HomeMy WebLinkAbout0227.095."'
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~ w City of Palo Alto
City Manager's Report ----------------------------------
1'0: HONORABLE CITY COUNCIL
A'ITENTION: FINANCE COMMITI'EE
FROM: CITY MAl'IAGER DEPARTMENT:lJfIUTIES
AGENDA DATE: May l5, 1995
SUBJECr:
REQUEST
This report requesU Coun<:ij a<!optioo of • resolution I«Iucing non-residentiaI el<cttlc rares aDd
esrabIisbing • new electric rate schedule for Yet) large customer>. Tbesc _ ore • ~t
of lowe!: operating expenses aDd tile need 10 remalII competitive. The resolution also tr!nSfers
f\mds 10 !he Calaveras Reserve 10 both extend tile life of that reserve and niduce tile Rate
Slabilizatioa Ro:;erve level FinaJly.!he resoJuticn iIlcreases traffic signal rates. p!weH1ut •
on!at discowJI progr.m and amends tile Umn.lered Electric Service Rate Schedule 10 include •
fee for MeIricom radios.
ltECOMMENDATlON
Staff ltcOl1lll1el1ds Council adoptico of !he IltIaCbed rew1utiOf1 wbich authorlus :he following
eIecIric J'&Ies and """,.,.. cbang •• 10 be effective July I. 1995:
L A S4.4 miIIioa oc 1 I"'n:cnt rate decrease applied 10 oon·RSidentiaI eJectric
CIISIOmelS wiIb demand melers.
2. . 1DtrOOuce. ""'" Rate Scl>o<lule B·1 applicable 10 very ~ c~tric cu.<toolers
will> detnaods. of at Ieast 1.000 KW per D!<lIlIh.
3. RedUc<: !he Electric Rate StJIbili72tion Reserve (RSR) ba]a"", 10 it.< target level
andlraDSfer lho ~ in excess of that Ieve! 10 tile Calaveras Roserve,
4. Increase Inffic signal rlItes 38 pcn:en!.
S. Add .......... clause 10 phase-out tile 10 pc=nt electric solar energy discount.
6. Amend Umnetered Electric Service Rate ScheduIe E-6 10 include eharges for
Metrltoo1 radios.
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POLIcy IMPLICATJQNS
This report has mime implkations nQ rateIruiking policies. Tradillooally, the primary
~ principle on 'libkll rates are ba.<ed is cost 0( servlc.e and, secondarily, on 0Iber
factors iDclud"m, rate ccmpetiti'olene<s, promoting coruervotion, and ""'ill CODSideratiom sue!>
... liferl.110 alkJw"""". As federal one! stole regulototy cbang .. radically ~ the electric
and gas industries, the iInpo<Wlcc 0( rate compet.itiveness is becoming • primary rallmlWng
objective. To keep existing utility CUSlomers, rates mUSl be market respoo;lve but IlOI set below
their sbort-tmll marginal costs. Thus, oJtbough cost 0( servlc.e will cootlnue 10 play III
imponanI role in raTemaking, mainlaining competlti .. rates is emerging IS I .saIie.,. ratemaking
objective.
Aoodler proposal in this report has minor irnplicaliolls en the cum:1lI timeW>le 10 deplele the
Caboveras Reserve by the year 2000. The propo<al to lr.Ulsfer .. cess fi.mds from the RSR to the
Ca1J.vera.s R=rve would effectively eXlend the life 0( this reserve 10 2002.
The rennae requiremenI 0( the 1'>10 AIro Electric Utility wnsists 0( • number {){ compc:>!l<tl!s
includiDg the cost 10 purchase electricity, the cost 10 operate and maintAin I reliable system,
finance an appropriate portion o(!he capital improvements from current operating revenues, fund
prudent n:serve levels, and produ<e • returR on inves!meDI; wblell is Ihe!l transferred to the
CiIy'. General fund. A.ignificanI ebange in any """ 0( the&: facton, as .. en as • change in
the sales level. may trigger • rate ad")llS!ment.
This repon ...:ommeuds I rate ad"jUSIlllen! 10 reflect lower purcba.<ed power C05IS .. bile
cf1SpOSing or I surplus in the EIectrlc Fund itate Stabilization Reserve. A review 0( the RSR
baIaDce ind"1CaIes Ihe favorable 1mpact from .... l>5tan!id purcl>asod powes cost saving., .. hiek are
COGIinuing. Recenl reports 0( plemitul rosen/air Je-.. els indicate Illal the cIownwaro trend in
1IUI<ket prices b ptllChas«I power is expected 10 contimJe into FY95-96. Also, the increased
enetg)l gonoration from bydroekctric pIams at I<doced costs has led 10 I decrease in mar'<et
prices for 0Iber SQUlCes 0( energy porcI!as<d by our SUpprle", wbkli furtller lowers our c""'-'.
As I result, !be RSR level is projected '" end Ihe cutrell! ftSCa! }ear lbove its maxinrum level
IUidefme. despite !be significa.'lI = refund in the late fall 0( 1993. Due to the.sc fac"1<n,
in comblnatioo willt the recent te<!u<:tion in utility rent e.peme and """"'--tioos in operating
expenses. sIaff proposes to ~ !be RSR 10 its targe( guiderme level by reducing rates
apptoxlmate1y 7 percenI and IransfetTing fuOOs from !he RSR 10 tbe Calaveras Reserve.
Staff aIao recomIIleIld£ approval 0( !be thin! 0( rllree 38 pcn:ent rate increase for traffIc signals
(CMR:26S:93), and the phase-oot or. 10 percent solar er .. rgy dIscount whic!l was estabr..,hed
IS yean ago. Finally, slaffproposes 10 amend Unmetered Electric Servlc.e Rate Sched,,!e E-{i,
10 u.:1ude • fee 0( $3.00 per monll> to coves !be cost 0( eoergy usage per instAllation ~x
CMi.:221:9S
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OJ • .,, !lie strOOg tinanci.ol coo.:fJtioo of til< Electric Fund, staff proposes 10 dec-re= ele<:tric rates
~ $4.S millkln effective July J, 1995. Slaff proposes Ie •. pply II>: ~Yenuc decrease
Ie oon-resk!ential CllSIomen served by • demand me"". Demand metered C1l3IOOlt" we more
!han 8,000 Icilov. .. tt-I!oo= per month. Rates .. ouId DOl change for residelltS and small
commerci.ol eustomcn wbo use Jess 1Ilao 8,000 kiJowatt-bours a month.
The IQSOOS for applying Ibis _ decreose to the non-residenrial class ate to make P-.Jo Alto',
large commen:ioI and industrial rue. more competitive and to impro.e equity belw.." the
customer classes. A =ot npda'" of Palo AIIo', ele<:tric cosI-of-;ervlce study indicates !hat
non-residenIi.ol CIlStomen are PO) jug more 1han their share of the cost.. Lower'.ng non-=idel!li.ol
l3ItS wilJlower their c<lotrioo1loo to the utility', overall costs and improve equity between tbe
~1lIial and OO!l-residenlial cu. ... omer classes.
In recent JDO<lIhs, PG&E has lowered rates 10 very large industrial cu. ... omers. To better
position the PaIn AIIo EIe<:tric UtIlity in Ibis competitive era and reduce !he possibility of
cusromers bypassing the EIe<:tric Utility, S!aff proposes 10 apply most of the dec~ 10 the
CRy', 21 largest users. Thus, an 11 peJUDI rate decrease will be applied to very large
CIlSIomers, and an approxiauit.e 6 perceot rate decrease will be appfled to In other demand
meII:IOd CUSlOfllerS. This proposal wiI1 result in rates to PaIn Alto'. large industriol CllSIon!erS
rha! !lIe approximately 27 pe=nI and 6 per-.eot below PG&E', a1Stribullon and transmission
service rates .respectively.
Sttff does no( propose 10 cbange residential =r rates whiclt are aIready the lowest rau:s
in tbe S<ar.. as .-" in til< ele<:tric bill comparison (FiguR 4). Approximately half of the
Utility', c.."<IS axe fixed and must be spread 10 all existing customers. It is impo<tanI for all
ratepayers to IIIlder5WJd the substantial comributioos made b, .ery large industrial customers
Iowards Ibo utility'. recovery of its fixed costs. Tea large C\lS!()mers cootribute $28 million in
e!ectri<: revenue. If some of !bose cus.nmers can purchase ele<:tricity from an alternative
supplier, tbe remainin$ ratepayers, includIng residenli.ol, .. ill experience "It. increases 10
_ tbe fixed costs. All PaIn AIle eleclric cUSlomec. ba ve an ecooomic interest in k<eping
the City'llarge e1ec;ric user! as cUSOO<ner> of tbe PaIn AIle Electric Utility. Tne Ekctric Utl1ity
is ~ to effectively compe;e by operating efflCien!ly and reliably, and offering
excepiiooaI customer ~.
A compa.>ioon of Palo AIle's customer 1>iI1s "';!h ocher ciectric utilitie< indicates that Palo Alto
rates ~ vecy wm,peUtive. The attached graphs illustra", the ,;ompa.<ison l>etwee!l Pal" Alto
..-ustome>' bill. a:>d l'GdtE CIlSIOOlC' bills. Those figure< >how !hat ll}e =identilll bill, are
approxim.olely 60 pelttnt !lela ... PG&E residential biJ1s, while commercial and industriol bills
are aboot 28 pcrceot on the aver.oge belo", PG&E. This omnpruison is based on !'G&E'. curren!
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rates and Palo Alt,,·, propo'"..ed rates. The following r.bl< sbows the impact of !his rate de<:re=
on typical """,residelllial clISIOmer monthly l>ills.
KW-HOURS lCW'S ?RESENT PROPOSED ~
CUSTOMER USAGE USAGE BIlL BIlL DIFF
Sm.aIl Coolm. 12,000 40 $ 853 $803 (5)
Sm.all eomm. 60,000 150 3,664 3,649 (6)
Mod. Comm. 160,000 400 10,304 9,732 (6)
l..arge InCl. 550,000 1,000 32.420 28,823 (II)
Latge Ind. 2.;50.000 5,000 162,100 144,112 (11)
Latge InCl. ',500,000 10,000 324,200 288,215 (II)
New Rate 8Wnk E-,
To segmenl !he largest .~ customers from otber noo-... idcnllal =, stall proposes 10
intro<luce Electric IWe Schedul< E-1 whicb .. iII apply 10 customers with • monthly demand of
at least 1,000 h'<>watts. These very large C\ISIOm<'rS generally IuIv. bigber load facto<s !ban
_ noo-.... idellliaI customers, and segmeming the non-residential class in !his manner is
wasistcnt with cos< of ~ principles.
lD a<:eonIaDce .. ill! utilitieo ~. policy, !his report pra-ides a rewmmendlItion 10 dispose of
a projected swplus in !he Electric Fund ~te Stabilizalioo ~e. Despite a mojoe alSIomer
rel\md "'lling FY93-94. Ihe Eleclric Fnnd fiDislled that fiscal year with • bealthy $28.1 mi!lioo
balance in its RSR. Aft.er setting Ill< refund amounl in September 1993, there were significant
<>perating <:001 savings, illcluOmg fav<>rable pow .. cost variance< I'hrougbout the balanoe of tile
year. Foe II!e firs;: half :Jot !his f1SClll year, power CO<IS were very close 10 tile forecast.
However, since Jannary 1995, power cost savings bave begu1l1o iICCUIlluiate due 10 tile unusnaIly
favorable hydro conditions Ibis year.
In anticipation of tile RSR eoomg FY94-9S balance rising above its ...,..imum guideline, staff
proposes to decrease ",res and transfer funds from Iile RSR 10 Ibe Calaveras Reserve in FY9S-
96. Based on 1"0 forma cost and ~e\llle projections foe Ibe next several m<mths, staff e.timates
dUll 11Ie transfer from !be RSR II> !he Calaveras Reserve .... J1 be approximately $10 mi!oon 10
$12 milliou. The oc1UaI amounl of funds Ii> be tr.msfemd will he estabfls!>ed in July 1995 during
!be prelimilW)' closing 0( Ibe boob for FY94-95. The amc<m! of !he """rve ttansferwill be
!he balance in !he ltSR above its laIJ:et of 519,'\61,000 aI'"", c!educllng for 1be ",itl"lr.t..-1i.l
bndgete<l foe 95-96.
CMR·.221:95
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This action will proJ<lng !he ftfe of ~ ... CoIaveras ~ aprroximately !\Vo years, continue
softening !be "'te impacts from Cw' ..... <leN service, ana re<lua: !he IlSR to its reserve target
levo!. Equ3I1y i.mpoctant, by preoe!'o/"" !be IlSR SUIpIus "ilhin !he Eleclric Fund, the Utility
maillIains financw flexibility 10 cIeaI .. im potential a<lv.= rev"""" impacts frOID competition.
CompctInc electric suppIlers are llready contacting our I2rgest cu .. tom<n. AItbougl; wide<pread
iDdusIrial and retail c""'petition may be rwe 10 four years awoy, the PLio Alto Electric Uti!ity
mIlS! DC( de!>y 10 "",itio. itself strategically (CMR: 189:95, n<.H}l 1). Theso proposals aim
at IIlis objective.
A staff stud}' in 1993 in<fll'ated that traffic signal reVeDue was not recovering !he costs incurr<d
for !he traffic signal system. Accordingly, staff proposed and implemented. tbree yeM scbedcle
10 iDcrease InIffic sig",,1 rates 38 pe=nt anmJ2lly (CMR:265:93). This 38 percenl rate inc.-.=
proposal is the dlinI one. During FYI995-96, aootber S!Udy will be performed 00 t"" trllffic
signal system 10 determine if any f.>rther rate odjustment is needed.
To promote solar energy SYSlemS in !be CiIy, !he Councll approved. 10 percent solar enel!}'
al300UDl in 1980 for lOOse cUSiOlIle" woo install solar energy S)'SI<IDS. MOO! of !he solar
systems in !he City were installed be\wecR 1981 and 1984. Cn.<!Omers received Federal and
&ate tax a.dits until 1985, as weD as !ow interest loam from L'>e City. In 1987, I1Jivig aebleved
iI! energy savin!; tarsea, the CiIJ discoorinued applying the al>COUIlI to new sy= installed
aftu April HIS? n., discounl cunently applies OJ the electric bills 0( approximately 530 siogle·
family =idents and 491 mUlti-f>mi!y resideDl3. Estimated annual savings for these ClISIome.rt
~ ~xim>tely $60,000.
p", I lIIl!Ilber of teasoIlS, staff r<CO!I1JIIetI<h, ,.itll prior ootitkatio. 10 our sor.ar customen, that
the eleclric OISCOWll be OlS<:ootiotled. A recent Alr\IC)' of custot:ners receiving the alSCOUN
indicated that approximately 4 pettellI are no longer eligible 10 """i .. !be OISCOOIll (i.e. solar
sySIeID removed or inoperative) but DId DO( ootiIY sWJ of Ibis fact. To effectively administer
dIis progr.un cooId involve periodie inspections I<> assure C<lIllpUance. Socb costs would be
probibitivo, yet to be fair 10 ail 001: cw;tomer>, !be utilit)l is obligated to enforce <:Omp!ia= wilh
the approximately 1,000 systena. The administrative rost5 10 otller oon-particlp<!ting ratepayers
does DO( ju5tify the solar discount 10 be applied indefmitcly.
Between tiie Ial< credil!. electr'o< billolSCQUllts, and loan prosram. custom<rs woo installed solar
systems in the City 11Ji'. beeR affunIed significanl odvanlages 10 shoulder the co<t of their
syslem. In many cases. rostomerl mv. RCcived !he discoum for IS years, equal \0 • typical
solar systemS lifespan. Participating customers .... '" not promised !bat the alSCount would
conlinue indefinitely. '!be intent of !be program was 10 provide some financial .... istance 10
customer. 10 encourage solar =, whie" I1Jis been accompllsbed.
lhving reached its 8""ll;, the CiIJ is in • "",ilion 10 pl1Jise-oot the program. Staff =mmeoo.
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III efk<:tive dale 0( 111/0 yean 0< July 1. 1997 to pba.<e--oot the solar cfucou:ll.
Metrlcom • .Inc. has ~ived I permit to i.nstaJI approxbnalely 100 small radio tr..,..,.,i •• " on
Palo AIrc street poles as part 0( its wireless data communlcations netwO<k. AItOOugb the power
=nnptiou fur these devic:eo is 100 omalllO justify p~i.'lg meters on each pole. !bey require
tle<:lricily 10 operale. ~Y. sWf de.eloped I 55 per raGlO per moruh charge 10
ccm;>ensaIe \be UUliIy fur ~ 35O<lCi2ted 'llilh !beir estimated power usage. pole rental, and
odIer COOlS. It is recommen<!ed that this "'Ie be Illde<! 10 Electric Rale Schedule E-6 (UtlID<Iered
Electric Servke}.
lIKAL IMPACT
For IT 1995-96. approval 0( !he:
1. Electric rate <Iec1u;e .. ill ~ the Ek:ctric Fund Ie.errue by $4.5 mil~on 0<
1 peICeIX;
2. Inter·reserves tr.IDSfer will move III estimated $10 millioo 10 $12 million from !be
RSR \0 the C.ala.eras Reserve;
3. Traffic signal ,..Ie aaJUSbIlCDl "ill increase ~lectric ""ODOC approxbnately
$143,000.
ATIACHMENTS
RosoIution. Ek:ctric lIaIe Scbedules E-I. B·2, E-6, E-1
PREPARED BY:
REVIEWED BY,
Locie Hirmina, Manager, Utilities Rates
Randy Bddsclnm, A.<sisIanI ~ 0( Utilities,
MmiDiSlJli!ive Ser\ices
DEPAR~"f ftEAD 1tEV1EW: f.£!6:('
EDW I.~
DirecIo< 0( Utilities
CITY MANAGER APPIlOVAL: ~'J,.~~~~~=f..------
cc: Utilities Advisory Commissioo
CMIt:22J:9S
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'. @ ELECTRIC BILlCOMPARISO@
June 1995
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RESIDENTIAL ELr;~TRIC BILL COMPARISON
(500 KWH)
UTILITY
Palo Alto 24.28
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Santa Clara 32.61
Redding
SMUD
Roseville
I.ADWP
Riverside
Alameda
PG&E
"F
0 10 20 30 40 50 60 70
Figure (4) $ MONTHLY BILL
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RESOLUTION NO_
RESOLVI'IOO OF '!'HB COUNCIL OF '!'HE CITY OF PALO ALTO
AMENDING IITILITY AA'l'B SCHEDULES E-2, 2-5 AND E-7
OF THE CITY OF PALO ALTO IITILITIES RATES AI,,)
CHARGES PERTAINING TO DOMESTIC, COMMERCIAL,
UNME'l'ERED, ANI> LARGB COMMERCIAL ELECTRIC SERVICi!
'I'h9-COuncil of the City of Pa.lo Alto. does hereby RESOLVE as
follows:
SECTION 1. PJIsuant to Sectioo 1Z.2D.OIO of the Palo ~to
MUniCipal Code, Schedules B-2 (Commercial Blec~ric Service), E-6
{ODmetered 21ectr1c Service). and £-, (Large Commercial Electric
Service) of t~e Palo Alto Utilities Rates and Charges are hereby
amended to read in accordance vith Sheets E-2-1 1 E-6-2~ 2-7-1; B-7-
2, and 2-'-); respectively. attached hereto and incorporated herein
by reference. The foregoIng Utility Rate SChed:ales r as amended,
shall become .effective on J"J.ly 1, 19;5.
SBCTLON 2 _ T'ne Council finds that the revenue derived cram
t.be au·tl"..oriz:ed adjustmen·t of the sever-al electric service rates
shall be used only fer t.he F..lrposes set fort.h in Art-icle VII ..
Section Z .. of the Charter of the City of Palo Alto_
~--rION :1_ The Council finds that the adoption of this
resolution does not coostitute a project under the california
EnVirocmental Quality Act# California PUblic Resources Code section
21080 ... ubdivision (b) IS)_
DITROOOCEi) AN!) ?ASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
A'M'EST: APP~OVED:
City Clerk Mayor
APPROVED AS TO FORM:
Ci t y ""'"'" ger
Se<>icr Asst _ City Attorney
Director of Utilit.ies
Director of Admdn. Services
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UNMETEREO ELECTRIC seRVICE
UTI!.I1Y BATE $CHE~
(Ccn~
4. Automatic spMklers II! Oregon
& P"g~ Min Expressway
5, Trafllc Sisr.a/
(II) ConlrQllllr
(8) e"lamp
(C) 12" & PYH tamp
{O} Padestrian Head
(E) VehiCle. System a!'..:!
Bike Sensor l<x:>p e. ElecIriC SeMce fo< CaltloOlC
ProtaC1'k>n StaUon
1. CII!}1e lV Power SuwJyISeI'Vice
a. l~sfn9 of E!ec\tic ~It Ibr CATV lise
Cable C<:I-ap
iN Excl\lsllle uSt Pacifie BeD
. (S) Non.-Exclu.iYe 1M Paci!ic Be:
9. lI!liilie$ Sr~ lo-..at !>tea Network
W San<lWidtll A$$~MI Citt Oepa~
($) carrler Usage CiI¥ Depllrlmenls
1(). Oa!a~lcatiQn Radio Transceiver
MiY'~MlIO SIre"" Ugh! Poles. Melricom Inc.
CITY 01' PALO AI. TO UTILITIES
"'!Wed /)y !he City Couoc~
2a5.00 ea
3.34 ea
•. 2Sea
5,71 sa
27.80
5.oo/r,,*
Elfer-Aiva 1.1·95
She<;tE+%
Q "y
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COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2
A.. APPLICASn..ITY:
This SChe<!'Jle appr;es 10 elec!ric service 10 c",,!emers olher than separately ",.etere"
single-pllase serv'.ce 10 singTe-familydomest;c "wellings and who use Tess thall 1,000 r:w
0( demand per meIer per rno."lth.
S, TERRITORY:
'Within tr.e incorporated tma. of The City of Palo Mo and land owned or leased by The City.
C_ RATES:
Apo!icab!e 10 Non-Demand Me.tered Q;slomers
Energy CI-.a'ge {Per W/h)
Elf""']ve Oumg Summer Period . __ ... __ . __ ..... .
Et!ectiv~ Oumg Wll1ter Period __ . ___ .. _______ .. __
Applicable 10 Demand Metered Q;slorrle~
Demand Charge (Per ~Jlowall of bilrong demand)
Effective DuMg Summer Period ________ .... ___ . _
Effedive DuMg Wl!1ter Period . ______ . _______ . __ _
Energy Charge (All kJlowatt-hoors, per kWl1)
EffecrrJe O\.'fing Summer Pe riod _______ ......... .
Effective Dumg Wlnler Period _. ___ ... _ .. _ ...... .
O. SPECIAL NOTES:
1. Se ... onal Rata Changes
Per MeIer
Per MOQth
$0.0731
$0.0657
Per Meter
Per Month
$9.00
$5.70
$0.045&
$0.0391
The Summer Period ~ ellec~ve May 1 10 October 31 aod the Wnter Period is effective
from November 1 10 Ap<il30. Vv'hen The perlo<! of serv:ce covered by a custome(s biil
is l'ar11y n Ihe summer period and l'ar11y in !he ... inter period, 1I'.e biliing will be
<:omp<rteO by p'O<'ating the Iolal kWh vsage, l<W demand and ihe rates appf;cable
lherelo. between l1)e tw<J seasonal periods according 10 1'1" ratio of !he number 0( days
in each seasonar period 10 Ih.e ,,,tal number of cays in lhe bilfll1g perlcd.
CITY OF PALO ALIO UTILITIES
Tssued by !he C it)' Counc~
Supersedes Sheet No. 13-2-1 dared 9-10-90
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Effective 1-VaS
Sheet No. E-2-1
o
lARGE COMMERCIAL ELECTRIC SERVICE
UH.JTY RATE SCHEDUlE E·7
A. APPLICABILITY:
This schedI1le applies 10 oo(Hesidential eleC'.ric ClIstomers who use at least f ,000 'A'll per
month per sne an<! have sustained Illis level of usage at least 3 consecutive months.
B. TERRITORY:
WIt'l1n the service area of Ille Cil)' of Palo Al'o a nd on !and own.e~ (j( leased by !he City.
C. RATES:
Applicable 10 Demand Melered Custome rs
Oemand Charge (Per Kilowatt of bi11ing demand)
P" ... Meter
Pe, Month
Effective During Summer Period .......... •.•. _ . • • . . . • . . •. $ 7.SO
Effective Ourong Winter Period __ . _ .... _ •. __ ..•.......•• _ .• $4.00
Energy Charge (All kilowatt-hours, per KViH
Effective During SUmmP .... Period __ • _ •.....••• _ . ___ .• _ ••.•. $.0458
Effecfive During WinJer Period ••.•• _ .......... _ • . . . • • . ... $.0391
O. SPECIAL NOTES:
1. Seasonal Rate Changes
The Summer Period is eff",,'1ive May f 10 0cI0ber 31 and !he Vlinle, Period is e!'leclive
from November 1 10 Apr! 30. \'v'hen the period of service ccvered by a customer's bin
is par-;Jy r. !he SC'fr.mer period and partly in !he winl ... period, !he billing will be
computed by pro<afing !he Iolal KViH usage. i'0N demand. and Ihe rates appfJCable
!hereto. between the two seasonal periods according :0 !he ratio of !he number of days
n eaell seasonal period 10 !he Io!aI number of clays ., the bilflnQ period.
2. Request fOf' Servlce
A cuo!orner may request service under !his schecl<J1e for more Illan one account ()( one
meier it Ihe accounts are on one s~e. A sne shaD be defined as one ()( more L'IlTrty
8C00Uf11s setVing ronfiguous parcels of !and with no intervening pubflC right-of-ways
(eg. streets) and have a common bilf>ng address.
CITY OF PALO ALTO UTlL.ITIES
Issued by the Cily Coord
Effective 7·1·95
Original Sheet No. E·7·1
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3. Maximum Demand Metet"
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lARGE COMMERCIAL ELECTRIC SERVICE
UTIlDY RATE SGHEOlilE E-l
(Continued)
Whe"ever the monthly use c:A energy /las eXCileded 8,000 kjlow~-hou<s for three
consecutive months, a maximum demancl meter will be ,"stalled as prompt1y as is
practiCable and ~reafter continued in service until \he mont.""l use 01 energy has
fallen below 0,000 kJ1owail-ho\.Ks fOr twelve consecutive months, whereupon. at !I1e
op!ion oftne City, I may be removed.
. . The maxim.)", c!emancl h any month wiil be !he maximum average power '" kilowa1!s
taken eluting My 15-minu!e ;,terval n \he month prOllh.-"'ed 1hat in case !he Io3.d is
inlermittenl: or stbject 10 violent fluctuationS, Ihe City may use a 5-!Tlinute nterva!. A
IhermaHype demand meter whidl does !lOt reset alter a clelinHe ~me nterval may be
used" at \he Cily"s option.
The bi1!ing demand 10 be used in cOmputirog char9"s under this scf1edu!e ",ill be !I1e
acluaI rnaximv.n demancl n k;lowatts lor \he curren! month. An exception is that !he
bl1rlOg demand lor customers wHh Thennal Energy Storage (rES) will be based upon
the actual maximum oemand c:A sud1 c:ustorners between \he houfs c:A noon ancI6 pm
on weekdays.
4. M"mlmum Charge
A lTIir\in"u"n charge 01 $1.00 per monlt\ will apply 10 all accounls.
5_ Prlmltry Voltage Discount
Where clelivery hereunder is made at !I1e same vollage as !hat of \he ina from wr.ich
the serVoOe is supplied, a disoo<.JnI 012-1/2 percent [2-1/2%J lor available Ii"e
voI!ages above 2 kjlovolls wo] be allowed provided the Cit), is no( required 10 supply
service at a partlcular line voltage where ~ roBS, or will '"'stan, ample faoTrties !or
S\J!lP¥."9 at another ~ equally or belIer su~ed 10 lhe rostomer·s electr;car
requirements. The City retains !he right 10 mange its fine voI!age at any time after
providing reasonable advance ~ 10 any customer receiv'ong a discount hereunder
and affected by such change. The cus!omer t'1en /las !he option to change his
s)"S!em so as 10 receive service at !he new me voltage or 10 accepl service (withot.t
voltage di5COU(1l) ltYoogh transformers 10 be supplied Oy !he City subject 10 a
maxjmum kVa size ~.ation.
CITY OF PAlO ALTO UTILITIES
Issued by \he City Counci Effective 7-1-95
Original Shee! No. E-7-2
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6. Power Facto(
LARGE COMMERCIAL ELECTRIC SERVICE
UTIlITY RATE SCHEDUlE E·7
(Continued)
At 11"08 aty's op6on. VAA-hcr.x metering, used for power factor calcu:a~on, wi! be
;,sta~ed on f1e seMce of any new cusIomer whose demand is expected 10 exceed
300 kilowatts or upon f1e service of any existing customer whose demand has
exceeded 3JO kjJoy,att.s for Ihree consecutive months. TIle C'Iy may exercise !he
option of rerno'>Ylg lhe V AA-hcu metering Irom \'Je service of a rustorr.er whose
demand h2S been below 200 Kilowatts for four coosecutive months.
When such rr.e!erhg is instaJied on a customer's service,lhe Iota! mont>-uy eTe---:!ric bill
shaR ncJude a 'po",et facIor penaity', l applICable. The penally aajUSl<nent shall be
applied 10 a customer's btl pcior 10 the compu!ation of any pc<nary ''''''''age diSCOlrt
Where VIo.R-hour me!erir-og is instarred, lhe mcnthi'J power !actor snarr be !he average
PONeI' facIor based on !he ratio 01 kJlowe!l hours to l<11ovol!arnpere hours consumed
dumg !he ITlOfI!fl. Where nme-of-day rre!ering is instaned, lhe CUSlomer's monthly
power facIor shaI! be !he power facIor coinci6ert with lhe customer's maximum
demand.
The power facIor penally is applied by increasing ;he Io!a! energy and demar-.d
charges for 8.1)1 month by 0.25 percent [0.25%) for each or .. pe'cent (1%} !hat !he
montho'y power facIor of !he customer's load was less than 95 percent {95%}.
CITY OF PAlO ALTO ununes
Issued by !he City Coonci!
Effecti\le 7·1·95
O<iginaI Sheet No. E·1-3
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