HomeMy WebLinkAbout2000-07-25 City CouncilCity of Palo Alto
C ty Manager’s Report
TO:
ATTENTION:
FROM:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER DEPARTMENT: UTILITIE S
DATE:JULY 17, 2000 CMR:330:00
SUBJECT:PROPOSED BUDGET AMENDMENT ORDINANCE AND
RESOLUTION ADOPTING A GAS RATE INCREASE
RECOMMENDATION
Staffrecommends that Council:
1. Approve the attached resolution authorizing revised rate schedules to incorporate a 15
percent systemwide retail rate increase effective August 1, 2000.
2.Approve a Budget Amendment Ordinance providing an additional appropriation in the
amount of $6,607,307 for Gas Fund Commodity Purchases.
BACKGROUND
The gas utility’s revenue requirement includes the cost to purcfiase gas, operate and maintain
a reliable system, finance an appropriate capital improvement program from current
operating revenues, fund prudent reserve levels and provide a transfer to the General Fund.
Any change in one or more of these components or a change in sales level can trigger a need
for a rate adjustment.
The Gas Fund’s fiscal year 2000-01 budget was based on forecasted gas prices as of
December 1999. At that time, the forecast anticipated commodity purchase costs that were
similar to historical prices. In early May 2000, however, prices began an uncharacteristic
rise. The resulting wholesale prices are higher than the highest historical prices since the
inception of the gas futures contract at the New York Mercantile Exchange (NYMEX).
Attachment A, Figure 1 shows the price of gas for rolling twelve-month periods from
October 1997 through July 6, 2000. Attachment A, Figure 2 shows the projected natural gas
market prices for fiscal year 2000-01. This projection was made in December 1999 and was
CMR:330:00 Page 1 of 6
used to prepare the proposed 2000-01 budget for purchases cost. Also shown on Figure 2
is a projection made on June 6, 2000 which covered the same 2000-01 fiscal year. In six
months, gas prices had risen approximately 57 percent higher than in December 1999,
particularly escalating since April 2000.
In order to shield the Palo Alto Gas Utility from further significant gas price escalations, staff
began an eight-week purchasing strategy in June 2000 to lock-in wholesale gas prices. The
gas purchase plan includes buying gas at fixed prices as well as purchasing gas with a price
cap for FY2000-01.
Several factors related to supply and demand account for the unprecedented rise in natural
gas prices. The factors identified are: increased reliance on natural gas-fired power
generation across the country; 2) a forecast for a worse-than-normal hurricane season that
shortens supplies coming from the Gulf coast region; 3) low gas storage inventory in the East
and in the producing regions that may contribute to a future gas shortage; and 4) the effect
of investors transferring funds from the slumping stock market to the commodity markets.
The Palo Alto Gas Utility is not the only gas utility facing the unexpected rise in prices.
Many other gas utilities in the West are proposing rate increases this summer, while others
are allowing the gas commodity prices to change automatically each month based on the
market. This is Palo Alto’s first retail gas rate increase in six years. During that six-year
period, Palo Alto actually reduced retail gas rates 12 percent in 1996 and an additional 7
percent in 1998. With regard to notification of Palo Alto consumers, in anticipation of the
need to raise gas rates this year, the July 2000 utility bill insert on Palo Alto’s water rate
increase also notified customers that a gas rate increase may be necessary_this summer.
DISCUSSION
In order to provide some rate stability to customers, Palo Alto has traditionally charged fixed
gas rates that do not fluctuate on a monthly basis with the wholesale cost of gas. Instead, the
utility uses its reserves to cushion the impact of sudden price changes and typically adjusts
rates annually upon Council approval, with an effective date of on July 1 to coincide with the
beginning of a fiscal year.
In 1993, the City Council adopted a Utility Reserve Policy and established a Rate
Stabilization Reserve (RSR) for each utility (CMR:263:93). In June 1999, the formula for
the minimum and maximum level was further modified and separate reserves were
established for the supply and distribution units of the gas and the electric funds. Minimum
and maximum reserve levels for the Gas Fund were set based on anticipated normal natural
gas market price and usage swings. However, the recent increase in natural gas market
prices is so dramatic that the Supply RSR level is not adequate to absorb the increase in the
revenue requirement.
CMR:330:00 Page 2 of 6
For fiscal year 2000-01, the possibility that commodity prices could rise during the fiscal
year was identified on page 10 of the Utilities Department proposed budget, and staff
indicated that if a price change was substantially above or below projected commodity costs,
staff may propose a rate change to Council during the year.
Based on an updated market price forecast, gas purchase costs are projected to exceed the
2000-01 budget by 59 percent or approximately $6.8 million. While it is necessary to
increase rates to offset this increase in wholesale gas prices, it is undesirable to impact
customer bills with one dramatic rate increase. In consideration of the bill impact on
customers and given the volatility of gas prices, staff recommends accommodating the
unexpected rise in gas prices with one to three rate adjustments over a 12 month cycle while
drawing heavily upon the Gas Fund cash reserves.
Therefore, staff proposes to:
¯Enact a 15 percent retail rate increase on August 1, 2000;
¯Transfer $1.7 million from the Distribution RSR to the Supply RSR;
¯Withdraw all funds from the Supply RSR;
¯Implement approximately a 20 percent rate increase on January 1, 2001, and
¯Evaluate the need for an additional rate increase effective in FY2001-02, based on
updated information related to commodity prices, sales revenues, and the need to
replenish reserve levels.
The Supply RSR may become depleted to zero in FY 2000-01. The ending reserve levels
of the Supply and Distribution RSR’s depend on the following key factors: 1) actual 1999-
2000 year-ending balances in the Gas Fund RSR’s; 2) Council approval of a subsequent rate
increase of approximately 20 percent in January; and 3) actual gas consumption (sales)
levels during 2000-01. Because of these uncertainties, it is difficult to state what the ending
balance will be in the RSR’s at the end ofFY2000-01. However, since the purpose of the
RSR is to help stabilize rates, it is appropriate to reduce the reserve now, avoid an
unacceptably high bill impact on customers, and gradually build up the reserve to its target
guideline. Staff believes this approach balances the customers’ interests with the utility’s
need to recover costs in a timely manner. As more information becomes known, better
projections for the RSR balances at year-end will become available enabling staff to modify
its proposals as necessary.
If the January 1, 2001 rate increase is not enacted, the Gas Fund Supply RSR is projected
to end with a negative balance of approximately $1.6 million. If a January 1, 2001 rate
increase of 20 percent is approved, the combined Supply and Distribution RSR’s are
expected to be depleted to near zero. Staff plans to monitor consumption, sales, costs, and
reserve levels each month to establish a rate proposal for January 1, 2001 that will enable
the reserves to avoid depletion by June 30, 2001. It may be noted that despite under-
recovery of purchased gas costs, overall the proposed retail rates will cover all variable
CMR:330:00 Page 3 of 6
costs and make a partial contribution towards recovery of fixed costs.
The gas sales forecast used for FY2000/01 budget was done in December 1999. At that time,
the gas consumption level for the recently completed FY 1998/99 was 40.7 million therms
which indicated a much higher level than previous years. It was not clear if the higher usage
in 1998-99 was reflective of a permanent trend or was a one-time anomaly due to possible
weather variations and other factors. In the past 7 months, actual gas usage has not supported
an annual forecast of 40.7 million therms. Rather, recent trends indicate that consumption
will be 10.6 percent lower. On this basis, staffbelieves that the adopted budget sales revenue
amount of $19,669,000 is overstated and a more realistic estimate is approximately
$16,462,000. This represents a 16.3 percent reduction in sales revenue. On a percentage
basis the revenue decline is higher than the consumption decline because of the two-tier
inverted rate structure for residents. If sales are reduced, the usage primarily drops within
the second tier. The second tier is priced higher than the first tier, accounting for the
disproportionately higher decline in revenue.
Application of 15 Percent Rate Increase
The proposed rate increase will be applied to the supply portion of the total gas rate while
distribution rates will remain unchanged. The rate increase will be spread equitably among
customer classes based on a system average increase of approximately 15 percent. Table 1
indicates the impact of this rate proposal on a typical monthly bill for the various customer
classes.
Customer
Residential/Winter
Residential/Winter
Residential/Summer
Residential/Summer
Small Commercial G-2
Small Commercial G-2
Large Commercial G-7
Proposed Bill Impact
Usage
Therms
100
150
30
40
500
10,000
30,000
TABLE 1
Proposed
Monthly Bill
$49.60
83.95
16.63
23.50
269.00
5,380.00
12,270.00
Amountof
Increase
$6.50
11.00
2.18
3.08
35.00
700.00
1,590.00
Percent
Increase
15%
15
15
15
15
15
15
Even with consecutive rate increases of 15 percent and 20 percent in FY2000-01, Palo Alto’s
commodity gas rates will remain below the market during this period, unless wholesale
natural gas prices decline. Table 2 is a comparison between CPAU’s proposed rates and an
estimate of PG&E’s comparable rates. CPAU’s market forecast was used to calculate the
estimated PG&E rates. PG&E’s rates are actually a monthly pass-through of PG&E’s
weighted average cost of gas and therefore reflect current market prices. On the other hand,
Palo Alto’s retail commodity rates, despite the proposed increase, remain below the
wholesale market price. This difference in tracking costs on a monthly basis (PG&E) or
CMR:330:00 Page 4 of 6
over a longer period of time (CPAU), accounts for the principal rate differential in the table.
Table 2 illustrates bills for a summer month (August) and winter month (December)
because rate structures change between seasons.
PG&E AND PROPOSED PALO ALTO BILL COMPARISON
TABLE2
Customer
Residential
August 2000
December 2000
ISmall Commercial G-2
August 2000
December 2000
Medium Commercial G-2
August 2000
December 2000
Large Commercial G-7
August 2000
December 2000
Usage Palo Alto
in Proposed
Therms Monthly Bill
30 $16.63
100 49.60
500 269.00
500 269.00
10,000 5,380.00
10,000 5,380.00
30,000 12,270.00
30,000 12,270.00
PG&E
Expected
Bill
$26
87
394
442
6,603
7,216
18,569
19,922
Dollar
Difference
[Rounded]
($10)
(38)
(125)
(173)
(1,223)
(1,836)
(6,299)
(7,652)
Percent
Palo Alto
Below PG&E
-37%
-43
-32
-39
-19
-25
-34
-38
Staff is investigating the possibility of changing the current rate structure to avoid the
disparity which arises when commodity prices change dramatically (up or down). One
strategy under consideration is to convert all commodity rates to a cost pass-through structure
similar to PG&E, Southern California Gas Company, and the City of Long Beach. The new
structure would result in varying monthly commodity rates based on CPAU’s actual cost of
gas. However, converting to this pricing methodology should be gradual to avoid major bill
impacts on customers and provide adequate time for businesses to plan their budgets. Finally,
since this rate structure would expose customers to market volatility, fixed-price, fixed-term
rates may be available to customers as well.
UTILITIES ADVISORY COMMISSION REVIEW
On July 5, 2000, staff presented this proposal to the Utilities Advisory Commission (UAC)
as an information item. No action was requested. The UAC understood the reasons for the
rate proposal. They suggested that energy efficiency and conservation program information
be provided that could help customers reduce gas usage. The UAC also suggested that the
residential gas rate schedule be shown on the bill insert so consumers could understand that
prices escalate for increased usage.
RESOURCE IMPACT
The proposed 15 percent rate increase is expected to generate an additional $2.3 million on
an annual basis but will appear as only a $340,000 revenue increase above the adopted
budget. The reason is that the FY 2000-01 adopted budget gas sales revenue is overstated and
the $340,000 amount takes into account a revised forecast for gas usage. If usage trends are
CMR:330:00 Page 5 of 6
confirmed, the adopted budge~ sales revenue will be revised during the mid-year adjustment
process.
For informational purposes, attached is a summary of the BAOs approved to date in 2000-01
that impact the Utilities Rate Stabilization Reserves. This attachment also estimates future
year ongoing costs associated with BAO’s approved to date to provide a projection for the
future resource needs from the Utility Funds for those programs approved after the adoption
of the 2000-01 budget.
POLICY IMPLICATIONS
These recommendations do not represent a change in current City policies.
TIMEL’INE
The proposed gas rates will be effective August 1, 2000.
ENVIRONMENTAL REVIEW
The adoption of the resolution does not constitute a project under the
Environmental Quality Act, therefore, no environmental assessment is required.
Califomia
ATTACHMENTS
Attachment A:Figures 1 and 2
Budget Amendment Ordinance
Budget Amendment Ordinances Impacting the Utilities Rate Stabilization Reserves
Approved to Date in 2000-01
Resolution
Gas Rate Schedules G-l, G-2, and G-7
PREPARED BY:Karla Dailey, Resource Planner
Randy Baldschun, Assistant Director of Utilities
DEPARTMENT HEAD:
of Utilities
CITY MANAGER APPROVAE:
HARRISON
Assistant City Manager
cc: Utilities Advisory Commission
CMR:330:00 Page 6 of 6
0 0 0 0 0 0 0
0 LO 0 LO 0 LO 0
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2000-01 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $6,607,307 FOR GAS
FUND COMMODITY PURCHASE AND TRANSMISSION COSTS.
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June 19,
2000 did adopt a budget for fiscal year 2000-01; and
WHEREAS, the Gas Utility’s adopted budget for fiscal year
2000-01 is based on historically normal. gas price forecasts as of
December 1999; and
WHEREAS, gas prices have increased more than fifty percent
since the December 1999 forecast due to several factors relating to
supply and demand; and
WHEREAS, an estimated $6,607,307 beyond the amount budgeted is
required for gas commodity purchases; and
WHEREAS, a 15 percent rate increase effective August i, 2000
will generate $2.3 million in gas sales revenue and offset a portion
of increasing gas commodity costs; and
WHEREAS, as a result of lower revised sales volume subsequent
to adoption of the budget, anticipated revenue in gas sales must be
reduced by $2.0 million;and
WHEREAS, City Council authorization is needed to amend the
2000-01 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The sum of Six Million Six Hundred Seven Thousand
Three Hundred Seven Dollars ($6,607,307) is hereby appropriated to
commodity purchases expense in the Supply Resource Management
Functional Area in the Gas Fund, and the Supply Rate Stabilization
Reserve is correspondingly reduced.
SECTION 2. The sum of One Million Seven Hundred Thousand
Dollars ($1,700,000) is hereby transferred from the Gas Fund
Distribution Rate Stabilization Reserve to the Gas Fund Supply Rate
Stabilization Reserve.
SECTION 3. The transactions authorized by Section 1 and 2 will
reduce the Gas Fund Supply Rate Stabilization Reserve from
$2,962,000 to ($1,605,307) and reduce the Gas Fund Distribution Rate
Stabilization Reserve from $3,509,000 to $1,809,000 for a net
balance of $203,693 in the Gas Fund.
SECTION 4. Gas Fund revenues are increasing by a net of Three
Hundred Forty Thousand Dollars ($340,000) as a result of this BAO.
SECTION 5. As specified in Section 2.28.080(a) of the PaloAlto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 6. The Council of the City of Palo Alto hereby finds
that this is not a project under the California Environmental
Quality Act and, .therefore, no environmental impact assessment is
necessary.
SECTION 7. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director of
Services
Administrative
Director of Utilities
City of Palo Alto
Budget Amendment Ordinances Impacting Utilities Rate Stabilization Reserves Approved To Date in 2000-01
07/14/00
Estimated Electric Distribution Rata Stabilization Reserve
RSR) Balance $5,276,000
?oral BAOs
RSR Balance After BAO’s
Electric Fund
Estimated Electric Supply Rata Stabilization Reserve (RSR
Balance
TotalBAOs
RSR Balance After BAO’s
Gas Fund
Estimated Gas Distribution Rate Stabilization Reserve
(RSR) Balance
Gas Rate Increase BAO
$o $o $o
$o $o
$o
$5,276,000
$1~409,000
$o
$16,409,ooo
$3,509,000
($1,7oo,ooo)
Total BAOs
RSR Balance After BAO’s
$o $o ($1,70o,0O0)
$1,809,000
~,as Fun__d
[Estimated Gas Supply Rata Stabilization Reserve (RSR)
Balance
Gas Rate Increase BAO
$2,962,000
$o
Fotal BAOs $o $o
RSR Balance After BAO~s
Estimated Net Gas Fund RSR Balance
Estimated Refuse Rata Stabilization Reserve (RSR)
Balance
($4,567,307)
($Z,605,307)
$3#49,000
$0
$203,693
Total BAOs
RSR Balance After BA O’s
$0 $0 $0
$3,949,000
Budget Amendment Ordinances Impacting Utilities Rate Stabilization Reserves Approved To Date in 2000-01
07/14/00
Wastewater Collection Fund
Estimated WWC Rate Stabilization Reserve (RSR) Balance
rotal BAOs
RSR Balance After BAO’s
Wastewater Treatment Fund
E~timated WWT Rate Stabilization Reserve (RSR) Balance
$0 $0 $0 $0
$5,877,000
Total BAOs
RSR Balance After BAO’s
$o $o $0 $0 ;
$4,001,0oo
Water Fund
Estimated Water Rate Stabilization Reserve (RSR) Balance
total BAOs
Balance After BAO’s
$o $o
$4,270,000
$0 $0-
$4,270,000 ;
Vehicle Equipment Fund
Estimated Retained Earnings
Retained Earnings Balance After BAO’s ($6,267,307)
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO AMENDING UTILITY RATE SCHEDULES G-l, G-2
AND G-7 OF THE CITY OF PALO ALTO UTILITIES RATES
AND CHARGES PERTAINING TO GAS 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-I (Residential Core Gas
Service), G-2 (Commercial Core Gas 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-l-l, G-2-1, G-7-1, and G-7-2, respectively, attached hereto
and incorpgrated herein by reference. The foregoing Utility
Rate Schedules,as amended, shall become effective on
August I, 2000.
SECTION 2. The Council finds that the revenue derived
from the authorized adjustments of the several 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:AP PROVE D :
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Utilities
000630 cl 0071898
Director of Administrative
Services
RESIDENTIAL CORE GAS SERVICE
UTILITY RATE SCHEDULE G-1
A. APPLICABILITY:
This schedule applies to core natural gas service to individually metered single family premises,
including those separately metered in a multi-family complex.
B. TERRITORY:
Within the service area of the City of Palo Alto and on land owned or leased by the City.
C. RATES:
For individually metered residential customers
Per Meter
Per Month
(A) Summer Rates (May 1 to October 31):
0-20 therms per therm ..............................................................................................48.8¢
Over 20 therms per therm .........................................................................................68.7¢
Winter Rates (Nov. 1 to April 30):
0-96 therms per therm ...............................................................................................48.8¢
Over 96 therms per therm .........................................................................................68.7¢
D. SPECIAL NOTES:
Seasonal rate changes: The applicable residential rate structure will be prorated in the May and
November billing periods based on the rates of the number of days prior to May 1 and subsequent
to October 31, respectively, to the total number of days in the billing period.
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 fumish 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.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. G-1-7 dated 7-’1-98 CITY OF PALO ALTO
UTILITIES
Effective 8-1-2000
Sheet No. G-l-1
COMMERCIAL CORE GAS SERVICE
UTILITY RATE SCHEDULE G-2
A. APPLICABILITY:
This schedule applies to non-residential core customers. Core customers include all customers using
less than 250,000 therms per year at a single address. In addition, this schedule applies to customers
who use more than 250,000 therms per year at a single address but elect to be core customers served
under this schedule.
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 ......................................................................................................................................53.8¢
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 servic~ is caused by an act of
God, Fire, Strikes, riots, war, or any other cause that is beyond the City’s control.
{End}
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 8-1-2000
Sheet No. G-2-1
LARGE COMMERCIAL CORE GAS SERVICE
UTILITY RATE SCHEDULE G-7
A. APPLICABILITY:
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 leased by the City.
C. RATES:Cents
Per Therm
Commodity Charge ......................................................i ..........................................................30.4¢
Administrative Fee ...................................................................................................................0.4¢
Transportation Charges:
PG&E Local Transportation .............................................................................................1.6¢
Palo Alto Local Distribution ................................................................, ............................8.5¢
D. SPECIAL CONDITION:
o
o
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.
The total monthly charge = therms used during the month X (commodity charge + administrative
fee + PG&E local transportation charge + Palo Alto local distribution charge).
5. A customer may request service under this schedule for more than one account or meter if the
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. G-7-1 dated 7-1-98 CITY OF PALO ALTO
UTILITIES
Effective 8-1-2000
Sheet No. G-7-1
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, or if a customer elects schedule G-8. 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-7-1 dated 7-1-98 CITY OF PALO ALTO
UTILITIES
Effective 8-1-2000
Sheet No. G-7-2