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HomeMy WebLinkAboutAgenda Report - February 17, 2010 J-03AGENDA ITEM A% CITY OF LODI ,. COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Setting the City of Lodi Electric Utility's Energy Efficiency Program 10 -Year Target (EUD) MEETING DATE: February 17,2010 PREPARED BY: Interim Electric Utility Director RECOMMENDED ACTION: Adopt a resolution setting the City of Lodi Electric Utility's energy efficiency program 10-yeartarget. BACKGROUND INFORMATION: State law requires publicly owned electric utilities, every three years, to identify all potentially achievable cost effective electricity efficiency savings and to set targets for energy efficiency over the following 10 years. This information is used by the California Energy Commission (CEC), which is required to make a statewide energy efficiency target, consulting with the publicly owned utilities, the investor-owned utilities, and the California Public Utilities Commission. The Northern California PowerAgency (NCPA) and Southern California Public Power Authority (SCPPA) retained Summit Blue Consulting to develop a computer model and conduct analytical work to assist member utilities to develop their energy efficiency targets. The individual targets developed by the utilitieswill be collected by NCPA/SCPPA and submitted to the CEC. On the basis of analysis using the Summit Blue model, staff recommends that the City of Lodi's energy efficiency program target for the next 10 years (2011 to 2020) be 25,575 megawatt-hours(MWh) of electricity; i.e., the accumulation of efficiency measures implemented over the next 10 years would reduce on-going energy usage afterward by 25,575 MWh per year. FISCAL IMPACT: Approximately $775,000 will be needed in the 2011/2012 fiscal year and subsequent years to meet the target. These funds, comparable to current expenditures on these programs, are collected and allocated annually from the Lodi Public Benefits Program underthe category of demand-side managementand administrative program support. FUNDING: Lodi Public Benefits Program Fund Jordan Aver V eputy City &anager/Internal Services Director Kenneth A. Weisel' Interim Electric Utility Director Prepared By: Rob Lechner, Manager, Customer Service and Programs KAW/RSUIst APPROVED: Blair Ki4Q, C )9 Manager RESOLUTION NO. 2010-22 A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING THE CITY OF LODI ELECTRIC UTILITY'S ENERGY EFFICIENCY PROGRAM TARGETS WHEREAS, California Assembly Bill 2021 (Section 25310 of the Public Resources Code) requires all publicly owned electric utilities to identify all potentially achievable cost effective electricity efficiency savings and establish a target for energy efficiency savings for the next ten-year period; and WHEREAS, the Lodi Electric Utility is required to adopt those targets by June 2010 and to report adopted targets to the California Energy Commission; and WHEREAS, the Northern California Power Agency contracted with Summit Blue Consulting, an independent organization with well accepted energy efficiency expertise, to provide a modeling tool to help member utilities identify energy savings potential and establish energy efficiency program targets; and WHEREAS, the City of Lodi Electric Utility used the modeling tool and finds an energy efficiency target of 25,575 megawatt -hours to be achievable for this ten-year period. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council adopts the City of Lodi Electric Utility's energy efficiency program target of 25,575 megawatt -hours for energy savings for the period 2011 to 2020. Dated: February 17, 2010 ---------------------- ---------------------- hereby certify that Resolution No. 2010-22 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 17, 2010, by the following Vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and Mayor Katzakian NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS—None ABSTAIN: COUNCIL MEMBERS— No&JOHL City Clerk 2010-22 Lodi Electric Utility: 1 0 -Year Energy Efficiency Goals Lodi City Council February 17, 2010 Lodi Electric Utility: 1 0 -Year Energy Efficiency Goals • AB 202 1: 1 0 -year energy efficiency goals • Identify all potentially cost-effective measures • Revise goals every 3 years • AB 1890: spend 2.85% of revenue on Public Benefit Programs, including energy efficiency 2 Lodi Electric Utility: 1 0 -Year Energy Efficiency Goals • In 2007, first 10 -year goal: install measures that together save 20,000,000 kilowatt hours • January 2007 to June 2009 (2.5 yrs): 51000,000 kWh of savings achieved • In large part: aggressive energy saving measures in commercial/industrial base 3 Lodi Electric Utility: 1 0 -Year Energy Efficiency Goals • Proposed for 2010, new 1 0 -year goal: install measures that together save 25,575,000 kWh • Continue existing programs • Expand consistent with Public Benefit funding 2 Lodi Electric Utility: 1 0 -Year Energy Efficiency Goals • Questions? 5