HomeMy WebLinkAboutStaff Report 7359
City of Palo Alto (ID # 7359)
City Council Staff Report
Report Type: Informational Report Meeting Date: 11/7/2016
City of Palo Alto Page 1
Summary Title: Utilities Quarterly Report
Title: City of Palo Alto Utilities Update for the Fourth Quarter of Fiscal Year
2016
From: City Manager
Lead Department: Utilities
This update, on water, gas, electric, wastewater collection and fiber utilities, efficiency
programs, legislative/regulatory issues, utility-related capital improvement programs,
operations reliability impact measures and a utility financial summary, is for the Council and
Utilities Advisory Commission’s (UAC’s) information. This update has been prepared to keep the
UAC and Council apprised of the major issues that are facing the water, gas, electric,
wastewater collection and fiber utilities.
Items of interest this quarter, the final quarter of fiscal year (FY) 2016, include:
a description of an amendment to the layoff agreement for the California Oregon
Transmission Project that allows the asset to return to Palo Alto at the end of the layoff
debt-free (page 3)
an accounting of the costs to achieve the carbon neutral electric portfolio since 2013
(page 4 and Table 1 on page 5)
charts showing the historic annual use of electricity (Figure 4 on page 5), gas (Figure 8
on page 11), and water (Figure 19 on page 19) through FY 2016.
a chart showing that the gas commodity rates have been rising from their lows in the
spring (Figure 9 on page 12)
an update of the water supplies and water storage in the Hetch Hetchy system as of the
end of Water Year 2016 (page 16)
the number of water waste reports received via various tools (Figure 20 on page 20)
a discussion of the pilot Demand Response Program (page 24)
a summary of state legislation of interest to Palo Alto —what passed, what failed, and
what has been signed into law—as of the end of the 2016 legislative session, including
those that are new in 2016 and those that continue from 2015 (page 32)
a discussion of the State’s cap-and-trade auction and the historical prices for the
allowances in the quarterly auctions (page 36)
the unaudited end of financial projections for all Utilities funds (Table 6 on page 40)
City of Palo Alto Page 2
the financial reserves as of the end of the FY 2016 for all Utilities funds (Table 12 on
page 42)
operational impact measures for FY 2016 for electric, gas and water (Figures 27-35)
Attachments:
Attachment A: Utilities Fiscal Year 2016 Fourth Quarter Report (PDF)
Utilities
Quarterly
Update
Fourth Quarter of
Fiscal Year 2016
November 2016
ATTACHMENT A
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
i
Utilities Quarterly Update
Table of Contents
I. Electricity ................................................................................................................... 1
Electric Supplies ............................................................................................................................................ 1
Electric Use History ....................................................................................................................................... 5
Electric Budget and Portfolio Performance Measures ................................................................................. 6
II. Natural Gas............................................................................................................... 10
Market Price History and Projections ......................................................................................................... 10
Gas Use History ........................................................................................................................................... 11
Gas Supply Retail Rates ............................................................................................................................... 12
Gas Budget and Portfolio Performance Measures ..................................................................................... 12
III. Water ....................................................................................................................... 16
Water Year 2016 Summary ......................................................................................................................... 16
Water Use Compared to Targets ................................................................................................................ 18
Water Use History ....................................................................................................................................... 19
Recycled Water Strategic Plan .................................................................................................................... 20
Water Budget Performance Measures ....................................................................................................... 21
IV. Fiber Optics .............................................................................................................. 23
Commercial Dark Fiber Service ................................................................................................................... 23
Google Fiber ................................................................................................................................................ 23
Fiber and Wireless Telecommunications Project Manager ........................................................................ 24
Citizen Advisory Committee ........................................................................................................................ 24
V. Public Benefit, Demand Side Management Programs and Communications ............... 24
Energy Efficiency Program Achievements .................................................................................................. 24
Water Conservation .................................................................................................................................... 29
Local Renewable Energy Programs ............................................................................................................. 29
Communications Activities ......................................................................................................................... 30
VI. Research and Development and Innovation .............................................................. 31
Program for Emerging Technologies ........................................................................................................... 31
Customer Connect Pilot Program ............................................................................................................... 31
Use of Funds from LCFS Credits Sale ........................................................................................................... 32
Heat Pump Water Heater Pilot ................................................................................................................... 32
VII. Legislative and Regulatory Issues .............................................................................. 32
Summary ..................................................................................................................................................... 32
State Legislative Issues ................................................................................................................................ 32
Federal Legislative Issues ............................................................................................................................ 35
State Regulatory Proceedings ..................................................................................................................... 36
VIII. Utility Financial Summary ......................................................................................... 37
Electric Utility Overview .............................................................................................................................. 37
Gas Utility Overview.................................................................................................................................... 38
Wastewater Collection Utility Overview ..................................................................................................... 38
Water Utility Overview ............................................................................................................................... 38
Fiber Optic Utility Overview ........................................................................................................................ 39
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
ii
Financial Projections and Operations Reserve Balances ............................................................................ 39
CIP Reserves (Reappropriations and Commitments) Summary ................................................................. 41
Residential Bill Comparisons (based on 30 day bills) .................................................................................. 43
Non-Residential Bill Comparisons ............................................................................................................... 44
CIP Project Detail ........................................................................................................................................ 44
IX. Operations ............................................................................................................... 51
Reliability Impact Measures ........................................................................................................................ 51
List of Figures
Figure 1: Electric Supply Resource Actual and Projection, 2015 to 2017 (as of Sept. 15, 2016) .................. 2
Figure 2: CY 2017 Monthly Electric Supply Resource Projection .................................................................. 2
Figure 3: Northern California Peak Electric Prices (as of September 13, 2016) ........................................... 4
Figure 4: Palo Alto’s Historic Electric Use ..................................................................................................... 5
Figure 5: FY 2016 Electric Load and Resource Balance ................................................................................. 8
Figure 6: FY 2016 Electric Market Purchase Costs and Market Prices .......................................................... 9
Figure 7: Natural Gas Prices – Historical and Projected as of September 7, 2016 ..................................... 10
Figure 8: Palo Alto’s Historic Gas Use ......................................................................................................... 11
Figure 9: CPAU’s Gas Commodity Rates—July 2012 through October 2016 .............................................. 12
Figure 10: Cumulative Redwood Pipeline Cost vs. Market Benchmarks .................................................... 13
Figure 11: Natural Gas Consumption – Budget vs. Actual .......................................................................... 14
Figure 12: Natural Gas Supply Cost – Budget vs. Actual ............................................................................. 14
Figure 13: FY 2016 Natural Gas Prices ($/MMBtu) – Expected vs. Actual .................................................. 15
Figure 14: Precipitation at Hetch Hetchy .................................................................................................... 16
Figure 15: Up Country Water Available to SFPUC for Water Year 2016 ..................................................... 17
Figure 16: Water Available to SFPUC from WY 2009-WY 2016 .................................................................. 17
Figure 17: Annual Rainfall at Hetch Hetchy and Regional Water System Storage as of the End of the
Water Year (from WY 2000 to WY 2016) .................................................................................................... 18
Figure 18: Water Use Compared to Voluntary Target ................................................................................ 19
Figure 19: Palo Alto’s Historic Water Use ................................................................................................... 19
Figure 20: Number of Water Waste Reports per Month by Reporting Tool .............................................. 20
Figure 21: Water Consumption – Budget vs. Actual ................................................................................... 22
Figure 22: Water Cost – Budget vs. Actual.................................................................................................. 22
Figure 23: Illustration of Citywide Hourly Load – With an Annual Peak of 164MW ................................... 25
Figure 24: Aggregated DR Performance of Participating Customers on 6/3/2016 .................................... 26
Figure 25: PaloAltoGreen Gas Program Performance ................................................................................ 28
Figure 26: California Greenhouse Gas Allowance Prices ............................................................................ 37
Figure 27: Electric Distribution System Service Reliability Indices and Definitions .................................... 52
Figure 28: Electric Service Reliability Interruption Frequency Indices........................................................ 54
Figure 29: Electric Service Reliability Interruption Duration Indices .......................................................... 55
Figure 30: Gas Main Leaks By Type of Pipe ................................................................................................. 56
Figure 31: Gas System O&M Mainline Break Repairs ................................................................................. 57
Figure 32: Gas Main Shutdowns and Customers Affected ......................................................................... 58
Figure 33: Gas Service Disruptions by Cause .............................................................................................. 59
Figure 34: Water Main Leaks by Type of Pipe ............................................................................................ 60
Figure 35: Unplanned Water Service Disruption ........................................................................................ 61
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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List of Tables
Table 1: REC Purchases for Carbon Neutrality CY 2013-2016 ....................................................................... 5
Table 2: FY 2016 Electric Utility Supply Cost Summary ................................................................................ 6
Table 3: FY 2016 Electric Load and Generation Compared to Budget Projections ....................................... 7
Table 4: Summer FY 2016 Events and Workshops ...................................................................................... 30
Table 5: Status to date of all applications to the Program for Emerging Technologies ............................. 31
Table 6: Financial Projections, FY 2016 ....................................................................................................... 40
Table 7: FY 2016 Operations Reserves ($000) ............................................................................................ 40
Table 8: Electric CIP Reappropriations and Commitments ......................................................................... 41
Table 9: Gas CIP Reappropriations and Commitments ............................................................................... 41
Table 10: Wastewater Collection Utility CIP Reappropriations and Commitments ................................... 41
Table 11: Water Utility CIP Reappropriations and Commitments .............................................................. 41
Table 12: FY 2016 Q4 Reserve Report from the City’s Financial System .................................................... 42
Table 13: Residential Electric Bill Comparison ($/month) .......................................................................... 43
Table 14: Residential Natural Gas Bill Comparison ($/month) ................................................................... 43
Table 15: Residential Water Bill Comparison ($/month) ............................................................................ 43
Table 16: Residential Wastewater Collection (Sewer) Bill Comparison ($/month) .................................... 43
Table 17: Median Residential Overall Bill Comparison ($/month) ............................................................. 44
Table 18: Non-Residential Electric Bill Comparison ($/month) .................................................................. 44
Table 19: Non-Residential Natural Gas Bill Comparison ($/month) ........................................................... 44
Table 20: Electric Utility CIP Project Detail (pg 1/2) ................................................................................... 45
Table 21: Gas Utility CIP Project Detail (pg 1/2) ......................................................................................... 47
Table 22: Water Utility CIP Project Detail ................................................................................................... 49
Table 23: Wastewater Collection Utility CIP Projects ................................................................................. 50
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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I. Electricity
Electric Supplies
Western Area Power Administration (Western) Issues
Unfortunately the ongoing drought continues to keep projected Western Base Resource
generation levels well below long-term average levels (399 gigawatt-hours, or GWh). For the
fourth quarter of FY 2016, Western supply delivered 109 GWh (35 GWh below long-term
average levels, but 27 GWh higher than in FY 2015). For all of FY 2016, Western supplied only
257 GWh (36% below long-term average levels) and cost $13.1M (1% lower than the FY 2016
Adjusted Budget).
Calaveras Hydroelectric Project Issues
Drought conditions are lessening their impact on Calaveras, as the reservoir has benefited from
average precipitation during the El Niño winter. For the fourth quarter of FY 2016 Palo Alto’s
share of this project’s generation was 39.1 GWh (15% below the long-term average level, and
296% higher than in FY 2015). For all of FY 2016, Calaveras delivered only 110 GWh (16% below
long-term average levels).
Renewable Energy Contract Summary
On July 20, 2016 the Frontier Solar project officially achieved commercial operations and has
been operating smoothly ever since. The 20 megawatt (MW) facility in Stanislaus County
became the third of the City’s five utility-scale solar photovoltaic (PV) projects to begin
operating. Meanwhile, the remaining three solar PV projects that are in the development
process continue to make good progress toward completion, with the Elevation Solar C and
Western Antelope Blue Sky Ranch B projects expected to come online in November 2016.
Electric Load and Resource Balance
The size of the committed and planned market purchases over the last and current calendar
years (CY) (shown in Figure 1 below) reflects a below average level of hydroelectric output, as
discussed above. For CYs 2015 and 2016 combined, net committed fixed-price forward market
purchases currently account for approximately 543 GWh, which represents 28% of the City’s
total load for the two-year period. For CY 2017, near normal hydro output is projected along
with a surge in long-term renewable resources (landfill gas, wind, and solar), which are
projected to provide 54% of the City’s total CY 2017 load. Overall electric supply resources are
expected to be surplus to load by about 6% for CY 2017; however, some periods will see
significantly higher surplus positions while other periods will be deficit (see Figure 2 below).
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 1: Electric Supply Resource Actual and Projection, 2015 to 2017 (as of Sept. 15, 2016)
Figure 2: CY 2017 Monthly Electric Supply Resource Projection
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
3
Transmission
In 2009, as facilitated by Transmission Agency of Northern California (TANC), the Cities of Palo
Alto and Roseville laid off their full share and obligations in the California Oregon Transmission
Project (COTP) to Sacramento Municipal Utility District (SMUD), Turlock Irrigation District (TID),
and Modesto Irrigation District (MID) (“layoff recipients”) under the 2009 Long-term Layoff
Agreement. The term of the layoff agreement is through 2024 coinciding with the term of the
COTP debt at the time of the layoff. The expectation at the time of the layoff was that when
Palo Alto’s share of COTP was returned in 2024, it would be returned “debt-free”.
TANC and the layoff recipients began the process to refinance and extend the term of the COTP
debt to the end of 2039. The layoff agreement did not include an explicit provision to protect
Palo Alto in the event the debt was extended, therefore exposing Palo Alto to the costs of
potential new debt upon the asset’s return. Palo Alto staff worked diligently with the City
Attorney’s Office to press TANC and the layoff recipients to amend the layoff agreement so as
to not unduly burden Palo Alto’s ratepayers.
On March 9, 2016, TANC sold its existing bonds and issued the COTP Revenue Refunding Bonds,
2016 Series A. TANC was able to secure favorable rates, resulting in an overall positive net
present value for all of the project owners. Earlier this month, Amendment No. 2 to the
Agreement was fully executed by TANC, Palo Alto, Roseville and the layoff recipients. Through
Amendment No. 2, Palo Alto ratepayers will avoid paying approximately $9 million in new COTP
debt between 2025 and 2039.
Electric Market Price History and Projections
As of September 13, 2016, the price for on-peak energy for October 2016 in Northern California
was $39.03 per megawatt-hour (MWh)1, while the prices for November 2016 and December
2016 were $38.60/MWh and $42.60/MWh, respectively. These values are all approximately
$2.39/MWh higher than they were at the time of the last quarterly report.2 On-peak prices for
calendar year strips are in the range of $36 to $40/MWh for 2016 through 2018. These prices
are approximately $2.22/MWh higher than they were at the time of the last quarterly report.
Figure 3: Northern California Peak Electric Prices (as of September 13, 2016) below illustrates
historical monthly on-peak prices and projected monthly forward prices for Northern California
from 2005 through 2023.
1 Note that $30 per megawatt-hour is equal to 3 cents per kilowatt-hour.
2 Market prices for the previous quarterly report were from May 3, 2016.
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 3: Northern California Peak Electric Prices (as of September 13, 2016)
Carbon Neutral Electric Portfolio
Recently, The Climate Registry (TCR) approved Palo Alto’s positive third-party verification
statement for the City’s CY 2014 greenhouse gas (GHG) inventory and Carbon Neutral electric
supply portfolio. This is the second year in a row our electric portfolio has been successfully
verified as carbon neutral, as defined in the Carbon Neutral Plan (Resolution 9322).
The City purchased 515,000 renewable energy certificates (RECs) to cover the City’s non-
renewable power transactions for CY 2014. Earlier this year, the City purchased 479,000 RECs to
achieve carbon neutrality for CY 2015; the CY 2015 inventory is still under review by the third-
party verifier. For CY 2016, staff currently estimates that around 212,000 RECs will be needed to
achieve carbon neutrality. It is important to note that the increased hydroelectric output in
recent months is not the only main driver for the decrease in REC purchases. Increased solar
generation that has come online over the last two years reduces the amount of "brown power"
market purchases the City needs to make. Table 1 provides the City’s upcoming and previous
REC purchases for the last four years. Note that the cost to achieve carbon neutrality has been
well below the rate impact limit of 0.15 cents per kWh.
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Table 1: REC Purchases for Carbon Neutrality CY 2013-2016
Year RECs Purchased Total Cost Average Price
per REC
Rate Impact
(¢/kWh)
CY 2013 392,556 $434,088 $1.11/REC 0.044
CY 2014 515,000 $373,794 $0.73/REC 0.038
CY 2015 479,000 $606,631 $1.27/REC 0.063
CY 2016 (estimated) 212,000 $477,000 $2.25/REC 0.049
Electric Use History
Figure 4 below shows the City of Palo Alto’s historic electric use from FY 1986 through FY 2016.
Note that electric usage has stayed relatively flat, but that electric usage in FY 2016 was 17%
less than usage in FY 1998.
Figure 4: Palo Alto’s Historic Electric Use
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Electric Budget and Portfolio Performance Measures
Electric Supply Cost Summary Compared to Budget Estimates
Table 2 below shows the City of Palo Alto Utilities’ (CPAU’s) supply cost by cost category
through the fourth quarter of FY 2016. Supply costs were $1.3 million (1.6%) over budget
primarily due to higher than expected transmission costs.
Table 2: FY 2016 Electric Utility Supply Cost Summary
Electric Usage and Generation Summary Compared to Budget Estimates
Table 3 and Figure 5 below summarize the City’s electric supply sources through the fourth
quarter of FY 2016. Load was 2% lower than budget. Calaveras generation was substantially
above budget (+50%) due to increased required flow and precipitation. Spot market purchases
were significantly below budget due to a combination of the above reasons. As a result, total
supply was below budget.
Supply Cost
Category
Actuals,
Year To-Date
Month by Month Budget Variance
July through June
TOTAL 79.2 million
0.6 million +0.3
million
+1.3
million
Amount Over (+) /
Under(-) Budget
Market Purchases $12.2 million -0.2
million
Calaveras Hydro 12.1 million +0.1
million
Renewable Sources 20.7 million -0.2
million
Western Hydro 13.1 million -0.1
million
Transmission 17.1 million +2.9
million
NCPA Services 2.4 million -0.1
million
Capacity 1.0 million -0.1
million
Carbon Neutral Costs
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Table 3: FY 2016 Electric Load and Generation Compared to Budget Projections
Year To-Date
Month by Month Budget Variance
July through June
Generation Source Generation
Year To-Date
% of
Portfolio
Month by Month Budget Variance
July through June
27%
11%
10%
10%
9%
31%
2%
TOTAL SUPPLY 964 GWh 100%
Spot Market 17 GWh -36 GWh
-21 GWh
Landfill Gas 96 GWh -9 GWh
Wind 100 GWh -14 GWh
Forward Market 300 GWh +10 GWh
Solar 84 GWh +1 GWh
Calaveras Hydro 110 GWh +37 GWh
Amount Over (+) /
Under(-) Budget Projection
Load 964 GWh -19 GWh
Amount Over (+) /
Under(-) Budget Projection
Western Hydro 257 GWh -9 GWh
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 5: FY 2016 Electric Load and Resource Balance
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Electric Market Prices and Costs Compared to Budget Estimates
Figure 6 shows monthly market prices and the cost of purchasing energy from the market.
Electric market prices through the fourth quarter of FY 2016 were lower due to continued lower
natural gas prices that impact the electricity markets. The cost of market purchases through the
fourth quarter of FY 2016 was about $2.57M higher than it would have been if all energy had
been purchased in the spot market3. As discussed previously, the total cost of market purchases
in the fourth quarter was lower than budgeted due to higher than projected output from
hydroelectric resources.
Figure 6: FY 2016 Electric Market Purchase Costs and Market Prices
3 Note that some market purchases are made on a forward basis to lock in market prices.
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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II. Natural Gas
Market Price History and Projections
Ample supply and large volumes of gas in storage continue to keep gas prices low. Forward gas
prices at PG&E Citygate are around $3.50 per million British Thermal Units (MMBtu)4 for the
next 36 months. Figure 7 below shows historical monthly bidweek index prices through May
2016 and forward natural gas prices at PG&E Citygate as of September 7, 2016.
Figure 7: Natural Gas Prices – Historical and Projected as of September 7, 2016
4 Note that 1 million British Thermal Unit (MMBtu) is equal to 10 therms. Therefore, a gas cost of $3 per MMBtu is
equivalent to 30 cents per therm.
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Gas Use History
Figure 8 below shows the City of Palo Alto’s historic gas use from FY 1971 through FY 2016.
Note that gas usage in FY 2016 was only 58% of that of FY 1973.
Figure 8: Palo Alto’s Historic Gas Use
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Gas Supply Retail Rates
Since July 1, 2012, the commodity portion of CPAU’s retail gas rates for all customers varies
every month depending on the market price of natural gas. Figure 9 below shows the actual
commodity rates charged from July 2012 through October 2016. These rates can also be found
on the web site at: http://www.cityofpaloalto.org/civicax/filebank/documents/30399. Note
that gas commodity rates have risen from the low rates in the spring of 2016.
Figure 9: CPAU’s Gas Commodity Rates—July 2012 through October 2016
Gas Budget and Portfolio Performance Measures
Value of CPAU’s Share of Redwood Pipeline Capacity
Figure 10 below shows the cost of the Redwood gas transmission line compared to the value at
month-ahead spot market prices as well as daily spot market prices. The Redwood pipeline
allows the City to buy gas at the receipt point of Malin, Oregon and transport the gas to “PG&E
Citygate”, which is normally a higher value receipt point. The City’s share of the Redwood
pipeline was a net benefit to the Gas Utility of approximately $288,000 through the fourth
quarter of FY 2016. This is the difference between the value of Redwood capacity of $800,000
(the difference of the monthly index prices at the ends of the Redwood pipeline in Malin,
Oregon and PG&E Citygate) and the transportation cost of using the Redwood pipeline of
$512,000.
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 10: Cumulative Redwood Pipeline Cost vs. Market Benchmarks
Natural Gas Consumption and Costs: Budget vs. Actual
Figure 11 and Figure 12 compare actual natural gas use and supply costs with the FY 2016
budget. Natural gas use through the fourth quarter of FY 2016 was 11.8% below the budget
forecast, and costs were 53% lower than budgeted amounts. Gas usage was lower than
estimated in the budget since the weather has been much warmer than average. Reduced gas
usage may also be impacted by the drought and customer’s reduced usage of (hot) water.
Lower than budgeted gas prices were a main contributor to the lower than budgeted
commodity cost.
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 11: Natural Gas Consumption – Budget vs. Actual
Figure 12: Natural Gas Supply Cost – Budget vs. Actual
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 13 shows actual gas prices at PG&E Citygate (CG) versus gas prices that were projected
at the time the FY 2016 budget was developed. For the entire fiscal year, gas prices have been
lower than budget. The price of gas is passed directly to consumers through the monthly-
varying, market-based commodity portion of CPAU’s gas retail rate so commodity prices and
cost—and commodity revenues—are lower than projected.
Figure 13: FY 2016 Natural Gas Prices ($/MMBtu) – Expected vs. Actual
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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III. Water
Water Year 2016 Summary
September 30, 2016 marked the end of Water Year (WY) 2016. Figure 14 shows precipitation
for WY 2016 compared to median precipitation, last year (WY 2015), a very dry year (WY 1977),
a wet year (WY 1998), and a very wet year (WY 1983).
Figure 14: Precipitation at Hetch Hetchy
Figure 15 shows the flows on the Tuolumne at La Grange and the water allocated to the senior
rights holders (Modesto Irrigation District and Turlock Irrigation District, or “the Districts”) and
the water available to the City and County of San Francisco, the junior rights holder. The total
water available to SFPUC in WY 2016 for the Regional Water System was 651,330 acre-feet. For
comparison, SFPUC’s Regional Water System delivered almost 160,000 acre-feet in calendar
year 2015.
WY 1983
WY 1998
WY 2016
WY 1983 Median
WY 1983
WY 2015
WY 1983 WY 1977
WY 1983
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 15: Up Country Water Available to SFPUC for Water Year 2016
Figure 16 illustrates the very low amount of water available to the City from the Tuolumne
River watershed over the prior four water years (WY 2012-2015). WY 2016 had, by comparison,
much more water available for the Regional Water System.
Figure 16: Water Available to SFPUC from WY 2009-WY 2016
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Figure 17 shows the relationship between precipitation at Hetch Hetchy and the end of water
year total system storage levels. As shown, the water storage in the system was relatively low
in WY 2012 through WY 2015, but has recovered somewhat as of the end of WY 2016.
Figure 17: Annual Rainfall at Hetch Hetchy and Regional Water System Storage as of the End
of the Water Year (from WY 2000 to WY 2016)
Water Use Compared to Targets
After an above average winter of precipitation, on March 18, 2016, the State Water Resources
Control Board (SWRCB) modified the emergency water use regulation replacing the state-
determined mandatory water use reduction targets with a self-certification process designed to
take into account local water supply conditions. The SWRCB’s water use reduction formula uses
a 3-year planning horizon and yielded a 0% mandatory reduction for San Francisco Public
Utilities Commission (SFPUC) customers including Palo Alto. The regulation is in effect until
January 31, 2017.
Despite the State’s water use reduction formula yielding no need to reduce water use, the
SFPUC requested a voluntary 10% water use reduction for its customers including Palo Alto. The
SFPUC uses a more conservative formula that recognizes the long-term uncertainty of water
supply in California and using an 8.5 year planning horizon. A 10% reduction is commensurate
Utilities Quarterly Update for Fourth Quarter of FY 2016
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with Stage I actions in the City’s Water Shortage Contingency Plan. As of August 30, the City’s
water use was 20.5% less than 2013 as shown in Figure 18 below.
Figure 18: Water Use Compared to Voluntary Target
Water Use History
Figure 19 below shows the City of Palo Alto’s historic water use from FY 1965 through FY 2016.
Note that FY 2016 water consumption was almost 30% below usage in 2013 and less than half
the City’s water usage in FY 1976.
Figure 19: Palo Alto’s Historic Water Use
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
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Water Waste Coordinator
From March through August, the City received 106 water waste reports, of which 85 were
unique reports. The public has many options to report water waste: the Water Waste Hotline
(650) 496-6968, a special email address (Drought@CityofPaloAlto.org), the PaloAlto311 app,
and reporting tools operated by the Santa Clara Valley Water District (SCVWD) and the State.
The Water Waste Coordinator follows up on water waste reports with a field investigation and
work with customers to resolve water use issues and educate them on efficient water use.
Figure 20 below shows the number of water waste reports per month by reporting tool.
Figure 20: Number of Water Waste Reports per Month by Reporting Tool
Recycled Water Strategic Plan
Since the City Council certified the Final Environmental Impact Report for expanding the
recycled water pipeline system to reach the Stanford Research Park on September 28, 2015
(Staff Report 5962), staff has issued a request for proposals (RFP) for pre-design work,
preparation of a business plan for the pipeline expansion project as well as examining
alternatives such as installing equipment to purify treated wastewater to potable water
standards. This larger more comprehensive project is now called the Recycled Water Strategic
Plan (see Staff Report 6700). Responses to the RFP were received in June of 2016 and a
contractor has been selected. Staff is currently negotiating with the selected contractor
0
5
10
15
20
25
30
35
March April May June July August
#
o
f
R
e
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o
r
t
s
Month
Total Water Waste Reports
Duplicates
State
SCVWD
Other
Email
Phone
311 App
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
21
regarding the scope of the project. Utilities staff is also staying apprised of the progress in the
project meetings for the Advanced Water Purification System Feasibility Study. This feasibility
study is evaluating different options for upgrading the quality of the recycled water by purifying
it using technologies such as reverse osmosis (Staff Report 6458).
Additionally, staff is working closely with the SCVWD, the City of Mountain View, and the
partners of the Regional Water Quality Control Plant to make sure that both the Recycled
Water Strategic Plan and the Advanced Water Purification System Feasibility Study project
contribute to water reuse goals for the region as a whole. In an effort to facilitate regional
recycled water use and planning, staff is also working on a general memorandum of
understanding (MOU) regarding recycled water between the City of Mountain View and
SCVWD. The final MOU for this recycled water planning is anticipated to go to the SCVWD
Board of Directors in early November, with approval from the City Council of Palo Alto and the
City Council of Mountain View shortly thereafter.
Water Budget Performance Measures
Figure 21 and Figure 22 below compare actual water consumption and water supply cost to the
FY 2016 budget projections. The community has responded with substantial water savings
CPAU has been working diligently with the City’s interdepartmental drought team to ensure the
message about necessary water use reduction has been widespread, and to develop innovative
solutions to help the City and community members meet its water use reduction target. Actual
water use through the end of FY 2016 was 6% lower than budget estimates. Actual supply costs
through end of FY 2016 were 6% below budget, mostly due to the lower consumption.
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Figure 21: Water Consumption – Budget vs. Actual
Figure 22: Water Cost – Budget vs. Actual
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IV. Fiber Optics
Commercial Dark Fiber Service
The total number of commercial dark fiber customers was 107 as of the end of FY 2016. The
total number of active dark fiber service connections serving commercial customers is 219
(some customers have multiple connections). Commercial customers generate 81% of the dark
fiber license revenues. Through the end of FY 2016, 22 new dark fiber service connections to
existing and new customers were completed, while 30 service connections were disconnected.
Google Fiber
On July 18, 2016, a Google representative informed staff of a further delay in their fiber optic
network deployment plans in Silicon Valley. Staff understands that it could be up to 6 months
or more before Google moves forward with its network build. Google indicated that they are
exploring more innovative methods of deployment—including integrating wireless
technologies—that overcome some of the challenges they are facing in their current builds.
Deployments in the cities of Mountain View, San Jose, Santa Clara and Sunnyvale are also being
delayed. Google’s delay also impacts discussions about co-build opportunities and those
discussions are temporarily on hold.
AT&T GigaPower
As of September 2016, the City has approved the deployment of 2 cabinets related to AT&T
GigaPower service roll out, which is expected to deliver ultra-fast broadband speeds up to 1
Gigabit per seconds. Staff expects AT&T will file additional applications to deploy more cabinets
in 2017. Each cabinet can serve approximately 300-400 homes. Based on Council direction, staff
has also initiated co-build discussions with AT&T. A meeting between City leadership and AT&T
leadership is planned to further these discussions.
Fiber-to-the-Premises Master Plan and Wireless Network Plan
Staff is currently working on the following tasks for the FTTP and Wireless Plans as directed by
the Council on September 28, 2015:
1. “Dig Once” ordinance: Staff, including the City Attorney’s office and the City’s consultant
CTC Technology & Energy, is working to evaluate existing dig once models, ordinances and
strategies implemented by other municipalities and counties. Staff anticipates bringing a
recommendation to the Council late this year or in early 2017.
2. A Request for Information (RFI) was issued in May 2016 to explore potential municipally-
owned and public-private partnership models for FTTP. Eight responses to the RFI were
received and staff is working with CTC Technology & Energy to review these responses.
Discussions will be pursued with two or three of the respondents and CTC will participate in
these discussions as part of their scope of work.
3. Staff is working with CTC Technology & Energy to develop Requests for Proposals for a
Mobile Broadband Network for Public Safety (e.g. “in-vehicle” broadband access) and a
Point-to-Multipoint Network for Secure City Enterprise Access to improve command and
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control of critical City infrastructure for Public Safety and Utilities. The RFPs are expected to
be released in early October 2016.
Fiber and Wireless Telecommunications Project Manager
On November 30, 2015, Council approved hiring a temporary Fiber and Wireless
Telecommunications Project Manager for up to 3 years at an annual cost of $228,000. This
position will manage various City fiber and wireless initiatives, including working as a special
point of contact for the City if Google Fiber builds its network in Palo Alto. As a result of the
Google Fiber delay, the hiring of the Fiber and Wireless Telecommunications Project Manager
has been postponed.
Citizen Advisory Committee
Staff continues to meet on a regular basis with the committee regarding fiber and wireless
initiatives. In April 2016, the City Manager invited the 6 current committee members to
continue their service until April 30, 2018 and all agreed to continue to serve. The City Manager
also asked staff to recruit new members to the committee and expects to appoint 5 new
members prior to the next committee meeting in October.
V. Public Benefit, Demand Side Management Programs and
Communications
Energy Efficiency Program Achievements
CPAU offers a wide range of customer programs and services to encourage energy and water
efficiency and customer-owned renewable generation. Some of these programs are
administered by CPAU staff, although the majority of the energy and water savings are
achieved through third-party administered programs. The Annual DSM Report summarizes
overall savings goals versus achievements, program-level achievements and expenditures, as
well as key initiatives undertaken by CPAU. The Annual DSM Report for FY 2015 was provided
to Council on April 18, 2016 and UAC in May 2016 (Staff Report 6715). Listed below are updates
and highlights from these programs.
2016 Summer Demand Response Program
The Demand Response Pilot Program started May 2, 2016 and will run until October 14, 2016.
CPAU had one event since the program started on June 3, 2016. Three of the program
participants were involved in the event which yielded a load reduction of 312 kW, or 0.2% load
reduction from the City’s peak load for 2016. Figure 23 shows the City’s hourly demand from
the start of the program.
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Figure 23: Illustration of Citywide Hourly Load – With an Annual Peak of 164MW
Figure 24 shows the performance of the participating customers during the June 3 Demand
Response Event, which requested demand reductions between 2 p.m. and 6 p.m. The three
customers who achieved load reduction were City of Palo Alto’s City Hall, HP Enterprises, and
Palo Alto Research Park. Total payment to the three customers for participating in the event
was $473.94.
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Figure 24: Aggregated DR Performance of Participating Customers on 6/3/2016
– Average Load Reduction of 312 kW, ~15% of total customer load
Home Efficiency Genie Program
A new residential energy audit program, the Home Efficiency Genie, was launched at the
beginning of FY 2016. Residents pay a small co-payment for a comprehensive building
performance audit. After initial participation was low, staff launched an extensive marketing
campaign and participation picked up from 26 assessments in the second quarter to 35
assessments in the third quarter. With limited marketing funds remaining in the fourth quarter,
efforts were focused on building relationships with various neighborhood groups and Cool
Block Leaders with the hope of attracting participation by active members of the community. A
total of 105 assessments were completed in the first year of the program.
Georgetown University Energy Prize Competition
The Georgetown University Energy Prize (GUEP) is a national competition among small- to
medium-sized cities for a $5 million prize. The goal of the competition is to encourage energy
savings and develop energy efficiency programs that are innovative, replicable, lasting,
equitable, and connected to education. The competition measures energy usage in 2015 and
2016. Based on data from January through September 2015, Palo Alto ranked 15th (out of 50)
in the competition. No new rankings have been released since September 2015.
Of the three Utility customer sectors whose electricity and natural gas usage count towards the
competition—residential, municipal, and public school buildings—the residential sector is the
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biggest energy user. For electricity, in 2015 residential usage made up 19% of Palo Alto’s total,
compared to 3% and 1% for municipal and school buildings, respectively. For natural gas, in
2015 residential usage made up 44% of Palo Alto’s total, compared to 4% and 1% for municipal
and school buildings, respectively. Thus, increasing energy efficiency for the residential
customers is a priority for the GUEP competition.
CPAU is collaborating with Palo Alto Unified School District (PAUSD) to develop programs
designed to engage residential customers. At the core of the programs is CPAU’s new Utility
Portal, an online tool that enables customers to learn about their energy and water use, CPAU’s
efficiency programs, and tips to reduce usage. In order to increase Portal engagement, staff is
developing an Energy Passport initiative for elementary schools, as well as a Portal Sign-Up
campaign for middle schools and high schools. Both programs are designed to demonstrate the
effectiveness of reaching residential customers through students and their families and
encouraging them to use the Utility Portal. To date, 541 residential customers have created
Utility Portal accounts. The school programs will be launched in the fall of 2016.
Schools have an incentive to help Palo Alto win the GUEP competition since the City Council
approved allocating $1 million of GUEP prize funds to PAUSD, should Palo Alto win. These funds
would be used for energy efficiency and renewable energy projects at schools. From an
educational perspective, schools have an additional incentive to encourage Utility Portal
engagement since energy and water usage data available through the Portal represent valuable
real-life information that can be connected with curriculum. This incorporation of real-world
information aligns with the objectives of Common Core and Next Generation Science Standards
that the majority of states in the U.S.—including California—have adopted.
PaloAltoGreen Gas
The voluntary PaloAltoGreen Gas (PAGG) program 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. There will be no active
marketing for PAGG program until a decision is made on the proposed carbon neutral gas
portfolio later this year. As shown in Figure 25 below, 895 customers have signed up for PAGG
as of the end of August 2016. Although the bulk of the participants are residential customers,
the majority of the gas load enrolled in the program is for City facilities since all City facilities
enrolled in the program for 100% of their gas usage starting in July 2015.
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Figure 25: PaloAltoGreen Gas Program Performance
Multi-family Residence Plus
The Multi-family Residence Plus+ Program was launched in June 2015 to offer EE measures to
an underserved segment of CPAU’s customer base. This is the first time CPAU has targeted
multi-family residences and the program has been successful in attracting participants. In the
fourth quarter, participation spiked with demand far exceeding initial expectations. The initial
budget for the 3 year contract was $450,000. The $150,000 initially allocated for FY 2016 was
used by the end of April 2016 so an additional $150,000 was allocated to FY 2016.
In FY 2016, EE upgrades were completed at 48 apartment buildings, 1 senior living complex and
1 rehabilitation facility and the program installed over 109,000 square feet of insulation and
replaced close to 2,000 lights with efficient bulbs saving close to 200,000 kWh.
New measures were approved in June, including a focus on LED lighting since it has become
affordable and the list of multi-family complexes eager to participate in the program has grown.
This situation prompted staff to request additional funds for the program. Council agreed and
approved increasing the contract by $500,000 in September (Staff Report 7192).
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These additional funds will enable the program to meet its goals, including to:
Install EE measures in buildings with below market rate units and the common areas at
low income housing complexes;
Provide increased comfort and decreased heating and cooling bills due to insulation
installed for residents;
Provide increased safety due to better quality lighting in and around units; and
Claim energy savings to help CPAU’s efforts with the GUEP competition.
Water Conservation
CPAU partners with the Santa Clara Valley Water District (SCVWD) to provide residential and
commercial water conservation programs which includes, free water audits to residential
customers, landscape surveys, rebates for landscape conversions, irrigation hardware, clothes
washers, High-Efficiency Toilets (HETs) and urinals. On July 1, 2016, SCVWD reinstated the
Landscape Rebate Program and is now accepting new applications. Customers wishing to
participate in the rebate program must complete a pre-inspection and submit an application for
approval before beginning any work on their project.
Local Renewable Energy Programs
Net Energy Metering Cap
On October 26, 2015 City Council approved a formal definition of the Net Energy Metering
(NEM) cap of 9.5 MW (Staff Report 6139). On August 22, 2016 Council approved the NEM
Successor Program and directed staff to recalculate the NEM cap using an alternative
methodology (Staff Report 7150). The revised cap is 10.8 MW which is 13% larger than the
original NEM cap. As of September 6, 2016 Palo Alto has 7.8 MW of local solar photovoltaic (PV)
capacity, representing 72% of the new NEM cap.
PV Partners Solar Rebates
CPAU’s share of the SB1 mandated goal was to pay $13M in rebates for 6.5 MW of PV system
capacity by 2017. All of the available program funds have been reserved. Palo Alto’s SB1 funded
PV installations are expected to total 7.3 MW by 2018 and the final performance-based
incentive payments will end in FY 2023.
Bay Area SunShares (Group-buy) Solar Program
CPAU joined the 2016 Bay Area SunShares solar and electric vehicle (EV) group-buy program
administered by non-profit Business Council on Climate Change for Bay Area residents (see
http://www.bayareasunshares.org/ for more information). The program was launched in
August and a Palo Alto workshop was held in September. Solar or EV purchase and lease
contracts must be signed by November 18. In 2015 CPAU had 54 customers install solar with
the SunShares program.
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Communications Activities
Education, Workshops and Community Outreach Activities
After the extensive spring series of workshops and events reported in the last quarterly report,
the summer activities are listed in Table 4 below.
Table 4: Summer FY 2016 Events and Workshops
Event Date Attendance
Graywater to Green Garden (BAWSCA) 5/21/2016 50
Palo Alto Downtown Farmer's Market 6/25/2016 60+
Communications Highlights
This section summarizes communications highlights, updates on major campaigns and
noteworthy events. Copies of all current and past ads and bill inserts are available online at
cityofpaloalto.org/UTLbillinsert
Frontier Solar Project Ribbon Cutting & Commercial Operations: On May 18, the developer of
the 20 megawatt Frontier Solar project hosted a ribbon-cutting ceremony at the project site
near the town of Newman. Utilities staff attended and were given the honor of officially cutting
the ribbon – giant scissors and all! The project began commercial operations on July 20.
Frontier Solar is the City’s third utility-scale solar project to begin operating, and it’s the closest
to the Bay Area of the six large solar projects that the City has under contract. Two more solar
projects are expected to begin operations by the end of 2016 and the sixth project is expected
to be operating in 2021.
Live Demo of Emergency Response to Utility Line Strikes: On June 10, Utilities and Office of
Emergency Services staff played a leading role in demonstrating emergency response to an
accidental gas and electric line “dig-in.” The event highlighted the importance of safety
prevention measures for excavation. Senator Jerry Hill provided a keynote address with praise
for Palo Alto’s safety practices.
The 2015 Consumer Confidence Report on water quality was updated in June and is now
available online in English, Spanish and Mandarin at cityofpaloalto.org/waterquality. The
reports are included in new utility customer welcome packets and current customers may
contact us to request a printed version. The City also provides a copy of the 2016 Public Health
Goals Report at this water quality webpage.
Groundbreaking for San Francisquito Creek Flood Control Project: On August 5, the City
celebrated groundbreaking on a major flood control improvement project for San Francisquito
Creek, along with partners of the Creek Joint Powers Authority, SCVWD, Cities of East Palo Alto,
Menlo Park, San Mateo County Flood Control District, members of the state Senate and
Assembly, and US Fish and Wildlife Service.
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Gas Safety Awareness: CPAU is required to maintain a public awareness outreach plan about
gas safety, which includes distributing an annual gas safety awareness brochure. These
brochures were mailed in August to all customers, non-customers living around a gas pipeline,
locators, excavators, contractors and plumbers working in and around Palo Alto. This brochure
is available online in English, Spanish and Mandarin at cityofpaloalto.org/safeutility
Communication about Rate Adjustments for Fiscal Year 2017: Utilities rate adjustments for
electric, gas, water, wastewater, refuse and storm drain services became effective July 1. CPAU
Communications staff developed a communications strategy for how to explain the reasons
behind the rate increases, including webpage (www.cityofpaloalto.org/RatesOverview),
prepared talking points, information in utility bills, frequently asked questions, and through
direct communication with internal and external stakeholders, such as City Council, City staff,
media and customers.
VI. Research and Development and Innovation
Program for Emerging Technologies
CPAU’s Program for Emerging Technologies, or PET, (www.cityofpaloalto.org/UTLInnovation)
provides the opportunity for local businesses and organizations to submit proposals for
innovative and impactful products to CPAU for review as a prospective partner. 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 the program’s inception in June 2012 through the fourth
quarter of FY 2016, the program received a total of 55 applications. Table 5 below summarizes
the status of all applications through the fourth quarter of FY 2016.
Table 5: Status to date of all applications to the Program for Emerging Technologies
Deadline Total Received Under Review Declined/Closed Active Completed
FY 2013 13 0 11 0 2
FY 2014 15 0 11 1 3
FY 2015 15 1 9 2 2
FY 2016 14 5 4 0 5
TOTAL 55 4 36 3 12
Customer Connect Pilot Program
This 300-home advanced metering infrastructure (AMI) pilot is operating in a stable fashion,
collecting hourly consumption information and providing it to the participating customers. This
pilot and associated ancillary pilots will be evaluated in 2017. An initial internal evaluation will
be undertaken at the end of the year, followed by an independent consultant evaluation in
2017. The same consultant will evaluate overall AMI investment strategy for CPAU and develop
a cost/benefit assessment for a full-scale deployment of smart grid technologies. This
assessment is expected to be completed by the end of 2017.
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Use of Funds from LCFS Credits Sale
As recommended by the UAC in June and Finance Committee in September (Staff Report 7128),
in October Council will consider approval of a policy on the use of funds from the sale of
California Air Resources Board’s (CARB) Low Carbon Fuel Standards (LCFS) credits allocated to
the City. Palo Alto is expected to have $350,000 to $450,000 in these funds to encourage
Electric Vehicle (EV) adoption, including the provision of rebates to encourage installation of
charging equipment at multi-family homes, commercial, and public building garages and
parking areas.
Heat Pump Water Heater Pilot
The heat pump water heater (HPWH) pilot is part of the City’s Electrification Work Plan adopted
by City Council to help Palo Alto meet its aggressive GHG emissions goal. The objectives of the
pilot include: 1) promote energy efficient HPWHs heaters among consumers, 2) support market
transformation of the supply chain, 3) streamline HPWH permitting process, and 4) gather
customer feedback on retrofit process and performance of HPWHs. The pilot targets single
family homeowners to convert their gas water heater to a HPWH, with an initial rebate of up to
$1,500 per household. The pilot was launched in April 2016 with a webpage that explains how a
HPWH works, costs and savings from a customer perspective as well as qualified models
(www.cityofpaloalto.org/HPWHpilot). The pilot is expected to continue through 2017.
VII. Legislative and Regulatory Issues
While the City operates on the (July through June) Fiscal Year, the State legislature operates on
the Calendar Year and Congress on the Federal Fiscal Year (October to September). In order to
provide accurate information in this report, staff note below current issues and those items
appearing since the last quarterly report, regardless of each entity’s operating year.
Summary
The State Legislature has ended its 2016 session, while Congress has only a few weeks left
before the all-consuming federal elections reach the home stretch. The State legislature was
particularly busy this year on energy and water issues and in the past few months, CPAU staff
worked closely with the Northern California Power Agency (NCPA) and the California Municipal
Utilities Association (CMUA) on items affecting the City, some of which became non-issues
almost as quickly as they appeared. Staff also helped facilitate the Vice Mayor’s trip to
Washington, DC as part of the American Public Power Association’s federal fly-in day. An
important topic during that trip was the Energy Policy Modernization Act of 2015, mentioned
below.
State Legislative Issues
Cap and trade, greenhouse gas (GHG) emissions, water issues, and the environment in general
were a large focus of the legislature this year. Energy market regionalization, renewable
resources, and climate pollutants were other policy items CPAU staff closely followed.
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Regarding regionalization, the Governor was strongly in favor of introducing a bill late in this
year’s session to speed up the integration of the California Independent System Operator
(CAISO) and PacificCorp, a for-profit energy company located in various western states. Any
such end-of-session bills circumvent legislative review, and this one in particular would have
been crafted before the many operational issues it raised were ever vetted, by either CAISO
stakeholders or market participants. NCPA was heavily involved in opposing this premature
action to formalize a significant, foundational change in the state’s energy market. CPAU staff
participated in many calls and meetings regarding this potential action, including a Sacramento
lobby day on this sole item. In August, the Governor relented and agreed to drop his pursuit of
legislation in 2016. However, legislation to move forward regionalization is expected to be
introduced early in 2017, with stakeholder meetings already underway to prepare proposed
language by November this year. While still on a fast track, this approach is at least giving
stakeholders a chance to participate and a January introduction to the legislature will allow for
a full vetting by legislative committees.
Below, the outcomes of certain bills of interest to the City are noted:
Energy Legislation
AB 2339 (Irwin): Net energy metering (NEM). This bill would have extended the current
NEM program, causing Palo Alto to expend resources while jeopardizing the
implementation of the approved NEM Successor Program. CPAU staff was very active on
this bill, and engaged heavily with NCPA and CMUA.
AB 2163 (Wlliams): NEM: Imperial Irrigation District. A bill appearing for the first time
days before the end of session, AB 2163 would have required the Imperial Irrigation
District to renew its former NEM program for the benefit of certain customers, some of
whom do not have PV instillations. The bill would have taken effect immediately when
signed into law. As this was a bill represented a slippery slope that could impact Palo
Alto’s NEM program, CPAU staff worked with CMUA and NCPA staff to oppose the bill. It
failed quickly.
AB 2699 (Gonzales): Department of Consumer Affairs: Contractor's State License
Board: Solar energy systems companies: Regulations. Otherwise known as the solar
customer consumer protection bill, this bill would have protected customers against
perceived inappropriate actions of the solar industry. It was supported by CMUA and
NCPA.
SB 1393 (De Leon): Energy efficiency and pollution reduction (SB 350 clean-up bill).
This is the attempt to clarify certain portions of last year’s SB 350. Specifically, AB 1393
states that POUs do not have to notify the Energy Commission when they consider
renewable energy procurement, and if a POU receives a certain portion of its sales from
hydroelectric generation, it may not have to also procure eligible renewable resources
in certain circumstances. This bill attempted to go farther by inserting language from
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various agencies; however, the many interested stakeholders could not agree to the
proposed amendments and the language did not appear in the final bill. NCPA and
CMUA were two of those stakeholders. Amends the Health and Safety, Public
Resources, and Public Utilities codes.
AB 1800 (Hadley): Utility outage compensation claims: annual posting. This bill would
have required electric utilities to annually post on its web site specified information
relating to utility outage compensation claims for the previous year.
SB 32 (Pavley): California Global Warming Solutions Act of 2006. This statute was
approved by the Governor (Chapter 249, Statutes of 2016). Building on The California
Global Warming Solutions Act of 2006 (aka Pavley’s AB 32) it requires the Air Resources
Board to adopt rules and regulations to ensure statewide GHG emissions limits are
reduced to at least 40% below the 1990 level by December 2030. Section 38566, Health
and Safety Code.
AB 197 (Garcia, E): State Air Resources Board: greenhouse gases: regulations. This
statute was approved by the Governor (Chapter 250, Statutes of 2016). It is tied to SB
32, adding two members of the legislature to CARB as non-voting members and creates
the Joint Legislative Committee on Climate Change Policies. AB 167 also increases
CARB’s reporting on GHG sources. Adds to the Government Code, amends the Health
and Safety Code
SB 1028 (Hill): Electric Utilities: Wildfire mitigation plans. Requires electrical
corporations and local POUs, such as CPAU, to maintain and operate their electrical lines
and equipment in a manner that minimizes the risk of catastrophic wildfire posed by
such electrical lines and equipment. Palo Alto’s City Council will be required to
determine whether any portion of the geographical area where our utility’s overhead
electrical lines and equipment are located has a significant risk of catastrophic wildfire.
If such a finding is made, Council must approve wildfire mitigation measures the utility
intends to undertake to minimize the risk of its overhead electrical lines and equipment
causing a catastrophic wildfire. The area of the foothills served by CPAU may fall into
this category and the utility currently has a mitigation program in place. Staff will
coordinate with CMUA and NCPA providing input to a CPUC proceeding to develop the
California map of at-risk wildfire areas and continue coordination with our local fire
department in developing mitigation plans. Division 4.1, Chapter 6 of the Public Utilities
Code.
Water Legislation
SB 814 (Hill): Drought: excessive water use: urban retail water suppliers. This statute
was approved by the Governor (Chapter 230, Statutes of 2016). Enforceable only during
a state or locally declared drought, it states that excessive water use by a residential
customer is prohibited. Urban retail water suppliers must establish a method to identify
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and restrict excessive water use. CPAU and CMUA staff actively engaged with Senator
Hill’s office before the bill was introduced to express concerns with earlier language
related to public requests; that language was stricken. Division 1, Chapter 3, Section 365
of the water code.
AB 2594 (Gordon): Stormwater resources: use of captured water. Currently, the
Stormwater Resource Planning Act authorizes public agencies to develop a stormwater
resource plan. This statute authorizes a public entity that captures stormwater from
urban areas, to use the water before it reaches a natural channel. Amends the Fish and
Game and Public Resources codes.
SB 1398 (Leyva): Public water systems: lead user service lines. Requires public water
systems, such as CPAU, to compile an inventory of known lead user service lines in use
in its distribution system and identify areas that may have lead user service lines by July
1, 2018. After completing the inventory, the utility is required to provide a timeline for
replacement of known lead user service lines in the distribution system to the State
Water Resources Control Board (SWRCB). If the utility identifies areas in the distribution
system that may have lead user service lines then, by July 1, 2020, the utility has to
either verify the existence or absence of lead user service lines in these areas or provide
a timeline for replacement of the user service lines whose content cannot be
determined. The SWRCB is authorized to approve a replacement timeline. Adds section
116885 to the Health and Safety Code.
Natural Gas Legislation
AB 2460 (Irwin). Solar Thermal Systems. This bill would have revised the current Solar
Water Heating and Efficiency program to promote the installation of solar water
systems and set the funding cap between January 1, 2017, and July 31, 2027, at $1
billion.
Federal Legislative Issues
In February, Senator Feinstein introduced S. 2533, The California Long-Term Provisions for
Water Supply and Short-Term Provisions for Emergency Drought Relief Act. Among other
things, the bill allows for competitive funding of recycled water projects, and long-term water
supply projects. This bill has not progressed and most likely will not pass this year.
Representative Tonko (D-NY) also introduced H.R. 4653 in February, a bill that would amend
the Safe Drinking Water Act to increase assistance for States, water systems, and disadvantaged
communities. It also has not progressed and will not pass.
A bill that is moving forward is Senator Murkowski’s S.2012, the Energy Policy Modernization
Act of 2015. It has passed both the House and Senate, and the necessary conference committee
meetings will begin soon. NCPA is very active on this bill and it was a topic of congressional
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meetings with the Vice Mayor when he was in Washington, DC. Specifically, this bill will help
alleviate the red tape surrounding hydrologic power plant licensing.
State Regulatory Proceedings
California Air Resources Board
CARB continues to hold public workshops regarding a proposed regulation to create POU
compliance penalties supporting enforcement of the Renewable Portfolio Standard (RPS)
Program. It also continues work on cap-and-trade regulations for post 2020 implementation
and updates to the climate scoping plan. CARB also released its draft plan to comply with the
federal Clean Power Plan.
California Energy Commission
The CEC continues to work on implementing SB 350 and CPAU, through NCPA, is active in this
process, particularly on the requirements for integrated resource plans (IRPs). The CEC also
continues its efforts on power source disclosure regulations, and has created reporting
templates. Like CARB, the CEC is also working on RPS enforcement and recently promulgated
draft pre-rulemaking amendments to current procedures. Once such amendment would
potentially harm Palo Alto by impeding its ability to contract for hydroelectric generation
through the federal Western Area Power Administration agreement. CPAU staff recognized the
issue and worked with NCPA to gain an audience with CEC staff to describe the problem and
suggest different language.
Cap-and-Trade Compliance
Both the City’s gas and electric utilities are covered under the terms of CARB’s cap-and-trade
regulation. Although the electric utility does not have a compliance obligation, the City receives
free allowances that must be sold in the auction. The gas utility is both a buyer and a seller of
allowances. The City is allocated some free allowances for the gas utility and a percentage of
those must be sold in the auction. The City must hold allowance or other compliance
instruments in sufficient quantity to meet each year’s gas purchase for delivery to end use
customers, therefore the City must purchase allowances to make up the difference.
Figure 26 shows the floor and settlement prices for each vintage of allowances sold at each of
the quarterly auctions. Two vintages of allowances are offered for sale at each auctions. For
example, in the four 2014 auctions, vintage 2014 allowances and vintage 2017 allowances were
auctioned. The floor, or “reserve”, price was initially set to $10 per metric ton of CO2 and
increases by 5% plus the CPI annually. Since 2013 (the first year of the program) and until
February 2016, all current year allowances offered for sale were sold. However, starting in
February, auctions ceased clearing all current year allowances and auction prices settled at the
reserve level.
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Figure 26: California Greenhouse Gas Allowance Prices
VIII. Utility Financial Summary
This section describes the unaudited actual financial results for FY 2016 for all Utilities funds.
The Council-adopted long-term Financial Plans for the Electric, Gas, Wastewater Collection, and
Water Funds were updated for FY 2017 during the budget review and approval process.
Electric Utility Overview
Sales through the fourth quarter of FY 2016 were 1.0% lower than expected. Sales revenues
have been lower by 0.5%. Deliveries from Western hydroelectric resources have been lower
than average, but Calaveras generation has been higher due to increased required flows and
precipitation. Transmission costs have continued to be higher than budget. FY 2016 net energy
costs were higher by $1.3 million for FY 2016.
This combination of higher costs and lower revenues was projected to result in a decrease in
the level of the Electric Supply Operations Reserve to $6.4 million and take the Distribution
Operations Reserve below zero. Because of this, several transfers were approved in the FY 2017
Financial Plans: $9 million transfer from the Supply Rate Stabilization Reserve, and $5.6 million
each from the Hydro Rate Stabilization and CIP Reserves to help bring the Supply and
Distribution Operations Reserves to near minimum levels. After these transfers, the Electric
Rate Stabilization Reserve has $9.0 million which could be used for contingencies. The
unaudited reserves for the Electric Distribution Operations Reserve show it to be slightly below
the minimum guideline level. A request for a $216,000 from other available Electric Reserve
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
38
funds will be made during FY 2017, in compliance with the adopted Electric Utilities Reserves
Management Practices.
As shown in Table 8, the Electric Utility CIP Reappropriation and Commitment Reserves totaled
$12.2 million at the end of FY 2016, of which $1.4 million was under contract.
Gas Utility Overview
Gas Utility sales through the end of FY 2016 were lower than the adopted budget by 8.4%. FY
2015 sales were 13.2% lower than budget, mainly due to warm weather and also to lower (hot)
water usage because of the drought. Decreased consumption has resulted in $1.7 million lower
distribution sales revenue through the end of the fiscal year. Gas supply revenues to date have
also been lower than budget by $3.6 million, or around 33%, although costs are reduced as well
since as gas prices are passed through directly to customers through the market-based
monthly-varying commodity rate. Initial expense savings, primarily in operations and
maintenance expenses, were $3.2 million for the year. Because of this, the Gas Operations
Reserve may end the year above the maximum reserve guideline range. A request will be made
to transfer any Gas Operations Fund balances above the maximum guideline level back to the
Gas Rate Stabilization Reserve, as part of the FY 2016 year end budget amendment process, or
at the start of FY 2017.
As shown in Table 9, preliminary levels for the Gas Utility CIP Reappropriation and Commitment
Reserves totaled $7.8 million at the end of FY 2016, of which $227,000 was committed to
projects under contract.
Wastewater Collection Utility Overview
Sales revenues are projected to be slightly lower than forecast, mainly due to lower commercial
wastewater revenues, which are based on winter water usage. The Wastewater Collection
Operations Reserve is projected to be between the maximum and minimum reserve guideline
level for FY 2016. Should it be needed, the CIP reserve has an additional $978,000 that could be
utilized in case of emergency.
As shown in Table 10, the Wastewater Collection Utility CIP Reappropriation and Commitment
Reserves totaled $12.0 million at the end of FY 2016, of which $4.4 million was committed to
projects under contract.
Water Utility Overview
Due to the ongoing drought, the Water Fund continues to be volatile with respect to sales and
revenue. Because of the reductions in water use mandated by the SWRCB after the preparation
of the FY 2016 Financial Plan, sales revenues and purchase costs were revised downward and
Council activated the drought surcharge effective September 1, 2015.
The FY 2016 Financial Plan estimated water purchases of 4.77 million hundred cubic feet (CCF)
for FY 2016, but this was revised to 4.27 million CCF after the SWRCB mandate. Customers in
Utilities Quarterly Update for Fourth Quarter of FY 2016
November 2016
39
Palo Alto have exceeded these savings targets, and sales revenues were lower than what was
presented in financial plan updates by around $1 million. Corresponding purchase cost savings
were around $2.8 million. Operational cost savings were $1.7 million. The Water Operations
Reserve is projected to be slightly over the guideline range. A request will be made to transfer
any Water Operations Reserve balances above the maximum guideline level to the Water Rate
Stabilization Reserve, as part of the FY 2016 year end budget amendment process, or at the
start of FY 2017.
As shown in Table 11, the Water Utility CIP Reappropriation and Commitment Reserves totaled
$16.0 million at the end of FY 2016, of which $5.8 million was for projects under contract.
Fiber Optic Utility Overview
Fiber revenues and expenses through the end of FY 2016 are $5.2 million and $2.2 million
respectively. Customer sales are in alignment with the FY 2016 budget of $4.5 million. Total
expenses are $1.5 million below budget, $2.3 million instead of $3.8 million, due to the delay of
the Fiber Optic System Rebuild CIP project. The Fiber Fund budgeted $1.2 million for the Fiber
Optic System Rebuild CIP project but only $0.2 million was spent in FY 2016. The remaining $1.0
million of the CIP rebuild project will be carried forward to the FY 2017 budget for construction
and repairs of the dark fiber network. As shown in Table 7, the Fiber Optics Rate Stabilization
Reserve is projected to be $24.3 million as of the end of FY 2016.
Financial Projections and Operations Reserve Balances
Table 6 is a summary of financial projections for all funds as of the fourth quarter of FY 2016.
Table 7 provides a summary of the projected reserve balance for the Operations Reserves for
the Electric (Distribution and Supply), Gas, Wastewater Collection and Water Funds and the
Rate Stabilization Reserve for the Fiber Fund as of the end of FY 2016 as well as the minimum
and maximum levels for those reserves. As described above, the Gas and Water Operations
Reserves are expected to be higher than the approved maximum reserve level and transfers will
be made to the Rate Stabilization Reserves from the Operations Reserve for those funds. A
transfer will also be made into the Electric Distribution Operations Reserve so that it will be
above the approved minimum reserve level.
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40
Table 6: Financial Projections, FY 2016
Sales Volumes
Revenue
($000)
Expense
($000)
Net Reserve Change
($000)
Electric Utility
Financial Plan 946,995,929 kWh 129,249 (139,587) (10,338)
Current Forecast 937,156,962 kWh 121,004 (142,209) (21,205)
Change from
Financial Plan
-9,838,967 kWh (8,245) (2,622) (10,867)
-1.0% (6.4%) 1.9%
Gas Utility
Financial Plan 29,156,764 therms 35,993 (40,683) (4,690)
Current Forecast 26,718,637 therms 30,925 (33,007) (2,082)
Change from
Financial Plan
-2,438,127 therms (5,068) 7,676 2,608
-8.4% (14.1%) (18.9%)
Water Utility
Financial Plan 4,403,548 ccf 41,517 (46,454) (4,937)
Current Forecast 3,809,719 ccf 40,234 (41,991) (1,757)
Change from
Financial Plan
-593,829 CCF (1,283) 4,463 3,180
-13.5% (3.1%) (9.6%)
Wastewater Collection Utility
Financial Plan 18,319 (20,164) (1,845)
Current Forecast 17,269 (20,439) (3,170)
Change from
Financial Plan
(1,050) 275 ( 775)
5.7% 1.4%
Fiber Optic Utility
Financial Plan 4,842 (3,785) 1,057
Current Forecast 5,231 (2,243) 2,988
Change from
Financial Plan
389
8.0%
1,542
(41%)
1,931
Table 7: FY 2016 Operations Reserves ($000)
Electric
Supply
Electric
Distribution
Gas Water
Wastewater
Collection
Fiber
Optic *
Beginning 16,012 6,486 10,847 11,537 2,431 21,361
Projected Change (11,587) (9,618) (2,082) (1,630) (3,170) 2,968
Transfers 11,217 9,340 1,531 4,700 3,950 -
FY 2016 Ending 15,642 6,208 10,296 14,607 3,211 24,329
Reserve Minimum 14,596 6,424 4,772 6,208 2,541 895
Reserve Maximum 29,193 12,848 9,543 12,415 6,352 2,238
* For Fiber Optics, the Reserve is the Rate Stabilization (not the Operations) Reserve
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41
CIP Reserves (Reappropriations and Commitments) Summary
Table 8: Electric CIP Reappropriations and Commitments
Table 9: Gas CIP Reappropriations and Commitments
Table 10: Wastewater Collection Utility CIP Reappropriations and Commitments
.
Table 11: Water Utility CIP Reappropriations and Commitments
Includes unspent funds from previous years carried forward or reappropriated into the current fiscal year
**Equal to Reserve for Reappropriations + Reserve for Commitments (CIP Reserves).
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Table 12: FY 2016 Q4 Reserve Report from the City’s Financial System
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Residential Bill Comparisons (based on 30 day bills)
Table 13: Residential Electric Bill Comparison ($/month)
As of September 1, 2016
Season Usage (KWh/mo) Palo Alto PG&E Santa Clara Roseville
Summer
(May -Oct)
300 33.09 54.62 34.16 53.70
365 (Median) 42.31 70.09 41.83 60.57
650 90.48 145.72 75.47 98.42
1200 183.43 365.63 140.38 184.87
Table 14: Residential Natural Gas Bill Comparison ($/month)
As of September 1, 2016
Season Usage (therms) Palo Alto
Menlo Park, Redwood City,
Mountain View, Los Altos, and
Santa Clara (PG&E Zone X)
Roseville
(PG&E Zone S)
Summer
(Apr-Oct)
15 23.24 20.50 21.19
18 (Median) 25.83 24.77 27.04
30 41.55 48.14 50.40
45 62.55 77.35 79.61
Table 15: Residential Water Bill Comparison ($/month)
As of September 1, 2016
Usage CCF/month Palo Alto
Menlo
Park
Redwood
City
Mountain
View
Los
Altos
Santa
Clara Hayward
4 43.69 44.46 46.47 34.63 33.37 19.80 28.68
(Winter median) 7 67.18 63.03 65.43 53.68 45.20 34.65 48.42
(Annual median) 9 87.24 75.43 78.07 66.38 53.09 44.55 61.58
(Summer median) 14 137.39 107.95 119.47 98.13 73.81 69.30 96.24
25 247.72 180.33 229.94 206.08 119.91 123.75 181.49
Based on the FY 2013 BAWSCA survey, the fraction of SFPUC as the source of potable water supply
was 100% for Palo Alto, 95% for Menlo Park, 100% for Redwood City, 87% for Mountain View, 10%
for Santa Clara and 100% for Hayward.
Table 16: Residential Wastewater Collection (Sewer) Bill Comparison ($/month)
As of September 1, 2016
Palo Alto Menlo Park Redwood City Mountain View Los Altos Santa Clara Hayward
34.83 85.91 75.11 34.30 33.93 41.65 28.93
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Table 17: Median Residential Overall Bill Comparison ($/month)
As of September 1, 2016
Utility and Usage Palo Alto
Menlo
Park
Redwood
City
Mountain
View Los Altos
Santa
Clara Hayward
Electricity (365 kWh/mo) $ 42.31 $ 70.09 $ 70.09 $ 70.09 $ 70.09 $ 41.83 $ 70.09
Gas (18 th/mo) 25.83 24.77 24.77 24.77 24.77 24.77 24.77
Wastewater 34.83 85.91 75.11 34.30 33.93 41.65 28.93
Water (9 CCF/mo) 87.24 75.43 78.07 66.38 53.09 44.55 61.58
TOTAL $190.21 $256.20 $248.04 $195.54 $181.88 $152.80 $185.37
Non-Residential Bill Comparisons
Table 18: Non-Residential Electric Bill Comparison ($/month)
As of September 1, 2016
Usage (KWh/mo) Palo Alto PG&E Santa Clara Roseville
1,000 168 262 175 156
160,000 24,238 32,853 19,963 23,265
500,000 70,825 96,226 61,122 73,057
2,000,000 230,000 326,826 236,301 245,089
Table 19: Non-Residential Natural Gas Bill Comparison ($/month)
As of September 1, 2016
Usage (therms/mo) Palo Alto PG&E
500 601 541
5,000 5,302 4,683
10,000 10,745 8,532
50,000 52,217 37,476
CIP Project Detail
Tables showing the details regarding the Capital Improvement Program projects are shown in:
1. Table 20 for the Electric Utility;
2. Table 21 for the Gas Utility;
3. Table 22 for the Wastewater Collection Utility; and
4. Table 23 for the Water Utility
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Table 20: Electric Utility CIP Project Detail (pg 1/2)
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Table 20: Electric Utility CIP Project Detail (pg 2/2)
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Table 21: Gas Utility CIP Project Detail (pg 1/2)
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Table 21: Gas Utility CIP Project Detail (pg 2/2)
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Table 22: Water Utility CIP Project Detail
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Table 23: Wastewater Collection Utility CIP Projects
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IX. Operations
Reliability Impact Measures
The reliability impact measures for FY 2016 are displayed in the following figures. This type of
data is used to develop long-term CIP plans as well as prioritization of CPAU’s repair and
rehabilitation projects.
Electric
1. Electric Distribution System Service Reliability Indices and Definitions (Figure 27)
2. Electric Service Reliability Interruption Frequency Indices (Figure 28)
3. Electric Service Reliability Interruption Duration Indices (Figure 29)
Gas
1. Gas Main Leaks By Type of Pipe (Figure 30)
2. Gas System O&M Mainline Break Repairs (Figure 31)
3. Gas Main Shutdowns and Customers Affected (Figure 32)
Gas Service Disruptions by Cause (
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4. Figure 33)
Water
1. Water Main Leaks by Type of Pipe (
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2. Figure 34)
3. Unplanned Water Service Disruption (Figure 35)
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Figure 27: Electric Distribution System Service Reliability Indices and Definitions
See next page for definitions of terms used in this chart.
Fiscal Year 2016
Distribution System Service Reliability Indices
Month
Mo
m
e
n
t
a
r
y
Su
s
t
a
i
n
e
d
Ov
e
r
h
e
a
d
Un
d
e
r
g
r
o
u
n
d
Ot
h
e
r
St
o
r
m
No
n
-
S
t
o
r
m
To
t
a
l
#
o
f
Ou
t
a
g
e
s
Customers
Affected
(I)
Customer
Minutes of
Interruption
(J)
Customer
Momentary
Outage
Impact
(K)
Total
Number of
Customers
Served
(L)
SAIDI
(Minutes)
(J) / (L)
SAIFI
(I) / (L)
CAIDI
(Minutes)
(J) / (I)
MAIFI
(K) / (L)
Jul-15 3 2 1 3 3 2766 595035 28600 20.81 0.097 215.1
Aug-15 28600
Sep-15 28600
Oct-15 1 1 1 1 209 101092 28600 3.53 0.007 483.7
Nov-15 3 3 1 2 3 87 25346 28600 0.89 0.003 291.3
Dec-15 1 1 1 1 310 188270 28600 6.58 0.011 607.3
Jan-16 3 3 3 3 2930 139553 28600 4.88 0.102 47.6
Feb-16 28600
Mar-16 6 3 3 4 2 6 154 38580 28600 1.35 0.005 250.5
Apr-16 2 2 2 81 8029 28600 0.28 0.003 99.1
May-16 4 3 1 4 4 297 28641 28600 1.00 0.010 96.4
Jun-16 3 3 3 3 18 4542 28600 0.16 0.001 252.3
Fiscal YTD TOTAL 26 17 7 22 4 26 6852 1129088 28600 39.48 0.24 164.78 0.00
55 0.9 61 1.5
88 1.1 85 5.4
160 1.74 130 11.1
630 4.5 825 13.7Fourth Quartile Industry Values per IEEE Std. 1366-2003
First Quartile Industry Values per IEEE Std. 1366-2003
Second Quartile Industry Values per IEEE Std. 1366-2003
Third Quartile Industry Values per IEEE Std. 1366-2003
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DEFINITIONS
Customer Minutes of Interruption- Summation of [(# of customers affected) x (Duration of Interruption)]
Momentary Interruption - An interruption of duration limited to the period required to restore service by an interrupting device.
Sustained Interruption - Any interruption not classified as a momentary event.
IEEE 1366 Indice "Quartile" Data - First Quartile: 25% of survey respondents had an index less than this number; Second
Quartile: 50% of survey respondents had an index less than this number; Third Quartile: 75% of survey respondents had an
index less than this number; Fourth Quartile: 100% of survey respondents had an index less than this number.
System Average Interruption Duration Index (SAIDI) - Measure of the total duration of an interruption for the average
customer during a given time frame.
SAIDI = (Sum of Customer Minutes Interrupted) / (Total Customers Served)
System Average Interruption Frequency Index (SAIFI) - the average number of times that a customer will experience an
interruption during a given time frame.
SAIFI = (Total Customers Interrupted) / (Total Customers Served)
Customer Average Interruption Duration Index (CAIDI) - the average time to restore service.
CAIDI = (Sum of Customer Minutes Interrupted) / (Total Customers Interrupted)
Momentary Average Interruption Frequency Index (MAIFI) - the average number of momentary interruptions that a customer
will experience during a given time frame.
MAIFI = [Sum of (Momentary Interruptions x Customers Affected)] / (Total Customers Served)
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Figure 28: Electric Service Reliability Interruption Frequency Indices
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Figure 29: Electric Service Reliability Interruption Duration Indices
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Figure 30: Gas Main Leaks By Type of Pipe
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Figure 31: Gas System O&M Mainline Break Repairs
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Figure 32: Gas Main Shutdowns and Customers Affected
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Figure 33: Gas Service Disruptions by Cause
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Figure 34: Water Main Leaks by Type of Pipe
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Figure 35: Unplanned Water Service Disruption