HomeMy WebLinkAboutAgenda Report - October 16, 2013 C-15AGENDA ITEM C
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CITY OF LODI
,. COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Regarding the Viability of Energy Storage for the City of Lodi
MEETING DATE: October 16, 2013
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution regarding the viability of energy storage for the City of
Lodi.
BACKGROUND INFORMATION: On March 21, 2012, the City Council approved a resolution acknowledging
the City of Lodi's obligation regarding energy storage systems as defined
under California law (Assembly Bill 2514). Energy storage system means
commercially available technology that is capable of absorbing energy, storing it for a period of time and then
discharging it for use. On October 17, 2012, staff presented City Council with an update on progress regarding
research into energy storage.
The law requires the California Public Utilities Commission to open proceedings to determine appropriate targets, if
any, for each load -serving entity to procure viable and cost-effective energy storage systems. For municipal service
providers, the law requires the governing board of each local utility to initiate a process for determining targets for
energy storage systems.
Electric Utility staff has reviewed a report issued by the Electrical Power Research Institute (EPRI) entitled
"Electricity Energy Storage Technology Option - A White Paper Primer on Applications, Costs and Benefits." This
EPRI report included information from technology assessments, market analysis, input from energy storage system
vendors, and application assessments. This detailed report determined that many of the energy storage options
outlined have not been fully validated or "vetted," and thus are not "grid -ready" (or ready for electric service
providers to pursue or support at this time). The report does conclude that some of the proposals for energy storage
may be "grid -ready" by 2015.
To this end, utility staff has closely reviewed the service territory's (city limits of Lodi) load shape, geographic
location, type of customers served, and existing generation portfolio to assess the viability of energy storage in Lodi.
With a reasonably high load factor, and the current low cost of investment in generation, the economics behind
energy storage are not cost effective at this time.
Staff respectfully recommends supporting the resolution submitted, that states at this time, no cost-effective energy
storage systems are viable for the Lodi community.
Ef liz,5betfi A. irkley
Electric Utility Director
PREPARED BY: Rob Lechner, Business Development Manager
EAK/RSUIst
APPROVED: -._AA-
Konradt Bartlam,
RESOLUTION NO. 2013-183
A RESOLUTION OF THE LODI CITY COUNCIL
REGARDING THE VIABILITY OF ENERGY
STORAGE FOR THE CITY OF LODI
WHEREAS, on March 21, 2012, the City Council approved a resolution acknowledging
the City of Lodi's obligation regarding energy storage systems as defined under California law
(Assembly Bill 2514), and on October 17, 2012, staff presented City Council with an update on
progress regarding research into energy storage; and
WHEREAS, the law requires the governing board of each publicly -owned utility to initiate
a process for determining targets for energy storage systems; and
WHEREAS, staff has reviewed a report issued by the Electrical Power Research
Institute (EPRI) entitled "Electricity Energy Storage Technology Option - A White Paper Primer
on Applications, Costs and Benefits," and this report determined that many of the energy
storage options outlined have not been fully validated, and thus are not "grid -ready"; and
WHEREAS, staff has closely reviewed the service territory's load shape, geographic
location, type of customers served, and existing generation portfolio, and with a reasonably high
load factor and the current low cost of investment in generation, has determined that the
economics behind energy storage deem it not cost-effective at this time.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby support
the staff assessment that no cost-effective energy storage systems are viable for the Lodi
community at this time.
Dated: October 16, 2013
I hereby certify that Resolution No. 2013-183 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held October 16, 2013, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, and Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Katzakian and Mayor Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
�&OHL-OLSON
City Clerk
2013-183