HomeMy WebLinkAboutStaff Report 7961
City of Palo Alto (ID # 7961)
City Council Staff Report
Report Type: Informational Report Meeting Date: 5/8/2017
City of Palo Alto Page 1
Summary Title: Annual Utilities Efficiency Programs Report for FY 2016
Title: Informational Report on the City of Palo Alto Utilities Demand Side
Management Annual Report for Fiscal Year 2016
From: City Manager
Lead Department: Utilities
This memo and the attached report present the achievements of Demand Side Management
(DSM) programs implemented by the City of Palo Alto Utilities (CPAU) during Fiscal Year (FY)
2016. This is for the Council’s information and no action is required.
Executive Summary
The FY 2016 DSM Annual Report provides updates on the achievements of CPAU’s electric,
natural gas, and water efficiency programs, as well as locally-sited solar photovoltaic (PV), solar
water heating program and sustainable energy programs. The DSM Report also provides
updates on various customer outreach and research and development initiatives that are
related to achieving savings in electric, gas and water.
In January 2016, Utilities Marketing Services (UMS) was renamed Utilities Program Services
(UPS) as UPS became a part of the Resource Management Division. The goal for this
reorganization was to enhance integrated portfolio planning which includes purchasing
electric, water and natural gas commodity and providing demand-side management services.
This reorganization has allowed for more effective and efficient incorporation of energy
efficiency, water conservation, and program management into CPAU’s resource portfolios.
In FY 2016, CPAU exceeded its natural gas and water efficiency goals, but fell just short of
meeting its electricity goal due to startup costs for new programs and reallocation of
resources to focus on water efficiency during the California drought. On the other hand, total
gas and water savings far exceeded their annual savings targets.
Background
As a municipal utility that delivers electric, gas and water services to customers in its service
territory, CPAU complies with state laws that govern resource conservation, efficiency goals
and related expenditures. Key legislation that affects CPAU includes:
City of Palo Alto Page 2
Assembly Bill (AB) 1890 (1996) requires publicly owned electric utility (POUs) to establish a
public benefit charge of 2.85% of revenue to fund any or all of the following “public benefit”
programs:
• Cost-effective, DSM services to promote energy-efficiency and energy conservation.
• New investment in renewable energy resources and technologies consistent with
existing statutes and regulations that promote those resources and technologies.
• Research, development and demonstration programs in the public interest which
advance science or a technology not being adequately provided for by competitive and
regulated markets.
• Services for low-income electricity customers such as targeted energy-efficiency
installations.
Senate Bill (SB) 1037 (2005) requires each POU, in procuring energy, to first acquire all available
energy efficiency and demand reduction resources that are cost-effective, reliable and feasible.
AB 2021 (2006), as amended by AB 2227 (2012), requires POUs to develop annual electric
efficiency targets over ten years based on all potentially achievable cost-effective energy
savings, update the goals every four years, and provide annual reports to their customers and
the California Energy Commission. CPAU adopted its first ten-year electric and gas efficiency
targets in 2007 and has since updated these goals twice with the last update completed in
December 2012.
SB 1 (2006) requires all POUs to adopt, implement and finance a solar initiative program to
encourage the installation of residential and commercial solar energy systems.
AB 1470 (2007) requires each POU providing gas service to retail end-use gas customers to
adopt, implement and finance a solar water heating system incentive program.
SBx7-7 (2009) requires water suppliers to reduce the state average per capita daily water
consumption by 20% by December 31, 2020. This requirement is incorporated in the 2015
Urban Water Management Plan, adopted by California’s urban water suppliers including Palo
Alto.
Discussion
CPAU offers incentives and education programs for customers to encourage energy and water
efficiency, customer-owned renewable generation and enrollment in voluntary green energy
programs. The table below summarizes the FY 2016 goals and achievements. As shown,
the achievements for gas and water efficiency exceeded the goals set for FY 2016. Electricity
savings was close to its target. The solar photovoltaic (PV) program is on track to meet its goal,
but the solar water heating achievements are short of the goal due to low natural gas prices
compared to the cost of solar water heating.
City of Palo Alto Page 3
Goals versus Achievements
Resource
FY 2016
Savings Goals
(% of load)
FY 2016
Savings Achieved
(% of load)
FY 2016
Savings Achieved
Electricity 0.60% 0.59% 5,548 MWh
Gas 0.55% 1.08% 289,442 therms
Water 0.91% 1.96% 74,603 CCF
Customer side
Renewable Program Goal FY 2016
Achievement
Cumulative Achievement
through FY 2016
Solar Electric (PV)* 6,500 kW, by 2017 1,098 kW 7,694 kW since 2008
Solar Water Heating 30 systems/year 1 system 59 systems since 2008
* Solar PV System goal is over a 10-year period (2008-2017)
CPAU develops a range of marketing campaigns to promote gas, electric, and water efficiency
programs, making a concerted effort to increase outreach efforts through public engagement.
Promotional methods include community outreach events, print ads in local publications, utility
bill inserts, messaging on bills and envelopes, website, email newsletters, videos for the web
and local cable television channels, and the use of social media
(Twitter/Facebook/NextDoor/Videos).
CPAU has a number of pilot programs in place, including: the Heat Pump Water Heater Pilot
Program designed at educating and promoting an option for residents interested in installing an
electric heat pump water heater instead of a gas storage water heater; the linkAges Connect
Program, partnering with the Palo Alto Medical Foundation Innovation Center, which uses
electricity, gas, and water data from advanced meters allowing family caregivers to remain
updated on the well-being of their senior family members; the Demand Response (DR) Pilot
Program is designed to help participating large commercial customers reduce their electricity
use on days when demand is high, helping to reduce Palo Alto’s annual peak electricity
demand: a Commercial Benchmarking pilot program to assist 22 businesses with using the US
EPA’s Portfolio Manager online energy management tool; and the Program for Emerging
Technologies, which provides opportunities for local businesses to partner with CPAU or its
customers to pilot test new technologies.
The attached DSM Report provides details about CPAU’s FY 2016 DSM programs including costs
and resource savings by program and by end use, description of customer outreach efforts, and
research and development initiatives that are underway.
Attachments:
Attachment A: Demand Side Management Report for FY2016
Fiscal Year 2016
Demand Side Management
Annual Report
Resource Efficiency and Sustainable Energy Programs
cityofpaloalto.org/utilities
ATTACHMENT A
The City of Palo Alto Utilities (CPAU) is the only city-owned utility in California that operates
its own utilities including electric, fiber optic, natural gas, water and wastewater services. We
have been providing quality services to the citizens and businesses of Palo Alto since 1896.
MISSION:
To provide safe, reliable, environmentally-sustainable and cost effective services.
VISION:
We deliver extraordinary value to our Customers.
STRATEGIC DIRECTION:
We will earn the high satisfaction of our customers with our cost-competitive provision of
safe, reliable, and environmentally sustainable utility services.
TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................................................................................................... 4
1 ELECTRIC EFFICIENCY PROGRAMS ......................................................................................... 11
2 GAS EFFICIENCY PROGRAMS ................................................................................................. 14
3 WATER EFFICIENCY PROGRAMS ............................................................................................. 18
4 SUSTAINABLE ENERGY PROGRAMS ....................................................................................... 21
5 CUSTOMER OUTREACH & COMMUNICATIONS ....................................................................... 26
6 RESEARCH, DEVELOPMENT AND INNOVATION ....................................................................... 33
7 FUTURE PLANS ...................................................................................................................... 38
APPENDIX A: PROGRAM DESCRIPTION ........................................................................................... 42
APPENDIX B: FY 2016 ACHIEVEMENTS BY DSM PROGRAM ............................................................. 48
APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES ............................................................. 49
APPENDIX D: FY 2016 SMART ENERGY RESIDENTIAL PROGRAM RESULTS ........................................ 50
APPENDIX E: FY 2016 LOW INCOME RESIDENTIAL ASSISTANCE PROGRAM (REAP) RESULTS ............. 51
APPENDIX F: SB 1037 ELECTRIC DSM REPORT TO CEC ..................................................................... 52
APPENDIX G: EXAMPLES OF CUSTOMER OUTREACH EVENTS .......................................................... 54
APPENDIX H: CITY POLICIES/PLANS AND STATE MANDATES IMPACTING DSM PROGRAM GOALS AND
IMPLEMENTATION ........................................................................................................................ 57
4 of 59
FY 2016 Demand Side Management Annual Report
EXECUTIVE SUMMARY
The City of Palo Alto Utilities (CPAU) is pleased to issue the Demand Side Management (DSM)
Report for Fiscal Year (FY) 2016. CPAU is committed to supporting environmental sustainability
through efficient consumption of electric, gas and water resources, promoting distributed
renewable generation, and modifying consumer demand through incentives and education. CPAU
accomplishes these goals by delivering a wide range of customer programs and services described in
this report.
This annual report provides updates on:
♦ Electric and natural gas energy efficiency (EE) program achievements and expenditures
♦ Water conservation program achievements and expenditures
♦ Locally-sited solar photovoltaic and solar water heating program achievements and
expenditures
♦ Voluntary green energy programs
♦ Customer outreach initiatives
♦ Research and development-related initiatives
♦ Future plans
DSM GOALS and ACHIEVEMENTS
CPAU offers incentives and education programs for customers to encourage energy and water
efficiency, customer-owned renewable generation and enrollment in voluntary green energy
programs. Table ES.1 summarizes the FY 2016 goals and achievements. As shown, the
achievements for gas and water efficiency exceeded the goals set for FY 2016. Electricity savings
was close to its target. The solar photovoltaic (PV) program is on track to meet its goal, but the solar
water heating achievements are short of the goal due to low natural gas prices compared to the cost
of solar water heating.
Table ES.1: Goals versus Achievements
Resource
FY 2016
Savings Goals
(% of load)
FY 2016
Savings Achieved
(% of load)
FY 2016
Savings Achieved
Electricity 0.60% 0.59% 5,548 MWh
Gas 0.55% 1.08% 289,442 therms
Water 0.91% 1.96% 74,603 CCF
Customer side
Renewable Program Goal FY 2016
Achievement
Cumulative Achievement
through FY 2016
Solar Electric (PV)* 6,500 kW, by 2017 1,098 kW 7,694 kW since 2008
Solar Water Heating 30 systems/year 1 system 59 systems since 2008
* Goal over a 10-year period 2008-2017 based the SB-1 California Solar Initiative. In FY 2018 reporting will transition to
reflect CPAU’s Local Solar Plan goal.
5 of 59
FY 2016 Demand Side Management Annual Report
DSM PROGRAM EXPENDITURES
Table ES.2 summarizes the total DSM program expenditures over the last three years.
Table ES.2: Electric, Gas, Water DSM Program Expenditures
FY 2014 FY 2015 FY 2016
Electric DSM programs $3.2 million $2.4 million $2.4 million
Gas DSM programs $0.7 million $0.59 million $0.69 million
Water DSM programs $0.4 million $0.81 million $0.52 million
PV Partners $1.3 million $1.1 million $1.1 million
Solar Water Heating Program $67,000 $190,000 $23,000
TOTAL PROGRAM EXPENSES $5.7 million $5.1 million $ 4.8 million
ENERGY AND WATER EFFICIENCY AS A RESOURCE
CPAU is committed to identifying and achieving all cost-effective energy and water efficiency
measures (i.e. those that are less expensive than supply-side resources). Since the adoption of the
electric Carbon Neutral Plan starting in 2013, electric EE no longer contributes to the community’s
greenhouse gas (GHG) emissions reduction based on the City’s climate reporting methodology.1
However, many electric EE measures still remain a cheaper resource than carbon-neutral electric
supplies. Table ES.3 summarizes the cost of efficiency over the last three years compared to the
projected cost of supply resources. The levelized cost of both electricity and gas were higher this
year because 1) new programs were ramping up, 2) staff focused on water conservation to meet
mandatory water restrictions, and 3) large portions of the savings were from retrocommissioning
(RCx) savings, which had an expected useful lifetime of one year using former CPAU energy
efficiency accounting protocols. CPAU is updating its protocols for these RCx savings to reflect that
persistence of these measures is actually longer than one year. This will result in longer-lived, less
expensive RCx savings in the future. CPAU is also evaluating if the customer and 3rd party vendor
incentive payments need to be adjusted for RCx savings, since these savings are largely changes in
how systems are operated, and both easier to implement and shorter lived than hardware upgrades.
In addition, the Home Energy Genie program is mostly a customer service program that has great
educational value to Palo Alto residents, but delivers almost no claimable energy efficiency savings
and therefore drives up the average cost of all electricity and natural gas savings. For electricity, the
levelized cost of electricity efficiency measures are still well below the future supply cost. The
current future supply cost of gas is 25% lower than in 2014, reflecting the very low natural gas prices
nationally.
1 This assumption is true for the climate reporting methodology used by the City, but there is still a real carbon savings
value associated with electric EE. The City’s Carbon Neutral Portfolio objective is to have adequate renewable energy on an
annual basis to serve load. That means that at some times of the year the City may have excess carbon free and renewable
energy that offsets emissions from times of year when the City has insufficient carbon free and renewable energy and
procures market energy, which typically comes from a gas generating plant. When electric EE results in load reduction
during those times of day or year in which the City’s Carbon Neutral Portfolio has insufficient renewable energy, it can be
argued there is a real long-term carbon savings from electric EE.
6 of 59
FY 2016 Demand Side Management Annual Report
Table ES.3: Actual Levelized Efficiency Costs versus Projected Supply Costs
FY 2014
Efficiency
FY 2015
Efficiency
FY 2016
Efficiency
3-yr average
Efficiency
Future
Supply
Water $/CCF $ 3.12 $4.61 $2.27 $3.33 $4.63
Gas $/therm $ 0.43 $0.72 $0.84 $0.66 $0.52
Electric $/kWh $0.043 $0.042 $0.067 $0.051 $0.077
HIGHLIGHTS OF FY2016
• Utilities Program Services - In January 2016, Utilities Marketing Services (UMS) was renamed
Utilities Program Services (UPS). In spring of 2015, UMS, which had been a part of Utilities
Customer Support Services, became a part of the Resource Management Division. The goal
was to enhance integrated portfolio planning which includes purchasing electric, water and
natural gas commodity and providing demand-side management services. This reorganization
allows for more effective and efficient incorporation of energy efficiency, water conservation,
and program management into CPAU’s resource portfolios.
• Third-party EE programs account for a significant portion of CPAU’s reported energy savings.
The following contracts were approved by Council on 5/18/2015 (Staff Report 5707) and the
subsequent programs were launched in FY2016:
1. ClearResult Consulting, Inc. for the administration of the Home Efficiency Genie program
which provides residential in-home energy assessment and phone-based energy efficiency
advisory services;
2. Eagle Systems International, Inc. DBA Synergy Companies in a not-to-exceed amount of
$540,000 for the administration of the Residential Energy Assistance Program, which
provides no cost, direct installation EE services to prequalified residential customers that
are eligible based on financial or medical needs;
3. Eagle Systems International, Inc. DBA Synergy Companies in a not-to-exceed amount of
$450,000 for the administration of the MultiFamily Residence Plus+ Program, which
provides no cost, direct installation of EE measures to multifamily complexes with 4 or
more units;
4. Ecology Action of Santa Cruz, in a not-to-exceed amount of $1,950,000 for the
administration of the SMB (Small & Medium Business) EMPower SMB Program, which
provides turnkey direct installation of EE measures to commercial customers;
5. Ecology Action of Santa Cruz, Enovity, Inc. and BASE Energy, Inc. in a combined not-to-
exceed amount of $2,775,000 across a total of three contracts, to provide building energy
performance optimization services to large commercial and industrial customers;
• Building Carbon Zero California Conference - On November 13, 2015 CPAU hosted the Building
Carbon Zero California Conference at Lucie Stern Community Center. Palo Alto was selected as
the site for Passive House California’s 5th Annual Conference, as Palo Alto is home to the
largest California cluster of Passive Houses – considered to represent today’s highest energy
standard, reducing a building’s energy consumption by up to 80%. Combined with renewable
7 of 59
FY 2016 Demand Side Management Annual Report
energy systems such as solar, passive homes make zero net energy buildings one step closer to
reality. Attendance: 330.
• Georgetown University Energy Prize - In April 2014, the City announced its intent to compete
for the Georgetown University Energy Prize, a national competition that aims to challenge
communities across the U.S. to dramatically rethink their energy use. On January 14, 2015
CPAU was selected as one of the 50 communities in the U.S. to compete in the semi-final
round. The competition stretched over a two year period between January 2015 and
December 2016, with a $5 million prize to be awarded to the winner of the competition.
• Georgetown University Energy Prize Conference - March 2016 CPAU hosted one of five
conferences which were hosted nationwide. Palo Alto’s Mayor and Chief Sustainability Officer
were keynote speakers. Georgetown participants from 9 cities throughout California were in
attendance sharing best practices of EE programs and lessons learned. Attendance: 45.
• Water Conservation Enforcement - During the drought, a water conservation enforcement
program has allowed customers to report incidents of water waste to the utility through
various tools. These tools included Palo Alto 311, Access Valley Water, and reporting from the
State Water Resources Control Board. In addition to drought enforcement, the goal of this
service was to inform customers of the current drought conditions. While some mandatory
water use reductions have been eased, some other water use restrictions were added to the
municipal code making them permanent. CPAU will continue to make water conservation a
way of life and use this enforcement effort as a way to educate customers on water efficiency
best practices.
• The Home Efficiency Genie Program was launched in the summer of 2015. To improve
marketing efforts, in January 2016 the Genie logo was redesigned to launch a cohesive co-
marketing campaign with Palo Alto Green Gas. For this ‘Go Green in 2016’ campaign, bill
inserts, email-blasts, envelope ads, online ads and detach cards were created to build brand
recognition for both programs, resulting in marketing cost savings and increased participation
in both programs.
• Portal - In February 2016 CPAU launched a new residential online energy and water portal
with Nexant Inc. replacing the Home Energy Report (Opower) and Home Water Report
(WaterSmart) where customers can log in and view their gas, electric and water consumption,
see how they are doing compared to similar homes and have access to all efficiency and
savings programs, in one location.
• Heat Pump Water Heater Pilot Program - In August 2015, City Council approved an
Electrification Work Plan (Staff Report 5961), which is being incorporated into the Sustainability
Implementation Plan going to Council in April 2017. The goal is reduction of GHG Emissions
through switching from natural gas using appliances to electric appliances. Installation of Heat
Pump Water Heaters (HPWH) has been selected as a good candidate for single family homes. A
8 of 59
FY 2016 Demand Side Management Annual Report
pilot program designed to facilitate the installation of HPWHs was launched in the spring of
2016.
• Demand Response Pilot Program - During summer 2016, seven large commercial customers
participated in the Summer Peak Demand Response (DR) Pilot Program. Through this program,
CPAU offers monetary incentives to key account customers to reduce their electric usage when
called upon during high load periods in the summer. On the highest peak load day of the year,
237 kW of demand reduction was achieved by three of the seven participating customers.
• CustomerConnect Program, Time of Use Rates and Water Leak Detection - From FY2014
through FY2016 the CustomerConnect Program installed advanced electric, gas and water
meters at 280 residential homes. In addition, 120 advanced electric meters were installed to
strengthen the mesh network to improve meter communication. Participating customers have
access to a web-based online portal, which displays hourly interval consumption data. As part
of this pilot, 96 customers have enrolled in the pilot Time-of-Use electricity rate. Enrolled
customers are able to save money by shifting electric usage to off-peak hours. The pilot also
offers water leak detection and alerts. Staff notifies customers of both small water leaks and
burst pipes detected by the advanced meter system. Since November 2014, 222 individual
water leak incidents have been detected. Staff contacted the homeowners to resolve the leaks
on over a quarter of the incidents, saving thousands of gallons of water from being lost and
saving customers money. The pilot is planned to be extended until the end of 2020.
• Commercial Building Pilot Program - This pilot program with GreenTraks, Inc. was
implemented to assist 22 businesses with using the US EPA’s Portfolio Manager online energy
management tool. Each building is benchmarked against similar buildings based on its energy
usage using an Energy Star rating of 1 to 100. The goal of the pilot is to help a mixture of small,
medium and large commercial customers benchmark their buildings and determine the best
ways to remove barriers and encourage more customers to use Portfolio Manager.
• Palo Alto School District Grant - CPAU provides a grant to the Palo Alto Unified School District
(PAUSD) of $50,000 each year for the implementation of energy and water efficiency
educational programs from Public Benefits funds. During FY 2016, this CPAU grant supported
various activities including:
o The purchase of solar and wind renewable energy kits for students to build and learn
about these forms of energy
o Marine Science Institute Discovery Voyage on water conservation
o Theatreworks visited an elementary school to teach students about “Playing with Science”
o Home Energy Audit training on how to identify the most efficient lighting concepts
o The purchase of energy efficiency building science kits for students to learn more about
energy efficiency
• Palo Alto Medical Foundation (PAMF) Connect Pilot Program - PAMF and CPAU partnered on
a pilot program to install advanced electric meters and real time electricity monitoring devices
in 25 resident’s homes. PAMF received a $750,000 grant to help seniors age in their homes
9 of 59
FY 2016 Demand Side Management Annual Report
using technology in the energy field through the Robert Woods Johnson Foundation. The
purpose of the pilot was to allow caregivers to remotely monitor the senior’s activity in a non-
invasive platform. The real-time utility data is delivered to an online portal that learns the
regular usage patterns, and can send alerts to caretakers if usage deviates from the regular
pattern. All of the meters and real-time devices have been installed in Palo Alto and results
from the pilot will be published during FY 2018.
EXPECTED HIGHLIGHTS FOR FY 2017
• Energy Savings Contest - In February 2016 CPAU launched a residential online energy and
water portal where customers can log in and view their gas, electric and water consumption,
see how they are doing compared to similar homes and have access to all efficiency and savings
programs, in one location. Staff is researching the idea of hosting a behavioral science energy
savings contest among all residents. Each resident that reduces gas or electric use compared to
the previous year will be eligible for free tickets based on their savings. At the end of the
competition, a ticket will be randomly selected and the winner will receive a prize. Staff is
currently working with the Natural Resources Defense Council and University of California at
Irvine on this concept.
• Santa Clara Valley Water District Grant Awards for Efficiency Programs - In October 2014, City
Council approved and accepted a total of $75,000 in funds from SCVWD under the 2014 Safe,
Clean Water Priority Grant Program (Staff Report 5025). The funds will used by CPAU to support
its Business Water Report Pilot Program and Real Time Water Use Monitoring Pilot Program.
Staff issued RFPs for the two pilot programs’ marketing, administration and implementation. In
June 2015, WaterSmart was selected as the vendor for the Business Water Reports Pilot
Program and National Meter & Automation, Inc. (NMAAI) was selected for the Real Time Water
Use Monitoring Pilot Program. Both pilots are expected to launch in 2017.
• Solar Bulk Buy Program - The Bay Area SunShares program was launched in August 2016. This
group-buy program was administered by the non-profit Business Council on Climate Change
and offered discounted PV installations and zero emission vehicles to Bay Area residents. 54
Palo Alto residents registered for solar proposals and 53 registered for zero emission vehicle
proposals. Program results will be included in the FY17 DSM report.
• Distributed Energy Resources (DER) Pilot Program - CPAU is working on ways to leverage
distributed energy resources (DER) such as electric vehicles (EVs), EV chargers, thermostats, PV
systems, and storage systems already at customer homes and businesses. A pilot program to
enable grid connectivity of such DER systems is planned to commence in 2017.
• New Design Partner - In November 2016 CPAU signed a three year contract with Essense
Partners to support efforts in customer engagement, strategic planning and branding. Essense
offers a unique combination of expertise in marketing, design and the energy industry.
• EV Charger Rebate Program - In early 2017, CPAU will launch an EV Charger Rebate program
10 of 59
FY 2016 Demand Side Management Annual Report
using funds from monetizing Low Carbon Fuel Standard (LCFS) credits. Rebates will be targeted
to Multifamily and Mixed-use complexes, Schools and Non-Profits. There are also plans to
offer a $300 rebate to single family homeowners who are willing to share EV Charger data as
CPAU studies the impacts of EV charging on the grid.
• Online EV/PV Calculator - CPAU will launch a new online calculator for residents to evaluate
the costs and benefits of installing solar on their home. In addition, residents can evaluate
different electric vehicles and view the bill impacts and environmental benefits of charging
using Palo Alto’s carbon neutral electricity. The online calculator uses satellite imagery of Palo
Alto homes to tailor the solar system design, as well as current utility rates tailored to Palo
Alto.
• Portal Update - CPAU will be selecting a vendor to provide a customer interface platform,
building on knowledge gained and work completed with Nexant, Inc. to create a robust online
customer portal.
• Tier 2 Advanced Power Strip Pilot Program - CPAU is currently developing a joint residential
Tier 2 Advanced Power Strip (T2APS) pilot program with other members of NCPA as the energy
savings from this product has been increased from 24 kWh to 212kWh per year2. This program
will be designed to quantify tangible energy savings from T2 APS installations. We are also
looking into incorporating the T2 APS into the Home Efficiency Genie and Multifamily
Residence Plus+ Programs.
• Building Operators Certification (BOC) Course - CPAU will be hosting a Building Operators
Certification Course taught by Northwest Energy Efficiency Commission (NEEC) from Seattle.
BOC is an eight class certification course covering all aspects of building management and
efficiency. Some topics to be covered are: HVAC, electrical systems, comfort control and
lighting. Upon passing an end of class exam, graduates can become a Certified Building
Operator (CBO).
• Carbon Neutral Gas Plan - In December 2016, Council adopted Resolution 9649 approving the
Carbon Neutral Gas Plan that will achieve carbon neutrality for the gas supply portfolio by FY
2018 using high-quality environmental offsets not to exceed a maximum rate impact of
10₵/therm. PaloAltoGreen Gas will be terminated concurrent with the implementation of the
new plan. (Staff Report 7533)
2 As noted in the 2016 CMUA POU Technical Resource Manual
11 of 59
FY 2016 Demand Side Management Annual Report
1 ELECTRIC EFFICIENCY PROGRAMS
1.1 Electric Efficiency Savings versus Goals
City Council approved CPAU’s first Ten-Year Energy Efficiency Portfolio Plan in April 2007,
which included annual electric and gas efficiency targets between 2008 and 2017, with a 10-
year cumulative savings target of 3.5% of the forecasted energy use. As mandated by
California law, the electric efficiency targets were updated in 2010, with the ten-year
cumulative savings goal doubling to 7.2% between 2011 and 2020. Since then, increasingly
stringent statewide building codes and appliance standards have resulted in substantial
energy savings (e.g. as of January 1, 2013, incandescent bulbs between 40W to 100W can no
longer be sold). However, energy savings in these “codes and standards” improvements are
excluded from meeting CPAU’s EE program goals. An updated set of Ten-Year Electric
Efficiency Goals, adopted by City Council in December 2012, revised the ten-year cumulative
electric efficiency savings to 4.8% between 2014 and 2023.
CPAU’s electric efficiency savings goals and achievements as a percentage of the City’s energy
usage are shown in Table 1 below. In FY 2016, CPAU achieved electric savings of 0.59% of load
through its customer efficiency programs, which is slightly below the previous year due to the
startup of new programs and reallocation of resources to focus on water efficiency during the
California drought.
Table 1: Electric Savings versus Goals
Year Annual Savings
Goal (% of load)
Savings Achieved
(% of load)
Savings Achieved
(MWh)
FY 2008 0.25% 0.44% 4,399
FY 2009 0.28% 0.47% 4,668
FY 2010 0.31% 0.53% 5,270
FY 2011 0.60% 0.58% 5,497
FY 2012 0.65% 1.31% 12,302
FY 2013 0.70% 0.85% 8,074
FY 2014 0.60% 0.86% 8,218
FY 2015 0.60% 0.65% 6,063
FY 2016 0.60% 0.59% 5,548
1.2 FY2016 Electric Efficiency Savings by End Use and Customer Segment
Non-residential customers account for 81% of CPAU’s electric sales, and non-residential efficiency
program savings represent about 77% of CPAU’s total electric efficiency savings, as shown in
Figure 1. Non-residential retrocommissioning, representing 35% of the electric savings, is the
systematic process of identifying less-than-optimal performance in a facility’s equipment, lighting
and control systems and making the necessary adjustments to optimize them. Although CPAU
stopped delivering Home Energy Reports in FY 2015, CPAU can still claim an 80% persistence
savings from the program. In FY 2016, the Home Energy Report program accounted for 19% of the
total electric EE savings.
12 of 59
FY 2016 Demand Side Management Annual Report
Figure 1: Composition of Net Electric Efficiency Savings in FY 2016
(Total saving of 5,548 MWh, 0.59% of annual load)
1.3 FY 2016 Electric Efficiency Program Expenditures
The largest fraction of expenditures in the electric efficiency budget is for third-party
administered contracts and rebates. Other expenses include in-house salaries, marketing, and
customer education. Funding for electric efficiency programs came primarily from the mandated
Public Benefit (PB) Charge, which is set at 2.85% of the customer retail rate. The majority of the
PB funding is spent on efficiency programs; however, some also goes to renewable energy
projects, research and development projects and low income efficiency programs. Table 2
shows the split of electric efficiency program expenditures by customer rebates, third-party
contract administration, and other expenses, which include in-house staffing, marketing and
communication expenses. State law requires evaluation, measurement and verification (EM&V)
of the reported electric efficiency savings by an independent consultant. The EM&V contract
cost is included in Table 2.
Res. Home Energy
Report
19%
Res. Lighting
2%
Res. Shell
1%
Res. Refrigeration
1%
Res. Others
0.5%
Non-Res.
Retrocommissioning
35% Non-Res. Lighting
28%
Non-Res. Cooling
13%
Non-Res. Others
1%
13 of 59
FY 2016 Demand Side Management Annual Report
Table 2: FY 2016 Electric Efficiency Program Expenditures
Customer Class Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual
Cost
Programs delivered by CPAU staff
Residential Smart Energy Rebates $15,600 - $80,000 $95,600
Non-Residential Com. (CAP) Rebates $41,800 - $110,000 $151,800
Non-Residential Schools Grant - $45,000 $2,000 $47,000
All EM&V, Marketing & Other - $134,000 $290,000 $424,000
Programs delivered by third-party administrators
Residential Low Income (REAP)* $19,000 $19,000 $70,000 $108,000
Residential Home Efficiency Genie* $41,500 $41,500
$60,000 $143,000
Residential Home Energy Reports - - - $0
Non-Residential CIEEP: Enovity & EA $417,000 $514,000 $160,000 $1,091,000
Non-Residential Multifamily+ * $42,300 $42,300 $70,000 $154,600
Non-Residential Empower* $25,700 $25,700 $100,000 $151,400
Non-Residential New Construction $6,800 $13,500 $40,000 $60,300
TOTAL $609,700 $835,000 $982,000 $2,426,700
Source of Funds Public Benefit $2,426,700
Supply Funds $0
* These are “direct-install” programs, whereby the program administrator installs efficient equipment at the customer site at no cost
to low income residents or with small co-pays from small business customers. Direct install programs typically target hard-to-reach
customers. For direct install programs, payments to the third-party vendor are assumed to be 80% direct customer rebate and 20%
contract administration.
Figure 2 shows the historical annual electric efficiency savings and annual electric efficiency
program expenditures.
Figure 2: FY 2008 to FY 2016 Electric Efficiency Savings and Expenditures
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016
$
Th
o
u
s
a
n
d
s
Ac
h
i
e
v
e
d
E
E
s
a
v
i
n
g
s
a
s
%
o
f
l
o
a
d
EE program expenditures ($)Net EE savings achieved as % of load
Completion of a significant EE project at a
large commercial customer site
14 of 59
FY 2016 Demand Side Management Annual Report
2 GAS EFFICIENCY PROGRAMS
2.1 Gas Efficiency Savings versus Goals
In parallel with the development of ten-year electric goals, the City Council adopted CPAU’s
first set of gas efficiency targets in 2007 to reduce gas consumption by 3.5% between 2008
and 2017. In 2010, Council increased the gas efficiency targets to reduce use by 5.5% between
2011 and 2020. Similar to the electric side, the potential for gas efficiency savings has been
reduced due to recent changes to California’s appliance standards and building codes. The
ten-year gas efficiency goals were last updated in December 2012, with a cumulative gas
efficiency target to reduce gas use by 2.85% between 2014 and 2023.
CPAU’s gas efficiency savings goals and achievements as a percentage of sales are shown in
Table 3. CPAU has continued to expand its gas efficiency program portfolio in the past several
years, with the majority of gas savings delivered through third-party administered programs.
Gas efficiency savings in FY 2016 nearly doubled the annual savings goal.
Table 3: Gas Savings versus Goals
Year Annual Savings Goal
(% of load)
Savings Achieved
(% of load)
Savings Achieved
(therms)
FY 2008 0.25% 0.11% 35,057
FY 2009 0.28% 0.29% 146,028
FY 2010 0.32% 0.35% 107,993
FY 2011 0.40% 0.55% 164,640
FY 2012 0.45% 0.74% 220,883
FY 2013 0.50% 1.13% 327,077
FY 2014 0.50% 1.20% 337,079
FY 2015 0.50% 0.92% 229,373
FY 2016 0.55% 1.08% 289,442
2.2 FY 2016 Gas Efficiency Savings by End Use and Customer Segment
Non-residential customers account for 55% of the CPAU’s gas sales, and in FY 2016 gas
efficiency savings in the non-residential segment represent about 47% of CPAU’s total gas
savings. The Home Energy Reports, which stopped being delivered to customers in FY 2015,
can still claim savings based on an 80% persistence of savings from the program. In FY 2016,
the Home Energy Report program accounted for 40% of the total gas savings. Figure 3 shows
the breakdown of gas savings in FY 2016 by end use.
15 of 59
FY 2016 Demand Side Management Annual Report
Figure 3: Composition of Natural Gas Efficiency Savings in FY 2016
(Total saving of 289,2863 therms, 1.07% of annual load)
2.3 FY 2016 Gas Efficiency Program Expenditures
The largest fraction of expenditures for gas EE in FY 2016 is for third-party administered
contracts and rebates. Gas efficiency programs are primarily funded from the Gas Public
Benefit charge, which is set at about 1% of the gas utility’s revenue. Additional funding is
provided from supply funds if needed. As reflected in Table 4 below, gas efficiency programs in
FY 2016 were funded only from PB charges. Table 4 also shows the split of gas efficiency
program expenditures by customer rebates, third-party contract administration, and other
expenses, which include in-house staffing, marketing and communication expense. Although
not required by state law, CPAU conducts EM&V of its gas efficiency savings through an
independent consultant. The EM&V contract cost is included in Table 4.
3 This number does not include gas savings from the Solar Water Heating Program. If the gas savings from the Solar Water
Heating Program are included the total gas savings for FY 2016 are 289,442 therms.
Home Energy Report
40%
VFD
Installations
7%
Boiler
Replacement
7%
Economizer
Optimization
8%
Control & Temp
Reset
10%
Revise Operating
Schedule
16%
Res. Miscellaneous
11%
Water Savings
Measures
1%
16 of 59
FY 2016 Demand Side Management Annual Report
Table 4: FY 2016 Gas Efficiency Program Expenditures
Customer Class Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual Cost
Programs delivered by CPAU staff
Residential Smart Energy Rebates $7,500 - $10,000 $17,500
Non-Residential Com. Rebates (CAP) $4,400 - $10,000 $14,400
All EM&V, Marketing & Other - $87,500 $40,000 $127,500
Programs delivered by third-party administrators
Residential Low Income (REAP)* $28,500 $28,500 $35,000 $92,000
Residential Home Efficiency Genie* $62,300 $62,300 $20,000 $144,600
Residential Home Energy Report* - - - $0
Non-Residential CIEEP: Enovity & EA $132,000 $81,000 $30,000 $243,000
Residential Multifamily+* $25,000 $25,000 - $50,000
Non-Residential Empower* - - - $0
Non-Residential
New Construction - - - $0
TOTAL $259,700 $284,300
$145,000 $689,000
Source of Funds Public Benefit $689,000
Supply funds $0
* These are “direct-install” programs, whereby the program administrator installs efficient equipment at the
customer site at no cost or with a small co-pay from the customer.
17 of 59
FY 2016 Demand Side Management Annual Report
Figure 4 compares the historical annual gas efficiency savings and annual gas DSM expenditures. Gas
savings this year were nearly 30% greater than last year, with an increase in large commercial
projects.
Figure 4: FY 2008 to FY 2016 Gas Efficiency Savings and Expenditures
-
300
600
900
1,200
1,500
0.0%
0.3%
0.6%
0.9%
1.2%
1.5%
2008 2009 2010 2011 2012 2013 2014 2015 2016
$
Th
o
u
s
a
n
d
s
Ac
h
i
e
v
e
d
E
E
s
a
v
i
n
g
s
a
s
%
o
f
L
o
a
d
EE program expenditures ($)Actual EE savings as % of load
18 of 59
FY 2016 Demand Side Management Annual Report
3 WATER EFFICIENCY PROGRAMS
3.1 Water Efficiency Savings versus Goals
In FY2016 CPAU updated the 2010 Urban Water Management Plan and addressed changes as
required by the California Urban Water Management Planning Act and related legislation. The
updated 2015 Urban Water Management Plan was approved by City Council in May 2016 and
includes a per capita water use reduction goal of 20% by 2020 from a historical benchmark
period (average use between years 1995 and 2004). CPAU’s water savings goals and
achievements as a percentage of sales are shown in Table 5. Note that participation in water
efficiency rebate programs during FY 2016 remained rigorous due to the California drought and
the Governor’s Executive Order (B-36-15) mandating water conservation.
Table 5: Water Savings versus Goals
Year Annual Savings Goal
(% of load)
Savings Achieved
(% of load)
Savings Achieved
(CCF)
FY 2008 0.34% 0.72% 39,323
FY 2009 0.34% 0.98% 52,983
FY 2010 0.34% 1.35% 68,948
FY 2011 0.90% 0.47% 23,409
FY 2012 0.91% 1.09% 55,067
FY 2013 0.91% 0.53% 26,513
FY 2014 0.91% 0.64% 32,325
FY 2015 0.91% 1.54% 68,227
FY 2016 0.91% 1.96% 74,484
3.2 FY 2016 Water Efficiency Savings by End Use and Customer Segment
During FY 2016, water efficiency savings were split nearly equally between residential and
non-residential customers. Non-residential landscape conversions and irrigation hardware
upgrades represent 47% of the total water savings. Home water reports were stopped in
early FY 2016, but savings could still be claimed at an 80% persistence from FY 2015 and
account for 40% of the total water savings.
Note that savings from customers achieved due to behavioral changes or appliance upgrades
prompted by CPAU’s drought awareness messaging but who did not seek a rebate are not
accounted for in these achievements.
19 of 59
FY 2016 Demand Side Management Annual Report
Figure 5: Composition of Water Efficiency Savings in FY 2016
(Total saving of 74,484 CCF, 1.96% of annual load)
3.3 FY 2016 Water Efficiency Program Expenditures
CPAU partners with the SCVWD to provide residential and commercial water conservation
programs which include free water audits to residential customers, landscape surveys, rebates
for landscape conversions, irrigation hardware, clothes washers, high efficiency toilets and
urinals. The payment to SCVWD includes customer rebates as well as various program
expenditures. CPAU also offers an additional energy efficiency rebate to customers for high
efficiency clothes washers.
Table 6 shows program expenditures by customer rebates, third-party contract administration
and other expenses, which includes in-house staffing, marketing and communication
expenses.
Non-Res.
Landscapes
47%
Home Water Report
40%
Res. Landscapes
8%
Res. Showerheads &
Aerators
3%
Res. Clothes
Washers
1%
Res. High Efficiency
Toilets
1%
20 of 59
FY 2016 Demand Side Management Annual Report
Table 6: FY 2016 Water Efficiency Program Expenditures
Customer Class Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual
Cost
Programs delivered by CPAU staff
Residential Washing Machines1 $4,125 - $5,000 $9,125
All Marketing & Other - - $170,000 $170,000
Programs delivered by Santa Clara Valley Water District2
Residential High Efficiency Toilets - - $5,000 $5,000
Residential Landscape Rebates - $134,649 $25,000 $159,649
Residential Water Wise House Calls - - $10,000 $10,000
All Irrigation Hardware
- - $10,000 $10,000
Non-Res High Efficiency Toilets3 - - $5,000 $5,000
Non-Res Washing Machines - - - -
Non-Res Landscape Rebates - $57,165 $40,000 $97,165
Programs delivered by WaterSmart
Residential Home Water Reports - $12,000 $25,700 $37,700
TOTAL $4,125 $209,814 $295,700 $503,639
1 For washing machine rebates, the customer receives $75 from water, $25 from gas, and $25 from electric budgets. The
SCVWD reimburses CPAU 50% for the water portion of the residential washing machine rebates. The reported figure
represents CPAU’s share of the water portion of the rebate. 2 During FY2016 although the cost sharing agreement with SCVWD was amended to only cover the increased rebate level for
the landscape rebate program, CPAU customers are still able to participate in all rebates offered by the SCVWD with no
financial participation from CPAU. 3 These are direct install programs, whereby the program administrator installs efficient equipment at the customer site at
no cost to, or with a small co-pay from, the customer.
Figure 6: FY 2008 to FY 2016 Water Efficiency Savings and Expenditures
-
250
500
750
1,000
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016
$
Th
o
u
s
a
n
d
s
Ac
h
i
e
v
e
d
w
a
t
e
r
s
a
v
i
n
g
s
a
s
%
o
f
L
o
a
d
Water efficiency program expenditures ($)Actual water savings as % of load
21 of 59
FY 2016 Demand Side Management Annual Report
4 SUSTAINABLE ENERGY PROGRAMS
4.1 Overview of Sustainable Energy Programs
CPAU offers a variety of programs to encourage residents and non-residents to lessen the
environmental impacts associated with their gas and electric consumption. Customer-side
renewable generation programs are available to support the installation of both solar electric
photovoltaic (PV) and solar water heating (SWH) systems. Voluntary green energy programs
support investments in renewable electricity and carbon offsets that reduce greenhouse gas
emissions.
4.2 PV System Installation Achievements versus Goals
There have been a total of 910 PV installations (852 residential, 58 non-residential) since CPAU
began supporting local solar PV installations in 1999. These customer-side generation systems
are not included in CPAU’s Renewable Portfolio Standard (RPS) supply requirements.
In 1999 CPAU offered incentives for PV system installations through the PV Partners Program.
In FY2008 the PV rebate budget was increased as mandated by Senate Bill 1 and
Palo Alto’s share of the state-wide goal established by SB1 was 6.5 MW by 2017. As of June
30, 2016, the total capacity of all Palo Alto PV systems was 7.7 MW, generating about 1.2% of
the City’s annual energy needs. The PV rebate funds were fully reserved in August 2014 for
residential projects, and April 2016 for commercial, however rebate payments are expected to
continue through FY2023 due to the five year performance-based incentive schedule.
Residents and commercial customers continue to install solar without a rebate largely due to
the continued decrease in solar installation costs, net metering and the 30% Federal Tax
Credit.
Figure 7: Photovoltaic (PV) Installations by Fiscal Year
FY00-
07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Res 176 112 43 52 44 49 49 103 93 131
Non-Res 9 5 9 2 2 4 3 10 9 5
0
20
40
60
80
100
120
140
160
180
200
In
s
t
a
l
l
a
t
i
o
n
C
o
u
n
t
22 of 59
FY 2016 Demand Side Management Annual Report
Figure 8: PV System Capacity (kW) added by Fiscal Year
4.3 Solar Water Heating System Installation Achievements versus Goals
There have been a total of 59 SWH installations since CPAU began offering rebates to
residential and commercial customers to install SWH systems in 2008. The SWH rebate
program was mandated by AB 1470 (CY 2007) and is administered by the Center for
Sustainable Energy (CSE), which also administers SWH rebate programs in the San Diego
area. As shown in Figure 9, the number of SWH systems installed has been consistently
below target, primarily due to low gas prices, which reduces the cost-effectiveness of SWH
systems. Unlike PV systems, the cost for SWH systems has not decreased over time. This is
partly because there are fewer SWH system installers than PV installers. The SWH equipment
is most cost effective in multi-family buildings.
Figure 9: Customer-Side Solar Water Heating Systems Program Achievements versus Goals
FY00
-07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Res 542 328 152 205 187 195 214 543 474 633
Non-Res 123 227 1,037 15 295 249 49 1,383 378 465
Total 665 555 1,189 220 482 444 263 1,926 852 1,098
0
500
1000
1500
2000
2500
kW
0%
20%
40%
60%
80%
100%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
7
17
10
1 1
11 15
1
Installed by Fiscal Year Installation Goal
23 of 59
FY 2016 Demand Side Management Annual Report
4.4 FY 2016 Customer Renewable Program Expenditures
The PV Partners program is administered by CPAU staff, whereas the SWH program is
administered by the California Center for Sustainable Energy. CPAU contracts with third-party
vendors to conduct PV system inspections. CPAU also contracts with a third-party vendor to
maintain an online PV rebate application system. Table 9 lists the customer renewable program
expenses by customer rebates, contract administration, and other expenses, which include in-
house staffing, marketing and communication expenses.
Table 7: FY 2016 Customer Renewable/Sustainable Energy Program Expenditures
Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual Cost
PV Partners (Res) $30,000 $1,000 $50,000 $81,000
PV Partners (Bus) $1,000,000 $14,000 $50,000 $1,064,000
Solar Water Heating (Res) $2,500 $5,000 $5,000 $12,500
Solar Water Heating (Bus) $0 $5,000 $5,000 $10,000
PaloAltoGreen (Electric)* - $10,300 $10,000 $20,000
PaloAltoGreen Gas* - $128,876 $25,000 $153,876
Marketing & Other - - $200,000 $200,000
Total $1,032,500 $164,176 $345,000 $1,541,676
* PaloAltoGreen (Electric) and PaloAltoGreen Gas program expenses do not include the costs to purchase the electric
Renewable Energy Credits (RECs) and gas offsets which are paid by the program participants.
24 of 59
FY 2016 Demand Side Management Annual Report
4.5 Palo Alto Green Gas
In April 2014, City Council approved the establishment of the voluntary PaloAltoGreen Gas
(PAGG) program. PAGG provides the opportunity for residential and commercial customers to
reduce or eliminate the impact of GHG emissions associated with their gas usage, through the
purchase of certified environmental offsets. PAGG, the first Green-e Climate certified gas offset
program offered by a municipal utility and the first to be offered to individual community
members, was launched in January 2015. Initially the program’s goal for 2020 was to achieve
subscription of 20% of natural gas customers, representing approximately 10% of gas load and
16,000 metric tons of GHG emission reduction. Roughly 4% of the City’s residential natural gas
customers have participated in PAGG accounting for approximately 3,200 tons of GHG
emissions per year. City facilities began participating in PAG Gas in July 2015 and account for
GHG emissions reductions of approximately 6,000 tons per year. However, PAGG will be
terminated concurrent with the implementation of the new Carbon Neutral Gas Plan. In
December 2016, Council adopted Resolution 9649 (Staff Report 7533) approving the Carbon
Neutral Gas Plan that will achieve carbon neutrality for the gas supply portfolio by FY 2018
using high-quality environmental offsets not to exceed a maximum rate impact of 10 ₵/therm.
Figure 10: PaloAltoGreen Gas Participation
25 of 59
FY 2016 Demand Side Management Annual Report
4.6 Palo Alto Green
The PaloAltoGreen (PAG) program was launched on Earth Day 2003 to give customers
the option to voluntarily reduce GHG emissions associated with their electricity use.
Participants paid an additional charge per kWh to cover the purchase of Renewable Energy
Certificates (RECs) so that their electric use would be supplied with 100% renewable energy.
In June 2014, City Council terminated the PAG program for residential customers since
the electric supply became 100% carbon neutral and customers no longer needed the
program to eliminate the GHG emissions associated with their electricity use or to receive
100% renewable energy supplies. PAG is still available for commercial customers who wish
to be recognized under the U.S. EPA Green Power Leadership program or to earn Leadership
in Energy and Environmental Design (LEED) Green Power credits. Non-residential customers
can choose to participate at 100% renewable energy for $0.002 kWh or purchase monthly
increments of 1,000 kWh blocks for $2 per block.
26 of 59
FY 2016 Demand Side Management Annual Report
5 CUSTOMER OUTREACH & COMMUNICATIONS
Utility Program Services (UPS) and Utilities Communications develop a range of marketing outreach
pieces and implements campaigns to promote the gas, electric, and water efficiency programs and
services offered to all CPAU customers. UPS is making a concerted effort to increase outreach efforts
through public engagement to the Palo Alto community. Promotional methods include community
outreach events, print ads in local publications, utility bill inserts, messaging on bills and envelopes,
website, email blasts, videos for the web and local cable television channels, and the use of social
media (Twitter/Facebook/NextDoor/Videos). In FY2016 we expanded outreach through cost effective
use of social media and experimented with Facebook Ads and NextDoor posts. While print materials
such as bill inserts, local magazine ads and webpages still feature prominently, CPAU is turning its
outreach emphasis to social media, the Web, online videos and cable TV for more engaging and
dynamic content. Regular email newsletters are delivered to residents and non-residents, as well as
targeted emails and outreach to specific groups, such as neighborhood and youth organizations.
Educational materials and brochures are regularly developed and updated for distribution at events in
new customer welcome packets and for the general public at City facilities such as the Development
Services Center, libraries and community centers. CPAU provides fun, yet practical promotional items
such as hose nozzles, wildflower seed packets, LED light keychains, night lights, sponges, shower
timers, pens, magnets and sunglasses to spread awareness about resource efficiency and renewable
energy.
Many City departments and utility workgroups participate in these efforts. Events are hosted at
Mitchell Park, Lucie Stern and Rinconada Library for our workshops; Electric Operations and
Maintenance Operations transports heavy equipment; Development Services generates data for
reports and develops permit requirements for new programs; the Storm Drainage team in Public
Works collaborates on Rain Barrel workshops; Library Services advertises the Home Efficiency Genie
on their digital display boards; the Meter Shops work on projects involving installation of advanced
meters; and the Print Shop consistently produces marketing materials and mailers for our customers.
The spirit of City wide collaboration is overwhelmingly positive and appreciated.
Marketing efforts in FY2016 continued to focus on California’s severe drought. In FY2015 CPAU was
tasked with adopting water use restrictions in response to the State’s emergency drought regulations.
To assist with customer education and enforcement of these water use restrictions, CPAU developed
bill inserts, ads for local newspapers and magazines and specific materials for customer groups like
hotels and restaurants. Staff also participated in over 30 events in FY2016. These included community
tabling events as well as neighborhood, school, and business group meetings to talk with the public
about drought regulations and opportunities for water use efficiency. Other events included hosting
free water use efficiency workshops which focuses predominantly on sustainable landscaping and were
tailored to addressing specific drought conditions. Additionally, CPAU hosted the Carbon Free
California Conference and Home Efficiency Genie workshops, the Georgetown Energy Prize
Conference, residential solar workshops, and Facility Manager’s meetings, which included speakers
brought in to help CPAU’s Key Accounts improve efficiency. More than 500 people attended UPS-
hosted workshops, 375 people attended the conferences, over 80 facility managers of Palo Alto’s
27 of 59
FY 2016 Demand Side Management Annual Report
largest companies attended the Facility Manager’s Meetings, and staff spoke to over 2,000 people at
various tabling events throughout FY2016.
Table 8: FY 2016 Workshops, Events and Speaking Engagements
# Event Date Location Audience Topic Actual Attendance
1 Lecture Series 7/9/15 Vi of Palo Alto Residents of
the Vi Water 50
2
Water, Water,
Everywhere and Not a
Drop?
7/30/15 University Club Residents Water Conservation 30
3 Summer Concert
Series 7/15 – 8/15 Various Locations Residents Home Efficiency Genie 100
4 Come Pick Up Your
Free Drought Gear 8/5/15 Mitchell Park
Library Residents Water Conservation 500
5 Public Drought
Meeting 8/12/2015 Mitchell Park
Community Center Residents Water 25
6 BAWSCA Water
Conservation 101 8/13/15 Lucie Stern
Community Center Residents Water Conservation 30
7 Rotary Club Meeting 8/24/15 Elks Lodge Palo Alto Rotary Club
Members Water 50
8 SAP Lunch & Learn 8/25/15 SAP - Hillview SAP Employees Water 35
9 Green Fest Event 8/30/15 Mitchell Park Residents
Environmental Issues -
Zero Waste, Water,
Energy Efficiency
150
10
Speaking Engagement
- SJSU Energy Policy
Class
9/8/15 San Jose State
University Students Energy & Water
Policies, Conservation 30
11
Midtown Residents
Association Ice Cream
Social
9/13/15 Hoover Park
Midtown
neighborhood
residents, City
Councilmembe
rs, UAC
General, efficiency,
renewables, resource
supply, safety,
emergency
preparedness
300
12
BAWSCA Maintaining
Existing Landscape
Design During a
Drought
9/17/15 Lucie Stern CC Ball
Room Residents Water Conservation 9
13
BAWSCA Rainwater
Harvesting and
Greywater Reuse
9/26/15 Rinconada Library
Embarcadero Room Residents Water Conservation 50
14
BAWSCA
Fundamentals of
Waterwise Gardening
10/10/15 Lucie Stern CC
Community Room Residents Water Conservation 40
15
Water-efficient
Irrigation and Garden
Re-landscaping @ City
Hall - Hands On Class
10/17/15 City Hall King Plaza Residents Water Conservation 6
16
Emergency
Preparedness and
Safety Fair
10/18/15 Addison Elementary
School Residents Emergency Prep &
Safety 300
28 of 59
FY 2016 Demand Side Management Annual Report
Table 8: Continued (FY 2016 Workshops, Events and Speaking Engagements)
# Event Date Location Audience Topic Actual Attendance
17 CMUA/CUWA Water
Forum 10/23/15 Sacramento
CEOS, GMs of
municipal
utilities and
water districts
Water efficiency in new
development - work
with land use agencies.
30
18 Block Party @ 800
Colorado Avenue 10/25/15 800 Colorado
Avenue Residents safety, Water
conservation 21
19
Meet with 5 French
Delegates on
technology and CPAU
Programs
11/12/15 City Hall
2 French
government
officials and 3
business reps
What makes the City of
Palo Alto Utilities
unique?
5
20 Kiwani's Club 11/12/15 Genie, REAP, PAGG 30
21 Building Carbon Free
California
11/13/16 -
11/14/16
Lucie Stern
Community Center
Homeowners,
Designers,
Architects,
Builders, Policy
Makers
Green Building 330
22 Electric Operations
Safety Demonstration 3/2/2016 Fairmeadow School Students Electric Safety 50
23
Georgetown University
Energy Prize
Conference
3/17/16 Mitchell Park
Ballroom etc.
Competitor
Cities Energy 45
24
Silicon Valley Water
Conservation Awards
Ceremony
3/23/16 Google
Water
agencies,
community
members
Conservation 150
25 Addison Elementary
School Earth Day Event 4/21/16 Addison Elementary
School
Elementary
school parents Earth Day 50
26 Nest Bring Your Kids to
Work Day 4/28/16 Nest
Nest
Employees and
their kids
Earth Day 100
27
Great Race For
Water/Run the Earth
5k - Climate Change
4/30/16 Baylands Residents Earth Day Climate
Change/Water 200
28 Graywater to Green
Garden (BAWSCA) 5/21/16 Mitchell Park CC
Adobe Room Residents Water 50
32 Palo Alto Downtown
Farmer's Market? 6/25/16
Palo Alto
Downtown
Farmer's Market
Residents All UPS programs 60
33 Mitchell Park Library
Tabling Monthly Mitchell Park CC Residents Home Efficiency Genie 100
TOTAL 2926
29 of 59
FY 2016 Demand Side Management Annual Report
5.1 Water Related Marketing Materials
30 of 59
FY 2016 Demand Side Management Annual Report
5.2 General Utilities Marketing Materials
31 of 59
FY 2016 Demand Side Management Annual Report
5.3 Evolution of Home Efficiency Genie Marketing Materials:
32 of 59
FY 2016 Demand Side Management Annual Report
5.4 Marketing Materials for the new customer Portal:
33 of 59
FY 2016 Demand Side Management Annual Report
6 RESEARCH, DEVELOPMENT AND INNOVATION
6.1 Demand Response Pilot Program
The Demand Response (DR) Pilot Program is designed to help participating large commercial
customers reduce their electricity use on days when demand is high, which helps reduce Palo
Alto’s annual peak electricity demand. Through the program, CPAU offers monetary incentives
to participating customers who are able to reduce their electrical usage when called upon by
CPAU during high load periods in the summer months (between May 1st and October 15th.)
The DR Pilot Program’s incentive payments share savings between CPAU and program
participants. In 2016, program participants reduced aggregated demand by an average of 275
kW and an average energy reduction of 1,096 kWh during the two DR events. A total incentive
payment of $991.96 was awarded to program participants for their load reduction
performance.
Though a relatively small program, over the past 4 years, this voluntary demand response
program has become an integral part of the CPAU’s effort to lower purchase cost and relieve
stress on the electrical grid. This program also helps participating customers meet their
corporate sustainability goals. The program was approved by Council to run until the end of
summer of 2016, but CPAU hopes to seek Council approval to continue to offer this program on
a permanent basis.
CPAU is also working on ways to leverage Distributed Energy Resources (DER) such as EVs, EV
chargers, thermostats, PV systems and storage systems installed at customer homes and
businesses. A pilot program to enable grid connectivity of such DER systems in planned to
commence in 2017.
34 of 59
FY 2016 Demand Side Management Annual Report
Figure 11: June 3, 2016 DR Event Load Reduction Performance
(Aggregate Load of Participants)
Figure 12: September 26, 2016 DR Event Load Reduction Performance
(Aggregate Load of Participants)
35 of 59
FY 2016 Demand Side Management Annual Report
6.2 Program for Emerging Technologies
The CPAU Program for Emerging Technologies (cityofpaloalto.org/UTLInnovation) provides the
opportunity for local businesses to submit proposals to CPAU for review and potential pilot
testing. The goal is to find and nurture creative products and services that will manage and
better use electricity, gas, water, and fiber optic services. From its inception in June 2012
through July 2016, the Program for Emerging Technologies received 57 applications. Here are
several PET pilot programs which began in FY 2016:
• linkAges Connect: Using Utility Data to Help Seniors and their Caregivers
Staff has been working with the Palo Alto Medical Foundation (PAMF) Innovation Center
to evaluate the technical feasibility of deploying a research pilot called "linkAges
Connect" on Palo Alto's utility distribution systems. "linkAges Connect” uses passive
signals in the home, such as electricity, gas, and water data from advanced metering
infrastructure, to allow family caregivers to remain updated on the well-being of their
senior family members. Since changes in well-established daily routines of seniors are
often an indication of shifts in health status, regular utility usage patterns can be an
additional mode of communication that signals all is well with a senior family member
who is living alone. Staff is currently working with two volunteer households to test the
technical feasibility of the PAMF proposal, which, if successful, will lead to a pilot scale
deployment.
• Assessing the Environmental Value and Economic Performance of Residential Solar
Water Heating
A research team from the Center for Sustainable Energy submitted an application for
CEC funding for a proposed research program to understand the role and interaction of
various factors influencing the adoption of solar water heating systems in California.
Through PET, CPAU submitted a letter of support for their application and this area of
research, the outcomes of which would help the City improve its existing solar water
heating rebate program as well as reduce natural gas usage and related emissions.
• Advanced Distribution Management System Testbed Development
A research team from the National Renewable Energy Laboratory submitted an
application for funding to the Grid Modernization Laboratory Consortium for a project
to establish a national testbed to accelerate industry development and adoption of
Advanced Distribution Management System capabilities. Through PET, CPAU submitted
a letter of support for their application and this area of research, the outcomes of which
would help the City advance its smart meter pilot program and meet its aggressive
Sustainability and Climate Action Plan goals.
36 of 59
FY 2016 Demand Side Management Annual Report
• Integrated Energy Storage System
Staff held a consultation meeting with the CEO and CTO of an early-stage company
trying to enter the home energy storage/customer portal space, offering them the
CPAU/industry perspective. If successful, this technology would allow will allow the city
and its residents to better understand and manage their energy usage, while reducing
the burden of distributed energy resources on the grid.
6.3 Pilot Project for Building Energy Management System in Small/Medium Commercial Buildings
Staff has been coordinating with the Omaha Public Power District to implement an energy
efficiency/demand response pilot program which has been funded by a grant through the
American Public Power Association’s (APPA’s) Demonstration of Energy Efficiency
Developments (DEED) Program. The purpose of the pilot program is to gain hands-on
experience and validate the cost, ease of installation and usability while assessing the energy
efficiency savings and demand response functionalities of a building energy management
system for small to medium-sized commercial buildings. The building energy management
system allows building owners to monitor and control building heating, ventilation and air
conditioning (HVAC) equipment through a web-based application. Energy usage data has been
logged for two downtown commercial buildings since summer 2014. Pilot results from multiple
APPA member utilities participating in this DEED project will be compared to better estimate
the energy savings potential from such building energy management systems.
6.4 CustomerConnect Advanced Meter and Time of Use (TOU) Rate Pilots
The CustomerConnect Pilot Program is designed to evaluate the meter mesh network and
energy and water consumption pattern of residential customers provided by advanced meters
and equipment. Customers can also view their energy and water consumption through an
online portal. The objectives of the pilot are to:
• Gauge residential customer interest in and experience and satisfaction with using
advanced meters and associated engagement tools;
• Quantify the change in residential customer energy and water use through efficiency
and conservation measures as a result of the customer engagement tools;
• Evaluate the impact of the programs on utility costs and revenues;
• Quantify residential customer bill impacts; and
• Gain insight into the costs and benefits of implementing full-scale advanced meter-
based residential customer services.
The CustomerConnect pilot program will continue through 2017 at which time a full
evaluation will be conducted.
• Water Leak Detection
The pilot advanced metering system has water leakage detection features that are able to
detect and identify water leaks from the hourly interval data collected from the advanced
water meter modules. Starting February 2015, CPAU began collecting water leak event
data, such as leak rate, duration, date of occurrence, and leak location. From February
2015 to June 2016, more than 1,232 CCF (921,536 gallons) of water could be attributed to
37 of 59
FY 2016 Demand Side Management Annual Report
leaks and were lost from the 288 pilot participants with advanced water meter modules.
30% of pilot participants had at least one water leak incidents per year (22% had one
incident and 8% had two or more incidents). Given such a high percentage of water leak
incidents and water lost per capita, the water leak detection in advanced metering system
has potential to bring tremendous value to the utility and customers by identifying the
leak, alerting the customer and preventing water lost by leaks that are hard to detect.
• TOU Pilot Electricity Rate
During FY 2016, CPAU successfully rolled out the TOU pilot electricity rate to 103 customers.
The rate is designed to encourage residential customers, particularly those with electric
vehicles (EVs), to shift electric usage to less expensive night hours. Shifting usage to off-peak
periods reduces CPAU’s cost, minimizes the adverse impact on the environment and
reduces the impact of EVs on residential distribution transformers and the electric
distribution system.
Figure 34: TOU Pilot Electricity Rate
38 of 59
FY 2016 Demand Side Management Annual Report
7 FUTURE PLANS
In FY 2017, CPAU will engage in several new campaigns and programs and will continue to promote
energy efficiency, water conservation and renewable energy generation through a variety of marketing
and media channels.
7.1 Georgetown University Energy Prize (GUEP)
In April 2014, the City announced its intent to compete for the Georgetown University Energy
Prize. The Georgetown University Energy Prize is a two-year energy saving competition for a $5
million prize, in which communities reduce electric and natural gas consumption in the
residential, municipal, and schools sectors. Palo Alto was selected as a semifinalist in December
2014. Final judging will be based on reductions in energy use, as well as the innovative,
replicable, equitable, and educational qualities of the energy savings programs.
Complementary to GUEP, in February 2016 CPAU launched a new residential online energy and
water portal with Nexant. Using this portal, customers can log in and view their gas, electric and
water consumption, see how they are doing compared to similar homes, and have access to all
efficiency programs. Data from the portal is being used as a teaching tool in classrooms,
meeting the GUEP criteria of innovation and connection to education. In addition to this new
resource for customers, existing CPAU programs such as Multi-Family Plus (MF+, described in
greater detail elsewhere in this report) contribute to Palo Alto’s efforts in the GUEP
competition. The MF+ program showcases substantial energy savings that can be realized from
installation of LED lighting in high-density housing locations, estimated at over 1 million kWh
per year. More information about the Georgetown competition can be found at
cityofpaloalto.org/Georgetown.
7.2 Multifamily Residence Plus+ Program
The Multifamily Residence Plus+ Program was launched on May 1, 2015. The goal of this
program is to offer direct-install EE measures to multifamily residences with 4 or more units
including hospices, care centers, rehab facilities, and select small and medium commercial
properties. This is a customer group which has been under-served and hard to reach for Utility
EE programs. The majority of the work in FY2016 was been focused on adding insulation and
installing lighting upgrades to many of the older apartment buildings in Palo Alto. As a result,
the program installed over 100,000 square feet of attic insulation, approximately 1,000 LED
lights and upgraded over 700 fluorescent tube lights. The program targeted lighting upgrades to
locations where lights are on 24 hours per day such as parking garages, elevators and hallways.
With the advancement of lighting technology, customers are very receptive to upgrading their
lights from compact fluorescent bulbs to LEDs. In FY2017 CPAU will be able to offer this
upgrade as the price of LED’s has decreased and the quality of the lights has greatly improved.
As this was CPAU’s first program focused on multifamily residences staff’s initial forecasts for
program activity have proven to be quite conservative. Also, with the increased interest in the
program due to LED’s newly being offered as a cost effective measure, CPAU expects
participation and energy savings to increase in FY2017. (Staff Report 7192)
39 of 59
FY 2016 Demand Side Management Annual Report
7.3 EV Charger Rebate Program
The California Air Resources Board (CARB) developed the Low Carbon Fuel Standard (LCFS)
program in compliance with AB 32 (the Global Warming Solutions Act of 2006) to reduce the
carbon intensity of transportation fuels used in California by 10% by 2020. Electric utilities that
provide electricity to charge electric vehicles (EVs) are eligible to receive LCFS credits. The City
began participating in the program in April 2014 and CARB has been allocating LCFS credits to
the City since then. The credits accumulated the past two years are currently valued at
$600,000. The value of future credits is expected to be $500,000 to $1 million per year through
2020 as the number of EVs increase in Palo Alto. Using these LCFS funds, the plan is to launch a
rebate program in FY 2017 for the installation of Electric Vehicle Supply Equipment (EVSE, or
chargers). Staff determined that providing EVSE rebates for underserved segments of the
market would be valuable which would include multi-family and mixed use buildings, schools
and non-profits. The LCFS funds will also be used for EV education and outreach efforts.
cityofpaloalto.org/civicax/filebank/documents/52568
Table 9: Residential EV Charging and Electricity Usage (kWh)
Calendar
Year
Palo Alto Total
Energy Usage
Annual EVs
Added
Total EVs
to Date
Annual EV
Energy Usage
EV% of Total
Energy Usage
New Annual Energy
Usage (w/o EV)
2010 949,786,659 4 4 11,782 0.001% 949,774,877
2011 949,516,612 99 103 318,104 0.034% 949,198,508
2012 935,020,602 123 226 699,622 0.075% 934,320,980
2013 953,234,933 394 620 1,922,002 0.202% 951,312,931
2014 953,385,112 495 1,114 3,456,596 0.363% 949,928,516
2015 932,922,151 510 1,624 5,039,644 0.540% 927,882,507
2016 914,774,023 417 2,041 6,333,360 0.692% 908,440,663
Note: Data calculated from California Air Resources Board Clean Vehicle Rebate Project Rebate Statistics, assuming 100%
participation rate and 8.5kWh/vehicle/day. Data last updated 3/1/2017. https://cleanvehiclerebate.org/eng/rebate-statistics
7.4 Online EV/PV Calculator
CPAU will launch a new online calculator for residents to evaluate the costs and benefits of
installing solar on their home. In addition, residents can evaluate different electric vehicles and
see the bill impacts and environmental benefits of charging using Palo Alto’s carbon neutral
electricity. The online calculator uses satellite imagery of Palo Alto homes to tailor the solar
system design, as well as current utility rates tailored to Palo Alto.
7.5 Water Grants and Water Pilot Programs
CPAU received grant funding from the SCVWD to pursue two water conservation pilot
programs targeting commercial customers. The programs have been selected through an
RFP process with an expected program start date in FY 2017.
• Real-Time Water Use Monitoring Pilot for Commercial Customers
In 2012, the City implemented a Real-Time Water Use Monitoring pilot with select large
commercial customers to actively engage them in water reduction and minimize water
40 of 59
FY 2016 Demand Side Management Annual Report
loss. The pilot deploys a simple, relatively low cost technology that enables standard
water meters to track consumption similar to a smart water meter. A wireless device
attached to the water meter transmits real-time data to a cloud-based software platform.
Customers securely log into a web portal to view water usage data on a minute interval
basis and can find out about water leakage or other anomalies in water use and address
these issues before they become maintenance and billing misfortunes. Over a two-year
period, the total water use among pilot participants was reduced by approximately 8%.
Through grant funding from SCVWD, the City will launch a larger Real-Time Water Use
Monitoring pilot covering 100 city facility meters and 24 business customer sites. Pilot
customers will be able to access real-time water consumption data through wireless sensors
installed on the water meters. The pilot is expected to launch in FY2017.
• Business Water Reports Pilot Program
Through grant funding from SCVWD, the City will launch a Business Water Reports pilot to
engage small to medium businesses in the hospitality and food service industries to actively
manage water use. The key objectives of the Business Water Reports are to communicate
water use and potential ways to reduce water consumption, and by doing so, give people the
information they need to make wise water use decisions and inspire them to conserve. The
pilot is expected to launch in FY2017.
7.6 Update to the Urban Water Management Plan
CPAU is required to update its Urban Water Management Plan (UWMP) every five years under
the California Urban Water Management Planning Act. The UWMP describes the City’s water
system, supply sources, and demand-side (water efficiency) measures. The UMWP must include
a plan for compliance with the Senate Bill x7-7 (2009) that mandates a statewide per capita
water use reduction of 20% by the year 2020. The 2015 UWMP was approved by City Council in
May 2016.
The 2015 UWMP contains the following highlights:
• Public involvement and coordination with other agencies;
• Description of current and potential water sources, including the potential for
expanded use of recycled water in the City;
• The City's water demand projections;
• Plans to implement water efficiency (conservation) programs;
• Discussion of (non-drought) emergency plans;
• The sufficiency of supplies from San Francisco, particularly in droughts; and
• Drought response plans for droughts of varying severity.
7.7 Water Conservation Campaigns
A great deal of outreach over the last few years has focused on water use efficiency,
particularly in areas where customer water use tends to be the highest such as in landscape
irrigation. Marketing materials promoting conservation will continue with a slight change in
tone from “We’re All in This Together” to “A Way of Life”.
41 of 59
FY 2016 Demand Side Management Annual Report
7.8 Capturing Additional Energy Savings through the new Palo Alto Green Building Ordinance
In April 2015, City Council approved revisions to the City’s Green Building Ordinance (GBO),
which includes the Local Energy Efficiency Reach Code requiring new construction projects to
exceed California’s building energy efficiency standards (“2013 Title 24 Standards”) by 15%, i.e.
a building’s energy consumption must be 15% more efficient than current building code. The
Energy Efficiency Reach Code took effect in September 2015. The new 2016 Title 24 Standards
went into effect in January 2017 and the GBO mandates new buildings be 10% more efficient
than the new stricter code. CPAU will coordinate with Development Services to report the
energy savings attributed to the Green Building Ordinance. CPAU is currently investigating
different ways to educate, assist and encourage residents and non-residents to adopt green
building principles and energy efficient systems when planning remodeling or new construction
projects.
7.9 Local Solar Plan
In April 2014, Council approved the Local Solar Plan with a goal to increase the installation of
local solar PV systems to provide 4 percent of the City’s total energy needs by 2023. The plan
identifies a set of strategies and initiatives to promote solar in a cost-effective and sustainable
manner by accelerating solar adoption in Palo Alto. Specifically, the plan includes the
development of: (a) a Community Solar Share program that targets customers who do not
have good solar access or cannot support solar at their own premise due to size or
home/business ownership status, (b) a Community Solar Donation program that targets
customers who want to contribute toward solar for the benefit of a community-based
organization, such as local schools, and (c) a Solar Group Discount program designed to drive
down the cost of local solar ownership by leveraging the purchasing power of the community.
Staff is working to develop the new programs in the Local Solar Plan, but the timelines for
implementation depend upon negotiations with vendors who will administer the programs.
Supporting strategies include developing community education and demonstration projects,
reducing internal system and institutional barriers to lower the “soft” costs associated with
the adoption of PV systems, and supporting innovative solar technologies through CPAU’s
Program for Emerging Technologies.
7.10 Smart Grid Pilots and Next Steps
Smart grid related pilot programs will continue through FY 2017. Staff plans to develop
recommendations on next steps on smart grid implementation by the end of 2016. One such
smart grid pilot is Conservation Voltage Regulation (CVR). Based on the voltage sensing
technology of the advanced electric meters in the 375 homes participating in the
CustomerConnect pilot, staff is exploring the feasibility of how to optimally operate the
distribution feeders by lowering service voltage to save energy. A system is being evaluated to
monitor the voltages at the end of electrical feeder lines until the end of 2016, which will help
develop implementation and operating strategies to harness the conservation potential of
CVR.
42 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX A: PROGRAM DESCRIPTION
The programs offered by CPAU are designed to assist all customer groups to achieve savings on
electricity, natural gas and water in a cost-effective manner. Programs are designed to achieve results
through a wide variety of both common and more innovative, harder to reach technologies.
RESIDENTIAL CUSTOMERS
• Home Efficiency Genie
The Home Efficiency Genie has become our flagship residential program. Launched in June
2015, our residents can call the ‘Genie’ to get free utility bill reviews and phone consultations.
For a fee, residents also have the option to receive an in-depth home assessment which
includes air leakage testing, duct inspections, insulation analysis, energy modeling and a one on
one review of assessment reports with an energy expert. This package is also followed up with
guidance and support throughout home improvement projects. This program has a high
educational component for Palo Alto residents. The Genie also tables at various events
throughout the year. During FY 2016, the Home Efficiency Genie program recorded a net annual
electric savings of 3,513 kWh and 2,484 therms. cityofpaloalto.org/efficiencygenie
• Smart Energy Program
Smart Energy is a comprehensive energy efficiency incentive program for residential customers.
The City gives rebates to residents who install energy efficient measures and equipment in
their homes. Among these are attic insulation, heat pump water heaters, clothes washers, pool
pumps, smart power strips and whole house fans. Due to federal minimum manufacturing
standards for appliance efficiency, the number of appliances meeting rebate qualifying
standards dropped significantly during FY2016. Compared to FY 2015, CPAU paid out 50.5% less
in rebates under the Smart Energy Program. CPAU projects that this downward trend will
continue. In FY 2016, Smart Energy achieved net annual electric savings of 48,564 kWh and
4,046 therms. cityofpaloalto.org/SmartEnergy
• Educational Programs and Workshops
A variety of educational programs and workshops are held throughout the year. Typically,
residential workshops on water and energy programs occur in the spring near Earth Day and in
the “Summer Workshop Series.” Due to the drought, many of FY 2016’s workshops focused on
water efficiency such as Maintaining Landscape in a Drought, Designing and Installing a Native
Garden, and Greywater Systems. These workshops drew high attendance but after four years of
drought, interest in water related topics began to wane. In response, CPAU also added
workshops focusing on Solar and improving home comfort and efficiency. CPAU was also
invited to table at various events throughout the year to educate residents about the various
programs we offer. Customers also receive timely E-newsletters on a variety of efficiency
matters. cityofpaloalto.org/workshops
43 of 59
FY 2016 Demand Side Management Annual Report
• Home Energy Reports
CPAU stopped providing residents with individualized reports comparing their home energy use
with neighbors in similarly sized homes in FY 2016. However, studies have shown that savings
persist after the program has ended, but decrease at a rate of 20% per year. In FY 2016, the
Home Energy Report recorded first year persistence annual electric savings of 1,283,418 kWh
and 116,925 therms.
• Home Water Report
Launched in the November 2013, Palo Alto stopped providing residents with individualized
reports comparing their home water use with neighbors in similarly sized homes in FY 2016.
However, studies have shown that savings persist after the program has ended, but decrease at
a rate of 20% per year. In FY 2016, the Home Water Report recorded first year persistence
annual water savings of 29,830 ccf.
• Utility Portal
A new portal was launched February 2016 where residents can have access to all water, gas and
electric usage data, programs and reports in one location. The portal also offers tips and
suggestions on reducing electric, natural gas and water usage. After an initial marketing
campaign, efforts were pulled back due to numerous challenges in relation to CPAU’s data
storage system. The Portal is being re-evaluated and will be relaunched along with the My
Utilities Account MUA 2.0.
• Refrigerator Recycling Program
Palo Alto provided a $50 rebate to residents who recycled old, operational refrigerators with
JACO Environmental which offered free pick-up and recycling services. In late November 2015,
JACO Environmental went into receivership and shut down its operations. Utilities staff is
looking for a new program vendor.
• Residential Energy Assistance Program (REAP)
REAP provides weatherization and equipment replacement services to low-income residents
and those with certain medical conditions at no-cost. This program has an equal focus on
comfort as well as efficiency. The program provides LED lighting, heating system upgrades as
well as insulation for walls and roofs and weather-stripping for doors and windows. In FY 2016,
REAP recorded net annual electric savings of 22,907 kWh and 4,451 therms.
cityofpaloalto.org/LowIncome
• Water Efficiency Programs
Since 2002, the City has partnered with SCVWD to promote and cost-share in a wide range of
water conservation programs to encourage residents and businesses to reduce water usage.
These programs include free indoor and outdoor water audits, as well as rebates for a wide
range of water conservation measures (including toilets, urinals, clothes washers, laundry to
landscape graywater systems, landscape conversions, irrigation hardware upgrades, weather
44 of 59
FY 2016 Demand Side Management Annual Report
based irrigation controllers and commercial ice machines.) CPAU also offers free workshops on
water efficient landscaping and indoor water use efficiency throughout the year. In the spring
and summer of 2016, free drought related workshops drew 185 participants. Staff frequently
presented to schools, neighborhood and community groups about Palo Alto’s water resources
and best practices for water efficiency. During FY2016 rebates for High Efficiency Toilets were
terminated. cityofpaloalto.org/Water
o Water Wise House Call
Through SCVWD, the City has been offering this free water audit to residential customers
in both single-family and multi-family dwellings. The survey includes a review of
customer water use history, water meter check for leak detection assistance, and
thorough evaluation of indoor and outdoor water use. A technician provides each
customer with free low-flow showerheads, faucet aerators, toilet dye tablets, and/or
toilet flappers when needed. The landscape survey includes an evaluation of the entire
irrigation system, catch-can test for distribution uniformity, and site-specific
recommendations including changes to the irrigation schedule. This program has gone
through a makeover and SCVWD is now offering a two-part program including the
Water Wise Outdoor Survey and the Do-it-Yourself Water Wise Indoor Survey.
o Landscape Rebate Program (LRP)
Provides rebates for various irrigation hardware upgrades, including rain sensors, high
efficiency nozzles, dedicated landscape meters, and weather-based irrigation controller,
as well as landscape conversion rebates that encourage residential and commercial
customers to replace high water using landscape with low water using landscape.
Residents were eligible to receive rebates of $3/square foot ($2.00 from SCVWD and
$1.00 from CPAU) during FY 2016. A new agreement with the SCVWD will be signed in
early 2017 which continues the City’s partnership in the LRP. Residents will be eligible to
receive rebates of $2/square foot ($1.00 from SCVWD and $1.00 from CPAU).
BUSINESS CUSTOMERS cityofpaloalto.org/CommercialPrograms
• Commercial Advantage Program
Business customers are offered rebates for investments in a catalog of energy efficiency
products including lighting, motors, HVAC and custom projects that target peak demand and
energy reductions. In FY 2016, CAP recorded a net annual electric savings of 334,645 kWh and
4,430 therms. cityofpaloalto.org/CommercialAdvantage
• Commercial and Industrial Energy Efficiency Program (CIEEP)
This is the first year that CPAU expanded this program to offer Key Accounts the option of
picking one of three engineering consulting firms to assist in helping them evaluate and
implement energy efficiency projects. Designed for the large commercial customer, CIEEP
offered highly effective building commissioning services using third-party contractors Enovity,
Ecology Action and BASE. This assistance included reviewing lighting and heating/cooling
systems and their operating specifications. Customers then obtained rebates for replacing
chillers, building control systems, linear fluorescent lighting, occupancy sensors, boilers and
insulation. In FY 2016, CIEEP recorded net annual electric savings of 3,334,244 kWh and
132,172 therms.
45 of 59
FY 2016 Demand Side Management Annual Report
• Empower
This is an ongoing program focusing on energy efficiency savings from mostly lighting retrofits
in the small/medium commercial sector. This program is provided by the third-party
administrator Ecology Action which offers a turnkey solution for the implementation of energy
efficient measures. Small/medium business customers are able to request onsite audits and
efficiency rebates on a variety of measures including; interior and exterior lighting, lighting
controls, vent hood controls, garage CO2 fan motor controls, and commercial kitchen
refrigeration upgrades, as well as customized projects. In FY 2016, Empower recorded net
annual electric savings of 372,598 kWh.
• MultiFamily Residence Plus+ Program
This first ever CPAU program focusing on Multifamily buildings provides free, direct installation
of EE measures to multifamily residences with 4 or more units including hospices, care centers,
rehab facilities, and select small and medium commercial properties. In its first year the
program focused on energy efficient lighting and insulation upgrades. In summer 2016, the
program was revamped to include more LED lighting upgrades as the price of LEDs has
decreased and the quality of the lights has greatly improved. This drew excitement from many
property managers and building owners who were initially not interested in participating in the
program. As a result CPAU will continue to reevaluate the program to accommodate this
underserved market. Staff expects energy savings to greatly increase for this program in
FY2017, with a focus on upgrading below market rate apartment complexes. In FY 2016, the
MultiFamily+ program recorded net annual electric savings of 105,514 kWh and 21,810 therms.
• Business New Construction Program
This program ended in FY2016 due to the new stricter Title 24 requirements and the Palo Alto
Green Building Ordinance (10% more efficient than Title 24) which made it difficult to achieve
deeper savings than the building code required. Although the program is closed, some
customers have projects that await completion. During FY 2016, the program recorded a net
annual electric savings of 24,273 kWh.
• Commercial and Industrial Water Efficiency Program
CPAU partners with the SCVWD to provide non-residential customers with free landscape
irrigation audits, direct installation of high-efficiency toilets and urinals. Rebates are available
for facility process improvements, landscape conversions, irrigation hardware upgrades and
weather-based irrigation controllers. CPAU staff also provides free indoor water use surveys
and efficiency opportunity evaluation. cityofpaloalto.org/water
• Landscape Survey and Water Budget Program
Through SCVWD, the City provides landscape irrigation surveys, water budgets and customized
consumption reports for customers with large landscape sites. The service is provided by
Waterfluence. The water budget for each landscape site is derived based on the amount of
irrigated area, type of plants, type of irrigation system and real-time weather monitoring.
46 of 59
FY 2016 Demand Side Management Annual Report
Monthly reports documenting a site’s irrigation performance are distributed to site managers,
landscapers, HOA board members and other relevant parties, as approved by utility account
holders. Through a web portal, customers can access site-specific recommendations, verify
water budget assumptions and request a free landscape field survey from an irrigation expert.
This program has been in place since 2012 and to date, there are 118 large landscape sites
covered under this program.
• PaloAltoGreen
This highly successful program enabled residents and businesses that were willing to pay a
small premium for 100% renewable energy. In June 2014, Council terminated PaloAltoGreen for
residential customers since the City’s electric supplies are 100% carbon neutral. Commercial
customers can still participate in this program by enrolling in the PaloAltoGreen 100% option or
by purchasing blocks in 1,000 kWh increments. cityofpaloalto.org/pagbiz
• Palo Alto Clean Local Energy Accessible Now (CLEAN) Program
Through the CLEAN (Clean Local Energy Accessible Now) program CPAU offers a feed-in tariff,
which is a program where developers of renewable energy generation projects in Palo Alto can
receive a long-term purchase agreement at a fixed price for the output of their projects. All of
the generated electricity is procured for use fulfilling Palo Alto’s Renewable Portfolio Standard
(RPS) requirement. For fiscal year 2017, the prices are 16.5 ¢/kWh fixed for 20 or 25 years for
solar renewable energy resources, up to a capacity limit of 3 MW (and 8.9 ¢/kWh for a 20-year
contract term, or 9.1 ¢/kWh for a 25-year contract term beyond that limit), and 8.4 ¢/kWh for a
20-year contract term and 8.5 ¢/kWh for a 25-year contract term for non-solar eligible
renewable energy resources. cityofpaloalto.org/PAClean
ALL CUSTOMERS
• PV Partners
CPAU has offered incentives for local solar photovoltaic (PV) installations since 1999, and
increased the PV rebate budget in 2007 as mandated by CA Senate Bill SB1. Residential rebates
were fully reserved in August 2014, and funds for non-residential PV systems were reserved in
April, 2016. This program is for systems interconnected behind the customer’s electric meter,
and they receive net metering billing as required by SB1. cityofpaloalto.org/PVPartners
• Solar Water Heating
CPAU began to offer rebates to residential and commercial customers that install solar water
heating (SWH) systems in 2008. The SWH rebate program was mandated by CA AB 1470 and is
administered by the Center for Sustainable Energy, which also administers SWH rebate
programs in the San Diego area. Incentives are limited to solar water heating for domestic use
and solar water heating systems for pools, spas, or space heat are not eligible.
cityofpaloalto.org/SWH
• PaloAltoGreen Gas
In April 2014, City Council approved the establishment of the voluntary PaloAltoGreen Gas
(PAGG) program. PAGG provides the opportunity for residential and commercial customers to
47 of 59
FY 2016 Demand Side Management Annual Report
reduce or eliminate the impact of GHG emissions associated with their gas usage, through the
purchase of certified environmental offsets. PAGG, the first Green-e Climate certified gas
offset program offered by a municipal utility and the first to be offered to individual
community members, was launched in January 2015. However, PAGG will be terminated
concurrent with the implementation of the new Carbon Neutral Gas Plan. (Staff Report 7533)
Table A.1: FY 2016 -2017 UPS Programs At A Glance
48 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX B: FY 2016 ACHIEVEMENTS BY DSM PROGRAM
Table B.1: FY 2016 Achievements by Efficiency Program
No. of Electric savings
(gross)*
Gas savings Water savings
Program Applications kWh/yr % Therms/yr % CCF/yr %
RES- REAP (low income) 59 28,633 0.4% 4,451 1.5% - -
RES-Smart Energy 212 81,540 1.2% 4,046 1.4%
RES- SCVWD Water program 109 18,312 0.3% 2,603 0.9% 9,406 13%
RES- Home Energy Report - 1,283,418 19.1% 116,925 40.4% - -
RES- Home Water Report - - - - - 29,830 40%
RES- Home Efficiency Genie 105 8,400 0.1% 2,484 0.9% - -
COM- Business New
1 28,556 0.4% - - - -
COM- Commercial Advantage 2 418,306 6.2% 4,430 1.5% - -
COM- Ecology Action Large
6 2,198,872 32.7% 14,725 5.1% - -
COM- Enovity Large Business 10 1,968,933 29.3% 117,447 40.6% - -
COM- S&M Commercial 14 465,747 6.9% - - - -
COM- MultiFamily+ 23 176,847 2.6% 21,810 7.5% - -
COM- SCVWD Water program - - - 365 0.1% 35,367 47%
GEN- T&D Upgrades 1 70,460 1.0% - - -
Efficiency Total
6,748,0244
100% 289,2865 100% 74,603 100%
* Gross saving are the total savings received from implementing a program or installing a measure. Net savings removes
“free riders” from the savings total. Free riders are those who would have undertaken an activity, regardless of whether there was an energy efficiency program promoting that activity or not. Both gross and net savings are used when reporting program results.
Table B.2: FY 2016 Achievements by CPAU’s Solar Programs
Program Installations kW kWh/yr % Therms/yr %
PV Installations- Residential 131 633 1,012,800 58% N/A N/A
PV Installations - Commercial 5 465 744,000 42% N/A N/A
Solar Water Heating - Single Family
Residential 1 - - - 156 100%
Solar Water Heating - Multi-Family
Residential Low-Income - - - - - 0%
Solar Water Heating - Commercial - - - - - 0%
Solar Programs Total 137 1,098 1,756,800 100% 156 100%
4 This includes savings from Transmission & Distribution (T&D). 5 This is the total gross gas savings not including the savings from the Solar Water Heating Program. This number combined
with the natural gas savings from the Solar Water Heating Program is equal to the 307,754 Therms reported as the total
gross gas savings in FY 2016.
49 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX C: HISTORICAL PUBLIC BENEFIT PROGRAM
EXPENDITURES
The chart below shows expenditures by type of Public Benefit program (efficiency, low-income
research, renewable, etc.) from FY 2009 through FY 2016. The PV Partners rebates ended in FY 2015,
therefore there were no renewable energy rebates during this time period.
Figure C.1 Public Benefit Expenditures for Electricity, Gas, and Water by Year and Function
0 1 2 3 4 5 6 7
FY 2016
FY 2015
FY 2014
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
R&D Efficiency Renewable Energy Low Income Admin
$ Millions
50 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX D: FY 2016 SMART ENERGY RESIDENTIAL
PROGRAM RESULTS
Measures
Number
of
Measure
Total
Rebate
kWh/yr
Saved
(gross)*
Therms/yr
Saved
Attic Insulation R-38 19 $4,356 9,526 3,059
Clothes Washer – Energy Star Most Efficient 110 $13,750
19,910 737
Electric Heat Pump Water Heater 1 $300
1,504 0
Freezer Recycling 2 $100 1,286 0
Gas Tankless Water Heater (0.90 EF or greater) 1 $200
0 60
Refrigerator 1 $50 195 0
Refrigerator Recycling 71 $3,308 43,736 0
Variable Speed Pool Pump 3 $600 5,133 0
Wall Insulation 1 $200 90 144
Water Heater-Gas Storage CEE Tier 1 2 $160 0 46
Whole House Fan 1 $50 161 0
Total 212 $23,075 81,540 4,046
* Gross saving are the total savings received from implementing a program or installing a measure. Net savings removes “free riders” from the savings total. Free riders are those who would have undertaken an activity, regardless of whether there was an energy efficiency program promoting that activity or not. Both gross and net savings are used when reporting program results.
51 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX E: FY 2016 LOW INCOME RESIDENTIAL
ASSISTANCE PROGRAM (REAP) RESULTS
Measures # of Measures
Installed Dollars Spent kWh/yr Saved
(gross)*
Therms/yr
Saved
7W LED replacing 60W incandescent1
174 $2,436 2,088 0
9W LED replacing 40W incandescent2 18 $297 324 0
Attic Access Weather-stripping 7 lin. ft. $120 14 7
Attic Insulation 14,260 sq. ft. $18,485 7,372 2,367
Caulking MFR Windows etc. 3 lin. ft. $159 6 3
Caulking SFR Windows etc.
17 lin. ft. $1,009 32 17
CO Detector 1 $39 0 0
Door Weather-stripping 67
201 268
Duct Test & Seal 31 $13,950 3,875 744
Education 47 $3,525 0 0
Faucet Aerator 128 $319 0 512
Furnace Filter 7 $77 7 0
Furnace Replacement 3 $16,990 0 132
Furnace Replacement Permits 2 $232 0 0
Hourly Rate Additional Work3 28 $1,892 0 0
LED Labor Only4 160 $720 4,480 0
LED R-305 314 $8,848 1,570 0
Low Flow Showerhead 36 $1,404 0 274
Natural Gas Appliance Testing6 27
0 0
Outlet Gaskets 279 $552 28 28
Power Strip 2 $74 0 0
Programmable Thermostat 1 $73 0 76
Refrigerator Replacement 51 $40,611 9,945 0
Removal of Asbestos 2 $2,060 0 0
Smoke Alarm 1 $39 0 0
T8 De-lamp Conversion7 2 $167 1,104 0
Water Heater Replacement 1 $1,440 0 23
New Ducts Installed 1 $1,700 73 20
Total N/A $125,558 31,119 4,471
* Gross saving are the total savings received from implementing a program or installing a measure. Net savings removes “free
riders” from the savings total. Free riders are those who would have undertaken an activity, regardless of whether there was an energy efficiency program promoting that activity or not. Both gross and net savings are used when reporting program results. 1 7W LED replacing 40W Incandescent: Replace 40W incandescent bulb turned on 5-10 hours a day with a 7W LED producing 12
kwh annual savings/bulb 2 9W LED replacing 60W Incandescent: Replace 60W incandescent turned on 5-10 hours a day with a 9W LED producing 18 kwh annual savings/bulb 3 Hourly Rate Additional Work: Additional hourly fees of $65/hour (patching holes and walls). 4 LED Labor Only: Take out incandescent lightbulbs and replace with LED bulbs producing 28kwh in annual savings/bulb. 5 LED R-30: Take out incandescent R-30 flood light and replace with R-30 LED bulb producing 5kwh savings per light bulb. 6 Natural Gas Appliance (NGAT) Testing: Gas and Carbon Monoxide test with no associated savings. 7 T8 De-lamp Conversion: Remove T8 fixture with 4, 4 foot CFL lights and replace with a new fixture reducing the number of lights
from 4 to 2 producing 552kwh annual savings/conversion
52 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX F: SB 1037 ELECTRIC DSM REPORT TO CEC
The SB 1037 report, published annually in the California Municipal Utilities Association (CMUA) report
to the California Energy Commission (CEC) is required by state law (SB 1037) and shows the results of
CPAU’s efficiency programs in reducing electric consumption. This report does not include natural gas
or water programs. Efficiency programs are the highest priority resource used by electric utilities. The
programs are also deemed cost-effective if they achieve a Total Resource Cost (TRC)6 score of at least
1.0. Table F.1 shows an overall TRC of 0.78. Note that these savings do not capture the gas and water
savings that the EE programs also produced. This is the first time that the TRC is below 1.0 since the
start of the energy efficiency programs in 2008. This year’s TRC ratio is a result of several factors (1) the
continued trend for easy target savings having been exhausted (so-called low hanging fruit) such as
lighting retrofits from incandescents to CFL’s (2) the assumption of low persistence savings for retro-
commissioning projects (only last for 1 year), and (3) FY2016 included some start-up costs for new
efficiency programs such as the multi-vendor CIEEP, Home Efficiency Genie, Multifamily Plus, and Small
and Medium Commercial programs. Staff is currently evaluating ways to increase the TRC of the City’s
efficiency program portfolio. The full report can be found here:
http://www.ncpa.com/policy/reports/energy-efficiency/
6 The primary aim of cost-effective energy efficiency programs is to reduce utility cost and hence customer bills while
improving the environment. Cost-effectiveness can be measured in many ways. The Total Resource Cost (TRC) reflects the
financial perspective of the Palo Alto community as a whole. If the combination of the utility and all customers together save
money, it is cost-effective from a “Total Resource Cost (TRC)” or societal viewpoint.
53 of 59
FY 2016 Demand Side Management Annual Report
Table F.1: Electric Energy Efficiency Program Sector Results
PAC Test: This refers to the Program Administrator Cost Test or the Utility Test. A measure that lowers the overall cost for
the utility is cost-effective for the utility (also referred to as “Program Administrator”). For CPAU, this could also be
considered the “all ratepayers test” or “average utility bill test,” as it reflects the change in the utility bill to the average
customer. To be cost-effective from the utility perspective, the cost of the program (administrative and rebate costs) must
be less than the savings from not purchasing the energy supply.
Program Sector
(Used in CEC
Report)Category
Units
Installed
Gross
Coincident
Peak
Savings
(kW)
Gross
Annual
Energy
Savings
(kWh)
Gross
Lifecycle
Energy
Savings
(kWh)
Net
Coincident
Peak
Savings
(kW)
Net
Annual
Energy
Savings
(kWh)
Net
Lifecycle
Energy
Savings
(kWh)
Net
Lifecycle
Gas
Savings
(MMBtu)
Net Lifecycle
GHG
Reductions
(Tons)
Utility
Incentives
Cost ($)
Utility Mktg,
EM&V, and
Admin Cost ($)
Total Utility
Cost ($)
Utility
($/kWh)
Appliances Res Clothes Washers 110 19,910 278,740 6,172 86,409 $10,035 $1,046 $11,082 $0.16
HVAC Res Cooling 1 161 3,220 45 902 $50 $25 $75 $0.12
Appliances Res Dishwashers
Consumer Electronics Res Electronics
HVAC Res Heating 40 5,584 55,777 3,685 36,801 $300 $7,805 $8,105 $0.26
Lighting Res Lighting 2,611 150 132,123 1,441,021 119 97,773 1,033,941 $127,771 $127,771 $0.15
Pool Pump Res Pool Pump 3 5,133 51,330 3,080 30,798 $600 $382 $982 $0.04
Refrigeration Res Refrigeration 125 55,162 276,279 44,110 220,750 $3,458 $11,494 $14,952 $0.08
HVAC Res Shell 14,485 77,749 1,552,585 25,735 512,840 $1,145 $81,664 $82,809 $0.23
Water Heating Res Water Heating
Comprehensive Res Comprehensive 57,221 1,283,418 1,283,418 1,283,418 1,283,418 $18,260 $18,260 $0.01
Process Non-Res Cooking
HVAC Non-Res Cooling 31 60 3,154,829 13,668,459 48 2,524,232 10,940,299 $310,870 $524,206 $835,076 $0.10
HVAC Non-Res Heating 33 18,348 220,176 14,678 176,141 $1,902 $4,406 $6,308 $0.04
Lighting Non-Res Lighting 27 443 1,852,256 26,279,808 354 1,482,864 21,039,732 $172,512 $506,513 $679,025 $0.04
Process Non-Res Motors 45 5 47,880 718,200 4 38,304 574,560 $10,019 $14,115 $24,134 $0.05
Process Non-Res Pumps
Refrigeration Non-Res Refrigeration 3 7,100 85,200 5,680 68,160 $710 $2,785 $3,495 $0.06
HVAC Non-Res Shell
Process Non-Res Process
Comprehensive Non-Res Comprehensive
Other Other
SubTotal 74,735 658 6,659,654 45,914,213 526 5,529,777 36,004,750 $511,602 $1,300,472 $1,812,074 $0.06
T&D T&D 1 8 70,460 3,523,000 8 70,460 3,523,000 $46,708 $46,708
Total 74,736 666 6,730,114 49,437,213 534 5,600,237 39,527,750 $511,602 $1,347,180 $1,858,782
EE Program Portfolio TRC Test 0.78
PAC Test 1.34
Excluding T&D
Resource Savings SummaryPalo Alto Cost Summary
54 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX G: PHOTOS FROM CUSTOMER OUTREACH EVENTS
55 of 59
FY 2016 Demand Side Management Annual Report
56 of 59
FY 2016 Demand Side Management Annual Report
57 of 59
FY 2016 Demand Side Management Annual Report
APPENDIX H: CITY POLICIES/PLANS AND STATE MANDATES
IMPACTING DSM PROGRAM GOALS AND IMPLEMENTATION
CITY POLICIES/PLANS
Title Description
Resolution No. 9241 LEAP, the Long-term Electric Acquisition Plan (April 2012)
Resolution No. 9322 Carbon Neutral Plan for Electric Supply (March 2013)
Resolution No. 9402 Local Solar Plan (April 2014)
Staff Report 3706 Program for Emerging Technology (April 2013)
Staff Report 2552 GULP, the Gas Utility Long-term Plan (April 2012)
Staff Report 6851 2015 Urban Water Management Plan (May 2016)
Staff Report 7304 Sustainability and Climate Action Plan (November 2016)
Staff Report 7718 Update of Ten-Year Energy Efficiency Goals for 2018 to 2027 (March
2017)
FULL LIST OF STAFF REPORTS
• CY 2015: cityofpaloalto.org/gov/agendas/city_managers_reports/2015.asp
• CY 2016: cityofpaloalto.org/gov/agendas/city_managers_reports/2016.asp
STATE MANDATES
No bills establishing new DSM/Energy Efficiency mandates became law in FY2016. Existing mandates
include:
AB 802 (2015) Requires utilities to maintain records of the energy usage data of all buildings to
which they provide service for at least the most recent 12 month period and, upon
the request and authorization of the owner (or owner's agent), provide aggregated
energy usage data to the owner in the ENERGY STAR Portfolio Manager.
AB 1164 (2015) Prohibits cities and counties from enacting or enforcing any ordinance or regulation
prohibiting the installation of drought tolerant landscaping, synthetic grass, or
artificial turf on residential property.
AB 1236 (2015) Obliges cities and counties to adopt an ordinance, with certain specific elements,
creating an expedited permitting process for electric vehicle charging stations. For
a city the size of Palo Alto, the ordinance must be passed by September 30, 2017
SB 350 (2015) The Clean Energy and Pollution Reduction Act of 2015 sets targets for utilities of
50% renewable electricity retail sales and double the energy efficiency savings in
electricity and natural gas, both by 2030. The law grants compliance flexibility for
POUs that achieve 50% or more of retail sales from certain large hydroelectric
power.
58 of 59
FY 2016 Demand Side Management Annual Report
AB 2188 (2014) Requires a city and/or county to adopt an ordinance creating an expedited,
streamlined permitting process for small residential rooftop solar energy systems.
Executive Order Due to continued water shortages, on January 17, 2014, the Governor proclaimed a
State of Emergency and directed state officials to take all necessary actions to
make water immediately available. Part of the proclamation included a 20 percent
water reduction goal. On April 1, 2015, the Governor issued an Executive Order (B-
36-15) mandating the State Water Resource Control Board impose restrictions
leading to a 25 percent reduction in potable water use through February 28, 2016.
SB 1420 (2014) Added a requirement to report on distribution system water loss to the UWMP.
SB 73 (2013) The California Clean Energy Jobs Act, an initiative approved by the voters as
Proposition 39 at the November 2012 statewide general election, establishes a Job
Creation Fund with an annual budget of $550M to create clean energy jobs,
including funding energy efficiency projects and renewable energy installations in
public schools, universities, and other public facilities. The Job Creation Fund will
be funded for four years, beginning in the 2013-2014 fiscal year.
AB 2514 (2010) Mandates a local publicly owned electric utility to determine appropriate targets, if
any, for the utility to procure viable and cost-effective energy storage systems and
to adopt an energy storage system procurement target, if appropriate, to be
achieved by the utility by December 31, 2016, and a second target to be achieved
by December 31, 2021.
SBx7-7 (2009) The Water Conservation Bill of 2009 requires water suppliers to reduce the
statewide average per capita daily water consumption by 20% by December 31,
2020. To monitor the progress toward achieving the 20% by 2020 target, the bill
also requires urban retail water providers to reduce per capita water consumption
10% by the year 2015.
AB 1103 (2007) Requires electric and gas utilities maintain records of the energy consumption
data of all nonresidential buildings to which they provide service and that by
January 1, 2009, upon authorization of a nonresidential building owner or
operator, an electric or gas utility shall upload all of the energy consumption data
for the specified building to the EPA Energy Star Portfolio Manager in a manner
that preserves the confidentiality of the customer. This statute further requires a
nonresidential building owner or operator disclose Energy Star Portfolio Manager
benchmarking data and ratings, for the most recent 12-month period, to a
prospective buyer, lessee, or lender. Enforcement of the latter requirement
began on January 1, 2014.
59 of 59
FY 2016 Demand Side Management Annual Report
AB 1470 (2007) Solar Water Heating and Efficiency Act of 2007. Requires the governing body
of each publicly owned utility providing gas service to retail end-use gas
customers, to adopt, implement, and finance a solar water heating system
incentive program.
SB 1 (2006) The California State Legislature enacted SB 1 to encourage the installation of
3,000 megawatts (MW) of photovoltaic (PV) solar energy by the year 2017. SB
1 requires all publicly owned utilities to adopt, finance and implement a solar
initiative program for the purpose of investing in and encourage the increased
installation of residential and commercial solar energy systems. CPAU’s share of
the state goal is 6.5 MW. In 2007, CPAU increased the PV Partners program funding
to meet SB1 requirements. CPAU has fully reserved all rebate funds as of April,
2016.
AB 2021 (2006) Requires the CEC on or before November 1, 2007, and every 3 years thereafter, in
consultation with the commission and local publicly owned electric utilities, to
develop a statewide estimate of all potentially achievable cost-effective
electricity and natural gas efficiency savings and establish statewide annual targets
for energy efficiency savings and demand reduction over 10 years.
AB 1881 (2006) Requires cities and counties to implement a Water Efficient Landscape Ordinance
which is “at least as effective as” the Department of Water Resources (DWR)
Model Ordinance in reducing landscape water use. Requirements include enforcing
water budgets, planting and irrigation system specifications to meet efficiency
criteria.
SB 1037 (2005) Requires each local publicly owned electric utility, in procuring energy, to first
acquire all available energy efficiency and demand reduction resources that are
cost-effective, reliable, and feasible. Also requires each local publicly owned
electric utility to report annually to its customers and to the (CEC) its investment
on energy efficiency and demand reduction programs.
AB 1890 (1996) Requires electric utilities to fund low-income ratepayer assistance programs, public
purpose programs for public goods research, development and demonstration,
demand- side management and renewable electric generation technologies
AB 797 (1983) The Urban Water Management Planning Act (AB 797) requires all California urban
water retailers supplying more than 3,000 acre feet per year or providing water
to more than 3,000 customers to develop an UWMP. The plan is required to be
updated every five years and submitted to the Department of Water Resources
before December 31 on years ending in 5 and 0.