HomeMy WebLinkAboutStaff Report 7260
City of Palo Alto (ID # 7260)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 10/17/2016
City of Palo Alto Page 1
Summary Title: Amend Gas Rates with Transportation Charge
Title: Utilities Advisory Commission Recommendation That the City Council
Adopt a Resolution Amending Utility Gas Rate Schedules G-1, G-1-G, G-2, G-
2-G, G-3, G-3-G, G-10 and G-10-G to Include a Separate Transportation Charge
as a Discrete Pass-Through Component and to Reduce the Distribution
Charge by the Initial Transportation Charge Amount of $1.1088 per Therm
Effective November 1, 2016
From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Utilities Advisory Commission (UAC) recommend that the City Council adopt a
resolution (Attachment A) to amend Utility Gas Rate Schedules G-1, G-1-G, G-2, G-2-G, G-3, G-3-
G, G-10 and G-10-G, as attached (Attachment B), to separately identify, as a pass-through rate
component, a Transportation Charge, and reduce the Distribution Charge by the initial
Transportation Charge amount of $0.1088 per therm.
Executive Summary
Natural gas purchased by the City of Palo Alto (CPAU) Gas Utility for its customers is brought to
Palo Alto via Pacific Gas and Electric’s (PG&E)’s transportation pipelines. The cost that CPAU
pays to use those pipelines is based on the applicable PG&E transportation rate schedule, G-
WSL, which was increased effective August 1, 2016. This rate schedule is under the purview of
the California Public Utilities Commission (CPUC). Staff receives little notice as to when
transportation rate changes will take effect or what the final rate will be.
Staff proposes that, both due to the uncertainty in timing and to minimize potential under/over
collection of funds with regards to transportation charges, that the City’s Gas Transportation
Charge be: 1) listed as a separate item on the gas rate schedules and customer bills as a
separate item; and 2) be allowed to change to directly pass through PG&E’s G-WSL rate for Palo
Alto.
Due to the relatively small difference between staff’s estimate and the final value of the G-WSL
City of Palo Alto Page 2
rate, the initial change to the residential and commercial gas rates will be revenue-neutral,
decreasing the Distribution Charge the same amount as the initial Transportation Charge. The
City’s compressed natural gas (CNG) facility will see a slight rate increase.
The Utilities Advisory Commission reviewed the proposal at its August 31, 2016, meeting and
voted unanimously to recommend Council approve the proposed resolution.
Background
CPAU’s natural gas is transported to Palo Alto’s gas distribution system via PG&E’s
transportation pipelines. The cost that PG&E charges CPAU for transportation services is stated
on PG&E’s Gas Transportation Service to Wholesale/Resale Customers (G-WSL) tariff sheet. This
schedule applies to Palo Alto and other cities and agencies who procure natural gas for resale
(such as Coalinga, Island Energy, and others). As the CPUC oversees PG&E’s rates, and while
staff can and does provide input when changes to the G-WSL rate are proposed, staff does not
know when the CPUC will: (1) approve the new rate, (2) set a date for when it will become
effective, or (3) determine to what extent the final approved rates will differ from PG&E’s
proposed rates.
On December 19, 2013, PG&E filed its application for revised Gas Transmission and Storage
(GT&S) rates for the period of 2015 through 2017. While a decision was initially anticipated by
March 2015, several subsequent events created delays. Briefs were filed by several parties,
including Palo Alto, and final oral arguments were heard in October 2015. Safety related costs
pertaining to PG&E’s response to the San Bruno pipeline explosion caused additional
postponements, and changes to rates due to that investigation were moved to a separate
hearing item that are still under evaluation by the CPUC. On June 23, 2016, the CPUC
announced the most recent change to G-WSL, effective August 1, 2016.
Staff closely followed the proceedings and the proposed rate and the proposed timing of the
effective date for the rate changed many times over the last couple of years. The uncertainty of
when, and by how much, the rate would change caused budgeting uncertainty
Discussion
As of August 1, 2016, PG&E’s G-WSL rate increased from $0.043 to $0.107 per therm, a 249%
increase. Staff anticipated that the transportation rate would rise significantly based on the
GT&S proceedings and increased costs for transportation were included in the fiscal year (FY)
2017 budget. However, due to timing and cost uncertainties which are outside of Palo Alto’s
control, staff proposes separating out the transportation cost from the distribution costs and
showing it on the rate schedule as a separate Transportation Charge. As with the monthly-
varying Commodity Charge, staff recommends making the Transportation Charge a ‘pass-
through’ charge, based on the PG&E’s G-WSL rate applicable tor Palo Alto, accounting for
delivery losses.
Staff expected and budgeted for an average transportation rate of $0.106/therm, and the
City of Palo Alto Page 3
August G-WSL average rate is very close to that ($0.107/therm). The G-WSL rate includes a
small fixed charge and a volumetric charge. Staff proposes to pass through the volumetric
portion of the G-WSL rate adjusted for the City’s distribution system losses. The volumetric
portion of the G-WSL rate that went into effect August 1, 2016 is $0.10553/therm. Therefore,
the initial Transportation Charge would be $0.1088/therm ($0.10553/therm times 1.031, the
City’s distribution system loss factor of 3.1%). The Distribution Charge would be reduced by the
initial Transportation Charge ($0.1088/therm), resulting in a revenue-neutral rate change for
almost all customers. The City’s CNG facility (G-10 rate schedules) will have a slight rate
increase, as described below.
Staff proposes to include a minimum ($0) and a maximum ($0.15/therm) range on the
Transportation Charge. Any future changes to the G-WSL rate will be passed through to
customers as they become effective to CPAU. Changes to the Transportation Charge will be
posted on the City’s website. In addition, staff proposes to list the Transportation Charge as
one of the Supply Cost components (along with the Commodity and the Cap and Trade
Compliance charges) as this cost is related to delivering the commodity to Palo Alto and the
Distribution Charges are related to the cost to deliver gas to customers in Palo Alto.
CNG facility rates (G-10 and G-10G)
Gas rates were increased 8% effective July 1, 2016. This rate increase did not wholly recover
costs, but required a drawdown of reserves to cover shortfalls. Separating out the
Transportation Charge from the Distribution Charge on a revenue-neutral basis for most
customers maintains this shortfall. However, the CNG facility is a special case as it is directly
connected to PG&E’s high-pressure line from PG&E and does not utilize CPAU’s distribution
system, but is still allocated transportation and administrative related costs. Since the existing
rates are under-collecting for these components, including the transportation costs as a
separate charge results in a rate increase for the CNG facility of about $2,400 in FY 2017.
Committee Review and Recommendation
The UAC reviewed staff’s recommendation at its August 31, 2016, meeting and voted
unanimously to support staff’s recommendation. The minutes to the UAC meeting are provided
as Attachment C.
Resource Impact
As part of the FY 2017 budget calculations, staff assumed that the average transportation cost
would be $0.106/therm, while the final average August G-WSL rate ended up being
$0.107/therm. The difference is estimated to be less than $30,000 during FY 2017, and can be
absorbed by existing budget. In addition, the proposed rate change will increase costs for the
City’s CNG facility by about $2,400 in FY 2017 which wil be absorbed by existing budget.
Policy Implications
This recommendation does not represent a change to current City policies. The proposed
revisions do not have any policy implications.
City of Palo Alto Page 4
Environmental Review
Adoption of this resolution changing gas rates to meet operating expenses and meet financial
reserve needs is not subject to the California Environmental Quality Act (CEQA), pursuant to
California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of
Regulations Sec. 15273(a).
Attachments:
Attachment A: Resolution Amending Gas Rate Schedules G-1, G-1-G, G-2, G-2-G, G-3, G-
3-G, G-10 and G-10-G (PDF)
Attachment B: Gas Rate Schedules G-1, G-1-G, G-2, G-2-G, G-3, G-3-G, G-10 and G-10-G
(PDF)
Attachment C: Excerpted Draft UAC Minutes of August 31, 2016 Special Meeting (PDF)
NOT YET APPROVED
160921 jb JM/UTL/Staff Reports 1
Resolution No. _________
Resolution of the Council of the City of Palo Alto Amending Rate
Schedules G-1 (Residential Gas Service), G-1-G (Residential Green Gas
Service), G-2 (Residential Master-Metered and Commercial Gas Service),
G-2-G (Residential Master-Metered and Commercial Green Gas Service),
G-3 (Large Commercial Gas Service), G-3-G (Large Commercial Green Gas
Service), G-10 (Compressed Natural Gas Service Service) and G-10-G
(Compressed Natural Green Gas Service) Effective November 1, 2016
R E C I T A L S
A. The City’s transportation costs for gas are based on the current Pacific Gas and
Electric Company’s (PG&E’s) G-WSL rate for Palo Alto.
B. Due to the variability in PG&E’s G-WSL, largely dependent on when the California
Public Utilities Commission approves new rates, sets an effective date and makes a
determination on the extent to which the final rates will deviate from PG&E’s proposed rates,
the City has determined that it is best to identify the Transportation Charge as a separate, pass-
through component of the City’s rates so that these transportation costs can be fully and timely
recovered.
C. The initial Transportation Charge ($0.1088 per them) will be subtracted from the
existing Distribution Charges on the G-1, G-1-G, G-2, G-2-G, G-3 and G-3-G rate schedules,
resulting in a revenue neutral change to these rates. The G-10 and G-10-G schedules will see an
initial $0.0218/therm increase. Future Transportation Charge changes will not result in changes
to other rate components.
D. The Transportation Charge will be based on PG&E’s G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter, and will be updated whenever the G-
WSL is changed.
E. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the
City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees
and charges.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-1 (Residential Gas Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule G-1, as amended, shall become effective November 1, 2016.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-1-G (Residential Green Gas Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule G-1-G, as amended, shall become effective November
1, 2016.
Attachment A
NOT YET APPROVED
160921 jb JM/UTL/Staff Reports 2
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule G-2, as amended, shall
become effective November 1, 2016.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-2-G (Residential Master-Metered and Commercial Green Gas Service) is
hereby amended to read as attached and incorporated. Utility Rate Schedule G-2-G, as
amended, shall become effective November 1, 2016.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule G-3, as amended, shall become effective November 1, 2016.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3-G (Large Commercial Green Gas Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule G-3-G, as amended, shall become effective
November 1, 2016.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule G-10, as amended, shall become effective
November 1, 2016.
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-10-G (Compressed Natural Green Gas Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule G-10-G, as amended, shall become effective
November 1, 2016.
SECTION 9. The Council finds that the revenue derived from the adoption of this
resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of
the City of Palo Alto.
SECTION 10. The Council finds that the fees and charges adopted by this resolution are
charges imposed for a specific government service or product provided directly to the payor
that are not provided to those not charged, and do not exceed the reasonable costs to the City
of providing the service or product.
SECTION 10. The Council finds that the adoption of this resolution changing gas rates
to meet operating expenses and meet financial reserve needs is not subject to the California
Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec.
21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing
the staff report and all attachments presented to Council, the Council incorporates these
NOT YET APPROVED
160921 jb JM/UTL/Staff Reports 3
documents herein and finds that sufficient evidence has been presented setting forth with
specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-1 Effective 711-1-2016
dated 27-1-20156 Sheet No G-1-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from City of Palo Alto
Utilities:
1. Separately-metered single-family residential Customers.
2. Separately-metered multi-family residential Customers in multi-family residential facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$10.32
Tier 1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charge ..................................................$0.00-$0.25
3. Transportation Charge........................................................................$0.00-$0.15
Distribution Charge: .............................................................................................$0.50213933
Tier 2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-2.00
2. Cap and Trade Compliance Charge ...................................................$0.00-$0.25
3. Transportation Charge........................................................................$0.00-$0.15
Distribution Charge: .............................................................................................
........................................................................................................$1.04070.931
9
D. SPECIAL NOTES:
1. Calculation of Cost Components
ATTACHMENT B
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-2 Effective 711-1-2016
dated 27-1-20156 Sheet No G-1-2
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, and Cap and Trade Compliance and Transportation Charges will fall
within the minimum/maximum ranges set forth in Section C.
2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the Winter period is effective from
November 1 to March 31. When the billing period includes use in both the Summer and the
Winter periods, the usage will be prorated based on the number of days in each seasonal
period, and the charges based on the applicable rates for each period. For further discussion
of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms per
day during the Summer period and 2.0 therms per day during the Winter period, rounded to
the nearest whole therm, based on meter reading days of service. As an example, for a 30
day bill, the Tier 1 level would be 20 therms during the Summer period and 60 therms during
the Winter period months. For further discussion of bill calculation and proration, refer to
Rule and Regulation 11.
{End}
RESIDENTIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-1-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-G-1 Effective 711-1-2016
dated 27-1-20156 Sheet No G-1-G-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Separately-metered single-family residential Customers.
2. Separately-metered multi-family residential Customers in multi-family residential
facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$10.32
Tier 1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges .............................................. $0.00-$0.25
3 Transportation Charge .................................................................... $0.00-$0.15
Distribution Charge:.............................................................................................$0.50213933
PaloAltoGreen Gas Charge .................................................................................. $0.1200
Tier 2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-2.00
2. Cap and Trade Compliance Charges ..................................................$0.00-$0.25
3 Transportation Charge .......................................................................$0.00-$0.15
Distribution Charge:.............................................................................................$1.04070.9319
PaloAltoGreen Gas Charge .................................................................................. $0.1200
RESIDENTIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-1-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-G-2 Effective 711-1-2016
dated 27-1-20156 Sheet No G-1-G-2
D. SPECIAL NOTES:
1. 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, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, and Cap and Trade Compliance and Transportation Charges will fall
within the minimum/maximum ranges set forth in Section C.
2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the Winter period is effective
from November 1 to March 31. When the billing period includes use in both the Summer
and the Winter periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates for each period. For
further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms
per day during the Summer period and 2.0 therms per day during the Winter period,
rounded to the nearest whole therm, based on meter reading days of service. As an
example, for a 30 day bill, the Tier 1 level would be 20 therms during the Summer period
and 60 therms during the Winter period months. For further discussion of bill calculation
and proration, refer to Rule and Regulation 11.
RESIDENTIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-1-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-G-3 Effective 711-1-2016
dated 27-1-20156 Sheet No G-1-G-3
4. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer’s Gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer’s premises every month.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
{End}
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-1 Effective 711-1-2016
dated 27-1-20156 Sheet No G-2-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto
Utilities:
1. Commercial Customers who use less than 250,000 therms per year at one site.
2. Master-metered residential Customers in multi-family residential facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$78.23
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ................................................. $0.00-0.25
3. Transportation Charge........................................................................$0.00-$0.15
Distribution Charge: ........................................................................................................ $0.6855
5767
D. SPECIAL NOTES:
1. 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, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with
the state’s Cap and Trade Program, including the cost of acquiring compliance instruments
sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade
Compliance Charge will change in response to changing market conditions, retail sales
volumes and the quantity of allowances required.
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-2 Effective 711-1-2016
dated 27-1-20156 Sheet No G-2-2
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, and Cap and Trade Compliance and Transportation Charges will fall within
the minimum/maximum ranges set forth in Section C.
{End}
RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-G-1 Effective 711-1-2016
dated 27-1-20156 Sheet No G-2-G-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Master-metered residential Customers in multi-family residential facilities.
2. Commercial Customers who use less than 250,000 therms per year at one site.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
1. 100% Renewable/Full Green option: Per Service
Monthly Service Charge: ............................................................................................$78.23
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges .................................................... $0.00-0.25
3. Transportation Charge .......................................................................... $0.00-$0.15
Distribution Charge: ............................................................................................$0.68555767
PaloAltoGreen Gas Charge .................................................................................. $0.1200
2. 100 Therm block option: Per Service
Monthly Service Charge: ............................................................................................$78.23
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ....................................................... $0.00-0.25
3. Transportation Charge .............................................................................$0.00-$0.15
Distribution Charge: ............................................................................................$0.68555767
RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-G-2 Effective 711-1-2016
dated 27-1-20156 Sheet No G-2-G-2
PaloAltoGreen Gas Charge (per 100 therm block) .............................................. $12.00
D. SPECIAL NOTES:
1. 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, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, and CCap and Trade Compliance and Transportation Charges will fall
within the minimum/maximum ranges set forth in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one. A site consists of one or more
contiguous parcels of land with no intervening public right-of-ways (e.g. streets).
3. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer’s gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer’s facility every month (the 100%
Renewable/Full Green option), or in 100 therm blocks.
RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-G-3 Effective 711-1-2016
dated 27-1-20156 Sheet No G-2-G-3
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
{End}
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-1 Effective 711x-1-2016
dated 27-1-20156 Sheet No G-3-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities:
1. Commercial Customers who use at least 250,000 therms per year at one site.
2. Customers at City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides natural gas service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: $377.43
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ...................................................... $0.00-0.25
3. Transportation Charge .......................................................................... $0.00-$0.15
Distribution Charge: .....................................................................................................$0.67755687
D. SPECIAL NOTES:
1. 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, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-2 Effective 711x-1-2016
dated 27-1-20156 Sheet No G-3-2
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, and Cap and Trade Compliance and Transportation Charges will fall
within the minimum/maximum ranges set forth in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one site. A site consists of one or more
contiguous parcels of land with no intervening public right-of- ways (e.g. streets).
3. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo
Alto full-service rate schedule.
{End}
LARGE COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-3-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-G-1 Effective 7x11-1-2016
dated 27-1-20156 Sheet No G-3-G-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Commercial Customers who use at least 250,000 therms per year at one site.
2. Customers at City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
1. 100% Renewable/Full Green option: Per Service Monthly Service Charge: $377.43 Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges .......................................................... $0.00-0.25
3. Transportation Charge ................................................................................. $0.00-$0.15 Distribution Charge: .........................................................................................$0.67755687
PaloAltoGreen Gas Charge: ......................................................................................$0.1200
2. 100 Therm block option: Per Service Monthly Service Charge: $377.43 Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges .......................................................... $0.00-0.25
3. Transportation Charge ................................................................................. $0.00-$0.15
Distribution Charge: ...........................................................................................$0.6775687
PaloAltoGreen Gas Charge (per 100 therm block): ....................................................$12.00
LARGE COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-3-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-G-2 Effective 7x11-1-2016
dated 27-1-20156 Sheet No G-3-G-2
D. SPECIAL NOTES:
1. 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, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, and Cap and Trade Compliance and Transportation Charges will fall
within the minimum/maximum ranges set forth in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one site. A site consists of one or more
contiguous parcels of land with no intervening public right-of-ways (e.g. streets).
3. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer’s gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer’s facility every month, (the 100%
Renewable/Full Green option), or in 100 therm blocks.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
{End}
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-1 Effective 711-1-2016
dated 47-201-20156 Sheet No.G-10-1
A. APPLICABILITY:
This schedule applies to the sale of natural gas to the City-owned compressed natural gas (CNG) fueling
station at the Municipal Service Center in Palo Alto
B. TERRITORY:
Applies to location at the Municipal Service Center in City of Palo Alto.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$52.93
Per Therm
Supply Charges:
Commodity (Monthly Market Based) ................................................................ $0.10-$2.00
Cap and Trade Compliance Charges .......................................................................... $0.00 to $0.25
Transportation Charge........................................................................................ $0.00-$0.15
Distribution Charge .......................................................................................................$0.09630093
D. SPECIAL CONDITIONS
1. 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, surcharges and/or Taxes. On a Customer’s bill statement, the bill amount
may be broken down into appropriate components as calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for delivery at
PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the
state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to
cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will
change in response to changing market conditions, retail sales volumes and the quantity of
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-2 Effective 711-1-2016
dated 47-201-20156 Sheet No.G-10-2
allowances required.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for
delivery losses to the Customer’s Meter.
The Commodity, and Cap and Trade Compliance and Transportation Charges will fall within the
minimum/maximum range set forth in Section C.
{End}
COMPRESSED NATURAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-10-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-G--1 Effective 117-1-2016
dated 47-201-20156 Sheet No.G-10-G-1
A. APPLICABILITY:
This schedule applies to the wholesale sale of natural gas to the City-owned compressed natural gas
(CNG) fueling station at the Municipal Service Center in Palo Alto under the PaloAltoGreen Gas
Program:
B. TERRITORY:
The City-owned compressed natural gas (CNG) fueling station located at the Municipal Service Center
in City of Palo Alto.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ........................................................................................................$52.93
Per Therm
Supply Charges:
Commodity (Monthly Market Based) .................................................... $0.10-$2.00
Cap and Trade Compliance Charges .................................................. $0.00 to $0.25
Transportation Charge........................................................................................ $0.00-$0.15
Distribution Charge ......................................................................................................$0.0963.0093
PaloAltoGreen Gas Charge ...................................................................................................$0.1200
D. SPECIAL CONDITIONS
1. 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, surcharges and/or Taxes. On a Customer’s bill statement, the bill amount
may be broken down into appropriate components as calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for delivery at
PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the
COMPRESSED NATURAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-10-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-G--2 Effective 117-1-2016
dated 47-201-20156 Sheet No.G-10-G-2
state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to
cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will
change in response to changing market conditions, retail sales volumes and the quantity of
allowances required.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for
delivery losses to the Customer’s Meter.
The Commodity, and Cap and Trade Compliance and Transportation Charges will fall within the
minimum/maximum range set forth in Section C.
2. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions associated with a
Customer’s Gas usage, through the purchase of certified environmental offsets, with a preference to
projects located in California. Purchases are made to match 100% of the therm usage at the
Customer’s premises every month.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application provided
by the Customer Service Center.
{End}
EXCERPTED DRAFT MINUTES OF THE AUGUST 31, 2016 – SPECIAL MEETING UTILITIES ADVISORY COMMISSION MEETING
ITEM 4. ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend
that the City Council Adopt a Resolution Amending Utility Gas Rate Schedules G-1, G-1-G, G-2,
G-2-G, G-3, G-3-G, G-10, and G-10-G to Include a Separate-Transportation Charge as a Discrete
Pass-Through Component
Rates Manager Eric Keniston summarized the written report. He said that Palo Alto pays Pacific
Gas and Electric (PG&E) to transport natural gas to Palo Alto, as stated in PG&E rate schedule G-
WSL. Changes to that schedule are dictated by the California Public Utilities Commission (CPUC)
and their proceedings. Staff does not know when the schedule will change or what the final
change will be, and proceedings have been subject to substantial delays. Staff requested to
make the G-WSL charges a pass-through charge on customer bills. The initial charge would be
based on the August 2016 G-WSL rate and be subtracted from the existing distribution charge.
The effect would be revenue neutral for all but the City’s CNG facility (G-10), which would see a
small initial increase estimated at $2400 per year.
The UAC did not have any questions related to this item.
ACTION:
Vice Chair Danaher made a motion that the UAC recommend that Council adopt a resolution to
amend Utility Gas Rate Schedules G-1, G-1-G, G-2, G-2-G, G-3, G-3-G, G-10, and G-10-G, as
proposed, to separately identify as a pass-through rate component, a Transportation Charge.
Commissioner Ballantine seconded the motion. The motion passed unanimously (7-0) with
Chair Cook, Vice Chair Danaher and Commissioners Danaher, Forssell, Johnston, Schwartz and
Trumbull voting yes.
ATTACHMENT C