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HomeMy WebLinkAboutAgenda Report - September 5, 2007 E-17AGENDA ITEM Eov 107 &Z% CITY OF LODI V" COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution in Support of the City of Lodi Electric Utility's Energy Efficiency Program Targets, as Mandated by State Law (EUD) MEETING DATE: September 5,2007 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Adopt a resolution in support of the City of Lodi Electric Utility's Energy Efficiency Program Targets, as mandated by State Law. BACKGROUND INFORMATION: Assembly Bill (AB) 2021 was signed into law last September. This new state law requires each publicly -owned utility to establish, on a triennial basis, individual utility targets for energy conservation over the next ten years. This information is a key input to the California Energy Commission (CEC), which is required to establish a statewide energy efficiency target, consulting with each of the publicly -owned utilities, as well as the investor-owned utilities, and the California Public Utilities Commission (CPUC). In order to establish these energy efficiency targets, the Northern California Power Agency (NCPA), Southern California Public Power Authority (SCPPA) and the California Municipal Utilities Association (CMUA) joined forces to retain a firm that would conduct the analytical work required to assist each publicly -owned utility (like Lodi) in developing the actual target. The Rocky Mountain Institute (RMI) was the selected vendor for this work. RMI then created a computer -modeling tool that was used by each publicly -owned utility in the developmentof their individual energy efficiency targets. This process took all of the utilities several months to complete. Once each utility had developed their individual target, the informationwas collected by NCPA/SCPPA/CMUA and submitted to the CEC in late June of this year. Lodi's energy efficiency program target for the next ten Vears (2007 to 2016) is 20,001 -megawatt hours (MWh) of electricity, an approximate 39 percent increase over current energy efficiency levels. The final element required under AB2021 is for each utility to receive local governing board support of their individual energy conservation target. This must be completed by September 30, 2007. By way of this Council Communication and the attached resolution, the Electric Utility Department respectfully recommends approval of Lodi's energy efficiency (aka conservation) program target, and this resolution in order to be in compliance with state law. FISCAL IMPACT: In order to meet the energy efficiency target, it is anticipated that approximately $550,000 per year will need to be expended annually over the ensuing ten-year period. The effect of this expenditure is effectively zero, as these funds are already being collected and allocated annually from the Lodi Public Benefits Program under the category of demand-side management, as well as administrative program support. APPROVED: efn�=� <:!�� ing, City Manager Adopt Resolution in Support, of the City of Lod! Electric Utility's Energy Efficiency Program Targets, as Mandated by State Law (EUD) September 5,2007 Page 2 of 2 FUNDING: Lodi Public Benefits Program Fund Electric Utility Director Prepared By: Rob Lechner, Manager, Customer Service and Programs GFMIRSUIst Aftachment RESOLUTION 2007-180 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE ESTABLISHMENTOF THE LODI ELECTRIC UTILITY ENERGY EFFICIENCY PROGRAMTARGETS 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 ten-year period; and WHEREAS, each publicly -owned utility is required to adopt those targets by September 30, 2007, 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 PowerAgency, California Municipal Utilities Association, and Southern California Public Power Agency contracted with the Rocky Mountain Institute, an independent organization with well accepted energy efficiency expertise in the energy industry; and WHEREAS, the Rocky Mountain Institute provided a modeling tool to help publicly - owned utilities identify energy savings potential and establish energy efficiency program targets; and WHEREAS, the Lodi Electric Utility utilized the modeling tool and established energy efficiency and demand reduction targets for the next ten years (2007-2016) to be 20,001 - megawatt hours (MWh) of electricity, an approximate 39 percent increase over current energy efficiency levels. NOW, THEREFORE BE IT RESOLVED that the Lodi City Council hereby adopts the Lodi Electric Utility's annual electric energy efficiency program targets for energy savings and demand reduction, as shown on Exhibit A attached hereto. Dated: September 5, 2007 I hereby certify that Resolution No. 2007-180 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 5,2007, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Katzakian, Mounce, and MayorJohnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS —None ABSTAIN: COUNCIL MEMBERS — None 4N?Dl JOHL City Clerk K110M.1111 Lodi Electric Utility After Feasible Targets g2 25 bystem i ocai *,,a- off'u.0 00,064 'J'UOU "'540 U.'No' a"o.. vz,*JD V"OJ4 u4,.z 446,920 Average Residential 30,766 34,084 36,566 38861 41,254 43,788 46,267 48,905 51 598 5540 Demand 441,813 Commercial 26,562 29,925 32,018 34:189 36,592 39,170 41,354 43,730 46:236 48:71 Iss After Feasible Targets Conventional Industrial 0 0 0 0 0 0 0 0 0 129 132 LM Data Centers 0 0 0 0 0 0 0 0 0 130 Technical 0 Semiconductor Manufacturers 0 0 0 0 0 0 0 0 0 Energy Labs 0 0 0 0 0 0 0 0 0 Average Annual Feasible Targets Efficiency System Total 9 10 11 12 13 13 14 is 16 1 Potential z Residential 5 6 6 7 7 8 8 9 10 1 Commercial 4 4 5 5 5 6 6 6 7 V C Conventional Industrial 0 0 0 0 0 0 0 0 0 Data Centers 0 0 0 0 0 0 0 0 0 Semiconductor Manufacturers 0 0 0 0 0 0 0 0 0 Labs 0 0 0 0 0 0 0 0 0 System Total 39,265 43,323 45,850 48,658 51,629 54,759 57,570 60,581 63,618 67,g-6 Residential 18,849 20,726 21,874 23,062 24,278 25,554 26,757 28,032 29,310 31,41 Commercial 20,416 22,596 23,976 25,596 27,351 29,205 30,813 32,549 34,308 36,14 Conventional Industrial 0 0 0 0 0 0 0 0 0 Data Centers 0 0 0 0 0 0 0 0 0 ist-trrective 0 c Semiconductor Manufacturers 0 0 0 0 0 0 0 0 0 Energy Labs 0 0 0 0 0 0 0 0 0 Efficiency System Total 5 6 6 7 7 8 a 9 9 1 Potential x Residentia� 3 3 3 3 4 4 4 4 4 Commencia 3 3 3 3 4 4 4 4 5 'a 0 Conventional Industrial 0 0 0 0 0 0 0 0 0 M E Data Centers 0 0 0 0 0 0 0 0 0 Semiconductor Manufacturers 0 0 0 0 0 0 0 0 0 1 �h� n n n n n n n n n After Feasible Targets g2 25 Impact on 41 Forecasted 501,122 Consumption 515,432 and V Demand . F E 444,821 446,920 Average 459,494 Annua I 471,863 Impact on C Forecasted - Consumption 920 and 0 E Demand 441,813 After Feasible Targets 471,890 484,143 486,770 493,518 501,122 509,643 515,432 522,374 529,368 537 After All Cost -Effective 434,625 444,821 446,920 452,860 459,494 466,884 471,863 477,794 483,752 490 After Technical 416,563 424,133 424,186 428,468 433,276 438,686 441,813 445,739 449,535 453 Baseline Demand Forecast 134 138 139 142 145 148 150 152 Iss After Feasible Targets 134 138 139 141 143 146 148 150 153 After All Cost -Effective 129 132 133 135 137 140 142 144 146 After Technical 125 128 128 130 132 134 135 137 139 Average Annual Technical Potential 2.02% Average Annual Cost -Effective Potential 1.31% Average Annual Feasible Targets 0.39% Average Annual Technical Potential 1.18% Average Annual Cost -Effective Potential 0.65% Average Annual Feasible Targets, 0.17%