HomeMy WebLinkAbout2010-05-25 Packet - Budget WkshopCITY OF UKIAH CITY COUNCIL
Special Meeting
CIVIC CENTER ANNEX CONFERENCE #5
300 Seminary Avenue
Ukiah, CA 95482
May 25, 2010
5:00 P.M.
BUDGET WORKSHOP #6
ROLL CALL
2. DISCUSSION OF ADOPTION OF RESOLUTION ESTABLISHING THE CITY°S REVISED
ENERGY EFFICIENCY AND DEMAND PROGRAM TARGETS AND RESCIND RESOLUTION
2007-32 DATED SEPTEMBER 19, 2007. (EUD) This item is to be discussed only and will be
on the June 2, 2010, Council Meeting Agenda for possible action.
3. BUDGET WORKSHOP SESSION 6
Introduction and Overview of FY 2010-2011 Working Draft City Budget Document
4. PUBLIC COMMENT
5. ADJOURNMENT
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reasonably accommodate individuals with disabilities upon request.
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for
public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business
hours, Monday through Friday, 7:30 am to 5:00 pm
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the
bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than
24 hours prior to the meeting set forth on this agenda.
Dated this 21st day of May, 2010.
JoAnne M. Currie, City Clerk
DRAFT
June 2, 2010
AUTHORIZE ADOPTION OF RESOLUTION ESTABLISHING THE CITY'S REVISED ENERGY
EFFICIENCY AND DEMAND PROGRAM TARGETS AND RESCIND RESOLUTION
2007-32 DATED SEPTEMBER 19, 2007. (EUD)
Background: The City of Ukiah Electric Utility Department is a publicly-owned electric utility that
provides reliable electric service to its customers from an energy resource portfolio predominantly containing
renewable green electric resources.
On September 29, 2006 California Assembly Bill 2021 ("AB2021"), Section 25310 of the Public Resources
Code, was signed into law. AB2021 required that on or before June 1, 2007, and every three years thereafter,
POUs are to identify all potentially achievable cost effective electricity efficiency savings and establish
annual targets for energy efficiency savings and demand reduction for the next 10 year period, and to report
those targets to the California Energy Commission ("CEC").
On September 19, 2007 the City's current energy efficiency program targets were established as outlined in
City Council Resolution 2007-32 as follows:
Energy Savings Potential (MWh) = 1,979
Demand Reduction Potential (kW) = 195
DISCUSSION:
Northern California Power Agency ("NCPA"), a joint powers agency and the Southern California Public
Power Authority ("SCPPA") retained Summit Blue Consulting, LLC to develop a computer model and
conduct analytical work to develop energy efficiency targets for member utilities. The individual targets
adopted by each utility member will be collected by NCPA and SCPPA and then submitted to the CEC.
The model, called the California Publicly Owned Utility Energy Efficiency Resource Assessment Model
CalEERAM"), is based on the integration of demand side management measure impacts and costs, utility
Continued on Page 2
Recommended Action(s): Adoption of Resolution establishing the City's revised Energy and
Efficiency Demand Program targets and rescind Resolution 2007-03 dated September 19, 2007.
(EUD)
Alternative Council Option(s): Adopt the higher Summit Blue recommended program targets and risk
not meeting our goals.
Citizens advised: N/A
Requested by:
Prepared by: Mel Grandi, Electric Utility Director
Coordinated with: Jane Chambers, City Manager
Attachments: Resolution
Energy Efficiency Program Targets
Approved:
Jane Chambers, City Manager
Subject: Energy and Efficiency
Meeting Date: 5/25/10
Page 2 of 2
customer characteristics, utility load forecasts, utility avoided costs, and rate schedules. It is also directly
linked to the current California Energy Commission report tool, E3/EE, an energy efficiency spreadsheet so
as to capture the most recent deemed energy savings, measure costs, and avoided cost estimates. The
CalEERAM model for the City produced the following cumulative targets by 2020:
• Energy Savings Potential (MWh) = 7,024
• Demand Reduction Potential (kW) = 1,908
This represents an increase of 355% compared to the previous 10 year energy savings targets. A summary of
the technical, economic and market potential by customer class is attached. The market potential goals
represent the feasible energy efficiency savings that Summit Blue's analysis determined can be achieved by
the City.
The City has the flexibility to accept the energy savings targets recommended by Summit Blue, or to modify
them either up or down. Staff recommends that the City adopts energy saving targets that represent
approximately twice the previous 10 year energy savings targets. While this is less than the targets
recommended by Summit Blue, Staff is recommending that we set reasonable, achievable targets, and then
strive to "over deliver" on the amount of energy savings achieved.
At this point, it is unclear what level of CEC scrutiny and possible questioning will result by reducing the
City's energy efficiency targets compared to Summit Blue's recommendations. However, Staff suggests that
it is better to set reasonable, achievable targets and over-deliver, as opposed to adopting highly aggressive
energy saving targets, and not achieving them.
The energy saving targets that Staff is recommending Council approve are:
• Energy Potential (MWh) - 4,045
• Demand Potential (kW) = 1.100
Unlike the previous targets established for 2008 - 2016, the Summit Blue model does not produce a static
annual target over the period of 2011 2020. The model assesses the energy savings potential and demand
reduction potential for each year, based on assumption of participation rates, utility load forecasts etc.,
producing a curve that shows overall increasing potential with each future year. The energy savings targets
that Staff is recommending Im Council approval include a 36% increase over previous targets over the
course of the first 3 years (2011 - 2013) of the 10 year period. The Council will have the opportunity to
adopt new 10 year targets prior to 2014.
Staff recommends the City Cotmell adopt these energy efficiency program targets as recommended by Staff
and authorize NCPA to submit them to the CEC.
FISCAL IMPACT:
The existing state-mandated Public Benefit Program fund collected from the City's electric utility customers
will provide the funds necessary to achieve these energy efficiency targets.
Budgeted FY 09/10 New Appropriation ® Not Applicable Budget Amendment Required
Amount Budgeted Source of Funds (title and Account Number
Attachment 1
RESOLUTION O. 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING
ENERGY EFFICIENCY PROGRAM TARGETS
WHEREAS, the City of Ukiah (City), has a publicly owned electric utility that provides reliable
electric service to its customers from an energy resource portfolio predominantly containing
renewable green electric resources.
WHEREAS, California Assembly Bill 2021 (Section 25310 of the Public Resources Code)
requires all publicly-owned utilities to identify all potentially achievable cost effective electricity
efficiency savings and establish annual targets for energy efficiency savings and demand reduction
for the next 10 year period; and
WHEREAS, each publicly owned utility is required to adopt those targets by September 30tH
2007, and every three years thereafter, and to report adopted targets to the California Energy
Commission; and
WHEREAS, it is important that there is broad-based public power compliance with Assembly
Bill 2021 on a statewide basis; and
WHEREAS, Northern California Power Agency ("NCPA"), a joint powers agency and the
Southern California Public Power Authority ("SCPPA") retained Summit Blue Consulting, LLC to
develop a computer model and conduct analytical work to develop energy efficiency targets for
member utilities.
WHEREAS, the City utilized the modeling tool with local economic considerations and
established an energy efficiency program target of 4,045 megawatt-hours of energy savings over ten
years, with a yearly 250 megawatt-hours of energy savings during the first two years, and
WHEREAS, the City utilized the modeling tool and established an energy efficiency program
target of 1,100 kW of demand savings over ten years, equivalent to 110 kilowatts of average annual
peak demand reduction, and
2007.
WHEREAS, The City Council rescinds Resolution number 2007-32 dated September 19,
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Ukiah adopts the above
electric energy efficiency program targets and rescinds Resolution 2007-32.
PASSED AND ADOPTED this 25th day of May, 2010, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor Benj Thomas
JoAnne Currie, City Clerk
ATTACHMENT a
Energy Efficiency Program Targets
700
600
500
e00
f300
200
100
0
MWH 250 250 310 341 375 413 454 499 549 604
of Load Forecast 0,20% 0,20" 0.2504, 0281 0.31Y~ 0.34% 037% 0 4P4 0.453b 050%
Summary of CalEERYJA Output
Technical Potential
Energy Potential (MWh)
Sector
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Residential
17,809
15,992
16,493
17,077
17734
18,460
19,241
20,083
20,986
21,949
Non-Residential
35,712
35,778
36,157
36,572
36,921
37,257
37,516
37,805
38,095
38,387
Total All Buildings
53,521
51,770
52,650
53,649
54,655
55,718
56,757
57,888
59,081
60,337
Percent of Utility Forecast
43.88%
41.73%
41.91%
42.26%
42.56%
4298%
43.39%
43,95%
44,519o
45.11%
Demand Potential (IM )
Sector
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Residential
7,400
7,228
7,439
7,685
7,962
8,268
8,597
8,952
9.332
9,739
Non-Residential
8,362
8,388
8,477
8,574
8,656
8,735
8,796
8,864
8,93 2
9,000
Total All Buildings
15,762
15,616
15,916
16,259
16,618
17,003
17,393
17,815
18,264
18,739
Percent of Utility Forecast
49.22%
48.36%
48.9M%
49.58%
50.30%
51.151
52.04%
53.02°x6
54.071%
5520°,4
Economic Poten Jal
Energy Potential(MWh)
Sector
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Residential
10,208
8,371
8,664
9,006
9,390
9,815
10,271
10,763
11,291
11.854
'Von-Residential
32,557
32,584
32,929
33,307
33.625
33,931
34,166
34,430
34,694
34,960
Total All Buildings
42,765
40,955
41,593
42,313
43,015
43,746
44,438
45,193
45,985
46,814
Percent of Utility Forecast
35.06%
33.01°0
33.11%
3333%
33.50%
33.75°/
33.97%
34.31`;0
34.64°'0
35.00%
Demand Potential (hW)
Sector
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Residential
5.313
5,044
5,122
5,213
5,316
5,430
5,553
5 685
5,828
5,980
Non-Residential
7.599
7,615
7,696
7,784
7.859
7,930
7,985
8,047
8.109
8,171
Total All Buildings
12,912
12,659
12,818
12,997
13,175
13,360
13,538
13,732
13,936
14,151
Percent of Utility Forecast
40.329,0
3920%
39.38%
39.63%
39.88%
40.191
40.50%
40.87%
41.26ON
41.68%
arke ; Po, e n t al
Energy Potential (NINVI )
Sector
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Residential
86
42
46
53
63
70
74
77
80
83
Non-Residential
417
429
471
537
619
698
743
779
813
842
Total All Buildings
503
471
518
590
683
769
817
857
893
92,
Percent of Utility Forecast
0.41%
0.38°,0
0.41%
0.460Xo
0.53%
0.59%
0.62%
0.65%
0.67%
0.69%
Demand Potential (kW)
Sector
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Residential
30
24
26
31
38
46
53
58
59
59
Non-Residential
98
101
111
125
143
163
173
182
190
196
Total All Buildings
128
125
137
156
181
209
227
240
249
256
Percent of Utility Forecast
0.40%
0.39%
0.42%
0.48%,
0.55%
0.63%
0,68io
0.711
0.74°,0
0.751
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020