HomeMy WebLinkAbout2026-06-03 Utilities Advisory Commission Draft Action MinutesUtilities Advisory Commission Draft Action Minutes – June 3, 2026 Page 1 of 4
UTILITIES ADVISORY COMMISSION
DRAFT ACTION MINUTES OF JUNE 3, 2026 SPECIAL MEETING
CALL TO ORDER
Chair Mauter called the meeting of the Utilities Advisory Commission (UAC) to order at 6:45 p.m.
Present: Chair Mauter, Vice Chair Phillips, Commissioners Croft, Metz, and Tucher
Vice Chair Phillips participated via Just Cause Alternative Teleconference as he had
a need related to a disability that could not be accommodated at this meeting.
Absent: Commissioners Scharff and Gupta
AGENDA REVIEW AND REVISIONS
Agenda Item Number 2 was deferred to a date uncertain.
IN PERSON PUBLIC COMMENT
APPROVAL OF THE MINUTES
ITEM 1: ACTION: Approval of the Minutes of the Utilities Advisory Commission Meeting Held on
May 6, 2026
MOTION: Commissioner Croft moved, seconded by Commissioner Metz, to approve the
minutes of the May 6, 2026 meeting with the following amendment:
1.Under Commissioner Comments and Reports from Meetings/Events include
Commissioner Metz’s comment regarding the Stanford Sustainability Data Center
Symposium: “I found the meeting unrealistically positive about data center impacts with
inadequate examination of the challenges.”
MOTION PASSED: 5-0-2, Scharff, Gupta absent
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UNFINISHED BUSINESS
UTILITIES DIRECTOR REPORT
Alan Kurotori, Utilities Director
NEW BUSINESS
ITEM 2: DISCUSSION: Special Presentation and Discussion on partnering norms between staff and
Commissioners for maximum effectiveness. CEQA – Not a Project
AGENDA ITEM NUMBER 2 NOT HEARD AND DEFERRED TO A DATE UNCERTAIN
ITEM 3: ACTION: Review and Recommend Utilities Advisory Commission FY 2026-2027 for City
Council Approval
MOTION: Commissioner Metz moved, seconded by Vice Chair Phillips, to recommend that the
City Council approve the Utilities Advisory Commission FY 2026-2027 Work Plan, incorporating
the changes as shown below and
1.Identify and group work plan item objectives by utility as well as categories such as key
priorities or ongoing.
Line # FY 2027 DRAFT OBJECTIVES
1
Staff expects to complete the The UAC will review progress towards a gas transition study that addresses the
political, economic, legal, environmental, regulatory, and operational elements of a potential gas
decommissioning. including capital investment criteria for a managed transition - enables review of baseline
infrastructure maps that explore potential targeted electrification utilizing selection criteria aligned with state
level (CPUC/SB1221) frameworks. (PAMC 2.23.050.(b).(1).(A) & 2.23.050.(b).(4))
2
Advise on updates to ensure Water Utility regulatory compliance such as but not limited to the Risk and
Resiliency Assessment (RRA) and emergency response and preparedness plan. (PAMC 2.23.050.(b).(2)) Review
and recommend reliability, resiliency, emergency response, and preparedness metrics and goals related to the
local supplies and distribution of water and power.
3
Review and recommend to City Council FY 2028 rate changes to Water (including advise on a new Cost of
Service Study), Gas, Electric (including Time of Use Rates), Wastewater Collection, Recycled Water, and Fiber
Optic Services with priority on affordability. (PAMC 2.23.050.(b).(4))
4
Review and advise on reserve policies changes informed by the Baker Tilly Utility Reserve Assessment, that
balance the need to be attractive to private markets and rates that are affordable to residents and competitive
to businesses, for inclusion in the FY 2028 rate setting. (PAMC 2.23.050.(b).(4))
Utilities Advisory Commission Draft Action Minutes – June 3, 2026 Page 3 of 4
5
Recommend FY 2028 and five year capital improvement program, including projects to be included, timing of
the projects, pace of infrastructure replacements, and use of financing mechanisms vs pay-go to ensure
affordability across the five year rate projections and financial plans with a special focus on the electric and
wastewater utilities. (PAMC 2.23.050.(b).(4))
6
Review Fiber to the Premises (FTTP) pilot results including use of key performance indicators (KPI) and
recommend next steps. to inform a recommendation to continue the build out of the whole FTTP phase 1
expansion geographic area. (Examples of KPIs include: take rate, customer satisfaction, cost per passing,
revised long-term financial model, and capital expenditure estimatesfinancial forecast projection) (PAMC
2.23.050.(b).(5))
7
Develop policies and fee and rate structures specifically for large electric load growth including but not limited
to a financial charge for the reservation of electric system capacity, expansion of the large non-residential
electric rate (E-7) or new rate structure for large commercial loads within Palo Alto. (PAMC 2.23.050.(b).(1) and
2.23.050.(b).(4))
8
Review and evaluate preliminary results of the E-1 T Electric Utility time of use rate pilot, changes in design on
energy usage patterns and to inform further implementation to the full Palo Alto community, financial impacts
to customers and utility to inform further implementation to the full Palo Alto community. (PAMC
2.23.050.(b).(2) and 2.23.050.(b).(4))
9
Procure Review and recommend approval of New Power Purchase Agreements or other supplies to ensure
electric supply contracts are cost-effective, and aligned with the City's long-term electric portfolio strategy and
the integrated resources plan. (PAMC 2.23.050.(b).(2))
10
Advise on funding and financing strategies for S/CAP for City Council consideration (see S/CAP 2026-2027 Work
Plan Item CA13) and advise on revision to current Carbon Neutral and Cap and Invest (C&I) funding City Council
spending resolutions to clarify uses balancing S/CAP strategies, long term affordability, and decarbonization
incentives. (PAMC 2.23.050.(b).(5)
11
Report on and seek Review and recommend advisory positions on legislative proposals at the local, state and
federal level impacting any of the five utilities through new laws, regulations, or ordinances. (PAMC
2.23.050.(b).(3))
12
Review Annual report on customer survey results, communication methods, and new initiatives for the year
(e.g. implementation of leak notifications), including review of effectiveness of engagements to inform
continued iterative changes. (PAMC 2.23.050.(b).(5).(c))
13
Provide advise to the BAWSCA Board Director (Vice Mayor Stone) clearly communicating UAC's
recommendation for Palo Alto’s perspectives and priorities regarding San Francisco Public Utilities Commission
water policies. (PAMC 2.23.050.(b).(1).(B)) Review materials that inform upcoming action items on the
BAWSCA agenda regarding SFPUC water policies and provide advice to Council on a policy stance toward
BAWSCA and SFPUC.
14
Electric Grid Modernization: Review load projections and strategy for City-wide grid upgrades, design
standards and technologies, timing of investment and work, and customer impacts.
15
Electric Utility Business Strategy: Develop a flexible scenario-based business strategy that incorporates impacts
on CPAU of increased and highly uncertain demand from data centers and other loads, both within CPAU
territory and throughout CAISO.
MOTION PASSED: 5-0-2, Scharff, Gupta absent
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COMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTS
VIRTUAL PUBLIC COMMENT
ADJOURNMENT
Adjournment: The meeting was adjourned at 10:23 p.m.