The URL can be used to link to this page

Home My WebLink About2000-06-26 City Council (18)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM: DATE: SUBJECT: CITY MANAGER DEPARTMENT: UTILITIES JUNE 26, 2000 - CMR:298:00 PROPOSED MINOR CHANGES TO GAS RATE SCHEDULES " " RECOMMENDATION Staff recommends that Council adopt the attached resolution effective July 1, 2000 to: Revise Rate Schedule G-3 to be a core rate schedule, eliminate the requirement for a contract in conjunction with this rate, and allow customers to request this rate at any time; o Revise Rate Schedule G-4 to be a core rate schedule, eliminate the administrative fee and make. the applicability and special conditions consistent with the gas direct access rules; Revise Rate Schedule G-7 to unbundle the supply and distribution components and allow customers to request the rate at any time; Revise Rate Schedule G-2 to apply only to small commercial core customers who use less than 250,000 therms per year. BACKGROUND The terms "core" and "noncore" have been developed over time in the natural gas industry. Originally the term "noncore" was used in California to describe customers who had alternative fuel capability. Eventually, the alternative fuel requirement was dropped by PG&E with the approval of the California Public Utilities Commission~ CM1~:298:00 Page 1 of 3 Noncore now refers to large PG&E customers who are willing to trade a lower transportation rate for being curtailed in the event of an emergency. DISCUSSION The City of Palo Alto Utilities (CPAU) has traditionally mirrored PG&E’s definition of noncore and offered noncore rate schedules to large Palo Alto customers. However, as a wholesale customer of PG&E, CPAU does not receive any cost savings for declaring a portion of it’s load as noncore, and designating these customers as noncore subjects them to the possibility of curtailment under PG&E’s rules. " Furthermore, because Palo Alto’s distribution system is located within the PG&E system, Palo Alto does not have a need for a noncore customer class to handle supply shortages in the way that PG&E does. The only result of change is positive, in that no Palo Alto customers will be called upon to curtail their gas usage until PG&E is curtailing its own core customers. The administrative fee associated with schedule G-4 will be eliminated, and any direct access program-related operational cOsts will be collected from the gas service provider under the gas service provider agreement. Schedule G-7 will be unbundled to show the transportation component (which is identical to G-3 and G-4) and the commodity component. This change will help large customers make an informed choice between available rate schedules. All other proposed changes represent clean-up to the existing schedules to be consistent with the gas direct access program rules and implementation plan. RESOURCE IMPACT. These recommendations do not have any resource impact. All rates remain the same. The changes do not result in a savings or a cost to Utility customers. POLICY IMPLICATIONS These recommendations do not represent any ~hange to existing City policies. ENVIRONMENTAL REVIEW The adoption of the resolution does not constitute a project under the California Environmental Quality Act, therefore, no environmental assessment is required. CMR:298:00 Page 2 of 3 ATTACHMENTS Resolution Rate Schedules G-2, G-3, G-4, and G-7 PREPARED BY: Karla Dailey, Resource Planner DEPATMENT HEAD REVIEW: ULRICH Director of Utilities CITY MANAGER APPROVAL:~. ~ EMILY HARRISON City Manager CMR:298:00 Page 3 of 3 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING UTILITY RATE SCHEDULES G-2, G-3, G-4 AND G-7 OF THE CITY OF PALO ALTO UTILITIES RATES AND CHARGES PERTAINING TO COMMERCIAL CORE, COMMERCIAL NONCORE, AND LARGE COMMERCIAL CORE GAS SERVICE AND LARGE COMMERCIAL NONCORE GAS TRANSPORTATION SERVICE The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION i. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Schedules, G-2 (Commercial Core Gas Service), G-3 (Large Commercial Core Gas Service, G-4 (Large Commercial Core Gas Transportation Service) and G-7 (Large Commercial Core Gas Service) of the Palo Alto Utilities Rates and Charges are hereby amended to read in accordance with Sheets G-2-1, G-3-1, G-3-2, G-4-1, G-7-1 and G-7-2, attached hereto and incorporated herein by reference. The foregoing Utility Rate Schedules, as amended and as adopted, shall become effective July I, 2000. SECTION 2. The Council finds that the revenue derived from the authorized adjustments of the general natural gas service rates shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b) (8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrativ.e Services Director of Utilities 000620 syn 0071812 A. APPLICABILITY: COMMERCIAL CORE GAS SERVICE UTILITY RATE SCHEDULE G-2 This schedule applies to non-residential customers who use less than 250,000 therms per year at a single address. B.TERRITORY: Within the service area of the City of Palo Alto and on land owned or leased by the City. C.RATES: All year-round delivered commodity:Per Meter Per Month -Per Therm .................................................................................................’ ......................................46.8¢ D. SPECIAL CONDITIONS: Service under this schedule is subject to discontinuance in whole or in part, for operational reasons or i-f the City experiences supply or capacity shortages. The City will exercise reasonable diligence and care to furnish and deliver continuous service and a sufficient quantity of gas to customers, but does not guarantee continuity of service or sufficiency of quantity. The City shall not be liable for any damage caused by interruption of service, if the interruption of service is caused by an act of God, Fire, Strikes, riots, war, or any other cause that is bey6nd the City’s control. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-2-1 dated 7-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-2000 Sheet No. G-2-1 LARGE COMMERCIAL CORE GAS SERVICE A. APPLICABILITY: UTILITY RATE SCHEDULE G-3 This schedule applies to service for large commercial customers who use at least 250,000 therms per year at one site. B.TERRITORY: Within the service area of the City of. Palo Alto and on land owned or leasedby the City. C.RATES: Monthly Market-based Power Supply Charge:Cents Per Therm 1.Commodity Charge ..............." .......................................................................................10.0 - 65.0¢ 2.Administrative Fee ...................................................................................................................0.4¢ 3.Transportation Charges: PG&E Local Transportation .............................................................................................1.6¢ Palo Alto Local Distribution .................................................... ..........................................8.5¢ D. SPECIAL CONDITIONS: Service under this schedule is subject to discontinuance in whole or in part, for operational reasons or if the City experiences supply or capacity shortages. The City will exercise reasonable diligence and care to furnish and deliver continuous service and a sufficient quantity of gas to customers, but does not guarantee continuity of service or sufficiency of quantity. The City shall not be liable for any damage caused by interruption of service, if the interruption of service is caused by an act of God, Fire, Strikes, riots, war, or any other cause that is beyond the City’s control. The commodity charge is equal to the City’s bidweek price of the natural gas paid at the PG&E City Gate for the month immediately preceding the month in which the customer is billed. The commodity charge will fall within the minimum/maximum range set forth in C. 1. and include the cost transporting the gas to the PG&E City Gate. A customer who elects to be served under this rate will pay an administrative fee equal to the allocable administrative costs incurred by the City in providing the gas service. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-3-1 dated 1-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-2000 Sheet No. G-3-1 LARGE COMMERCIAL CORE GAS SERVICE UTILITY RATE SCHEDULE G-3 (Continued) 0 0 ° ° PG&E Local transportation charge is equal to the cost of transporting gas from the PG&E’s City Gate to the Palo Alto City Gate. The total monthly charge = therms used during the month X (commodity charge + administrative fee + PG&E local transportation charge + Palo Alto local distribution charge). A customer may request service under this schedule for more than one account Or meter if the accounts are located on one site. A site shall be defined as one or more utility accounts Serving contiguous parcels of land with no intervening public right-of- ways (e.g. streets) and have a common billing address. Customers may request a rate schedule change at any time, but 0nly once during a twelve~month period if the change is between City of Palo Alto full-service rate schedules. The 12 months limitation does not apply if a customer elects a Gas Direct Access rate schedule and is served by another Gas Service Provider. Qualified customers may elect Gas Direct Access at any time. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-3-2 dated 7-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-2000 Sheet No. G-3-2 LARGE COMMERCIAL CORE GAS TRANSPORTATION SERVICE UTILITY RATE SCI-IEDULE G-4 A. APPLICABILITY: This schedule applies to gas transportation service for large commercial customers who use at least 250,000 therms per year for One account. B. TERRITORY: Do Within the service area of the City of Palo Alto and on land owned or leased by the City. RATES:Cents Per Therm Transportation Charges: PG&E Local Transportation ...........................: .............................................................,... 1.6¢ Palo Alto Local Distribution ....., .......... ..............................................................................8.5¢ SPECIAL CONDITIONS: 1. Customers may request a change to this rate schedule at any time. 2.Specific terms and conditions shall be covered .by separate agreement between the City and the Gas Service Provider. PG&E local transportation charge is equal to the cost of transporting natural gas fi~om the PG&E City Gate to Palo Alto City Gate. Customers who elect this service must have the gas delivered to PG&E City Gate. Total monthly charge = therms used x (PG&E local transportation charge + Palo Alto distribution charge). A customer may request service under this schedule for more than one account or meter if every account meets the minimum usage requirement of 250,000 therm per year. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-4-1 dated 7-1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-2000 Sheet No. G-4-1 LARGE COMMERCIAL CORE GAS SERVICE UTILITY RATE SCHEDULE G-7 APPLICABILITY: This schedule applies to service for large commercial customers who use at least 250,000 therms per year a.t one site. B. TERRITORY: Within the service area of the City of Palo Alto and on land owned or leased by the City. C. RATES:Cents Per Therm Commodity Charge ...............................................................................................¯ ..................25.1 ¢ Administrative Fee ...................................................................................................................0.4¢ Transportation Charges: PG&E Local Transportation ......................................................................i ................., ....1.6¢ Palo Alto Local Distribution .............................................................................................8.5¢ D. SPECIAL CONDITION: Service under this schedule is subject to discontinuance in whole or in part, for operational reasons or if the City experiences supply or capacity shortages. The City will exercise reasonable diligence and care to furnish and deliver continuous service and a sufficient quantity of gas to customers, but does not guarantee continuity of service or sufficiency of quantity. The City shall not be liable for any damage caused by interruption of service, if the interruption of service is caused by an act of God, Fire, Strikes, riots, war, or any other cause that is beyond the City’s control. A customer who elects to be served under this rate will pay an administrative fee equal to the allocable administrative costs incurred by the City in providing the gas service. PG&E Local transportation charge is equal to the cost of transporting gas from the PG&E’s City Gate to the Palo Alto City Gate. 4.The total monthly charge = therms used during the month X (commodity charge + administrative fee + PG&E local transportation charge + Palo Alto local distributioncharge). CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-7-1dated 7-’1-98 CITY OF PALO ALTO UTILITIES Effective 7-1-2000 Sheet No. G-7-1 LARGE COMMERCIAL CORE GAS SERVICE UTILITY RATE SCHEDULE G-7 (Continued) o o A customer may request service under this schedule for more than one account or meter if the accounts are located on one site. A site shall be defined as one or more utility accounts serving Contiguous parcels of land with no intervening public right-of- ways (e.g. streets) and have a common billing address. ¯ Customers may request a rate schedule change at any time, but only once during a twelve-month period if the change is between City of Palo Alto full-service rate schedules. The 12 months limitation does not apply if a customer elects a Gas Direct Access rate schedule and is served by another Gas Service Provider. Qualified customers may elect Gas Direct Access at any time. CITY OF PALO ALTO UTILITIES Issued by the City Council e,,n~.r.~.des Sheet No. G-7-1 dated 7-1-98 CITY OF PALO ALTO ~ l’rll IT I I~.~ Effective 7-1-2000 Sheet No. G-7-2