HomeMy WebLinkAboutRESO 103001
027060426
Resolution No. 10300
Resolution of the Council of the City of Palo Alto Approving the Fiscal
Year 2027 Electric Utility Financial Forecast and Reserve Transfer, Amending the
Electric Utility Reserves Management Practices and 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-16 (Unmetered Electric Service), E-EEC-1 (Export
Electricity Compensation), and E-NSE-1 (Net Metering Surplus Electricity
Compensation), and Directing the Use o f Up To $225 ,000 in Renewable Energy
Certificate E xchange Net R evenues in Fiscal Y ear 2027 t o Reduce Electric C ustomers’
Photovoltaic Generat ion and Energy Storage System Installation Costs
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 (Attachment D, Exhibit
3) and Electric Utility Financial Details (Attachment D, Exhibit 2) attached to this resolution and
made a part of the staff report presented to the City Council.
C.On April 7, 2026, the Finance Committee directed staff 1 to develop financial
offsets for building permits related to electrification, photovoltaic (PV) generation, energy
storage systems (ESS), HVAC systems, and electric panel upgrades less than 400amps.
D.After review of possible funding sources, which include revenues from the REC
1 April 7, 2026 Action Minutes for item 2:
https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=18557&compileOutputType=1
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027060426
Exchange Program 2, public benefits funds, and Cap-and-Invest program revenues, staff
recommend using REC Exchange Program revenues for PV and ESS building permit fees, and
using existing efficiency electrification incentive programs to offset the related costs of HVAC
systems, including panel upgrades, service upgrades, and building permit fees.
E.The use of REC Exchange Program revenues for local decarbonization requires an
offsetting reduction in the allocation of Cap-and-Invest auction revenues to the City’s Cap-and-
Invest Reserve.
F.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.
G.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 RESOLVES as follows:
SECTION 1. The Council hereby approves the fiscal year (“FY”) 2027 Amended Electric
Utility Reserve Management Practices (Attachment D, Exhibit 3) and Electric Utility Financial
Details (Attachment D, Exhibit 2) presented to the City Council on June 15, 2026, which are
attached to this resolution 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 in FY 2026,
as described in the FY 2027 Electric Utility Financial Forecast (Attachment D, 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 shown in
Attachment D, Exhibit 1. 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
shown in Attachment D, Exhibit 1. Utility Rate Schedule E-1 TOU, as amended, shall become
2 On August 24, 2020, the City Council adopted Resolution 9913, amending the Electric Utility’s Carbon Neutral Plan to
permit the exchange of Bucket 1 RECs for Bucket 3 RECS (the REC Exchange Program); Staff report 11556,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86875&dbid=0&repo=PaloAlto&cr=1. In 2022 and 2025
Council directed staff via minute order to allocate an amount equivalent to all of the revenues earned from the REC
Exchange Program from the City’s Cap and Trade Reserve to local decarbonization efforts. Staff Report 14735,
12/12/2022, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82045; Staff Report 2510-5281, 12/15/25,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84126
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027060426
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 shown in Attachment D, Exhibit 1. 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 shown in Attachment D, Exhibit 1. 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
shown in Attachment D, Exhibit 1. 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 shown in Attachment D, Exhibit 1. 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 shown in Attachment D, Exhibit 1. Utility Rate Schedule E-4 TOU, as
amended, shall become effective July 1, 2026; and
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
shown in Attachment D, Exhibit 1. 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 shown in Attachment D, Exhibit 1. 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 shown in Attachment D, Exhibit 1. Utility Rate Schedule E-7 TOU, as amended, shall
become effective July 1, 2026;
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027060426
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 shown in Attachment D, Exhibit
1. 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-16 (Unmetered Electric Service) is hereby amended to read shown in
Attachment D, Exhibit 1. Utility Rate Schedule E-16, 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-EEC-1 (Export Electricity Compensation) is hereby amended to read shown in
Attachment D, Exhibit 1. Utility Rate Schedule E-EEC-1, as amended, shall become effective July
1, 2026;
SECTION 16. 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 shown
in Attachment D, Exhibit 1. Utility Rate Schedule E-NSE-1, as amended, shall become effective
July 1, 2026;
SECTION 17. 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, consistent with any limitations imposed by Article XIII C and Article XIII D
of the California Constitution.
SECTION 18. 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.
SECTION 19. The Council directs the use of up to $225,000 in REC Exchange net
revenues in FY 2027 to reduce electric customer costs related to photovoltaic generation
and energy storage system installations, as local decarbonization efforts, and directs staff
to take the following actions:
a.change the funding mechanism for the Cap-and-Invest Reserve to allocate up to
$225,000 less in Cap-and-Invest auction revenues in FY 2027 to the City’s Cap-
and-Invest Reserve and instead allocate these funds for other local
decarbonization efforts; and
b.review existing HVAC incentive levels including consideration of financial offsets
to lower the cost of related work including panel upgrades, electric utility
service upgrades, or the cost of building permit fees; and
c.return to Council within Fiscal Year 2027 to review the Electric Supply Portfolio
Carbon Neutral Plan and use of revenues derived from the REC Exchange
Program.
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027060426
SECTION 20. The Council finds that approving the Electric Reserves Management
Practices, Electric Financial Forecast, Electric Reserve transfer and Directing the Use of Up To
$225,000 in Renewable Energy Certificate Exchange Net Revenues in Fiscal Year 2027 to
Reduce Electric Customers’ P hotovoltaic Generation and Energy Storage System Installation
Costs 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: JUNE 15, 2026
AYES: BURT, LAUING, LU, LYTHCOTT-HAIMS, RECKDAHL, STONE, VEENKER
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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 $ 0.10839
0.10373
$ 0.10024
0.09593
$ 0.00631
0.00604
$ 0.21494
0.20570
Tier 2 usage
Any usage over Tier 1
0.13973
0.13372
0.09371
0.08968
0.00631
0.00604
0.23975
0.22944
Customer Charge
($/month)
5.38 5.15
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 D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-1 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No E-1-TOU-1 Sheet No E-1-TOU-1
Dated 01-01-2026 Effective 07-01-2026 1-1-2026
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
$ 0.24404
0.23354
$ 0.09771
0.09351
$ 0.00631
0.00604
$ 0.34806
0.33309
Off-Peak
0.08620
0.08249
0.09771
0.09351
0.00631
0.00604
0.19022
0.18204
Su er Off-Peak
0.06991
0.06690
0.09771
0.09351
0.00631
0.00604
0.17393
0.16645
Winter Perio
Ener Char e
Peak
$ 0.17456
0.16705
$ 0.09771
0.09351
$ 0.00631
0.00604
$ 0.27858
0.26660
Off-Peak
0.11529
0.11033
0.09771
0.09351
0.00631
0.00604
0.21931
0.20988
Su er Off-Peak
0.08187
0.07835
0.09771
0.09351
0.00631
0.00604
0.18589
0.17790
Customer Char e $/month 5.38 5.15
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-1 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No E-1-TOU-2 Sheet No E-1-TOU-2
Dated 01-01-2026 Effective 07-01-2026 1-1-2026
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 0.15753
0.15075
$ 0.11292
0.10806
$ 0.00631
0.00604
$ 0.27676
0.26485
Winter Perio
0.09754
0.09334
0.07682
0.07352
0.00631
0.00604
0.18067
0.17290
Customer Charge ($/month)
6.49 6.22
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 the Winter Periods, the usage will be prorated based on the number of days in each
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 0.15753
0.15075
$ 0.11292
0.10806
$ 0.00631
0.00604 $ 0.0075
$ 0.28426
0.27235
Winter Perio
0.09754
0.09334
0.07682
0.07352
0.00631
0.00604 0.0075
0.18817
0.18040
Customer Charge
($/month)
6.49 6.22
2. 1000 kWh Block Purchase Option:
Per kilowatt-hour (kWh) Commodit Distribution
Public
Benefits
Total
Summer Perio
$ 0.15753
0.15075
$ 0.11292
0.10806
$ 0.00631
0.00604
$ 0.27676
0.26485
Winter Perio
0.09754
0.09334
0.07682
0.07352
0.00631
0.00604
0.18067
0.17290
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
Customer Charge
($/month)
6.49 6.22
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.
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 11.58 11.09
$ 39.79 38.08
$ 51.37 49.17
Ener Char e er kWh
0.13000
0.12441
0.02922
0.02797
0.00631
0.00604
0.16553
0.15842
Winter Perio
Demand Char e er kW
$ 2.71 2.60
$ 24.54 23.49
$ 27.25 26.09
Ener Char e er kWh
0.08389
0.08028
0.02922
0.02797
0.00631
0.00604
0.11942
0.11429
Customer Char e $/month 131.92 126.24
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.
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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.
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
$ 8.88
8.50 $ 39.79 38.08 $ 48.67 46.58
Winter Perio 0.00 24.54 23.49 24.54 23.49
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.
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 11.58
11.09
$ 39.79
38.08
$ 51.37
49.17
Ener Char e er kWh
0.13000
0.12441
0.02922
0.02797
0.00631
0.00604 0.0075
0.17303
0.16592
Winter Perio
Demand Char e er kW
$ 2.71
2.60
$ 24.54
23.49
$ 27.25
26.09
Ener Char e er kWh
0.08389
0.08028
0.02922
0.02797
0.00631
0.00604 0.0075
0.12692
0.11768
Customer Char e $/month 131.92 126.24
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
2. 1000 kWh Block Purchase Option:
Commodit Distribution
Public
Benefits Total
Summer Perio
Demand Char e er kW
$ 11.58
11.09
$ 39.79
38.08
$ 51.37
49.17
Ener Char e er kWh
0.13000
0.12441
0.02922
0.02797
0.00631
0.00604
0.16553
0.15842
Palo Alto Green Char e er 1000 kWh block $7.50
Winter Perio
Demand Char e er kW
$ 2.71
2.60
$ 24.54
23.49 27.25
Ener Char e er kWh
0.08389
0.08028
0.02922
0.02797
0.00631
0.00604
0.11942
0.11429
Palo Alto Green Char e er 1000 kWh block $7.50
Customer Char e $/month 131.92 126.24
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
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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 8.88
8.50 $ 39.79 38.08 $ 48.67 46.58
Winter Perio 0.00 24.54 23.49 24.54 23.49
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.
e. Exemptions:
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
(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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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 $ 10.26 9.82 $ 19.92 19.07 $ 30.18 28.89
Max Deman 1.35 1.30 19.92 19.07 21.27 20.37
Ener Char e er kWh
Peak
$ 0.17982
0.17208
$ 0.02943
0.02817
$ 0.00631
0.00604
$ 0.21556
0.20629
Mi -Peak
0.14819
0.14181
0.02943
0.02817 0.00631 0.00604
0.18393
0.17602
Off-Peak
0.11141
0.10662
0.02943
0.02817 0.00631 0.00604
0.14715
0.14083
Winter Perio
Demand Char e er kW
Peak $ 1.36 1.31 $ 12.44 11.91 $ 13.80 13.22
Max Deman 1.36 1.31 12.44 11.91 13.80 13.22
Ener Char e er kWh
Peak
$ 0.12640
0.12096
$ 0.02899
0.02775
$ 0.00631
0.00604
$ 0.16170
0.15475
Mi -Peak
0.09976
0.09547
0.02899
0.02775 0.00631 0.00604
0.13506
0.12926
Off-Peak
0.06886
0.06590
0.02899
0.02775 0.00631 0.00604
0.10416
0.09969
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
Commodit Distribution Public Benefits Total
Customer Charge
$/month
131.92
126.24
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. 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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 8.88
8.50 $ 39.79 38.08 $ 48.67 46.58
Winter Perio 0.00 24.54 23.49 24.54 23.49
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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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 $ 12.61 12.07 $ 32.95 31.54 $ 45.56 43.61
Ener Char e kWh
0.13361
0.12786
0.00420
0.00402
0.00631
0.00604
0.14412
0.13792
Winter Perio
Demand Char e kW $ 2.94 2.82 $ 28.99 27.75 $ 31.93 30.57
Ener Char e kWh
0.08331
0.07973
0.00410
0.00393
0.00631
0.00604
0.09372
0.08970
Customer Charge
$/month 604.09 578.08
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.
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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.
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 9.66
9.25 $ 32.95 31.54 $ 42.61 40.79
Winter Perio $0.00 28.99 27.75 28.99 27.75
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
(1) In the event the Customer’s Maximum Demand (as defined in Section D.4)
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 12.61
12.07
$ 32.95
31.54
$ 45.56
43.61
Ener Char e er kWh
0.13361
0.12786
0.00420
0.00402
0.00631
0.00604 0.0075
0.15162
0.14542
Winter Perio
Demand Char e er kW $ 2.94 2.82
$ 28.99
27.75
$ 31.93
30.57
Ener Char e er kWh
0.08331
0.07973
0.00410
0.00393
0.00631
0.00604 0.0075
0.10122
0.09720
Customer Char e $/month 604.09 578.08
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
2. 1000 kWh Block Purchase Option:
Commodit Distribution Public Benefits Total
Summer Perio
Demand Char e er kW
$ 12.61
12.07
$ 32.95
31.54
$ 45.56
43.61
Ener Char e er kWh
0.13361
0.12786
0.00420
0.00402
0.00631
0.00604
0.14412
0.13792
Palo Alto Green Char e er 1000 kWh block $ 7.50
Winter Perio
Demand Char e er kW $ 2.94 2.82
$ 28.99
27.75
$ 31.93
30.57
Ener Char e er kWh
0.08331
0.07973
0.00410
0.00393
0.00631
0.00604
0.09372
0.08970
Palo Alto Green Char e er 1000 kWh block $7.50
Customer Char e $/month 604.09 578.08
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
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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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.
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,
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 9.66
9.25 $ 32.95 31.54 $ 42.61 40.79
Winter Period 0.00 28.99 27.75 28.99 27.75
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)
occurs when one or more of the non-utility generators on the Customer’s side of
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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
$ 11.90
11.39 $ 17.06 16.33 $ 28.96 27.72
Max Deman 1.52 1.46 17.06 16.33 18.58 17.79
Ener Char e er kWh
Peak
$ 0.19017
0.18199
$ 0.00420
0.00402
$ 0.00631
0.00604
$ 0.20068
0.19205
Mi -Peak
0.15673
0.14999 0.00420 0.00402 0.00631 0.00604 0.16724 0.16005
Off-Peak
0.11783
0.11276 0.00420 0.00402 0.00631 0.00604 0.12834 0.12282
Winter Perio
Demand Char e er kW
Peak $ 1.52 1.46 $ 15.06 14.42 $ 16.58 15.88
Max Deman 1.52 1.46 15.06 14.42 16.58 15.88
Ener Char e er kWh
Peak
$ 0.12775
0.12225
$ 0.00410
0.00393
$ 0.00631
0.00604
$ 0.13816
0.13222
Mi -Peak
0.10082
0.09648 0.00410 0.00393 0.00631 0.00604 0.11123 0.10645
Off-Peak
0.06959
0.06660 0.00410 0.00393 0.00631 0.00604 0.08000 0.07657
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
Customer Char e $/month 604.09 578.08
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. 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)
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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. 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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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 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
$ 9.66
9.25 $ 32.95 31.54 $ 42.61 40.79
Winter Perio 0.00 28.99 27.75 28.99 27.75
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
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE 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 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
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}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No. E-14-1 Supersedes Sheet No. E-14-1
Effective 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
A. APPLICABILITY:
This Rate Schedule applies to all street and highway lighting installations ranging in voltages from
120 to 480 which CPAU elects to operate and maintain.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City.
C. RATES: $ Per Lamp Per Month –
CPAU supplies electricity and
switching and maintains lighting
system, including lamps and glassware.
Lamp Rating:
Street Lights
Mercury-Vapor Lamps
400 watts 55.93 53.53
High Pressure Sodium Vapor Lamps
70 watts 36.95 35.37
100 watts 47.39 45.35
150 watts 64.79 62.00
250 watts 99.59 95.30
Light Emitting Diode (LED) Lamps
70 watts-equivalent 13.86 13.27
100 watts-equivalent 21.77 20.83
150 watts-equivalent 29.04 27.80
175 watts-equivalent 32.84 31.43
250 watts 48.97 46.87
Traffic Signals
12” Head Total (Red Yellow Green) 28.34 27.12
8” Head Total (RYG) 24.60 23.55
12” Arrow Total (RYG) 26.63 25.49
12” Beacon 10.65 10.19
Pedestrian Head 9.78 9.36
Controller 20.95 20.05
Speed Signs 96.89 92.73
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No. E-14-2 Supersedes Sheet No. E-14-2
Effective 07-01-2026 7-1-2025 dated 07-01-2025 7-1-2024
D. SPECIAL CONDITIONS:
1. Point of Delivery: Delivery will be made to the Customer's system at a Service point or at points
designated by CPAU. CPAU will furnish the Service connection to one point for each lamp or group
of lamps, provided the Customer has designed the system to include the minimum number of delivery
points. CPAU will make all underground connections to CPAU’s system at the Customer's expense.
2. Switching: CPAU will perform switching (on CPAU's side of the points of delivery) at no Charge,
provided there are at least 10 kilowatts of lamp load on each circuit separately switched, including all
lamps on the circuit whether served under this Rate Schedule or not. An extra charge of $2.50 per month
will be made for each circuit separately switched unless such switching installation is made for CPAU's
convenience.
3. Annual Burning Schedule: The rates in this Rate Schedule apply to lamps which will be turned on
and off once each night in accordance with a regular burning schedule approved by CPAU and not
exceeding 4,100 hours per year.
4. Maintenance: The rates in this Rate Schedule include all labor necessary for replacement of
glassware, including inspection and cleaning. Maintenance of glassware by CPAU is limited to standard
glassware that is commonly used and manufactured in reasonably large quantities, as determined by
CPAU in its sole discretion. The rates include maintenance of circuits between lamp posts and of circuits
and equipment in and on the posts, provided these are all of good standard construction as determined
by CPAU. CPAU in its sole discretion may decline to grant rates for maintenance of systems with non-
standard glassware, or inadequate circuitry and equipment. Rates applied to any agency other than the
City of Palo Alto also include painting of posts with one coat of good ordinary paint, as determined by
CPAU to be needed to maintain good appearance. Maintenance does not include replacement of posts
damaged by third parties or acts of nature.
5. Rates For Lamps Not on this Rate Schedule: In the event a Customer installs a lamp which is not
represented on this Rate Schedule, CPAU will prepare an interim rate reflecting CPAU's estimated costs
associated with the specific lamp. This interim rate will serve as the effective rate for billing purposes
until the new lamp rating is added to Rate Schedule E-14.
{End}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No. E-16-1 Supersedes Sheet No. E-16-1
Effective 079-01-20265 dated 097-01-2025
A. APPLICABILITY:
This rate schedule is applicable under the terms and conditions of the City of Palo Alto Utilities
Department to Customers who contract with the City for unmetered electric service for
billboards, unmetered telephone services, telephone booths, railroad signals, cathodic protection
units, traffic cameras, wireless antenna and related equipment, community antenna television and
video systems, cable TV power supplies, and automatic irrigation systems and also applies to
other miscellaneous Electric Utility fees to various public agencies and private entities.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and land owned or leased by the City.
C. NET MONTHLY BILL:
1. Customer Charge using annual SEIU salary schedule: $ 11.28 10.96 per
month
2. Energy Charge:
(for all kWh supplied) using Electric Rate Schedule E2 plus all applicable riders
3. Minimum Charge:
Minimum monthly charge will be the Customer Charge.
D. DETERMINATION OF ENERGY REQUIREMENTS:
a. Initial Inventory
Customer shall enter into a contract for service under this Schedule and provide a written
inventory of all equipment at each of service requested, including the type and nameplate
rating for each piece of equipment. The billing energy for each point of service will be
determined by the Utilities Electric Engineering Division estimation of the kWh usage
based on the type, rating and quantity of the equipment provided by the Customer.
Monthly bill will be based on the following calculations:
1. Total Wattage.
2. Total Wattage times estimated annual operating hours as set in the contract equals
annual watt hours.
3. Annual watt hours divided by 1000 hours equals annual kilowatt hours (kWh)
4. Annual kWh divided by twelve (12) months equal monthly kWh.
5. Monthly kWh times current rate per kWh = monthly bill for each unmetered service
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No. E-16-2 Supersedes Sheet No. E-16-2
Effective 079-01-20265 dated 097-01-2025
location or equipment.
b. Updating Inventory
Customer will update its inventory by informing the Utilities Electric Engineering Division
in writing of changes in type, rating and/or quantity of equipment as such changes occur,
and billings will be adjusted accordingly. Upon Utilities Electric Engineering Division
request, but no later than the one year anniversary of the date on which Customer first takes
service, Customer shall provide an updated inventory of all equipment at each point of
service.
c. Test Metering
The Utilities Electric Engineering Division may, at its discretion, test meter the load at
various types and ratings of the Customer’s equipment to the extent necessary to verify the
estimated kWh usage used for billing purpose and, where dictated by such test metering,
Utilities Electric Engineering Division will make prospective adjustments in estimated
usage for subsequent billing purposes; however, Utilities shall be under no obligation to
test meter- the load of Customer’s equipment. Utilities’ decision not to test meter the load
of Customer’s equipment shall not release Customer from the obligation to provide to
Utilities Electric Engineering Division, and to update, annually as provided in section b,
an accurate inventory of the types, rating and quantities of equipment upon which billing
is based.
d. Inspection
The Utilities Electric Engineering Division shall endeavor to inspect the equipment at each
point of service annually as close to the anniversary date of the contract as is practical, and
make prospective adjustments in billing as indicated by such inspections; however,
Utilities shall be under no obligation to conduct such inspections for the purpose of
determining accuracy of billing or otherwise. Utilities decisions not to conduct such
inspections shall not release Customer from the obligation to provide to Utilities Electric
Engineering Division, and to update, an accurate inventory of the types, rating and
quantities of equipment upon which billing is based.
e. Billing for Service
As the service described in this schedule is unmetered, Customer agrees to pay amounts
billed in accordance with the current inventory, regardless of whether any of the
installations of the Customer’s equipment were electrically operable during the period in
question and regardless of the cause of such equipment failure to operate.
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No. E-16-3 Supersedes Sheet No. E-16-3
Effective 079-01-20265 dated 097-01-2025
E. MISCELLANEOUS RATES:
Service Description Rate *
1. License Fee for Electric Conduit Usage
(A) Exclusive use $ 1.99
1.94/ft/yr
2. Processing Fee for Electric Conduit Usage Actual Cost
3. License Fee for Utility Pole Attachments
(A) 1 ft. of usable space $ 49.02 47.60/pole/yr
(B) 2 ft. of usable space 98.05 95.20/pole/yr
(C) 3 ft. of usable space 147.08 142.80/pole/yr
4. Processing Fee for Utility Pole Attachments C-1 rate – 1 hr
5. License Fee for mounting communication equipment
including distributed antenna systems on utility poles $ 339.32
329.44/pole/yr
* Rates are monthly unless otherwise indicated.
F. NOTES:
The fees set forth in Section E.1 through E.5, inclusive, are subject to adjustment annually in
accordance with fluctuations in the Consumer Price Index (CPI), if any. The base for computing
the adjustment is the Consumer Price Index for All Urban Consumers (CPI-U) for the San
Francisco-Oakland-San Jose MSA, which is published by the U.S. Department of Labor,
Bureau of Labor Statistics for the month of December of a base year, which falls within the
year in which a master license agreement is signed by the City and the licensee. The adjustment
shall be calculated, if there is an increase or decrease between December of a base year (when
the rate(s) is/are first applicable) and December of any subsequent base year.
{End}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
EXPORT ELECTRICITY COMPENSATION
UTILITY RATE SCHEDULE E-EEC-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-EEC-1 Sheet No. E-EEC-1
dated 097-01-2025 Effective 079-01-20265
A. APPLICABILITY:
This Rate Schedule applies in conjunction with the otherwise applicable Rate Schedules for each
Customer class. This Rate Schedule may not apply in conjunction with any time-of-use Rate Schedule.
This Rate Schedule applies to Customer-Generators as defined in Rule and Regulation 2 who are either
not eligible for Net Energy Metering or who are eligible for Net Energy metering but elect to take
Service under this Rate Schedule.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. RATE:
The following compensation rate shall apply to all electricity exported to the grid.
Per kWh
Export electricity compensation rate $ 0.0990 0.1206
D. SPECIAL CONDITIONS
1. Metering equipment: Electricity delivered by CPAU to the Customer-Generator or received by
CPAU from the Customer-Generator shall be measured using a Meter capable of registering the
flow of electricity in two directions (aka “bidirectional meter”). The electrical power
measurements will be used for billing the Customer-Generator. CPAU shall furnish, install and
own the appropriate Meter.
2. Billing:
a. CPAU shall measure during the billing period, in kilowatt-hours, the electricity delivered
and received after the Customer-Generator serves its own instantaneous load.
b. CPAU shall bill the Customer-Generator consumption charges for the electricity delivered
by CPAU to the Customer-Generator based on the Customer-Generator’s applicable Rate
Schedule.
c. In the event the electricity generated exceeds the electricity consumed and therefore is
received by CPAU, the Customer will receive a credit for all electricity received by CPAU
at the buyback Rate designated in section C above.
{End}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
NET METERING NET SURPLUS ELECTRICITY COMPENSATION
UTILITY RATE SCHEDULE E-NSE-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-NSE-1 Sheet No. E-NSE-1
dated 097-01-2025 Effective 079-01-20265
A. APPLICABILITY:
This Rate Schedule applies to eligible residential and small commercial Net Energy Metering Election
A Customers who, at the end of an annual settlement period, as described in Rule 29, are Net Surplus
Customer-Generators of electricity who elect to receive monetary compensation as such preference is
indicated on the net surplus electricity election form. This Rate Schedule only applies to Customers
who participate in Net Energy Metering, and does not apply to Customers that take service under the
City’s Net Energy Metering Successor Rate, as each of these terms are defined in Rule and Regulation
2.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. RATES:
Per kWh
Net Surplus Electricity Compensation rate $ 0.1064 0.1012
D. SPECIAL CONDITIONS
1. Net Surplus Electricity Compensation Rate eligibility shall be determined as specified in Rule 29.
Net surplus electricity, as specified in Rule 29, if applicable, will be multiplied by the above
compensation rate to determine the Customer’s annual net surplus electricity compensation stated
in dollars.
2. Additional terms, conditions and definitions govern Net Energy Metering Service and
Interconnection, as described in Rule 29.
{End}
Attachment D, Exhibit 1Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 2
The Electric Utility Financial Details have been updated since the April 21, 2026 version reviewed by the Finance
Committee;1 the specific changes are summarized in Staff Report 2602-5894. This exhibit contains the following
tables:
• Table 1: Updated June 15, 2026 Council Version of the Electric Utility Financial Details. Key Updated Numbers
Shown in Red.
• Table 2: April 21, 2026 Finance Committee Version of the Electric Utility Financial Details for Reference.
• Table 3: Electric Utility CIP Details.
1 Finance Committee Meeting Agenda April 21, 2026, Item 2:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18562
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 2
Electric Utility Financial Details
Updated June 15, 2026. Key Updated Numbers Shown in Red.
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 2
Electric Utility Financial Details
April 21, 2026 Finance Committee Version for Reference.
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 2
Electric Utility Capital Improvement Program (CIP) Financial Details
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 3
ELECTRIC UTILITY RESERVES MANAGEMENT PRACTICES
The following reserves management practices are used when developing the Electric Utility
Financial Plan:
Section 1. Definitions
a) “Financial Planning Period” – The Financial Planning Period is the range of future fiscal
years covered by the Financial Plan. For example, if the Financial Plan delivered in
conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019,
FY 2015 to FY 2019 would be the Financial Planning Period.
b) “Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers
to the Utility’s Unrestricted Net Assets.
c) “Net Assets” ‐ The Government Accounting Standards Board defines a Utility’s Net
Assets as the difference between its assets and liabilities.
d) “Unrestricted Net Assets” ‐ The portion of the Utility’s Net Assets not invested in capital
assets (net of related debt) or restricted for debt service or other restricted purposes.
Section 2. Supply Fund Reserves
The Electric Supply Fund Balance is reserved for the following purposes:
a) For existing contracts, as described in Section 4 (Reserve for Commitments)
b) For operating budgets reappropriated from previous years, as described in Section 5
(Reserve for Reappropriations)
c) For special projects for the benefit of the Electric Utility ratepayers, as described in
Section 6 (Electric Special Projects Reserve)
d) For year to year balancing of costs associated with the Electric Utility’s hydroelectric
resources, as described in Section 7 (Hydroelectric Stabilization Reserve)
e) For rate stabilization, as described in Section 11 (Rate Stabilization Reserves)
f) For operating contingencies, as described in Section 12 (Operations Reserves)
g) For tracking unspent or unallocated revenues from the sale of carbon allowances freely
allocated by the California Air Resources Board to the electric utility under the State’s
Cap‐ and‐ InvestTrade Program, as described in Section 16 (Cap and InvestTrade
Program Reserve)
h) For tracking funding of City buildings, appliance and vehicle electrification projects and
programs, as described in Section 17 (Electrification Reserve)
i) Any funds not included in the other reserves will be considered Unassigned Reserves
and shall be returned to ratepayers or assigned a specific purpose as described in
Section 13 (Unassigned Reserves).
Section 3. Distribution Fund Reserves
The Electric Distribution Fund Balance is reserved for the following purposes:
a) For existing contracts, as described in Section 4 (Reserves for Commitments)
b) For operating and capital budgets reappropriated from previous years, as described in
Section 5 (Reserves for Reappropriations)
c) As an offset to underground loan receivables, as described in Section 8 (Underground
Loan Reserve)
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 3
d) To hold Public Benefit Program funds collected but not yet spent, as described in Section
9 (Public Benefits Reserve)
e) For cash flow management and contingencies related to the Electric Utility’s Capital
Improvement Program (CIP), as described in Section 10 (CIP Reserve)
f) For rate stabilization, as described in Section 11 (Rate Stabilization Reserves)
g) For operating contingencies, as described in Section 12 (Operations Reserves)
h) For tracking revenues earned via the sale of Low Carbon Fuel Credits allocated by the
California Air Resources Board to the City, as well as expenses incurred, in accordance
with California’s Low Caron Fuel Standard program, as described in Section 15 (Low
Carbon Fuel Standard Reserve)
i) Any funds not included in the other reserves will be considered Unassigned Reserves
and shall be returned to ratepayers or assigned a specific purpose as described in
Section 13 (Unassigned Reserves).
Section 4. Reserves for Commitments
At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund Reserves
for Commitments will be set to an amount equal to the total remaining spending authority
for all contracts in force for the Electric Supply Fund and Electric Distribution Fund,
respectively, at that time.
Section 5. Reserves for Reappropriations
At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund Reserves
for Reappropriations will be set to an amount equal to the amount of all remaining capital
and non‐capital budgets that will be reappropriated to the following fiscal year for each Fund
in accordance with Palo Alto Municipal Code Section 2.28.090.
Section 6. Electric Special Projects Reserve
The Electric Special Projects Reserve (ESP Reserve) will be managed in accordance with the
policies set forth in Resolution 9206 (Resolution of the Council of the City of Palo Alto
Approving Renaming the Calaveras Reserve to the Electric Special Project Reserve and
Adoption of Electric Special Project Reserve Guidelines). These policies are included from
Resolution 9206 as amended to refer to the reserves structure set forth in these Reserves
Management Practices:
a) The purpose of the ESP Reserve is to fund projects that benefit electric ratepayers;
b) The ESP Reserve funds must be used for projects of significant impact;
c) Projects proposed for funding must demonstrate a need and value to electric
ratepayers. The projects must have verifiable value and must not be speculative, or
high‐risk in nature;
d) Projects proposed for funding must be substantial in size, requiring funding of at least
$1 million;
e) Set a goal to commit funds by the end of FY 2025;
f) Any uncommitted funds remaining at the end of FY 2030 will be transferred to the
Electric Supply Operations Reserve and the ESP Reserve will be closed;
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 3
Section 7. Hydroelectric Stabilization Reserve
The Hydroelectric Stabilization Reserve is used to manage the supply cost impacts associated
with variations in generation from hydroelectric resources. Staff will manage the
Hydroelectric Stabilization Reserve as follows:
a) Projected Hydro Output: Near the end of each fiscal year, staff will determine the
actual and expected hydro output for that fiscal year, compare that to the long‐term
average annual output level (495,957 MWh as of March 2018), and multiply the
difference by the average of the monthly round‐the‐clock forward market prices for
each month of the current fiscal year.
b) Changes in Reserves. Staff is authorized to transfer the amount described in Sec. 7(a)
from the Operations Reserve to the Hydroelectric Stabilization Reserve for hydro
output deviations above long‐term average levels, or transfer this amount from the
Hydroelectric Stabilization Reserve to the Operations Reserve for hydro output
deviations below long‐term average levels.
c) Implementation of HRA. The level of the Hydroelectric Stabilization Reserve after the
transfers described above shall be the basis for staff’s determination, with Council
approval, of whether to implement the Hydro Rate Adjuster (Electric Rate E‐HRA) for
the following fiscal year.
d) Reserve Guidelines. Staff will manage the Hydroelectric Stabilization Reserve
according to the following guideline levels:
Minimum Level $3 million
Target Level $19 million
Maximum Level $35 million
Section 8. Underground Loan Reserve
At the end of each fiscal year, the Underground Loan Reserve will be adjusted by the principal
payments made against outstanding underground loans.
Section 9. Public Benefits Reserve
The Public Benefits Reserve will be increased by the amount of unspent Public Benefits
Revenues remaining at the end of each fiscal year. Expenditure of these funds requires action
by the City Council.
Section 10. CIP Reserve
The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for
capital contingencies. Staff will manage the CIP Reserve according to the following practices:
a) The following guideline levels are set forth for the CIP Reserve. These guideline levels are
calculated for each fiscal year of the Financial Planning Period and approved by Council
resolution.
Minimum Level 20% of the maximum CIP Reserve guideline
level
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 3
Maximum Level Average annual (12 month)1 CIP budget, for
48 months of budgeted CIP expenses2
b) Changes in Reserves: At the end of each fiscal year staff will transfer from the Distribution
Operations Reserve to the CIP Reserve an amount equal to the amount of electric utility
unspent CIP budget at the end of the fiscal year reduced by the amount of any contractual
commitments and reappropriations. Any other additions to or withdrawals from the CIP
reserve require Council action.
c) Minimum Level:
i) If, at the end of any fiscal year, the minimum guideline is not met, staff shall present
a plan to the City Council to replenish the reserve. The plan shall be delivered by the
end of the following fiscal year, and shall, at a minimum, result in the reserve reaching
its minimum level by the end of the next fiscal year. For example, if the CIP Reserve is
below its minimum level at the end of FY 2017, staff must present a plan by June 30,
2018 to return the reserve to its minimum level by June 30, 2019. In addition, staff
may present, and the Council may adopt, an alternative plan that takes longer than
one year to replenish the reserve, or that does so in a shorter period of time.
d) Maximum Level: If there are funds in this reserve in excess of the maximum level staff
must propose in the next Financial Plan to transfer these funds to another reserve or
return them to ratepayers in the funds to ratepayers, or designate a specific use of funds
for CIP investments that will be made by the end of the next Financial Planning period.
Staff may also seek City Council to approve holding funds in this reserve in excess of the
maximum level if they are held for a specific future purpose related to the CIP.
Section 11. Rate Stabilization Reserves
Funds may be added to the Electric Supply or Distribution Fund’s Rate Stabilization Reserves
by action of the City Council and held to manage the trajectory of future year rate increases.
Withdrawal of funds from either Rate Stabilization Reserve requires action by the City
Council. If there are funds in either Rate Stabilization Reserve at the end of any fiscal year,
any subsequent Electric Utility Financial Plan must result in the withdrawal of all funds from
this Reserve by the end of the Financial Planning Period. The Council may approve exceptions
to this requirement, when proposed by staff to provide greater rate stabilization to
customers.
Section 12. Operations Reserves
The Electric Supply Fund and Electric Distribution Fund Operations Reserves are used to
manage normal variations in the costs of providing electric service and as a reserve for
contingencies. Any portion of the Electric Utility’s Fund Balance not included in the reserves
described in Section 4 to 11 above will be included in the appropriate Operations Reserve
unless the reserve has reached its maximum level as set forth in Section 12 (e) below. Staff
will manage the Operations Reserves according to the following practices:
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 3
a) The following guideline levels are set forth for the Electric Supply Fund Operations
Reserve. These guideline levels are calculated for each fiscal year of the Financial
Planning Period based on the levels of Operations and Maintenance (O&M) and
commodity expense forecasted for that year in the Financial Plan.
Minimum Level 60 days of Supply Fund O&M and commodity expense
Target Level 90 days of Supply Fund O&M and commodity expense
Maximum Level 120 days of Supply Fund O&M and commodity expense
b) The following guideline levels are set forth for the Electric Distribution Fund Operations
Reserve. These guideline levels are calculated for each fiscal year of the Financial
Planning Period based on the levels of O&M expense forecasted for that year in the
Financial Plan.
Minimum Level 60 days of Distribution Fund O&M expense
Target Level 90 days of Distribution Fund O&M expense
Maximum Level 120 days of Distribution Fund O&M expense
c) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Supply Fund
or Distribution Fund’s Operations Reserve are lower than the minimum level set forth
above, staff shall present a plan to the City Council to replenish the reserve. The plan
shall be delivered within six months of the end of the fiscal year, and shall, at a
minimum, result in the reserve reaching its minimum level by the end of the following
fiscal year. For example, if the Operations Reserve is below its minimum level at the end
of FY 2014, staff must present a plan by December 31, 2014 to return the reserve to its
minimum level by June 30, 2015. In addition, staff may present an alternative plan that
takes longer than one year to replenish the reserve.
d) Target Level: If, at the end of any fiscal year, either Operations Reserve is higher or
lower than the target level, any Financial Plan created for the Electric Utility shall be
designed to return both Operations Reserves to their target levels by the end of the
forecast period.
e) Maximum Level: If, at any time, either Operations Reserve reaches its maximum level,
no funds may be added to this Reserve. Any further increase in that fund’s Fund
Balance shall be automatically included in the Unassigned Reserve described in Section
13, below.
Section 13. Unassigned Reserves
If the Operations Reserve in either the Electric Supply Fund or the Electric Distribution Fund
reaches its maximum level, any further additions to that fund’s Fund Balance will be held in
the Unassigned Reserve. If there are any funds in either Unassigned Reserve at the end of
any fiscal year, the next Financial Plan presented to the City Council must include a plan to
assign them to a specific purpose or return them to the Electric Utility ratepayers by the end
of the first fiscal year of the next Financial Planning Period. For example, if there were funds
in the Unassigned Reserves at the end of FY 2016, and the next Financial Planning Period is
FY 2017 through FY 2021, the Financial Plan shall include a plan to return or assign the funds
in the Unassigned Reserve by the end of FY 2017. Staff may present an alternative plan that
retains these funds or returns them over a longer period of time.
Section 14. Intra‐Utility Transfers between Supply and Distribution Funds
Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Attachment D, Exhibit 3
Transfers between Electric Distribution Fund Reserves and Electric Supply Fund Reserves are
permitted if consistent with the purposes of the two reserves involved in the transfer. Such
transfers require action by the City Council.
Section 15. Low Carbon Fuel Standard (LCFS) Reserve
This reserve tracks revenues earned via the sale of Low Carbon Fuel Credits allocated by the
California Air Resources Board to the City, as well as expenses incurred, in accordance with
California’s Low Caron Fuel Standard program. At the end of each fiscal year, the LCFS
Reserve will be adjusted by the net of revenues and expenses associated with California’s
LCFS program.
Section 16. Cap‐ and‐ InvestTrade Program Reserve
This reserve tracks unspent or unallocated revenues from the sale of carbon allowances freely
allocated by the California Air Resources Board to the electric utility, under the State’s Cap‐
and‐ InvestTrade Program. Funds in this Reserve are managed in accordance with the City’s
Policy on the Use of Freely Allocated Allowances under the State’s Cap‐ and‐ InvestTrade
Program (the Policy), adopted by Council Resolution 9487 in January 2015 and amended by
Council Resolution 100773 in October 2022. At the end of each fiscal year, the Cap‐ and‐
InvestTrade Program Reserve will be adjusted by the net of revenues and expenses associated
with the Cap ‐and ‐InvestTrade program.
Section 17. Electrification Reserve
This reserve is used to track funding of City buildings, appliance and vehicle electrification
projects and programs, including development and implementation costs and associated
financial incentives, loans and rebates for participating customers. The reserve may be
funded by any lawful source of funds available for such programs, including new or ongoing
utility revenues derived from customer participation. The reserve balance shall be annually
adjusted based on the net of revenues and expenses associated with the City’s building
appliance and vehicle electrification projects and programs using this reserve.
3 Resolution 1007 https://www.cityofpaloalto.org/files/assets/public/v/1/city‐
clerk/resolutions/resolutions‐1909‐to‐present/2022/reso‐10077.pdf
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COMMUNICATIONS PLAN AND OUTREACH EXAMPLES – ELECTRIC UTILITY
The Electric Utility Financial Forecast and proposed rate adjustments are designed to ensure the long-
term reliability, sustainability, and fiscal health of the city’s electric system while advancing grid
modernization and aligning with City Council priorities.
Reasons for the Proposed Rate Increase
The proposed rate increase reflects rising operational and capital costs driven by investments in grid
modernization, system reliability, renewable energy requirements, and cost inflation affecting labor,
materials, and transmission access. Electric grid modernization includes major infrastructure projects
such as substation upgrades and the conversion of legacy 4 kilovolt (kV) systems to 12kV to enhance
reliability and accommodate future electrification. Additionally, for the Electric Utility, the city is facing
increasing cost pressures for transmission access charges, Renewable Portfolio Standard (RPS)
compliance, and resource adequacy expenses which are expected to rise steadily through the forecast
period. There is also a continued need to replenish reserves for the Electric Utility.
The proposed rate adjustments are necessary to continue delivering safe, reliable, carbon-neutral
electricity and to ensure the Electric Utility remains financially self-sufficient while maintaining robust
reserves in accordance with adopted policies.
Communication Plan and Messaging Strategy
Staff will implement a proactive communication plan designed to provide clear, transparent, and
frequent information about the proposed rate changes, their underlying cost drivers, the city’s efforts
to minimize bill impacts, and continued commitment to affordable, sustainable, and reliable power.
Key communication objectives are to:
Increase transparency by clearly explaining the financial and policy reasons for the proposed
rate adjustments, including how grid modernization and system reinvestment benefit current
and future customers.
Emphasize that despite the proposed increases, Palo Alto’s average residential electric bill
remains significantly lower than PG&E and competitive with neighboring municipal utilities.
Reinforce that rate proposals are based on cost-of-service principles consistent with
Proposition 26 and approved by City Council.
Position the rate plan as an investment in system resilience, electrification readiness, and
operational reliability.
Emphasize stewardship, value, and reliability, underscoring that the proposed adjustments help
sustain world-class service and environmental leadership as the city transitions toward broader
electrification.
Communicate available programs such as energy efficiency rebates, low income and rate
assistance, and electrification incentives to help customers manage their bills.
Communication methods throughout the year, and specifically for rate changes, include direct
customer outreach through utility bill inserts, targeted community newsletters and/or blogs, website
Attachment D, Exhibit 4Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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updates at www.paloalto.gov/RatesOverview, social media, print and digital advertising, and
participation in community outreach events. Public communication materials about rate changes
feature FAQs, charts or other visuals including infographics showing the breakdown of utility costs that
correlate with the need for rate increases, and explanations of how customer classes are affected.
Messaging emphasizes rate adjustments are necessary to sustain safe, reliable, and financially sound
electric operations consistent with the city’s long-term energy strategy. Additionally, CPAU continues
to explore cost-containment measures to keep rates affordable and minimize customer bill impacts.
Stakeholder Engagement
Engagement and collaboration are central to the rate-setting process. Ongoing stakeholder
engagement will include:
Public meetings before the Utilities Advisory Commission (UAC), Finance Committee, and City
Council to present rate proposals, ensure consistency with adopted policy goals and fiscal
prudence, and solicit community feedback.
Coordination with community stakeholders including local businesses, electrification advocates,
environmental organizations, and customer assistance program partners to understand and
address concerns about affordability and system resilience.
Internal staff training to ensure consistent communication and responsive customer support
once rate adjustments take effect.
Through clear messaging and early engagement, staff aim to foster public understanding that the
proposed rate changes are not solely cost adjustments, but strategic investments in a more reliable,
efficient, and future-ready electric grid for Palo Alto.
Attachment D, Exhibit 4Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
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Attachment D, Exhibit 4Docusign Envelope ID: 7F13B00A-4961-8F29-80E7-A60FC7A7E052
Certificate Of Completion
Envelope Id: 7F13B00A-4961-8F29-80E7-A60FC7A7E052 Status: Completed
Subject: RESO 10300 - Resolution for the FY 2027 Electric Utility
Source Envelope:
Document Pages: 61 Signatures: 6 Envelope Originator:
Certificate Pages: 2 Initials: 0 Christine Prior
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Christine.Prior@PaloAlto.gov
IP Address: 170.85.155.40
Record Tracking
Status: Original
6/23/2026 5:47:19 PM
Holder: Christine Prior
Christine.Prior@PaloAlto.gov
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Signer Events Signature Timestamp
Aylin Bilir
Aylin.Bilir@paloalto.gov
Assistant City Attorney
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 170.85.155.5
Sent: 6/23/2026 5:50:26 PM
Viewed: 6/25/2026 2:56:35 PM
Signed: 6/25/2026 3:05:42 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Lauren Lai
Lauren.Lai@paloalto.gov
Director Administrative Services/CFO
COPA
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 170.85.54.89
Sent: 6/25/2026 3:05:43 PM
Viewed: 6/25/2026 5:03:46 PM
Signed: 6/25/2026 5:04:05 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Alan Kurotori
Alan.Kurotori@paloalto.gov
Director of Utilities
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 170.85.54.101
Sent: 6/25/2026 5:04:06 PM
Viewed: 6/26/2026 11:40:10 AM
Signed: 6/26/2026 11:40:16 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Ed Shikada
Ed.Shikada@paloalto.gov
City Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 170.85.54.89
Sent: 6/26/2026 11:40:18 AM
Viewed: 6/29/2026 12:10:20 PM
Signed: 6/29/2026 12:16:46 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Signer Events Signature Timestamp
Veenker, Vicki
Vicki.Veenker@paloalto.gov
City of Palo Alto
Security Level: Email, Account Authentication
(None)Signature Adoption: Uploaded Signature Image
Using IP Address: 73.92.102.134
Sent: 6/29/2026 12:16:48 PM
Viewed: 7/1/2026 10:09:12 PM
Signed: 7/9/2026 12:56:23 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Mahealani Ah Yun
Mahealani.AhYun@paloalto.gov
City Clerk
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 7/9/2026 12:56:25 AM
Viewed: 7/13/2026 5:38:03 PM
Signed: 7/13/2026 5:38:35 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 6/23/2026 5:50:26 PM
Certified Delivered Security Checked 7/13/2026 5:38:03 PM
Signing Complete Security Checked 7/13/2026 5:38:35 PM
Completed Security Checked 7/13/2026 5:38:35 PM
Payment Events Status Timestamps