HomeMy WebLinkAboutAgenda Report - January 21, 1998 E-15fE
CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Public Benefits Charge Grant to Pacific Coast Producers, Inc.
MEETING DATE: January 21, 1998
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council authorize the City Manager to provide a Public Benefits
Charge (PBC) Grant in the amount of $125,000 to Pacific Coast Producers, Inc.
(PCP).
BACKGROUND: As previously discussed with the City Council, AB 1890 (Electric industry
restructuring) mandates that beginning January 1, 1998, both investor-owned and
municipal -owned utilities are obligated to fund Public Benefits Charge (PBC)
programs. The amount of PBC program funding required for the City of Lodi is approximately $1 M per year based
on a historical electric "revenue requirement." Qualifying programs must involve energy efficiency or low-income
assistance. A further stipulation is that energy efficiency efforts must be done on the customer's side of the meter
to qualify.
Although a formal PBC program policy has not yet been approved by the City Council, the Electric Utility
Department has investigated potential PBC program candidates in order to be ready to meet the City's obligation.
During development of a power supply contract with PCP and review of PCP's extensive facility upgrade, PCP
stated a need to also address the issues of a lighting efficiency upgrade and improved electric service reliability
during the canning season. To illustrate its vulnerability to electrical outages, PCP cited last August's outage cost
well over $100,000 in lost product and labor cost. While last August's outage was unusually wide -spread and long
lasting, shorter outages could also cause PCP a like amount of financial loss.
In order to not jeopardize PCP's ongoing business efforts during the fast approaching 1998 canning season and
also to meet the City's PBC program obligations, the Electric Utility Department recommends the following two-part
PBC energy efficiency project:
1. Plant lighting upgrade ($65,000). PCP proposes to install new energy efficient lighting in the portion of its
Tokay Street facility which is currently undergoing extensive upgrades. This item meets the intent of PBC
programs.
2. Plant boiler generator back-up ($80,000). This item is commonly referred to as an uninterruptible power
supply (UPS). Due to the critical nature of boiler controls during the canning season, PCP is installing a back-up
generator. To further protect the boiler control system during the interval when power has been interrupted and
the back-up generator has not yet reached full output, PCP also needs to install an UPS. This item affects both
reliability, energy usage and efficiency since PCP must discard product and use additional electrical energy to
recover lost product output. For the foregoing reasons, this item also qualifies for PBC funding.
The Electric Utility Department recommends that the above PBC program grant of $125,000.00 be made towards
the above project and that the cost of this grant be included as part of the City's PBC program spending. PCP
Approved
City Manager
RESOLUTION NO. 98-14
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO PROVIDE A PUBLIC BENEFITS
CHARGE (PBC) GRANT TO PACIFIC COAST PRODUCERS, INC.
(PCP)
WHEREAS, the State has mandated that beginning January 1, 1998, the City of
Lodi is obligated to fund various programs through a Public Benefits Charge (PBC)
based on a historical electric revenue requirement; and
WHEREAS, the requirement amount to approximately $1 M per year that must be
dedicated to qualifying programs such as energy efficiency. A further stipulation is that
these efforts must be done on the customer's side of the meter in order to qualify.
WHEREAS, following the Electric Utility Department's review of Pacific Coast
Producers' extensive facility upgrade, the following candidates emerged:
Plant lighting upgrade (565,000). PCP proposes to install new
energy efficient lighting in the portion of its Tokay Street facility;
and
2. Plant boiler generator back-up ($80,000). This is more commonly
referred to as an uninterruptible power supply (UPS). Due to the
critical nature of the boiler controls during the canning season,
PCP is installing a back-up generator. To further protect the
boiler control system during the interval when power has been
interrupted and the back-up generator has not yet reached full
output, PCP needs to install a UPS. This item affects reliability,
energy usage and efficiency since PCP must discard product and
use additional quantities of electric energy to recover lost product
output.
WHEREAS, the Electric Utility Department recommends that the City provide a
PBC grant of $125,000 toward the above upgrades and include the cost of the grant as
part of the City's required PBC outlay.
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City
Manager to provide a Public Benefits Charge (PBC) Grant in the amount of $125,000 to
Pacific Coast Producers, Inc.
Dated: January 21, 1998
I hereby certify that Resolution No. 98-14 was passed and adopted by the Lodi
City Council in a regular meeting held January 21, 1998 by the following vote:
AYES: Council Members - Land, Mann, Pennino, Warner and Sieglock
(Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
ABSTAIN: Council Members - None
ALICE M REIMCHE
City Clerk
98-14