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HomeMy WebLinkAbout2003-03-04 City Councilof PaSo A to Manager’s Repor TO:HONORABLE CITY COUNCIL ATTENTION: FROM: DATE: SUBJECT: FINANCE COMMITTEE CITY MANAGER MARCH 4, 2003 DEPARTMENT:UTILITIES CMR: 158:03 ADOPTION OF A RESOLUTION ADOPTING NEW GREEN POWER PROGRAM RATE SCHEDULES REPORT IN BRIEF This report requests Council approval to modify Palo Alto’s Green Power Progam for electric customers, to be effective Earth Day, April 22, 2003. The progTam modifications are intended to improve customer participation rates and lower average costs. A primary objective for offering the Green Power Pro~am is to enhance customer satisfaction by providing an opportunity to participate in funding renewable energy resources. The Green Power Program is a stand-alone pro~am, separate from the renewable portfolio standard for the overall City electricity portfolio that was adopted by Council as part of the Long- Term Electric Acquisition Plan guidelines [CMR 398:02, October 21, 2002]. The Green Power rate schedules will apply to customers who voluntarily choose to participate in buying their electricity with 100% renewable energy content. CMR:158:03 Page 1 of 8 RECOMMENDATION Staff recommends that the City Council adopt a resolution to establish Green Power Rate Schedules E-l-G, E-2-G, E-4-G, E-7-G, and E-18-G. BACKGROUND In April 2000, the City of Palo Alto Utilities (CPAU) introduced a green power program (Future Green), whereby Palo Alto electric customers could choose to support renewable energy [CMR 121:00]. Participation rates in Future Green have fallen short of expectations. As of the end of December 2002, there were ! 87 residential customers and one commercial customer participating in the Future Green program. There are zero industrial participants, and the program did not contemplate possible participation by City facilities. Future Green requirernents in 2002 totaled -1200 MWh, or about 0.1% of total City consumption. Future Green breakdown by resource is illustrated in Figure 2. Future Green Power Content 1,400 1,200 1 ~000 800 188 customers 170 customers 114 customers 600 400 2O0 ~.~ Geothermal 2000 200!2002 Figure 1. Future Green Power Cntent and Total Customer History, 2000-2002. i In calendar year 2002, CPAU purchased approximately 87 percent of its electricity through the Western Area Power Administration (WAPA), 6 percent from its ownership CMR: 158:03 Page 2 of 8 share in the Calaveras hydroelectric plant, and the balance from market resources. WAPA generates most of its power from large hydroelectric generation units and purchases the remaining electricity requirements from the market, which can be from fossil fuel or nuclear generators. On an annual basis, about 57 percent of the total CPAU portfolio originates from large hydroelectric resources. Although hydroelectric power is a natural non-depletable and non-polluting resource, hydroelectric generation plants exceeding 30 megawatts (MW) are not classified as "eligible renewable" resources for green power programs by the California Energy Commission (CEC). According to the CEC classifications, ~een power is electrical energy generated from wind, solar, geothmTna!; landfill gas recovery, biomass, and small hydroelectric (less than 30 MW). Figure 1 illustrates the breakdown of Palo Alto’s electricity resources per CEC classifications for 2002, with the 2001 California energy mix shown for comparison. 70% 6O% 5o% 4O% 30% ~ 20% e.. 10% [] Eligible Renewables [] Large Hydroelectric [] Natural Gas [] Nuclear []Coal [] Other Palo Alto 2002 50% 16% 11% ).4% California System 2001 Figure 2. Pox~er content data for Palo Alto (2002) and California System average power mix (2001) The current Future Green program offers 100% renewable content, with three different mixes of "existing" and "future" resources, defined as beginning in operation before or after January 1, 2000, respectively. The price premiums for the different mixes are $.008/kWq~ for 25% "Future," $O.O16ikWh for 50% "Future," and $.030/kWh for 100% CMR:158:03 Page 3 of 8 "Future" resources. This translates to a monthly premium for a typical residential customer using 650 kwh per month of $5.20, $10.40, and $19.50, respectively. DISCUSSION Based on customer feedback and staff review of the features of some of the more successful ~een power programs, staff has redesigned Palo Alto’s existing green power rate options into a pro~am and renamed it "Palo Alto Green". The most common feedback received from customers was that the pro~am design needed to be simplified. Industrial customers have indicated that certainty in costs is important to them, and that commitment to a premium based on total consumption did not result in any participation. The most successful programs offer large customers an option of purchasing discrete blocks of ~een power to encourage participation without requiring a premium on 100% of the customer’s consumption. Promam Design The key enhanced features of the new Palo Alto Green prod’am are: .Simplified design with a single choice for each customer class rather than three. *Reduces number of ~’een rate schedules from twelve to five. ~,Industrial and Institutional customers may purchase 1000 kWq~ "blocks". ~Product qualifies as 100% ~New Eligible Renewable" content, as defined by the CEC. "New" means generating facilities that began operation after September 26, 1996. .From resources within the Western Electric Coordinating Council (WECC) Region, which includes California. Proposed $0.015/k\Vh retail premium for 100% "New Renewables" is lower than the current Future Green 50 ($0.016/kWh premium above the otherwise applicable rate). This translates to a monthly premium for a typical residential customer using 650 kwh per month of $9.75. Features common with the existing Future Green program include: Allows customers to choose a source of energy that qualifies as 100% Eligible Renewable content, as defined by the CEC. "Eligible Renewable" may include solar, wind, small hydroelectric, biomass, geothermal, and landfill gas. ~ Voluntary participation. Customers may join or withdraw at any time. Charge based on actual total consumption for Residential and Commercial customers. CMR:158:03 Page 4 of 8 Stand-alone program, separate frorrl renewable energy purchases to meet the renewable portfolio standards adopted in Long-Term Electric Acquisition Plan (LEAP) guidelines. Benchmark Green Power Pro~ams The National Renewable Energy Laboratory tracks ~een pro~ams offered by utilities throughout the United States. Their top ten list in the categories of highest participation rate and lowest premium are listed below in Attachment C. The proposed Palo Alto Green pro~am would qualify for the top ten in the cost category, and is anticipated to achieve similar participation rates. Implementation Plan Staff plans to either (1) manage the pro~am in-house, or (2) use a green power program expert contractor to manage the program as a turnkey service. Staff issued an RFP on January 14, 2003 for turnkey program proposals from several experienced potential contractors. Potential advantages of outsourcing this kind of program arise from economies of scale and scope from ag~-egating renewable energy demand from several programs, increased participation rates from added experience and expertise in effective program design and communication, opportunity to join forces with other municipal utilities through joint programs, and reduced risks associated with fluctuations in the wholesale price premium for renewable resources. Alternative (1) is staff’s planned default if no proposals are received in response to the RFP that are adequate or competitive with in-house management of the program. RFP responses were due February 4, 2003. Staff is currently in negotiating contract terms with the best responsive proposer. Staff will provide an implementation progress update at the March 4, 2003 Finance Committee meeting. Renewable energy content will be achieved utilizing CEC-approved tradable renewable certificates (TRCs, also referred to as green tags or green tickets), in accordance with the State of California’s Power Disclosure Program (SB 1305). TRCs are essentially renewable energy production subsidies that flow directly to renewable energy generators, and enable an efficient and cost-effective means of meeting a varying renewable energy requirement such as a voluntary retail green power program. The estimated 1.5 ¢)k\Vh retail premium is based on initial indicative proposals from potential turnkey program providers and current price quotes for tradable renewable certificates. This premium includes a margin to cover anticipated costs of administering the program, approximately $10,000 annually. CMR:158:03 Page 5 of 8 ALTERNATIVES TO STAFF RECOMMENDATION Alternatives include continuing with the existing program or eliminating the program altogether. However, market research indicates that Palo Alto customers are heavily in favor of a 100% renewable alternative, and experience indicates that continuing with the existing program is unlikely to result in a significant participation level. The green power redesig-n team considered several program alternatives, including all volumetric-based premiums, offering only "blocks" of green energy, and a residential- only program. Staff believes that the recommended program design combines the best features appropriate for each customer class and will result in the greatest participation and improvement in customer satisfaction. RESOURCE IMPACT As Palo Alto Green is a cost pass-tba’ough voluntary program, there is no net impact on utilities financial resources. Staff anticipates that 2% to 5.% of residential customers are likely to participate in Palo Alto Green, leading to additional premium revenues and matching expenditures of up to $120,000 annually. If successful, the commercial, industrial, and institutional participation is estimated to be roughly equivalent to residential consumption, resulting in a potential total of $250,000 annually. Marketing and administration costs are expected to be covered by existing budgets in the near terna, and self-supporting in the longer-tenn. POLICY IMPLICATIONS This recommendation is consistent with the Council-approved Utilities Strategic Plan Objective #1 to enhance customer satisfaction by delivering valued products and services. It also supports Key Strategy No.4: deliver products and services for competitive markets; and Strategy No.7: implement programs that improve the quality of the environment. This recommendation supports the City Sustainability Policy Statement adopted April 2, 2001 [CMR 175:01], and the Comprehensive Plan Goal N-9, "a clean, efficient, competitively-priced energy supply that makes use of cost-effective renewable resources." This recommendation supports the Green Government Pledge, adopted by the City of Palo Alto through participation in the Association of Bay Area Governments (ABAG) and Santa Clara County Green Business Program [CMR:284:99, July 19, 1999]. CMR:158:03 Page 6 of 8 COMMISSION REVIEW The Green Program redesign was introduced to the Utilities Advisory Commission in the January 15, 2003 Utilities Director Report, and discussed at the February 12, 2003 UAC meeting. The initial comments from the January 15, 2003 UAC meeting expressed UAC interest in ensuring that the retail premium was adequate to cover costs of the pro~am including administrative costs. Staff estimates indicate that revenues will be sufficient to achieve this objective, based on proposals submitted in response to the ~een power pro~am RFP responses. At the February 12, 2003 UAC meeting, UAC commissioners inquired as to the time frame over which the higher anticipated participation is expected to take place. Staff feels that the simplified design, lower cost, improved product, and intensified marketing efforts, and leveraging CPAU resources with experienced outside green power marketing professionals should achieve participation level of about 1,000 people within a couple of years, in line with other successful programs. Commissioners also inquired as to whether Palo Alto had a preference for or would specify what specific technologies would be represented in the renewable energy mix. Staff specified a preference for non-combustion teclmologies that are closer to Palo Alto where feasible in the RFP, but could not discuss the particulars yet as negotiations with the potential contractor are not yet complete. However, staff is striving to acquire the more environmentally friendly mix of resources, primarily wind and solar, that can be procured within the proposed rate. The UAC unanimously approved a motion to support the staff recommendation to recommend Council approval of the revised ~een power rate schedules. TIMELINE Staff proposes to introduce Palo Alto Green on Earth Day April 22, 2003. ENVIRONMENTAL REVIEW The recommended action does Environmental Quality Act. not constitute a project under the California ATTACHMENTS A:Draft Resolution Adopting Palo Alto Green Rate Schedules B:Rate Schedules E-l-G, E-2-G, E-4-G, E-7-G, E-18-G C:Table 1 & Table 2 NREL’s Top Ten Lists CMR:!58:03 Page 7 of 8 PREPARED BY: E. Knapp,Resource Planner " Anl~honv C. En~io, Utilities Account Representative DEPARTMENT HEAD: CITY MANAGER APPROVAL: of Utilities EMI~-I~RRISON Assistant City Manager CMR:158:03 Page 8 of 8 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING NEW UTILITY RATE SCHEDULES E-!-G, E-2-G, E-4-G, E-7-G AND E-!8-G AND ELIMINATING SCHEDULES E-I-G1,E-I-G2,~-I-G3,E-2-GI, E-2-G2, E-2-G3, E-4-G!,E-4-G2, E-4-G3,E-7-G!, E-7-G2 AND E-7-G3 OF THE CITY OF PALO ALTO UTILITIES ~hTES ~_ND C~hRGES PERTAINING TO ELECTRIC SERVICE The Counci! of the City of Palo Alto does hereby RESOLVE as follows: SECTION !.Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, new Utility Rate Schedule E-I-G (Residentia! Green Power Electric Service) is hereby~ added to read in accordance with Sheets E-!-G-I and E-!~G-2, attached hereto and incorporated herein. Schedule E-!-G sets forth the unbund!ed rates for residential electricity sales under the Palo Alto Green plan. The foregoing Utility Rate Schedule shal! become effective on April 22, 2003. SECTION 2.Pursuant to Section 12.20.010 of the Palo Alto Municipa! Code, new Utility Rate Schedule. E-2-G (Small Commercia! -Green Power Electric Service) is hereby added to read in accordance with Sheets E-2-G-I and E-2-G-2, attached hereto and incorporated herein. Schedule E-2-G sets forth the unbundled rates for smal! commercia! electricity sales under the Pa!o Alto Green plan. The foregoing Utility Rate Schedule shall become effective on April 22, 2003. SECTION 3.Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, new Utility Rate Schedule E-4-G (Medium Commercia! - Green Power Electric Service) is hereby added to read in accordance with Sheets E-4-G-I through E-4-G-4, inclusive, attached hereto and incorporated herein. Schedule E-4-G sets forth the unbundled rates for medium commercia! electricity sales under the Palo Alto Green plan. The foregoing Utility Rate Schedule shal! become effective on Apri! 22, 2003. SECTION 4.Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, new Utility Rate Schedule E-7-G (Large Commercial - Green Power Electric Service) is hereby added to read in accordance with Sheets E-7-G-! through E-7-G-4, inclusive, attached hereto and incorporated herein. Schedule 030203 syn 0072240 E-7-G sets forth the unbundled rates for large commercial electricity sales under the Palo Alto Green plan. The foregoing Utility Rate Schedule shal! become effective on Apri! 22, 2003. SECTION 5.Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, new Utility Rate Schedule E-!8-G (Municipa! Green Power Electric Service) is hereby added to read in accordance with Sheets E-!8-G-! and E-!8-G-2, attached hereto and incorporated herein. Schedule E-!8-G sets forth the unbund!ed rates for electricity sales to municipa! customers under the Pa!o Alto Green plan. The foregoing Utility Rate Schedule shal! become effective on April 22, 2003. SECTION 6.Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedules E-I-G1 (Residentia! Green - Future 25), E-!-G2 (Residentia! Green - Future 50), E-I-G3 (Residential Green - Future i00), E-2-GI (Small Commercia! Green - Future 25), E-2-G2 (Smal! Commercial Green - Future 50), E-2-G3 (Small Commercia! Green - Future i00), E-4-GI (Hedium Commercia! Green - Future 25), E-4-G2 (Meaium Commercial Green - Future 50), E-4-G3 (Medium Commercia! Green - Future !00), E-7-G! (Large C.ommercia! Green - Future 25), E-7-G2 (Large Commercial Green - Future 50) and E-7-G3 (Large Commercia! Green - Future I00) are hereby rescinded. SECTION 7.The Council finds that the revenue derived from the authorized adjustment of the electric service rates shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Pa!o Alto. /! !! !! !! !! !! !! !! !! 030203 syn 0072240 2 SECTION 8. this resolution does California Environmental Quality Act, California Resources Code section 21080, subdivision (b) (8) . INTRODUCED ~ PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: The Council finds that the adoption of not constitute a project under the Public City Clerk APPROVED AS TO FO~: Senior Asst. City Attorney Mayor City Manager Director of Administrative Services Director of Utilities 030203 syn 0072240 RESIDENTIAL GREEN PO~VER ELECTRIC SERXqCE UTILITY K%TE SCHEDULE E-1-O APPLICABILITY: This schedule applies to separately metered single-family residential dwellings receiving retail enerD’ services from the City of Palo Alto Utilities under the Palo Alto Green plan. A "single-fanaily residential dwelling" is desig-nated as any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities. Palo Alto Green power provides for the purchase of 100% renewable geen enerD for participating customers. No TERRITORY: \Vithin the incorporated limits of the Cib; of Palo Alto and on land owned or leased by the Ci~~. Co UNBUNDLED tL~kTES: Palo Alto Per "~lowatt-hour Commodiw Distribution Public Benefits Green Total First 300 kwh $0.03370 $0.02561 $0.00169 $0.0150 $0.0760 Next 300 kwh 0.04470 0.03402 0.00208 $0.0150 0.0958 Over 600 k~0.05970 0.04547 0.00273 $0.0150 0.1229 D.SPECLM.~ NOTES: Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts. On a customer’s bill statement, the bill amount is broken down into four cost components as calculated under Section C: Commodity Charge, a Distribution Charge, a Public Benefits Charge, and a charge for Palo Alto Green. CITY OF P,afl30 ALTO UTILITIES Issued by CiD’ Council CiTY OF P,&L© ALTC UTILITIES Effective 4-22-2003 Original Sheet No. E-l-G-1 RESIDENTIAL GREEN PO’WER ELECTRIC SERVICE UTILITY RATE SCHEDULE E- !-G (Continued) Q Solar Ener~~ Discount Upon approval by the City, a 10 percent (10%) discount will be applied to a customer’s electric bill if such customer has installed a quali~4ng solar ener~, system prior to April 1, 1987. o Palo Alto Green Participation Customers choosing to participate shall fi!l out a Palo Alto Green Power Pro~am application provided by the Customer Service Center. Notice of Schedule Change This schedule supercedes and replaces the Residential Green Power Electric Sera;ices’ formerly desigaaated as Utilities Rate Schedules E-l-G1, E-l-G2, and E-l-G3, effective per adoption of this schedule. CITY OF PALO ALTO UTILITIES Issued by CiD; Council CiTY OF PALQ ALTO UTILITIES Effective 4-~_-~9 "~003 Original Sheet No. E-l-G-2 S1VL~L COMMERCIAL GREEN PO’WER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2-G Co .aPPLICABILITY: Tt~is schedule applies to non-demand metered electric service for small commercial customers and master-metered multi-family facilities receiving retail ener~ services from the City of Palo Alto Utilities under the Palo Alto Green plan. Palo Alto Green power provides for the purchase of 100% renewable ~een energy for participating customers. TERRITORY: \Vithin the incorporated limits of the Cib~ of Palo Alto and on land ov,~aed or leased by the City. RA_TES: Unbundled Seasonal Ener~ Rates: Palo Alto Per kilowatt-hour Conzrnoditw Distribution Public Benefits Green Total Summer $0.04880 $0.03732 $0.00208 $0.0150 $0.1032 Winter 0.04400 0.03342 0.00208 $0.0150 0.0945 D.SPECLA_L NOTES: Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for an?’ applicable discounts. On a customer’s bill statement, the bill amount is broken down into four cost components as calculated under Section C: Commodity Charge, a Distribution Charge, a Public Benefits Charge, and a charge for Palo Alto Green. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period is partly in the Summer Period and partly in the Winter Period, the billing will be computed by prorating the total k\Vh usage, and the applicable rates thereto between the Va, o seasonal periods, according to the ratio of the number of days in each seasonal period to the total number of days in the billing period. CITY OF PALO ALTO UTILITIES Issued by the CiD~ Council CITY OF PALO ALTO UTILITIES Effective 4-22-,00~ Original Sheet No. E-2-G-1 SM_~ALL COMMERCIAL GREEN POV~rER ELECTRIC SERVICE UTILITY tL~TE SCHEDULE E-2-G (Continued) Solar Ener@; Discount Upon approval by the CiD~, a 10 percent (10%) discount will be applied to a customer’s electric bill if such customer has installed a qualifying solar ener~: system prior to April 1, 1987. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Pro~am application provided by the Customer Service Center. Notice of Schedule Change Tt%s schedule supercedes and replaces flae Small Commercial Green Power Electric Services’ formerly desim~ated as Utilities Rate Schedules E-2-G1. E-V-G9 and E---G~. effective per adoption of this schedule. CITY OF PALO ALTO UTILITIES Issued by’ City Council CITv OF PALO ALTO UTILITIES Effective 4-22-2003 Original Sheet No. E-2-G-2 MEDIUM COMMERCIAL G~EN POV~R ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G APPLICABILITY: This schedule applies to demand metered secondary electric service for commercial customers with a maximum demand below 1,000 -ldlowatts who receive power under the Palo Alto Green plan and have waived electric direct access eligibility. This schedule applies to three-phase electric service and may include service to master-metered multi-family facilities. Palo Alto Green power provides for the purchase of 100% renewable ~een ener~; for participating customers. No TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the Ci~. Co I~TES: Seasonal Demand and Ener~" Rates: Commodit~~ Summer Period Demand Charge (kW)$3.06 Ener~ Charge (kWh)0.03500 Distribution $10.53 0.01222 Palo Alto Green Charge (.per 1000 kwh block) Winter Period Demand Charge (kW)$2.87 Ener~ Charge (kWh)0.03150 Palo Alto Green Charge (per 1000 kwh block) $6.07 0.01152 Public Benefits $0.00208 $0.00208 Per Meter Per Month Total $13.59 $0.0493 $15.00 $8.94 $0.0451 $15.00 CITY OF PA_LO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 4-22-2003 Original Sheet No.E-4-G-1 MEDIUM COS~LMERCL4J~ GREEN PO~VER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G (Continued) D.SPECIAL NOTES: Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts. On a customer’s bill statement, the bill amount may be broken dov, m into four cost components as calculated under Section C: Commodib~ Charge, Distribution Charge, Public Benefits Charge and a charge for Palo Alto Green blocks. o Seasonal Rate Changes The Surmner Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. \\qaen the billing period is partly in the Summer Period and partly in the Winter Period, the billing will be computed by prorating the total kwh usage, kW demand, and the applicable rates thereto between the two seasonal periods, according to the ratio of~he number of days in each seasonal period to the total number of days in the billing period. Maximum Demand Meter \\~enever the monthly use of energy has exceeded 8,000 Mlowat-t-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable mad thereafter continued in service until the monthly use of enerD~ has dropped below 6,000 ldlowart-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in Mlowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute inte~’al. A flaermal-~pe demand meter, which does not reset after a definite time interval may be used at the Cib,’s option. The billin~ demand to be used in computing charges under this schedule will be the actual maximum demand in -kilowatts for the current month. An exception is that the billing demand for customers with Thermal Ener~, Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 PM on weekdays. CITY OF P.4d~O ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 4-22-.~009 Original Sheet No.E-4-G-2 MEDIUM COMMERCIA_L GREEN POV~rER ELECTRIC SER~qCE UTILITY RATE SCHEDULE E-4-G (Continued) o Solar Ener~T Discount Upon approval by the Cib;, a 10 percent (10%) discount will be applied to a customer’s electric bill if such customer has installed a qualifying solar ener~ system prior to April 1, 1987. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 ldlowatts for three consecutive months, the City has the option of installing VAR-hour or any other applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has dropped below 200 -kilowatts for four consecutive months. When such metering is installed, the monthly electric bill will include a "power factor penalty", if applicable. The penalty adjustment will be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalt7 is applied by increasing the total ener~, and demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of "kilowat~-hours to kilovoltampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. Changing Rate Schedules Customers choosing to participate shall fi!! out a Palo Alto Green Power Pro~am application provided by the Customer Service Center. Customers may request at any time, in w-riting, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Customers may request a rate schedule change at any time to any applicable full-service rate schedule. Qualified customers may elect E-4 or E-4-TOU. Customers served under this rate schedule are not eligible for electric direct access and cannot request a rate schedule change to a full service rate schedule applicable to customers who are eligible for electric direct access (i.e. E-17). CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 4-.2-200.~ Original Sheet No.E-4-G-3 5{EDIUM COMMERCIAL GREEN PO~R ELECTRIC SER~rlCE UTILITY R_~TE SCHEDULE E-4-G (Continued) Notice of Schedule Change This schedule supercedes and replaces the Medium Commercial Green Power Electric Services’ formerly desi~ated as Utilities Rate Schedules E-4-G1, E-4-G2, and E-4-G3, effective per adoption of this schedule. PrimauT Voltage Discount Where delivery., is made at the same voltage as that of the line from which the service is supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another vokage equally or better suited to the customer’s electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change the system so as to receive service at the new line voltage or to accept service (~4thout voltage discount) through transformers to be supplied by the Cit3.’ subject to a maximum kVA size limitation. ’ {End} CITY OF PALO ALTO UTILITIES Issued by the CiD; Council CITY OF PAL© ALTO UTILITIES Effective 4-22-~00: Original Sheet No.E-4-G-4 LARGE COMMERCIAL GREEN POV~rER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G Ao .a~PPLIC.M3ILITY: This schedule applies to demand metered service for large commercial customers who choose service under the Palo Alto Green plan. A customer may quali~T for this rate schedule if the customer’s maximum demand is at least 1,000KW per month per site, who have sustained this demand level at least 3 consecutive months during the last twelve months, and who have waived direct access eligibilib~. Palo Alto Green power provides for the purchase of 100% renewable geen ener~ for participath~g customers. TERRITORY: Within the incorporated limits of the Ci~7 of Palo Alto and land owned or leased by the Ci~. tLA~TES: Seasonal Demand and Ener~~ Rates:Per Meter Per Month Summer Period Corrmaodit~Distribution Public Benefits Total Demand Charge (kW)$3.90 Ener~ Charge (kWh)0.03450 Palo Alto Green Charge (per 1000 kwh block) Winter Period $8.26 $12.16 0.01202 $0.00208 $0.0486 $15.00 $3.70 $7.15 0.01162 $0.00208 $0.0450 $15.00 Demand Charge (kW)$3.45 Ener~ Charge (kV~,qa)0.03130 Palo Alto Green Charge (per 1000 kavh block) CITY OF PALO ALTO UTILITIES Issued by the CiD~ Council CITY OF PALO ALTO UTILITIES Effective 4-22-2003 Original Sheet No.E-7-G-1 LARGE COMMERCIA~L GREEN PO~’~ER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G (Continued) Do SPECIAL NOTES: 1.Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts. On a customer’s bill statement, the bill amount rnay be broken doom into four components as calculated under Section C: Commodi~~ Charge, Distribution Charge, Public Benefit Charge and a charge for Palo Alto Green blocks. o Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period is partly in the Summer Period and partly in the Winter Period, the billing will be computed by prorating the total kEqa usage, kW demand, and the applicable rates thereto between the >~o seasonal periods, according to the ratio of the number of days in each seasonal period to the total number of days in the billing period. o Maximum Demand Meter \~qaenever the monthly use of enerD; has exceeded 8,000 -kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of enerD’ has dropped below 6,000 Mlowatt-hours for twelve consecutive months, whereupon, at the option of the Ci~~, it may be removed. The maximum demand in any month will be the maxinaum average power in kilowatts taken during any 15-minute intera, al in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-mhmte inter~,al. A thermal-~pe demand meter, which does not reset after a definite time intetwal may be used at the City’s option. The billina demand to be used in computing charges under this schedule will be the actual maximum demand in Nlowatts for the current month. An exception is that the billing demand for customers with Thermal Ener~ Storage (TES) will be based upon the actual maximum demand of such customers be~,een the hours of noon and 6 PM on weekdays. CITY OF PALO ALTO UTILITIES Issued by the CiD~ Council CiTY OF PALO ALTO UTILITIES Effective 4-22-2003 Original Sheet No.E-7-G-2 L.MtGE COMMERCIAL GREEN POVTER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G (Continued) Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are at one site. A site shall be defined as one or more utilib’ accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a cormnon billing address. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install VAR-hour or any other applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has dropped below 200 kilowatts for four consecutive months. V~en such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penalb adjustment shall be applied to a customer’s bill prior to the computation of any primar7 voltage discount. The power factor penalD~ is applied by increasing the total enerD~ mad demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of Mlowatt-hours to "kilovoltampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. Changing Rate Schedules a.Customers choosing to participate shall fill out a Green Power Progam application provided by the Customer Serwice Center. b.Customers may request at any time, in writing, a change to the number of Palo Alto Green blocks they wish to purchase under the Palo Alto Green plan. CITY OF PALO ALTO UTILITIES Issued by the CiD’ Council CITY OF F’ALO ALTO UTILITIES Effective Original Sheet No.E-7-G-3 LARGE COMMERCIAL GREEN POV~rER ELECTRIC SERVICE UTILITY P,_&TE SCHEDULE E-7-G (Continued) If a customer account discontinues to qualify for this service for an account(s) on Utility Rate Schedule E-7-G, such account(s) may be charged under Utility Rate Schedule E-4-G or an?, other applicable rate schedule. Customers may request a rate schedule change at an?’ time to any applicable full service rate schedule. Customers served under this rate schedule are not eligible for electric direct access and cannot request a rate schedule change to the full service rate schedule(s) applicable to customers who are eligible for direct access (E-8). Qualified customers may request service under E-7 or E-7-TOU. Notice of Schedule Change This schedule supercedes and replaces the Large Commercial Green Power Electric Services’ formerly desig-nated as Utilities Rate Schedules E-7-G1, E-7-02, and E-7-G3, effective per adoption of this schedule. o Primary Voltage Discount Where delivery is made at the sanae voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed; provided, however, the Cib~ is not required to supply service at a qualified line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The CiD" retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change the system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the Cib’ subject to a maximum kVA size limitation. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 4-22-2003 Original Sheet No.E-7-G-4 .~ICIPAL GREEN POV~rER ELECTRIC SERVICE UTILITY KATE SCHEDULE E-1 No No APPLIC.M3ILITY: This schedule applies to service for buildings and facilities owned and/or operated by the Cib’ of Palo Alto receiving power under the Palo Alto Green plan. Palo Alto Green power provides for the purchase of 100% renewable g-teen enerD’ for participating customers. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the Cib’. RATES: Unbundled Seasonal EnerD’ Rates: Per kilowatt-hour CommodiW Distribution Public Benefits Total S urmner $0.0397 $ 0.0_~ 0~-$0.00208 $0.0721 Winter 0.0319 0.02412 0.00208 0.0581 Do Palo Alto Green Charge (per 1000 k~vh block) SPECLa~L NOTES: $15.00 Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts. On a customer’s bill statement, the bill amount is broken down into four cost components as calculated under Section C: Commodity Charge, Distribution Charge, Public Benefits Charge, and a charge for Palo Alto Green blocks. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to .April 30. \~qaen the billing period is partly in the summer period and partly in the winter period, the billing will be computed by prorating the total kwh usage, and the applicable rates thereto between the t-wo seasonal periods, according to the ratio of the number of days in each seasonal period to the total nmnber of days in the billing period. CITY OF PALO ALTO UTILITIES Issued by’ the CiD, Council Supercedes Sheet No. E-18-1 dated 3-1-02 CITY OF PALO ALTO UTILITIES Effective_a-’)~-vooq~.~ -~ Original Sheet No. E-18-G-1 MUNICIP.M.~ GREEN PO’~VER ELECTRIC SERVICE UTILITY PATE SCHEDULE E-18-G (Continued) o o Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 Mlowatts for three consecutive months, the Cib~ has the option to install VAR-hour or any other applicable metering to calculate a power factor. The Cib7 may remove such metering from the service of a customer whose demand has been below 200 Mlowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a "power factor penalty", if applicable. The penal~, adjustment shall be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalt)~ is applied by increasing the total ener~- and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of Mlowatt hours to kilovoltampere hours consumed during the month. ~qaere time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer’s maximum demand. Changing Rate Schedules Customers choosing to participate shall fill out a Palo Alto Green Power Progam application pro~,ided by the Customer Service Center. Customers may request at any time, in v~riting, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Primaz3~ Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer’s electrical requirements. The Ci~’ retains the riglat to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (u~thout voltage discount) through transformers to be supplied by the City subject to a maximmn kVA size limitation. ,zd} CITY OF P.~_~O ALTO UTILITIES Issued by the Ci~~ Council C’,TY OF PALO AL~TO UTILITIES Effective 4-22-2003 Original Sheet No. E-18-G-2 Attachment C Rank Utility Program i Participation Rate ~i 7.0°/o!i Moorhead Public Service t Capture the Wind ; .......... 2 I Los Angeles Department of Water and Power I Green Power for a Green LA.i 6.7°/ol 30rcas Power & L ght Cooperat ve Green Power !5.1% 3 i Holy Cross Energy Win~Powe~Pl~ers !~:! Vo 5 Madison Gas and Electric 1 Wind Power Program i 4.1% 6 : Cedar Falls Ut~hbes !Wind Energy Electric Project i 4.0% 7 Central Electric Cooperative Green Power i 3.7 ~/o 8 ~i Eugene. Water and Electric Board EWEB WindPower i,3.3% ...... ................... 9 ~ Consumers Power f Green Power 3.1 Yo Source: NREL1 About half of the total are low-income customers that receive existing renewables at no extra cost Rank i Utility Resources Premium 1 Roseville Electric Geotherma/PV 1.00C/kWh 1 , Sacramento Municipal Utit ty D str ct ,Landfill methane ~i~ TeXas New Mexico Power Company t Wind 4 i; Austin Energy~~-Wind/PV 5 Dakota Electric Association I Wind 1.28e/kWh 6 i Eugene Water and Electric Board3 Wind i 7 i City of Bowling Green (Ohio)Landfill methane/PV i 1.38e/kWh 8 ! Great River Energy Wind 1.50e/kWh~i .........8 i MoorheadPub,,cServ, ceSI W,nd i 1.50e/kWh ! Source: NREL Note: The premium charged in a green pricing program can be a function of any number of variables, including but not limited to the renewable energy technology utilized, the quality of the renewable energy resource, the size of the project(s), the project and company financials, the availability of subsidies or incentives, inclusion of administrative and marketing costs, the utility’s avoided cost of energy, the amount of renewables already in the utility mix, and whether participating customers shoulder the full cost of the program.! Includes only programs that have installed or announced firm plans to install new renewable resources. ~ Price for customers in second phase of program. Price is adjusted when fuel prices change.3 Price is adjusted when fuel prices change. ~ Suggested retail price for member distribution cooperatives. os Adjusted to reflect the cost of 100 Yo new wind power,