palo Alto Utilities (CPAU) launched a voluntary program
offering a renewable energy option to all residents, businesses, and industrial customers
located within its service territory.
The program, branded PaloAltoGreen, purchases tradable renewable energy certificates
generated from a combination of 100% new local and regional green energy resources,
including wind from the northwest and local solar power. The product composition
includes 97.5% wind energy generated from wind farms concentrated around the
Columbia River in the river gorge between Oregon and Washington and in the
southwestern portion of Wyoming. New solar photovoltaic projects generate the
remaining 2.5% of green energy content.
PaloAltoGreen is offered at a premium of 1.5 cents per kilowatt-hour (kWh). For the
average Palo Alto household using 650-kWh hours per month, PaloAltoGreen
participants will pay an additional cost of $9.75 per month.
In preparing for program launch, CPAU staff targeted a 5% participation rate (1250 of
the 27,500 served accounts) within one year of launch. This participation rate would be
significant, placing PaloAltoGreen on the National Renewable Energy Laboratory
(NREL) "Top Ten" list, based on participation.
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DISCUSSION
The PaloAltoGreen program has delivered remarkable results since its launch. The
following is a summary of key achievements.
Best-in-Nation Program Enrollment Levels: After eight months, there are approximately
2,000 households and businesses (an astounding 7.0% of served accounts), across Palo
Alto enrolled in PaloAltoGreen.
The Department of Energy NREL recently released its list of the 2003 Top Ten utility
renewable power programs. PaloAltoGreen renewable energy program ranked second
nationally, based on the percentage of utility customer participation. This performance is
particularly notable when considered against renewable energy programs in other states,
which are often required under law by the state utilities commissions.
Enrollment of Fortune 500 Corporations in Green Energy Procurement Program:
Currently only a few dozen Fortune 500 corporations procure renewable energy in the
United States. CPAU has successfully signed two of the largest - Lockheed Martin and
Agilent Technologies - to the PaloAltoGreen program. The Lockheed Martin
commitment received special recognition from the U.S. Environmental Protection
Agency.
Significant Environmental Benefits: Participation in PaloAltoGreen provides an
opportunity for individuals, households, and organizations to dramatically reduce air
pollution emissions. For the average Palo Alto household using 650-kilowatt hours per
month, PaloAltoGreen participation prevents the release of over 10,460 pounds (4.75
tons) of carbon dioxide emissions and other matter into the Earth’s atmosphere each year.
The environmental benefit is equivalent to the carbon dioxide absorption capacity of 624
trees (nearly 1.25 acres of forest) or the carbon dioxide emissions of driving 11,762
miles.
In 2003, PaloAltoGreen provided substantial environmental benefit from its nearly 2000
participating customers. Based on 2004 projections, CPAU anticipates PaloAltoGreen
participants will offset 13,410 tons of carbon emissions, the carbon dioxide absorption
capacity of 3,520 acres of trees and the equivalent of taking 3,100 automobiles off our
nation’s highways.
CMR: 196:04 Page 2 of 3
RESOURCE IMPACT
PaloAltoGreen is a cost pass-through voluntary program and there is no net impact on
CPAU’s financial resources. Future revenues and expenses will be included in annual
budgets.
POLICY IMPLICATIONS
This program is consistent with the Council-approved Utilities Strategic Plan
[CMR:432:02] Objective #1 to enhance customer satisfaction by delivering valued
products and services. It also supports Key Strategy No.7: implement programs that
improve the quality of the environment.
The PaloAltoGreen program also supports the City’s Sustainability Policy Statement,
adopted April 2, 2001 [CMR 175:01], and the Green Government Pledge adopted July
19, 1999 [CMR 248:99].
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
Utility Account Representative
.-’Utilities
EMIL HARRISON
Assistant City Manager
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