HomeMy WebLinkAboutStaff Report 2603-61633.Staff Recommends the Utilities Advisory Commission Recommend that the City Council
Adopt a Resolution Approving the FY 2027 Electric Financial Forecast, including Approving
a Reserve Transfers, and Amending Electric Rate Schedules E-1 (Residential Electric
Service), E-1 TOU (Residential Time of Use Electric Service), E-2 (Residential Master-
Metered and Small Non-Residential Electric Service), E-2-G (Residential Master-Metered
and Small Non-Residential Green Power Electric Service), E-4 (Medium Non-Residential
Electric Service), E-4-G (Medium Non-Residential Green Power Electric Service), E-4 TOU
(Medium Non-Residential Time of Use Electric Service), E-7 (Large Non-Residential
Electric Service), E-7-G (Large Non-Residential Green Power Electric Service), E-7 TOU
(Large Non-Residential Time of Use Electric Service), E-14 (Street Lights), E-16
(Unmetered Electric Service), E-EEC-1 (Export Electricity Compensation), and E-NSE-1
(Net Metering Net Surplus Electricity Compensation); CEQA Status: Not a project. under
CEQA Guidelines Section 15378(b)(5) (ACTION: 7:35PM – 8:35PM) Late Packet Report
added, Staff Presentation
Utilities Advisory Commission
Staff Report
Report Type: NEW BUSINESS
Lead Department: Utilities
Meeting Date: March 31, 2026
Report #:2603-6163
TITLE
Staff Recommends the Utilities Advisory Commission Recommend that the City Council Adopt a
Resolution Approving the FY 2027 Electric Financial Forecast, including Approving a Reserve
Transfers, and Amending Electric Rate Schedules E-1 (Residential Electric Service), E-1 TOU
(Residential Time of Use Electric Service), E-2 (Residential Master-Metered and Small Non-
Residential Electric Service), E-2-G (Residential Master-Metered and Small Non-Residential
Green Power Electric Service), E-4 (Medium Non-Residential Electric Service), E-4-G (Medium
Non-Residential Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of Use
Electric Service), E-7 (Large Non-Residential Electric Service), E-7-G (Large Non-Residential
Green Power Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service), E-
14 (Street Lights), E-16 (Unmetered Electric Service), E-EEC-1 (Export Electricity Compensation),
and E-NSE-1 (Net Metering Net Surplus Electricity Compensation); CEQA Status: Not a project.
under CEQA Guidelines Section 15378(b)(5)
This will be a late packet report published on Thursday, March 26, 2026.
Item No. 3 Page 1 of 30
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Utilities Advisory Commission
Staff Report
From: Alan Kurotori, Director Utilities
Lead Department: Utilities
Meeting Date: March 31, 2026
Report #: 2511-5447
TITLE
Staff Recommends the Utilities Advisory Commission Recommend that the City Council Adopt a
Resolution Approving the FY 2027 Electric Financial Forecast, Approving a Reserve Transfer, and
Amending Electric Rate Schedules E-1 (Residential Electric Service), E-1 TOU (Residential Time
of Use Electric Service), E-2 (Residential Master-Metered and Small Non-Residential Electric
Service), E-2-G (Residential Master-Metered and Small Non-Residential Green Power
Electric Service), E-4 (Medium Non-Residential Electric Service), E-4-G (Medium Non-
Residential Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of Use
Electric Service), E-7 (Large Non-Residential Electric Service), E-7-G (Large Non-Residential
Green Power Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service),
E-14 (Street Lights), E-EEC-1 (Export Electricity Compensation), and E-NSE-1 (Net Metering
Net Surplus Electricity Compensation); CEQA Status: Not a project.
RECOMMENDATION
Staff recommends the Utilities Advisory Commission recommend that the City Council adopt a
Resolution (Attachment A):
1. Approving the Fiscal Year 2027 Electric Utility Financial Forecast shown in this staff report
and attachments,; and
2. Approving the transfer at the end of FY 2026 of up to $5 million from the Electric Utility
Distribution Operations Reserve to the Electric Utility Capital Reserve; and Amending
Electric Rate Schedules (Attachment A, Exhibit 1) effective July 1, 2026 (FY 2027):
a. E-1 (Residential Electric Service)
b. E-1 TOU (Residential Time of Use Electric Service)
c. E-2 (Residential Master-Metered and Small Non-Residential Electric Service)
d. E-2-G (Residential Master-Metered and Small Non-Residential Green Power
Electric Service
e. E-4 (Medium Non-Residential Electric Service)
f. E-4-G (Medium Non-Residential Green Power Electric Service)
g. E-4 TOU (Medium Non-Residential Time of Use Electric Service)
h. E-7 (Large Non-Residential Electric Service)
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i. E-7-G (Large Non-Residential Green Power Electric Service)
j. E-7 TOU (Large Non-Residential Time of Use Electric Service)
k. E-14 (Street Lights)
l. E-EEC-1 (Export Electricity Compensation) to reflect forecasted avoided cost for FY
2027, and
m. E-NSE-1 (Net Metering Net Surplus Electricity Compensation) to reflect avoided
cost for CY 2025.
EXECUTIVE SUMMARY
This staff report provides the Utilities Advisory Commission with a financial forecast for the
Electric Utility and provides an overview of the utility’s operations costs, capital costs, and debt
and includes recommended rate adjustments required to maintain the utility’s financial health.
This work is done annually as part of the budget and rate-setting cycle. Attachment A contains a
draft Council Resolution. Attachment A, Exhibit 1 contains a redline of the proposed changes to
the Electric Utility rate schedules. Attachment A, Exhibit 2 contains a summary of the financial
details and CIP budgets underlying the forecast. Attachment A, Exhibit 3 contains redlined
Electric Utility Reserves Management Practices describing the reserves and showing non-
substantive revisions to align with the state’s retitled “Cap and Invest” Program. Attachment B
contains a summary of the Electric Utility communications strategy and samples.
The Electric Utility rate forecast proposes a 6% rate increase for FY 2027. Beyond 2027, the
forecast shows additional increases that are slightly lower than the forecasts prepared last
year.1 Table 1 shows the proposed rate increases for FY 2027 through FY 2031.
Table 1: Current Year (FY 2026) and Forecasted Overall Rate Trajectory from FY 2027 to FY
2031
Fiscal Year 2026 2027 2028 2029 2030 2031
Current Forecast 6%6%6%7%7%5%
FY 2026 Plan (prior year)6%6%8%8%6%-
The drivers for this change relative to last year’s forecast include a new warehouse and laydown
1 The current year (FY 2026) Financial Forecast for the Electric Utility (approved June 16, 2025) is described in the
Finance Committee Staff Report 2412-3870 from April 15, 2025:
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yard for grid modernization, replacement of emergency generators, and a new approach to grid
modernization described to the Utilities Advisory Commission on January 7, 2026.3 The new
“when and where” approach to grid modernization provides the opportunity to delay costly
system upgrades until electric customers are ready to replace gas appliances or install EV
chargers. This approach lowers the expected rate increases. The rate increases in the outer years
of the forecast could change as the Council finalizes plans for debt financing grid modernization
costs.
3 Staff Report 2512-5638 Fiscal Year 2026 Mid-Year Electric Grid Modernization Update
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85181&dbid=0&repo=PaloAlto and presentation on
pg. 9 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85181&dbid=0&repo=PaloAlto
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costs, commitments, and reappropriations planned to be reimbursed through the debt
issuance. On a combined basis, the Electric Distribution and Supply Operations Reserves are
within the guideline range and are forecasted to remain within the guideline range throughout
the five-year forecast period, FY 2027 to FY 2031.
BACKGROUND
ANALYSIS
FY 2025 Costs and Revenues
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normal in FY 2025, producing somewhat higher than average levels of hydroelectric generation
and enabling the City to sell some surplus generation to other utilities. In addition, the City is a
net seller of RA capacity, and extremely high RA prices during FY 2025 enabled the City to
realize significant RA sales revenue. Electric supply purchase costs increased 5% per year on
average from FY 2020 through FY 2025,5 and other operational costs increased 12% per year on
average over the same period.6
Table 2: FY 2025 Actuals vs. Prior Year’s Forecast ($000)
Net Cost (Benefit) Variance Type of change
Higher revenues from higher load, surplus
sales, and transfers
(12,712)Revenue increase
Lower electric supply costs (4,070)Cost decrease
Lower operational costs (8,353)Cost decrease
Lower than forecast capital investment (31,274)Cost decrease
Net Cost / (Benefit) of Variances (56,409)
Forecasts
Overview
5 Electric Supply Purchases plus Surplus Energy Costs less Surplus Energy Sales.
6 Operating costs include Administration, Customer Service, Engineering, Operations & Maintenance, Resource
Management, and Rent less Discounts/Uncollectible.
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Operations costs in FY 2026 are forecasted to be $9.3 million, or 22% higher than FY 2025
actuals. This large increase is due mainly to increases in Demand-Side Management program
expenses ($2.6 million) and increased engineering and operation and maintenance costs ($6.7
million). Operation expenses are increasing primarily due to a higher volume of contract work
being performed for system inspection and compliance maintenance (i.e. pole testing and
crossarm replacement). Vacancy savings will offset a portion of the contract work. Allocated
charges from other City departments are forecasted to increase 7% based on adopted FY 2026
budget numbers.
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Figure 1: Electric Utility Revenues, Expenses, and Rate Changes:
Staff conducted an updated load forecast for FY 2027, with forecast methodologies that
incorporated weather patterns, economic factors, and historical trends. This forecasted
electricity sales of 982,355 MWh and a peak electric load of 180 MW in FY 2027. Electricity sales
grew 4.6% in FY 2024 and 5% in FY 2025. Electric sales in FY 2026 are currently forecasted to
grow by 4.5% while the FY 2027 forecast is expected to remain relatively flat, only growing
0.2%. The main contributors to the recent electricity sales increases include growth in the E-7
and E-4 rate classes, driven primarily by small and medium data center expansions. From
around 1999 to 2019 the electric sales showed a gradual 1% annual decline due to loss of
manufacturing, energy efficiency, and rooftop solar adoption. The roughly 20-year decline prior
to 2019 was slightly mitigated by small increases in sales from building electrification and EV
charging.
Figure 2 shows the forecasted electricity sales through FY 2045. Electricity sales are expected to
only rise slightly as the rebound from COVID-19 is largely complete and further data center
projects are uncertain at this point. Building and vehicle electrification at a business-as-usual
level is included in the FY 2027 forecast. The “High Forecast” is shown for reference to illustrate
how increases in data center loads as well as a very large increase in the pace of building and
vehicle electrification could increase sales. Staff update the forecast annually based on the
most updated information for financial forecast purposes. While Palo Alto saw rapid electricity
growth in the prior 18-24 months, that growth has slowed substantially and is currently
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trending approximately 1% below the forecast shown below in the orange line for FY 27
Expected Forecast (on a weather normalized basis). As more certainty emerges around the
residential and commercial growth staff will update this forecast in the preliminary rates
forecast towards the end of 2026.
Figure 2: Forecasted Electricity Sales
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Figure 3: Forecasted Electricity Peak Demand
The Electric Utility receives most of its revenues from sales of electricity to Palo Alto customers,
but about 20 to 25% comes from other non-rate revenue sources. Of these non-rate revenue
sources, about 80% represents wholesale revenues – from surplus energy sales, surplus RA
sales, and sales of renewable energy credits (RECs) that are in excess of the City’s renewable
portfolio standard (RPS) requirements. These revenues may offset electric supply purchase
costs, smooth rate increases, or fund reserves or other costs including the Electric General Fund
Transfer and local decarbonization programs. Of the remaining revenues, the largest sources
are interest income, customer connection fees for new or replacement electric services, and
carbon allowance sales revenues associated with the State’s Cap-and-Invest (formerly Cap-and-
Trade) program.
Staff expects Cap-and-Invest allowance revenues to decline starting in calendar year 2027 and
then increase throughout the remainder of the forecast period under the new draft calculations
from California Air Resources Board (CARB). Although CARB is still in the process of updating
the regulations, a revised regulation is expected to be adopted in 2026, with implementation
anticipated in 2027. The current proposal from CARB staff would reduce the City’s current
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allowance revenue by approximately 40%, or about $2 million per year, from the current Cap-
and-Invest revenues to the electric fund. Staff will continue to update Cap-and-Invest related
revenues forecasts as more information becomes available.
Expenses
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litigating Transmission Owner Rate Cases where transmission costs have been improperly
assigned by California Investor Owned Utilities. Utilities staff is also working alongside the
Northern California Power Agency (NCPA) and federal hydropower staff to mitigate the
forecasted loss of revenues from RA sales in 2028 due to currently proposed CAISO procedure
changes.
Figure 4: Electricity Supply by Source
9 and
Figure 5 also shows average and actual hydroelectric generation.10 FY 2021 and FY 2022 had
lower than average hydroelectric generation, while FY2024 had higher than forecasted
generation. Starting in FY 2023 (in the FY 2024 Electric Utility Financial Plan) staff lowered its
forecast of an average hydroelectric year to more closely align with the past 10 years of
historical averages.
9 Costs are shown net of wholesale revenues and cannot be directly compared with the electric supply purchase
figures shown in Attachment C: Electric Utility Financial Forecast Table.
10 Average hydroelectric generation based on the currently inactive E-HRA rate schedule.
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Actuals Projection
%
S
h
a
r
e
Fiscal Year
Net Market
Purchases/Sales
Hydroelectric
Renewable
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anticipates that net electric supply costs will increase from an average of about $80 million
from FY 2022 through FY 2025 to about $126 million by FY 2031.
Figure 5: Electric Supply Portfolio Cost/Revenues
Table 3: Electric Supply Portfolio Costs/Revenues ($000)
Actual ForecastFiscal Year 2025 2026 2027 2028 2029 2030 2031
Net Supply Costs
0
100
200
300
400
500
600
-40
-20
0
20
40
60
80
100
120
140
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Actuals Projection
Hy
d
r
o
e
l
e
c
t
r
i
c
G
e
n
e
r
a
t
i
o
n
(
G
W
h
)
Su
p
p
l
y
C
o
s
t
s
(
$
M
i
l
l
i
o
n
)
Fiscal Year
Net Resource Adequacy
Purchases/Sales
Net Market
Purchases/Sales
Other Costs
Hydroelectric Cost
Transmission
Renewables
Average Hydro
Generation
Actual/Projected Hydro
Generation
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Operations
Administration includes direct costs for the Electric Utility for administrative and general
functions as well as shared utility administrative costs (costs allocated across all City
Departments). Specifically, administration includes financial management, insurance,
information technology expenses, work yard and inventories, tools, and other overhead
type activities;
Debt service is used to fund long-term capital projects. Additional detail on Electric
Utility debt service is provided in the Debt Service section below;
Customer Service including billing, printing and mailing, and customer support;
Engineering work for maintenance activities (separate from long-term capital activities);
Operations and Maintenance of the distribution system;
Resource Management and Demand Side Management; and
General Fund Transfers fund communications dispatch, fire training, graffiti removal
from poles and boxes, and Office of Emergency Services emergency response.
Other Transfers including transfers to the City’s capital project fund, reserves, and
technology fund.
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Figure 6: Electric Utility Operational Costs
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Capital Improvement Program
Table 4: Electric Utility CIP Spending, Budgeted ($M)
*Actual values from FY 2025.
13
13 $166.7 million less $85 million for the FY2027 bond is $89 million.
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Note that the debt issuance in FY 2027 will be used to reimburse FY 2025 and FY 2026 grid
modernization expenses, resulting in the use of rate/reserve funding in those years and a
refund to the reserves in FY 2027 as the bond proceeds are applied to the actual capital costs
for grid modernization and related projects (see Council staff report 2411-3805,15 December 16,
2024 for a detailed discussion and accompanying Resolution 1020916).
Table 5: Electric Utility CIP Funding Sources Based on Cash Expenditures ($M)
2025 2026 2027 2028 2029 2030 2031 Total
Rate-Funded CIP (Non-Grid Modernization)$21.4 $39.0 $15.2 $15.9 $16.4 $17.7 $18.1 $143.7
Rate Funded Grid Modernization $11.0 $11.0 $11.0 $11.0 $11.0 $11.0 $11.0 $77.0
Total Pay-Go $32.4 $50.0 $26.2 $26.9 $27.4 $28.7 $29.1 $220.7
Debt-Funded $2.7 $19.5 $15.8 $31.6 $15.0 $43.7 $45.3 $173.6
Total $35.1 $69.5 $41.9 $58.5 $42.4 $72.5 $74.4 $394.3
Table 6: Other Issuances Secured by Electric Utility’s Revenues or Reserves
Secured by Electric Utility’s:Bond Issuance Responsible
Utilities
Annual Debt
Service ($000)Net Revenues Reserves
2009 Water Revenue Bonds (Build
America Bonds)Water $1,977*No Yes
2011 Utility Revenue Refunding
Bonds, Series A
Gas
Water
$1,457 No Yes
*Net of Federal interest subsidy
15 Staff report 2411-3805 “Adoption of a Resolution of Intention to Reimburse Expenditures for the Grid
Modernization and Related Projects of the Electric Utility System Infrastructure from the Proceeds of the Tax-
Exempt Utility Revenue Bonds.”
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83165&dbid=0&repo=PaloAlto
16 Council Resolution 10209 (Dec. 16, 2024)
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=62094&dbid=0&repo=PaloAlto
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Reserves
The Electric Utility currently has two primary contingency reserves: the Supply Operations
Reserve and the Distribution Operations Reserve. In addition, the Electric Utility has a Hydro
Stabilization Reserve, an Electric Special Projects (ESP) Reserve, and a Capital Reserve. Reserve
funds may be utilized with Council approval.
There are a variety of risks associated with the Supply Fund related to resource generation
variability, market price volatility, transmission cost increases, and regulatory changes to
market rules. Because of the high range of uncertainty in energy price predictions more than
two years into the future, this risk assessment is only performed for the first two fiscal years of
the forecast period. It is important to note that there is a very low likelihood of all adverse
scenarios occurring simultaneously (as the severity is defined in Table 7).
Of the risks faced by the Electric Utility’s Supply Fund for FY 2027, the largest two factors are
related to potential transmission cost increases above staff’s current forecast ($5.4 million) and
the reduction of total load (and the associated retail sales revenue) may be lower than
forecasted ($5.3 million). Together, these two risks account for almost half of the overall
Electric Supply Fund risk. Other risks are related to production from the City’s renewable
Estimates of Adverse
Outcomes (M$)
Estimates of Adverse
Outcomes (M$)
FY 2027 FY 2028
1. Load Net Revenue 5.3 5.1
2. Renewable Production: Landfill,
Wind, Solar, Geothermal 1.2 2.1
3. REC Purchases 0.5 0.5
4. REC Sales 1.0 0.8
5. Market Price 1.9 1.5
6. Resource Adequacy 4.5 2.1
7. Transmission/CAISO 5.4 5.8
8. Plant Outage 1.0 1.0
9. Western Cost 1.6 1.4
10. Legislative & Regulatory 0.0 0.0
11. Supplier Default 0.2 0.2
Electric Supply Fund Risks 22.6 20.5
Categories of Electric Supply Cost
Uncertainties
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contracts and market prices for purchases and sales of energy and resource adequacy (Items 2
through 6 in Table 7 above), totaling $9.0 million or 40% of the total risk.
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Table 8: Electric Distribution Fund Risk Assessment ($000)
Total non-commodity revenue
89,007
92,567
98,121
104,990
111,289
116,853
Max. revenue variance, previous 10 yrs 8%8%8%8%8%8%
Risk of revenue loss
7,025
7,306
7,744
8,286
8,783
9,223
CIP Budget
35,591
10,122
33,301
34,109
35,698
36,370
CIP Contingency (10%)
3,559
1,012
3,330
3,411
3,570
3,637
10,584
8,318
11,074
11,697
12,353
12,860
Figure 7 illustrates the combined Supply and Distribution Operating Reserve balances. The
combined balances have met the reserve minimum, and future rate adjustments balance rate
stability and achievement of the reserve target.
Reserve transfers are made at the end of each fiscal year so that the Electric Utility meets its
financial goals and policies. At the end of FY 2025, the Electric Utility’s combined Operations
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Reserves for Distribution and Supply totaled $46.6 million, which is close to the target level of
$49.5 million.19
20 These funds covered higher
costs during the pandemic, lower hydroelectric generation during the drought, and high winter
energy prices during 2022-2023.This forecast also reflects repayments of $1 million per year
from FY 2027 through FY 2030 to the Electric Special Projects Reserve for loans to the water
and gas utilities for AMI investments.
21 Replenishing this reserve reduces the risk that, in the event
of unforeseen condition declines in hydro conditions, the City will need to use the Hydro Rate
Adjuster to recover higher supply costs.
19 Attachment D, Exhibit 1 to Staff Report 2411-3776, June 16, 2025, Table 1, line 66:
https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/city-council-agendas-
minutes/2025/june-16/rates-attachments/finalized-attachment-d-exhibit-1-fy26-electric-utility-financial-forecast-
and-cip-detail.pdf
20 In FY 2018 Council approved a $10 million transfer from the Electric Special Projects Reserve to the Operations
Reserve to mitigate higher supply costs due to the drought, the costs of new renewable energy projects coming
online and increasing transmission charges. See Staff Report 8186
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=77755&dbid=0&repo=PaloAlto. $5 million was
repaid in FY 2020; See Staff Report 11341
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86876&dbid=0&repo=PaloAlto, In FY 2022 Council
approved an additional $5 million transfer from the ESP Reserve to the Operations Reserve to avoid rate increases
exceeding 5%. (Staff Report 13661, June 13, 2022)
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2238&dbid=0&repo=PaloAlto. This left a total
outstanding loan of $10 million. In FY 2024, $2.5 million was repaid (Staff Report 2411-3776, June 16, 2025,
Attachment D, Exhibit 1, line 55 shows the balance in the Electric Special Project Reserve increased by $2.5 million
in FY 2024 https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2025/june-16/rates-attachments/finalized-attachment-d-exhibit-1-fy26-electric-utility-
financial-forecast-and-cip-detail.pdf).
21 Electric Utility Reserves Management Practices, Section 7 d; Attachment D, Exhibit 3 to Staff Report 2411-3776,
June 16, 2025: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2025/june-16/rates-attachments/attachment-d-exhibit-3-fy26-electric-reserves-
management-practices.pdf
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the actual and projected reserve balances for each of these reserves. The Operations Reserve
will be used temporarily to fund the grid modernization project until debt is issued in FY 2027.
25 all of the Cap and Invest
Program revenue was spent on purchasing renewable energy and none was held in reserve.
26 Council approved continuation of the program with 100% of revenue
going to local emissions reduction. In accordance with Council policy, staff will fund the Cap and
Invest Program Reserve with unspent revenues from the sale of carbon allowances freely
allocated to the Electric Utility in an amount equal to 100% of each FY’s Renewable Energy
Credit (REC) Exchange program revenues, currently estimated to be about $0.5M per year
through FY 2029, for future local decarbonization projects.
CIP Reserve Balance
25Staff Report 11556
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86875&dbid=0&repo=PaloAlto
26December 12, 2022 Staff Report #14375
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82045&dbid=0&repo=PaloAlto
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below reflects the maximum and minimum CIP Reserve guideline levels, starting in FY 2020
through FY 2031. The maximum reserve level is equal to the running 4-year average of
forecasted CIP expenses. Because of the fluctuating annual dollar amounts and timing of CIP
projects budgeted to occur during the forecast period, as well as the potential for new ongoing
projects to be included in the CIP plan in later years, four years of budgeted CIP are used to
calculate the reserve maximum levels. The minimum CIP Reserve level is 20% of the maximum
CIP Reserve guideline level.
Figure 8: Electric CIP Reserve Adequacy
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The reserves charts below show significant increases in the Distribution Operations Reserve as
these funds will be replenished following grid modernization investments prior to the bond
funding in FY 2027.
Figure 9: Electric Utility Reserves (Supply Fund):
Actual Reserve Levels through FY 2026 and Forecasts through FY 2031
Figure 10: Electric Utility Reserves (Distribution Fund):
Actual Reserve Levels through FY 2026 and Forecasts through FY 2031
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Table 9 shows the forecasted balance of each of the Electric Utility reserves for the period
covered by this Financial Forecast. See also: Attachment A, Exhibit 2: Electric Utility Financial
Table.
Table 9: Electric Utility Reserves Starting and Ending Balances, Revenues, Transfers To/(From)
Reserves, and Reserve Guideline Levels for FY 2026 to FY 2031 ($000)
Fiscal Year 2026 2027 2028 2029 2030 2031
Starting Reserve Balances
1 Supply Operations 43,632 44,257 38,164 40,180 39,100 37,722
2 Distribution Operations 2,949 (2,623) 18,559 19,768 23,971 22,068
3 Capital Reserves 880 5,880 8,880 12,380 15,880 19,380
4 Electric Special Projects 30,149 31,169 32,189 33,209 34,229 35,249
5 Hydro Stabilization 18,767 18,767 24,767 24,767 24,767 24,767
6 Cap and Trade 6,675 5,625 4,175 3,121 1,245 871
7 Public Benefits 8,163 11,047 7,451 6,054 4,400 2,472
8 Low Carbon Fuel Standard (LCFS) 6,372 2,127 166 341 666 -
9 Electrification Reserve 2,037 2,037 2,037 2,037 2,037 2,037
Revenues
10 Supply 161,733 159,079 158,313 166,468 175,955 183,962
11 Distribution 84,566 90,013 95,841 101,787 108,354 114,187
12 Cap and Trade 3,225 2,249 2,327 2,724 3,313 3,313
13 Public Benefits 5,677 6,067 6,460 6,932 7,399 7,777
14 Low Carbon Fuel Standard 1,301 1,431 1,574 1,731 1,904 1,400
15 Electrification Reserve Repayments - - - - - -
Transfers from Supply Operations Reserve to Other Reserves or to Distribution Fund
16 Distribution Operations (1,020) (1,020) (1,020) (1,020) (1,020) (1,020)
17 Electric Special Projects (1,020) (1,020) (1,020) (1,020) (1,020) -
18 Hydro Stabilization - (6,000) - - - -
19 Cap and Trade 1,862 1,299 1,227 1,944 3,193 3,193
16+17+18+19=20 Supply Operations Total (178) (6,741) (813) (96) 1,153 2,173
Transfers from Distribution Operations Reserve to Other Reserves or to Supply Fund
21 Supply Operations 1,020 1,020 1,020 1,020 1,020 1,020
22 Capital Reserves (5,000) (3,000) (3,500) (3,500) (3,500) (3,500)
23 Low Carbon Fuel Standard - - - - - -
21+22+23=24 Distribution Operations Total (3,980) (1,980) (2,480) (2,480) (2,480) (2,480)
Expenses
25 Electric Supply Purchases (160,929) (158,431) (155,485) (167,453) (178,485) (182,252)
26 Distribution Non-CIP (50,568) (56,728) (58,851) (60,996) (72,078) (73,851)
27 Distribution Planned CIP (35,591) (10,122) (33,301) (34,109) (35,698) (36,370)
28 Cap and Trade (2,413) (2,400) (2,154) (2,656) (495) (385)
29 Public Benefits (2,793) (9,662) (7,858) (8,586) (9,327) (10,145)
30 Low Carbon Fuel Standard (5,545) (3,392) (1,399) (1,406) (2,024) (1,400)
31 Electrification Reserve - - - - - -
Ending Reserve Balance
1+10+20+25=32 Supply Operations 44,257 38,164 40,180 39,100 37,722 41,604
2+11+24+26+27=33 Distribution Operations (2,623) 18,559 19,768 23,971 22,068 23,554
3+22=34 Capital Reserves 5,880 8,880 12,380 15,880 19,380 22,880
4-17=35 Electric Special Projects 31,169 32,189 33,209 34,229 35,249 35,249
5+18=36 Hydro Stabilization 18,767 24,767 24,767 24,767 24,767 24,767
6-19+28=37 Cap and Trade 5,625 4,175 3,121 1,245 871 605
7+13+29=38 Public Benefits 11,047 7,451 6,054 4,400 2,472 104
8+14+23+30=39 Low Carbon Fuel Standard (LCFS) 2,127 166 341 666 547 -
9+15+31=40 Electrification Reserve 2,037 2,037 2,037 2,037 2,037 2,037
Operations Reserve Guidelines (Supply)
Minimum 23,964 23,487 22,780 24,615 25,856 26,191
Maximum 47,927 46,974 45,560 49,229 51,712 52,382
Operations Reserve Guidelines (Distribution)
Minimum 9,343 11,351 11,070 11,539 13,579 13,897
Maximum 18,686 22,701 22,141 23,077 27,158 27,794
Capital Reserve Guidelines
Minimum 5,656 5,661 5,661 5,661 5,661 5,979
Maximum 28,281 28,307 28,307 28,307 28,307 28,307
Item No. 3 Page 25 of 30
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Proposed Rates
The City adopted its current electric rates effective July 1, 2025. The current FY 2026 and
proposed FY 2027 rates are reflected in Table 10 below. All FY2027 commodity rates are
increased by 7% and FY2027 distribution rates are increased by 4.5%. Rate components that are
weighted more toward supply costs (summer energy rates) increase at a higher percentage
compared with rate components comprised more heavily of distribution costs (demand rates).
The results in a 6% overall adjustment for each rate schedule.
E-1 (Residential)
Tier 1 Energy ($/kWh)0.20570 0.21761 0.01191 6%
Tier 2 Energy ($/kWh)0.22944 0.24317 0.01373 6%
Customer Charge ($/month)5.15 5.44 0.29 6%
E-2 & E-2-G (Small Non-Residential)
Summer Energy ($/kWh)0.26485 0.28059 0.01574 6%
Winter Energy ($/kWh)0.17290 0.18307 0.01017 6%
Customer Charge ($/month)6.22 6.57 0.35 6%
E-4 & E-4-G (Medium Non-Residential)
Summer Energy ($/kWh)0.16171 0.16872 0.01030 7%
Winter Energy ($/kWh)0.11579 0.12125 0.00696 6%
Summer Demand ($/kW)47.59 51.66 2.49 5%
Winter Demand ($/kW)24.94 27.33 1.24 5%
Customer Charge ($/month)119.53 133.44 7.20 6%
E-7 & E-7-G (Large Non-Residential)
Summer Energy ($/kWh)0.14262 0.14738 0.00946 7%
Winter Energy ($/kWh)0.09245 0.09579 0.00609 7%
Summer Demand ($/kW)42.41 45.87 2.26 5%
Winter Demand ($/kW)29.20 32.02 1.45 5%
Customer Charge ($/month)547.36 611.03 32.95 6%
Table 11 shows the impact of the proposed July 1, 2027 rate changes on the residential and non-
residential bills for various consumption levels. The increase for all rate classes is 6%.
Item No. 3 Page 26 of 30
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Table 11: Impact of Proposed Electric Rate Changes on Customer Bills in FY 2027
Monthly Bill
Rate
Schedule
Usage
(kWh/mo)
Peak
Demand
kW-mo Current Rates Proposed Rates Change
Change
(%)
300 NA $66.86 $70.72 $3.86 6%
(Summer
Median)
365
NA $80.23 $84.87 $4.64 6%
(Winter
Median)
450
NA $97.72 $103.36 $5.65 6%
650 NA $143.60 $152.00 $8.40 6%
E-1
(Residential)
1,200 NA $269.80 $285.74 $15.95 6%
E-2
(Small Non-
Residential)
1,000 NA $225.10 $238.40 $13.31 6%
160,000 274 $32,253.66 $34,152.67 $1,899.01 6%E-4
(Medium
Non-
Residential)
500,000 856 $100,515.02 $106,433.66 $5,918.64 6%
E-7
(Large Non-
Residential)
2,000,000 3,424 $355,194.24 $377,128.71 $21,934.47 6%
Net Energy Metering Compensation Rates
The City operates two Net Energy Metering (NEM) programs. Solar customers served by the
City of Palo Alto's (CPAU) original NEM program, also called NEM 1, are compensated at retail
rates for electricity they export to the grid, and solar customers served by the NEM successor
program, or NEM 2 (effective after the City reached its NEM 1 cap at the end of 2017), are
compensated at the Export Electricity Compensation (E-EEC-1) rate for exported electricity.
Customers on the NEM 1 program who have chosen to have the value of any annual net
generation they produced over the past 12 months credited back to their account do so under
the Net Metering Net Surplus Electricity Compensation (E-NSE-1) rate. The Net Surplus
Electricity Compensation rate represents the City’s avoided cost or value of customer-
generated electricity in Palo Alto over the preceding year, which is calculated based on the
value of the energy and RECs, avoided capacity charges, avoided transmission and ancillary
service charges, and avoided transmission and distribution (T&D) losses. Staff proposes a slight
increase to the E-NSE-1 rate to $0.1064/kWh based on updated avoided cost calculations that
reflect higher historical transmission charges and historical RA market prices in 2025 relative to
their levels in 2024.
Item No. 3 Page 27 of 30
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Under the City’s NEM successor program, participating solar customers in Palo Alto are billed at
the current retail rate for electricity drawn from the grid, and receive a credit for electricity they
export to the grid at the E-EEC-1 rate. This compensation rate also reflects the avoided cost or
value of customer-generated electricity in Palo Alto, calculated on a forward-looking basis for
the upcoming fiscal year. As shown in the table below, the current avoided cost rate for solar
generation in Palo Alto is $0.1206/kWh, which is higher than the City’s forecasted avoided cost
(due to decreases in forecasted resource adequacy and REC prices compared to a year ago),
and thus requires the proposed NEM compensation rate (E-EEC-1) to decrease to $0.0990/kWh.
This decrease in the overall avoided cost is driven by a significant drop in forward electricity
market prices and forward RA prices. Table 12 shows the current and proposed NEM buyback
rates that would be effective on July 1, 2026.
Table 12: NEM Buyback Rates – Current vs. Proposed
Item No. 3 Page 28 of 30
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Bill Comparisons/Competitiveness
For the median consumption level, the CPAU residential electric monthly bill is about $94.04.
This is about 50% lower than the monthly bill for a PG&E customer and about 24% higher than
the bill for a City of Santa Clara (Silicon Valley Power) customer with the same consumption
level, based on rates as of January 1, 2026. PG&E bill calculations are based on the “average”
bundled total rates, including the annual climate credit, and Climate Zone X, which includes
most nearby comparison communities.
Santa Clara’s electrical system benefits from a higher load factor with a significantly larger
commercial load compared to Palo Alto’s, resulting in a more efficient distribution system and
lower rates. However, unlike Palo Alto, Santa Clara’s system is not 100% carbon neutral, as part
of its electricity is generated from natural gas.
Table 13 provides sample residential bills for Palo Alto (effective 7/1/2026), PG&E (effective
1/1/2026), and the City of Santa Clara (effective 7/1/2026) at various usage levels.
Usage (kWh)
Palo Alto
7/1/2026
PG&E
1/1/2026
Santa Clara
1/1/2026
300 $70.72 $117.20 $53.28
(Median) 408 $94.12 $168.40 $71.88
650 $152.00 $283.12 $116.55
1200 $285.74 $543.85 $218.06
For commercial customers, the CPAU electric monthly bill is about 43% to 53% lower than the
bill for a PG&E customer, depending on usage levels. Compared to the City of Santa Clara, CPAU
commercial bills are approximately 15% lower to 12% higher, depending on usage levels, based
on rates as of January 1, 2026.
Table 14 presents sample commercial bills for Palo Alto (effective 7/1/2026), PG&E (effective
1/1/2026), and the City of Santa Clara (effective 7/1/2026) at various usage levels.
Usage (kWh)
Palo Alto
7/1/2026
PG&E
1/1/2026
Santa Clara
1/1/2026
1000 $238.40 $432.56 $263.86
160,000 $34,152.67 $69,209.60 $28,924.47
500,000 $106,433.66 $191,670.00 $90,174.88
2,000,000 $377,128.71 $618,760.00 $360,401.49
Item No. 3 Page 29 of 30
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General Fund Transfer
The City calculates the General Fund Transfer from its Electric Utility based on a methodology
adopted by Council in 2009, which has remained unchanged since then.29 Each year it is
calculated according to the 2009 Council-adopted methodology and does not require additional
Council action.
Staff will incorporate the UAC’s recommendations into the draft financial forecast and
attachments and bring those to the Finance Committee in April and to the City Council in June.
The City Council will consider the proposed financial forecast and rate schedules with the FY
2027 budget review and adoption process in June 2026. If Council approves the proposed rate
changes, the rates will become effective July 1, 2026.
FY 2027 revenues from retail rates are forecasted to increase 6.7% or $13.3 million from FY
2026 forecasted levels if Council adopts this financial forecast’s recommendations. The City is a
non-residential utility customer and can expect an increase to General Fund expenses (due to
the rate increases) and revenues (due to the General Fund Transfer). Street light expenses
(which are paid from the General Fund) are forecasted to increase by 6% or $0.122 million. The
General Fund revenues from the General Fund Transfer would increase from an estimate of
$17.56 million in FY 2026 to an estimated $17.95 million in FY 2027, an increase of $0.39 million
The proposed electric rate adjustments are consistent with Council-adopted Reserve
Management Practices that are part of the Financial Forecast and were developed using a cost-
of-service study30 and methodology consistent with the California Constitution and industry-
accepted cost of service principles.
At the UAC on November 5, 2025, staff discussed the preliminary rate proposals .31 The UAC did
not take any action on this item. The video of the meeting is available on the City’s website at
the following link: https://youtube.com/watch?v=1e6NrB2KDCw?feature=share. UAC members
29 For more detail on the ordinance adopting the 2009 transfer methodology, see CMR 280:09, Budget Adoption
Ordinance for Fiscal Years 2009 and 2010; and CMR 260:09, Finance Committee Report explaining proposed
changes to the General Fund Transfer methodology.
30 See Staff Report 2404-2842, June 17, 2024, beginning on packet page 709
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6490&dbid=0&repo=PaloAlto&searchid=e295a977-
520e-4aed-b382-b7e802821bcd
31 See Staff Report 2503-4364, November 5, 2025 “Discussion and Update on the Fiscal Year 2027 Preliminary
Utilities Financial Forecast and Rate Projections”
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84164&dbid=0&repo=PaloAlto&searchid=ffbb0624-
e25e-413d-8cc1-ffb7fcd6db8a&cr=1
Item No. 3 Page 30 of 30
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expressed concern about utility affordability and subsequently formed a UAC Subcommittee to
examine affordability of water and electric rates.
ENVIRONMENTAL REVIEW
ATTACHMENTS
AUTHOR/TITLE:
* NOT YET APPROVED *
Attachment A
1
02703252026
Resolution No. _
Resolution of the Council of the City of Palo Alto Approving the Fiscal
Year 2027 Electric Utility Financial Forecast and Reserve Transfer, and Amending Utility
Rate Schedules E-1 (Residential Electric Service), E-1 TOU (Residential Time of Use
Electric Service), E-2 (Residential Master-Metered and Small Non-Residential Electric
Service), E-2-G (Residential Master- Metered and Small Non-Residential Green Power
Electric Service), E-4 (Medium Non-Residential Electric Service), E-4-G (Medium Non-
Residential Green Power Electric Service), E-4 TOU (Medium Non-Residential Electric
Time of Use Service), E-7 (Large Non Residential Electric Service), E-7-G (Large Non-
Residential Green Power Electric Service), E-7 TOU (Large Non-Residential Electric Time
of Use Service), E-14 (Street Lights), E-EEC-1 (Export Electricity Compensation), and E-
NSE-1 (Net Metering Surplus Electricity Compensation)
R E C I T A L S
A. Each year the City of Palo Alto (“City”) assesses the financial position of its utilities
with the goal of ensuring adequate revenue to fund operations. This includes making long-term
projections of market conditions, the physical condition of the system, and other factors that
could affect utility costs, and setting rates adequate to recover these costs. It does this with the
goal of providing safe, reliable, and sustainable utility services at competitive rates. The City
adopts Financial Forecasts or Plans to summarize these projections.
B. The City uses reserves to protect against contingencies and to manage other
aspects of its operations, and regularly assesses the adequacy of these reserves and the
management practices governing their operation. The status of utility reserves and their
management practices are included in Reserves Management Practices (Exhibit 3) and Electric
Utility and CIP Financial Details (Exhibit 2) in addition to the Electric Financial Forecast staff
report presented to the City Council.
C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the
City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees
and charges.
D. On June 15, 2026, the City Council heard and approved the proposed rate increase
at a noticed public hearing.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the fiscal year (“FY”) 2027 Amended Electric
Utility Reserve Management Practices (Exhibit 3) and Electric Utility and CIP Financial Details
(Exhibit 2) presented to the Finance Committee on April 21, 2026 as updated by the June 15,
* NOT YET APPROVED *
Attachment A
2
02703252026
2026 Council report including the Electric Financial Forecast, which are attached to and made
a part of the staff report presented to the City Council;
SECTION 2. The Council hereby approves the transfer of up to $5 million from the
Electric Utility Distribution Operations Reserve to the Electric Utility Capital Reserve by the end
of FY 2026, as described in the FY 2027 Electric Utility Financial Forecast (Exhibit 2)
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-1 (Residential Electric Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule E-1, as amended, shall become effective July 1, 2026;
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-1 TOU (Residential Time of Use Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-1, as amended, shall become effective July
1, 2026;
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-2 (Residential Master-Metered and Small Non-Residential Electric Service) is
hereby amended to read as attached and incorporated. Utility Rate Schedule E-2, as amended,
shall become effective July 1, 2026;
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-2-G (Residential Master-Metered and Small Non-Residential Green Power
Electric Service) is hereby amended to read as attached and incorporated. Utility Rate
Schedule E-2-G, as amended, shall become effective July 1, 2026;
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4 (Medium Non-Residential Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-4, as amended, shall become effective July
1, 2026;
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4-G (Medium Non-Residential Green Power Electric Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall
become effective July 1, 2026;
SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4 TOU (Medium Non-Residential Time of Use Electric Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule E-4 TOU, as amended,
shall become effective July 1, 2026;
* NOT YET APPROVED *
Attachment A
3
02703252026
SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7 (Large Non-Residential Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-7, as amended, shall become effective
July 1, 2026;
SECTION 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7-G (Large Non-Residential Green Power Electric Service) is hereby amended
to read as attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become
effective July 1, 2026;
SECTION 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7 TOU (Large Non-Residential Time of Use Electric Service) is hereby amended
to read as attached and incorporated. Utility Rate Schedule E-7 TOU, as amended, shall
become effective July 1, 2026;
SECTION 13. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-14 (Street Lights) is hereby amended to read as attached and incorporated.
Utility Rate Schedule E-14, as amended, shall become effective July 1, 2026;
SECTION 14. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-EEC-1 (Export Electricity Compensation) is hereby amended to read as attached and
incorporated. Utility Rate Schedule E-EEC-1, as amended, shall become effective July 1, 2026;
SECTION 15. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-NSE-1 (Net Surplus Electricity Compensation Rate) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-NSE-1, as amended, shall become effective
July 1, 2026;
SECTION 16. The Council finds that the revenue derived from the adoption of this
resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of
the City of Palo Alto.
SECTION 17. The Council finds that the fees and charges adopted by this resolution are
charges imposed for a specific government service or product provided directly to the payor
that are not provided to those not charged, and do not exceed the reasonable costs to the City
of providing the service or product.
//
//
//
//
* NOT YET APPROVED *
Attachment A
4
02703252026
SECTION 18. The Council finds that approving the Electric Reserves Management
Practices, Electric Financial Forecast, and Electric Reserve transfer does not meet the California
Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section
21065 and CEQA Guidelines Section 15378(b)(5), because each is an administrative
governmental activity which will not cause a direct or indirect physical change in the
environment, and therefore, no environmental assessment is required. The Council finds that
changing electric rates to meet operating expenses, purchase supplies and materials, meet
financial reserve needs and obtain funds for capital improvements necessary to maintain service
is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public
Resources Code Sec. 21080(b)(8) and CEQA Guidelines Sec. 15273(a). After reviewing the staff
report and all attachments presented to Council, the Council incorporates these documents
herein and finds that sufficient evidence has been presented setting forth with specificity the
basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
Mayor
APPROVED AS TO FORM:
APPROVED:
Assistant City Attorney
City Manager
Director of Utilities
Director of Administrative Services
RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-1-1 Supersedes Sheet No E-1-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This Rate Schedule applies to separately metered single-family residential dwellings receiving
Electric Service from the City of Palo Alto Utilities.
B.TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C.UNBUNDLED RATES:
Per kilowatt-hour (kWh)Commodity Distribution Public Benefits Total
Tier 1 usage $
0.110990373
$
0.1002509593
$ 0.0063704 $
0.217610570
Tier 2 usage
Any usage over Tier 1
0.143083372 0.093728968 0.0063704 0.243172944
Customer Charge
($/month)
5.4415
D.SPECIAL NOTES:
1.Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
2.Calculation of Usage Tiers
Tier 1 Electricity usage shall be calculated and billed based upon a level of 15 kWh per
day, prorated by Meter reading days of Service. As an example, for a 30-day bill, the Tier
1 level would be 450 kWh. For further discussion of bill calculation and proration, refer
to Rule and Regulation 11.
{End}
Attachment A
RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-1 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-1-TOU-11 Sheet No E-1-TOU-1
Ddated 1-1-2026 Effective 7-1-2026
A. APPLICABILITY:
This voluntary Rate Schedule applies to separately metered single-family residential dwellings
receiving Electric Service from the City of Palo Alto Utilities (CPAU) who have an Advanced
Metering Infrastructure meter installed. This Rate Schedule is not available to Net Energy
Metered (NEM) customers and is provided at the sole discretion of CPAU.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Per kilowatt-hour e kWh Commodit Distribution Public Benefits Total
Summer Perio
Ener Char e
Peak $ 0.249893354
$
0.09772351 $ 0.0063704
$
0.3539833
09
Off-Peak 0.08826249 0.09772351 0.0063704
0.1923582
04
Su er Off-Peak 0.071586690 0.09772351 0.0063704
0.1756766
45
Winter Perio
Ener Char e
Peak $ 0.178746705
$
0.09772351 $ 0.0063704
$
0.2828366
60
Off-Peak 0.11805033 0.09772351 0.0063704
0.2221409
88
Su er Off-Peak 0.083837835 0.09772351 0.0063704
0.1879277
90
Customer Char e $/month 5.4415
RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-1 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-1-TOU-12 Sheet No E-1-TOU-2
Ddated 1-1-2026 Effective 7-1-2026
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement,
the bill amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Seasonal Periods
Summer Period: Service from June 1 to September 30
Winter Period: Service from October 1 to May 31
SEASONAL RATE CHANGES: When the Billing Period includes use in both Summer and
Winter periods, usage will be prorated based on the number of days in each seasonal period, and
the Charges based on the applicable rates therein. For further discussion of bill calculation and
proration, refer to Rule and Regulation 11.
3. Definition of Time Periods
Peak: 4:00 p.m. to 9:00 p.m. Every day
Off-Peak: 9:00 p.m. to 9:00 a.m. Every day
3:00 p.m. to 4:00 p.m.
Super Off-Peak: 9:00 a.m. to 3:00 p.m. Every day
4. Changing Rate Schedules
Customers electing to be served under E-1 TOU must remain on said Rate Schedule for a
minimum of 6 months. Should the Customer so wish, at the end of 6 months, the Customer may
request a Rate Schedule change to any applicable City of Palo Alto full-service Rate Schedule as
is suitable to their kilowatt-hour usage. However, once a customer elects a rate other than E-1
TOU, they cannot re-elect E-TOU for the next 12 billing cycles.
{End}
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL ELECTRIC
SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-2-1 Supersedes Sheet No E-2-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This Rate Schedule applies to the following Customers receiving Electric Service from the City of
Palo Alto Utilities:
1. Non-residential Customers receiving Non-Demand metered Electric Service; and
2. Customers with Accounts at Master-Metered multi-family facilities receiving Non-
Demand metered Electric Service.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Per kilowatt-hour kWh Commodit Distribution Public Benefits Total
Summer Perio
$
0.161305075
$
0.112920806
$ 0.0063704
$
0.28059648
5
Winter Perio
0.09987334
0.07683352
0.0063704
0.18307729
0
Customer Charge ($/month)
6.5722
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use in both the Summer
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL ELECTRIC
SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-2-2 Supersedes Sheet No E-2-2
Effective 7-1-20265 dated 7-1-20254
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a maximum Demand Meter will be installed as promptly as is practicable and
thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh
for twelve consecutive months, whereupon, at the option of the City, it may be removed.
{End}
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-2-G-1 Supersedes Sheet No E-2-G-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This Rate Schedule applies to the following Customers receiving Electric Service from the City of
Palo Alto Utilities who qualify for E-2 Service and choose to participate in the Palo Alto Green
Program:
1. Non-residential Customers receiving Non-Demand metered Electric Service; and
2. Customers with Accounts at Master-Metered multi-family facilities receiving Non-Demand
metered Electric Service.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Per kilowatt-hour (kWh) Commodit Distribution
Public
Benefits
Palo Alto
Green
Char e Total
Summer Perio
$
0.161305075
$
0.112920806
$
0.0063704 $ 0.0075
$
0.2880972
35
Winter Perio
0.09987334
0.07683352
0.0063704 0.0075
0.1905780
40
Customer Charge
($/month)
6.5722
2. 1000 kWh Block Purchase Option:
Per kilowatt-hour (kWh) Commodit Distribution
Public
Benefits
Total
Summer Perio
$
0.161305075
$
0.112920806
$
0.0063704
$
0.2680594
85
Winter Perio
0.09987334
0.07683352
0.0063704
0.1830772
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-2-G-2 Supersedes Sheet No E-2-G-2
Effective 7-1-20265 dated 7-1-20254
90
Customer Charge
($/month)
6.5722
Palo Alto Green Char e (per 1000 kWh block) $ 7.50
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use in both the Summer
and Winter Periods, usage will be prorated based upon the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Palo Alto Green Program Description and Participation
Palo Alto Green Service includes the purchase by the City of Palo Alto Utilities
Department of enough renewable energy credits (RECs) to match 100% of the metered
energy usage at the Customer’s facility each month. Any Customer may alternately request
that CPAU purchase a specific number of 1000 kilowatt-hour (kWh) blocks of RECs.
CPAU will charge the Customer the Palo Alto Green Charge for each such requested block.
These REC purchases support the production of renewable energy, increase the financial
value of power from renewable sources, and create a transparent and sustainable market
that encourages new development of wind and solar power.
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any time,
in writing, a change to the number of blocks they wish to purchase under the Palo Alto
Green Program.
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-2-G-3 Supersedes Sheet No E-2-G-3
Effective 7-1-20265 dated 7-1-20254
4. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a maximum Demand Meter will be installed as promptly as is practicable and
thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh
for twelve consecutive months, whereupon, at the option of the City, it may be removed.
{End}
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-1 Supersedes Sheet No E-4-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This Rate Schedule applies to Demand metered Secondary Electric Service for Customers with
a maximum Demand below 1,000 kilowatts. This Rate Schedule may include Service to master-
metered multi-family facilities or other facilities requiring Demand metered Service, as
determined by the City.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodit Distribution
Public
Benefits Total
Summer Perio
Demand Char e er kW
$ 11.8709
$ 39.798.08
$ 51.6649.17
Ener Char e er kWh
0.133122441
0.02923797
0.0063704
0.168725842
Winter Perio
Demand Char e er kW
$ 2.7860
$ 24.553.49
$ 27.336.09
Ener Char e er kWh
0.08590028
0.02923797
0.0063704
0.121501429
Customer Char e $/month 133.4426.24
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-2 Supersedes Sheet No E-4-2
Effective 7-1-20265 dated 7-1-20254
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a Maximum Demand Meter will be installed as promptly as is practicable and
thereafter continued in Service until the monthly use of energy has fallen below 6,000 kWh
for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A thermal-type
Demand Meter which does not reset after a definite time interval may be used at the City's
option.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts for the current month. An exception is that the Billing
Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual
Maximum Demand of such Customers between the hours of noon and 6 pm on weekdays.
4. Changing Rate Schedules
Customers may request a rate schedule change at any time to any City of Palo Alto full-
service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage
profile.
5. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a particular line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better suited
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-3 Supersedes Sheet No E-4-3
Effective 7-1-20265 dated 7-1-20254
to the Customer's electrical requirements, as determined in the City’s sole discretion. The
City retains the right to change its line voltage at any time after providing reasonable
advance notice to any Customer receiving the discount in this section. The Customer then
has the option to change his system so as to receive Service at the new line voltage or to
accept Service (without voltage discount) through transformers to be supplied by the City
subject to a maximum kilovolt-ampere size limitation.
6. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e),
applies to Customers that have a non-utility generation source interconnected on
the Customer’s side of the City’s revenue meter and that occasionally require
backup power from the City due to non-operation of the non-utility generation
source.
b. Standby Charges:
Commodit Distribution Total
Standby Charge (per kW of
Reserved Ca acit
Summer Perio
$
9.098.50 $ 39.798.08 $ 48.886.58
Winter Perio 0.00 24.553.49 24.553.49
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3)
occurs when one or more of the non-utility generators on the Customer’s side of
the City’s revenue meter are not operating, the Maximum Demand will be reduced
by the sum of the Maximum Generation of those non-utility generators, but in no
event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-4 Supersedes Sheet No E-4-4
Effective 7-1-20265 dated 7-1-20254
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-G-1 Supersedes Sheet No E-4-G-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This Rate Schedule applies to Customers who qualify for E-4 Service and who choose to
participate in the Palo Alto Green Program.
B. TERRITORY:
The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Commodit Distribution
Public
Benefits
Palo Alto
Green
Char e Total
Summer Perio
Demand Char e er kW $ 11.8709 $ 39.798.08
$
51.6649.1
7
Ener Char e er kWh 0.133122441 0.02923797 0.0063704 0.0075
0.1762265
92
Winter Perio
Demand Char e er kW $ 2.7860 $ 24.553.49
$
27.336.09
Ener Char e er kWh 0.08590028 0.02923797 0.0063704 0.0075
0.1290017
68
Customer Char e $/month 133.4426.24
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-G-2 Supersedes Sheet No E-4-G-2
Effective 7-1-20265 dated 7-1-20254
2. 1000 kWh Block Purchase Option:
Commodit Distribution
Public
Benefits Total
Summer Perio
Demand Char e er kW $ 11.8709 $ 39.798.08
$
51.6649.1
7
Ener Char e er kWh 0.133122441 0.02923797 0.0063704
0.1687258
42
Palo Alto Green Char e er 1000 kWh block $7.50
Winter Perio
Demand Char e er kW $ 2.7860 $ 24.553.49 $27.33
Ener Char e er kWh 0.08590028 0.02923797 0.0063704
0.1215014
29
Palo Alto Green Char e er 1000 kWh block $7.50
Customer Char e $/month 133.4426.24
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted
for any applicable discounts, surcharges, and/or taxes. On a Customer’s bill statement, the bill
amount may be broken down into appropriate components as calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-G-3 Supersedes Sheet No E-4-G-3
Effective 7-1-20265 dated 7-1-20254
consecutive months, a Maximum Demand Meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has dropped
below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the
City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A thermal-type
Demand Meter, which does not reset after a definite time interval, may be used at the City's
option.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts for the current month. An exception is that the Billing
Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual
Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays.
4. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full-service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
5. Palo Alto Green Program Description and Participation
Palo Alto Green Service includes the purchase by the City of Palo Alto Utilities
Department of enough renewable energy credits (RECs) to match 100% of the metered
energy usage at the customer’s facility each month. Any Customer may alternately request
that CPAU purchase a specific number of 1000 kilowatt-hour (kWh) blocks of RECs.
CPAU will charge the Customer the Palo Alto Green Charge for each such requested block.
These REC purchases support the production of renewable energy, increase the financial
value of power from renewal sources, and creates a transparent and sustainable market that
encourages new development of wind and solar.
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any time,
in writing, a change to the number of blocks they wish to purchase under the Palo Alto
Green Program.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-G-4 Supersedes Sheet No E-4-G-4
Effective 7-1-20265 dated 7-1-20254
supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a particular line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better suited
to the Customer's electrical requirements, as determined in the City’s sole discretion. The
City retains the right to change its line voltage at any time after providing reasonable
advance notice to any Customer receiving the discount in this section. The Customer then
has the option to change the system so as to receive Service at the new line voltage or to
accept Service (without voltage discount) through transformers to be supplied by the City
subject to a maximum kilovolt-ampere size limitation.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e),
applies to Customers that have a non-utility generation source interconnected on
the Customer’s side of the City’s revenue Meter and that occasionally require
backup power from the City due to non-operation of the non-utility generation
source.
b. Standby Charges:
Commodit Distribution Total
Standby Charge (per kW of
Reserved Ca acit
Summer Perio
$
9.098.50 $ 39.798.08 $ 48.886.58
Winter Perio 0.00 24.553.49 24.553.49
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3)
occurs when one or more of the non-utility generators on the Customer’s side of
the City’s revenue Meter are not operating, the Maximum Demand will be reduced
by the sum of the Maximum Generation of those non-utility generators, but in no
event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-G-5 Supersedes Sheet No E-4-G-5
Effective 7-1-20265 dated 7-1-20254
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-TOU-1 Supersedes Sheet No E-4-TOU-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This voluntary Rate Schedule applies to Demand metered Secondary Electric Service for
Customers with Demand between 500 and 1,000 kilowatts per month and who have sustained
this level of usage for at least three consecutive months during the most recent 12 month period.
This Rate Schedule may include Service to Master-Metered multi-family facilities or other
facilities requiring Demand metered Service, as determined by the City.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodit Distribution Public Benefits Total
Summer Perio
Demand Char e er kW
Peak $ 10.519.82 $ 19.9307 $ 30.4428.89
Max Deman 1.390 19.9307 21.320.37
Ener Char e er kWh
Peak
$
0.184127208 $ 0.02944817 $ 0.0063704
$
0.219940629
Mi -Peak 0.151744181 0.02944817 0.0063704 0.187557602
Off-Peak 0.114080662 0.02944817 0.0063704 0.14989083
Winter Perio
Demand Char e er kW
Peak $ 1.4031 $ 12.451.91 $ 13.8522
Max Deman 1.4031 12.451.91 13.8522
Ener Char e er kWh
Peak
$
0.12943096
$
0.02900775 $ 0.0063704
$
0.164805475
Mi -Peak 0.1021509547 0.02900775 0.0063704 0.137522926
Off-Peak 0.070516590 0.02900775 0.0063704
0.105880996
9
Customer Charge
$/month 133.4426.24
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-TOU-2 Supersedes Sheet No E-4-TOU-2
Effective 7-1-20265 dated 7-1-20254
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted
for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill
amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Time Periods
SUMMER PERIOD (Service from May 1 to October 31):
Energy
Peak: 4:00 p.m. to 9:00 p.m. Monday through Friday (except holidays)
Mid Peak: 2:00 p.m. to 4:00 p.m. Monday through Friday (except holidays)
9:00 p.m. to 11:00 p.m.
Off-Peak: All other hours Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
Demand
Peak: 4:00 p.m. to 9:00 p.m. Monday through Friday (except holidays)
Max Demand: All hours Every day
WINTER PERIOD (Service from November 1 to April 30):
Energy
Peak: 4:00 p.m. to 9:00 p.m. Monday through Friday (except holidays)
Mid Peak: 9:00 a.m. to 2:00 p.m. Monday through Friday (except holidays)
Off-Peak: All other hours Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-TOU-3 Supersedes Sheet No E-4-TOU-3
Effective 7-1-20265 dated 7-1-20254
Demand
Peak: 4:00 p.m. to 9:00 p.m. Monday through Friday (except holidays)
Max Demand: All hours Every day
TYPES OF DEMAND CHARGES: The Peak Demand Charge per Kilowatt applies to the
maximum peak-period Demand during the time periods noted above. The Maximum (Max)
Demand charge per Kilowatt applies to the maximum Demand at any time during the month. Both
Demand charges apply in each Billing Period, and the maximum peak-period Demand and
maximum Demand may occur at different times in the Billing Period depending on Customer
usage patterns.
SEASONAL RATE CHANGES: When the Billing Period includes use in both the Summer and
the Winter periods, the usage will be prorated based on the number of days in each seasonal period,
and the Charges based on the applicable rates therein. For further discussion of bill calculation
and proration, refer to Rule and Regulation 11.
3. Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive
months, a Demand Meter will be installed as promptly as is practicable and thereafter continued
in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve
consecutive months, whereupon, at the option of the City, it may be removed.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated time
periods as defined under Section D.2.
4. Changing Rate Schedules
Customers electing to be served under E-4 TOU must remain on said Rate Schedule for a
minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer
may request a Rate Schedule change to any applicable City of Palo Alto full-service Rate
Schedule as is suitable to their kilowatt Demand and kilowatt-hour usage.
5. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be offered,
but the City is not required to supply Service at a particular line voltage where it has, or will
install, ample facilities for supplying at another voltage equally or better suited to the Customer's
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-TOU-4 Supersedes Sheet No E-4-TOU-4
Effective 7-1-20265 dated 7-1-20254
electrical requirements, as determined in the City’s sole discretion. The City retains the right to
change its line voltage at any time after providing reasonable advance notice to any Customer
receiving the discount in this section. The Customer then has the option to change his system so
as to receive Service at the new line voltage or to accept Service (without voltage discount)
through transformers to be supplied by the City subject to a maximum kilovolt-ampere size
limitation.
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue Meter and that occasionally require backup power
from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodit Distribution Total
Standby Charge (per kW of
Reserved Ca acit
Summer Perio
$
9.098.50 $ 39.798.08 $ 48.886.58
Winter Perio 0.00 24.553.49 24.553.49
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the
non-utility generators on the Customer’s side of the City’s revenue Meter are not operating,
the Maximum Demand will be reduced by the sum of the Maximum Generation of those
non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced
below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle, the
standby charge does not apply and the Customer shall not receive the Maximum Demand
credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-4-TOU-5 Supersedes Sheet No E-4-TOU-5
Effective 7-1-20265 dated 7-1-20254
the event of an interruption in utility Service and which are not used to offset Customer
electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible
Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as
amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-1 Supersedes Sheet No E-7-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This Rate Schedule applies to Demand metered Service for large non-residential Customers with
a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand
level at least 3 consecutive months during the last twelve months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodit Distribution
Public
Benefits Total
Summer Perio
Demand Char e kW $ 12.9107 $ 32.961.54 $ 45.873.61
Ener Char e kWh 0.136812786 0.0042002 0.0063704 0.147383792
Winter Perio
Demand Char e kW $ 3.022.82 $ 29.007.75 $ 32.020.57
Ener Char e kWh 0.085317973 0.00411393 0.0063704 0.095798970
Customer Charge
$/month 611.03578.08
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-2 Supersedes Sheet No E-7-2
Effective 7-1-20265 dated 7-1-20254
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the summer
and in the winter periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Request for Service
Qualifying Customers may request Service under this schedule for more than one Account
or one Meter if the Accounts are on one site. A site, for the purposes of this Rate Schedule,
consists of one or more Accounts which cover contiguous parcels of land with no
intervening public right-of-ways (e.g. streets) and which have a common billing address.
4. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Maximum Demand Meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has fallen
below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the
City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A thermal-
type Demand Meter which does not reset after a definite time interval may be used at the
City's option.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts for the current month. An exception is that the Billing
Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual
Maximum Demand of such Customers between the hours of noon and 6 pm on weekdays.
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-3 Supersedes Sheet No E-7-3
Effective 7-1-20265 dated 7-1-20254
5. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2.8 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a particular line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better suited
to the Customer's electrical requirements, as determined in the City’s sole discretion. The
City retains the right to change its line voltage at any time after providing reasonable
advance notice to any Customer receiving the discount in this section. The Customer then
has the option to change his system so as to receive Service at the new line voltage or to
accept Service (without voltage discount) through transformers to be supplied by the City
subject to a maximum kVA size limitation.
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e),
applies to Customers that have a non-utility generation source interconnected on
the Customer’s side of the City’s revenue Meter and that occasionally require
backup power from the City due to non-operation of the non-utility generation
source.
b. Standby Charges:
Commodit Distribution Total
Standby Charge (per kW of
Reserved Ca acit
Summer Perio $ 9.8925 $ 32.961.54 $ 42.850.79
Winter Perio $0.00 29.007.75 29.007.75
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.4)
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-4 Supersedes Sheet No E-7-4
Effective 7-1-20265 dated 7-1-20254
occurs when one or more of the non-utility generators on the Customer’s side of
the City’s revenue Meter are not operating, the Maximum Demand will be reduced
by the sum of the Maximum Generation of those non-utility generators, but in no
event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-G-1 Supersedes Sheet No E-7-G-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This Rate Schedule applies to Customers who qualify for E-7 Service and who choose to
participate in the Palo Alto Green Program.
B. TERRITORY:
The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Commodit Distribution
Public
Benefits
Palo Alto
Green
Char e Total
Summer Perio
Demand Char e er kW $ 12.9107 $ 32.961.54
$
45.873.6
1
Ener Char e er kWh
0.13681278
6 0.0042002 0.0063704 0.0075
0.15488
4542
Winter Perio
Demand Char e er kW $ 3.022.82 $ 29.007.75
$
32.020.5
7
Ener Char e er kWh
0.08531797
3 0.00411393 0.0063704 0.0075
0.10329
09720
Customer Char e $/month 611.03578.08
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-G-2 Supersedes Sheet No E-7-G-2
Effective 7-1-20265 dated 7-1-20254
2. 1000 kWh Block Purchase Option:
Commodit Distribution Public Benefits Total
Summer Perio
Demand Char e er kW $ 12.9107 $ 32.961.54
$
45.873.6
1
Ener Char e er kWh
0.13681278
6 0.0042002 0.0063704
0.14738
3792
Palo Alto Green Char e er 1000 kWh block $ 7.50
Winter Perio
Demand Char e er kW $ 3.022.82 $ 29.007.75
$
32.020.5
7
Ener Char e er kWh
0.08531797
3 0.00411393 0.0063704
0.09579
8970
Palo Alto Green Char e er 1000 kWh block $7.50
Customer Char e $/month 611.03578.08
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-G-3 Supersedes Sheet No E-7-G-3
Effective 7-1-20265 dated 7-1-20254
consecutive months, a Maximum Demand Meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has dropped
below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the
City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A thermal-type
Demand Meter which does not reset after a definite time interval may be used at the City's
option.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts for the current month. An exception is that the Billing
Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual
Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays.
4. Request for Service
Qualifying Customers may request Service under this schedule for more than one Account
or one Meter if the Accounts are at one site. A site, for the purposes of this Rate Schedule,
consists of one or more Accounts which cover contiguous parcels of land with no
intervening public right-of-ways (e.g. streets) and which have a common billing address.
5. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile
6. Palo Alto Green Program Description and Participation
Palo Alto Green Service includes the purchase by the City of Palo Alto Utilities
Department of enough renewable energy credits (RECs) to match 100% of the metered
energy usage at the Customer’s facility each month. Any Customer may alternately request
that CPAU purchase a specific number of 1000 kilowatt-hour (kWh) blocks of RECs.
CPAU will charge the Customer the Palo Alto Green Charge for each such requested block.
These REC purchases support the production of renewable energy, increase the financial
value of power from renewal sources, and creates a transparent and sustainable market that
encourages new development of wind and solar.
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-G-4 Supersedes Sheet No E-7-G-4
Effective 7-1-20265 dated 7-1-20254
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any time,
in writing, a change to the number of blocks they wish to purchase under the Palo Alto
Green Program.
7. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2.8 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a qualified line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better suited
to the Customer's Electrical requirements, as determined in the City’s sole discretion. The
City retains the right to change its line voltage at any time after providing reasonable
advance notice to any Customer receiving the discount in this section. The Customer then
has the option to change the system so as to receive Service at the new line voltage or to
accept Service (without voltage discount) through transformers to be supplied by the City
subject to a maximum kilovolt-ampere size limitation.
9. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(9)(e),
applies to Customers that have a non-utility generation source interconnected on
the Customer’s side of the City’s revenue Meter and that occasionally require
backup power from the City due to non-operation of the non-utility generation
source.
b. Standby Charges:
Commodit Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $ 9.8925 $ 32.961.54 $ 42.850.79
Winter Period 0.00 29.007.75 29.007.75
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3)
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-G-5 Supersedes Sheet No E-7-G-5
Effective 7-1-20265 dated 7-1-20254
occurs when one or more of the non-utility generators on the Customer’s side of
the City’s revenue Meter are not operating, the Maximum Demand will be reduced
by the sum of the Maximum Generation of those non-utility generators, but in no
event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle,
the standby charge does not apply and the Customer shall not receive the Maximum
Demand credit described in this Section.
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-TOU-1 Supersedes Sheet No E-7-TOU-1
Effective 7-1-20265 dated 7-1-20254
A. APPLICABILITY:
This voluntary Rate Schedule applies to Demand metered Service for non-residential Customers
with a Maximum Demand of at least 1,000KW per month per site, who have sustained this
Demand level at least 3 consecutive months during the last twelve months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodit Distribution Public Benefits Total
Summer Perio
Demand Char e er kW
Peak $ 12.191.39 $ 17.066.33 $ 29.257.72
Max Deman 1.5646 17.066.33 18.627.79
Ener Char e er kWh
Peak
$
0.194738199 $ 0.0042002 $ 0.0063704 $ 0.2053019205
Mi -Peak 0.160494999 0.0042002 0.0063704 0.171066005
Off-Peak 0.120651276 0.0042002 0.0063704 0.131222282
Winter Perio
Demand Char e er kW
Peak $ 1.5646 $ 15.074.42 $ 16.635.88
Max Deman 1.5646 15.074.42 16.635.88
Ener Char e er kWh
Peak
$
0.130812225 $ 0.00411393 $ 0.0063704 $ 0.141293222
Mi -Peak
0.103230964
8 0.00411393 0.0063704 0.113710645
Off-Peak 0.071266660 0.00411393 0.0063704 0.081747657
Customer Char e $/month 611.03578.08
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-TOU-2 Supersedes Sheet No E-7-TOU-2
Effective 7-1-20265 dated 7-1-20254
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted
for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill
amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Time Periods
SUMMER PERIOD (Service from May 1 to October 31):
Energy
Peak: 4:00 pm to 9:00 p.m. Monday through Friday (except holidays)
Mid Peak: 2:00 p.m. to 4:00 p.m. Monday through Friday (except holidays)
9:00 p.m. to 11:00 p.m.
Off-Peak: All other hours Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
Demand
Peak: 4:00 p.m. to 9:00 p.m. Monday through Friday (except holidays)
Max Demand: All hours Every day
WINTER PERIOD (Service from November 1 to April 30):
Energy
Peak: 4:00 p.m. to 9:00 p.m. Monday through Friday (except holidays)
Mid Peak: 9:00 a.m. to 2:00 p.m. Monday through Friday (except holidays)
Off-Peak: All other hours Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
Demand
Peak: 4:00 p.m. to 9:00 p.m. Monday through Friday (except holidays)
Max Demand: All hours Every day
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-TOU-3 Supersedes Sheet No E-7-TOU-3
Effective 7-1-20265 dated 7-1-20254
TYPES OF DEMAND CHARGES: The Peak Demand Charge per Kilowatt applies to the
maximum peak-period Demand during the time periods noted above. The Maximum (Max)
Demand charge per Kilowatt applies to the maximum Demand at any time during the month. Both
Demand Charges apply in each Billing Period, and the maximum peak-period Demand and
maximum Demand may occur at different times in the Billing Period depending on Customer
usage patterns.
SEASONAL RATE CHANGES: When the Billing Period includes use in both the Summer and
the Winter periods, the usage will be prorated based on the number of days in each seasonal period,
and the Charges based on the applicable rates therein. For further discussion of bill calculation
and proration, refer to Rule and Regulation 11.
3. Request for Service
Qualifying Customers may request Service under this schedule for more than one Account or one
Meter if the Accounts are on one site. A site, for the purposes of this Rate Schedule, consists of
one or more Accounts which cover contiguous parcels of land with no intervening public right-of-
ways (e.g. streets) and which have a common billing address.
4. Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive
months, a Demand Meter will be installed as promptly as is practicable and thereafter continued
in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve
consecutive months, whereupon, at the option of the City, it may be removed.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated time
periods as defined under Section D.2.
5. Changing Rate Schedules
Customers electing to be served under E-7 TOU must remain on said Rate Schedule for a minimum
of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request
a Rate Schedule change to any applicable City of Palo Alto full-service Rate Schedule as is suitable
to their kilowatt Demand and kilowatt-hour usage.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is supplied,
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-TOU-4 Supersedes Sheet No E-7-TOU-4
Effective 7-1-20265 dated 7-1-20254
a discount of 2.8 percent for available line voltages above 2 kilovolts will be offered, but the City
is not required to supply Service at a particular line voltage where it has, or will install, ample
facilities for supplying at another voltage equally or better suited to the Customer's electrical
requirements, as determined in the City’s sole discretion. The City retains the right to change its
line voltage at any time after providing reasonable advance notice to any Customer receiving the
discount in this section. The Customer then has the option to change his system so as to receive
Service at the new line voltage or to accept Service (without voltage discount) through
transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue Meter and that occasionally require backup power
from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodit Distribution Total
Standby Charge (per kW of
Reserved Ca acit
Summer Perio $ 9.8925 $ 32.961.54 $ 42.850.79
Winter Perio 0.00 29.007.75 29.007.75
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the
non-utility generators on the Customer’s side of the City’s revenue Meter are not operating,
the Maximum Demand will be reduced by the sum of the Maximum Generation of those
non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced
below zero.
(2) If the non-utility generation source does not operate for an entire billing cycle, the
standby charge does not apply and the Customer shall not receive the Maximum Demand
credit described in this Section.
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-7-TOU-5 Supersedes Sheet No E-7-TOU-5
Effective 7-1-20265 dated 7-1-20254
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in
the event of an interruption in utility Service and which are not used to offset Customer
electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible
Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as
amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}