HomeMy WebLinkAboutAgenda Report - July 7, 1999 E-13AGENDA TITLE: Public Benefits Program — Demand-side Management Project - Residential Heating,
Ventilation & Air Conditioning (HVAC) Rebate ($150,000)
MEETING DATE: July 7, 1999
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve the Residential HVAC Rebate Project, a
demand-side management component of the City of Lodi Public Benefits
Program up to $150,000.
BACKGROUND INFORMATION: This project is the third in a series of projects specifically designed for Lodi
residential electric customers. The Residential HVAC Retrofit Rebate Project
will provide a rebate of $100 per ton (not to exceed $600 per home)
when a customer chooses to replace an existing heating and air conditioning unit with a new, energy efficient heating
& air conditioning unit. The rebate is also good on those existing residential units which have no existing HVAC
system, and the customer opts to install a new, energy efficient HVAC system. (' Note: 1 -ton will condition
approximately 400 square feet of space; a typical 1,600 square foot, single -story home, will utilize a 3-5 ton HVAC
unit; thus, the customer would be eligible for a rebate of $300 to $500).
Other specifics or guidelines of the project include:
• the HVAC must have a 13 SEER (Seasonal Energy Efficient Ratio) rating or better;
• the rebate is only for City of Lodi Electric Utility customers;
• rebates are available from August 1, 1999 to October 31, 1999 (rebate may end sooner if funds are exhausted);
• rebates are good for single-family dwellings only (one per customer service address);
• rebates are deducted from the cost of the system by the vendor at the time of purchase (the City of Lodi Electric
Utility then reimburses the participating vendors).
By installing or retrofitting an energy efficient HVAC system in their home, a residential customer can reduce their
annual heating and cooling costs from 10 to 15 percent. In addition, the customer will also reduce repair and
maintenance costs by retrofitting their home with a new, more efficient HVAC system.
To date, the City of Lodi Electric Utility has established two other energy efficiency projects for residential customers:
• the Lodi Energy Survey Program- designed to assist the customer in assessing their home energy usage, and
ways to reduce energy consumption; and
• the Lodi Residential Energy Efficient Refrigerator Rebate Program- offering residential customers a $100 rebate
for purchasing a new, energy efficient refrigerator.
These projects, as well as those designed for commercial and industrial customers of Lodi, are all part of the City of
Lodi's Public Benefits Program. This state -mandated effort has four main components, including: renewables,
research, design & development, assistance for low-income customers, and demand-side management (more
APPROVED:
H. Dixon FI nn -- City Mana er
commonly referred to as energy conservation or energy efficiency, which the Lodi Residential HVAC Rebate Project is
appropriately categorized).
The City of Lodi Electric Utility respectfully recommends approval of this funding request as a qualifying component of
the City of Lodi's Public Benefits Program.
FUNDING: 164604 — Public Benefits Program Fund
Category: Demand-side Management
FUNDING APPROVAL: 13.x..1.► ��
Vicky McAthie, Finance Director
Alan N. Vallow
Electric Utility Director
PREPARED BY: Sondra Huff, Electric Utility Management Administrator
Rob Lechner, Manager, Customer Programs
ANV/SH/RVlst
C: City Attorney
APPROVED:
H. Dixon Flynn -- City Manager
RESOLUTION NO. 99-99
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO PROVIDE A PUBLIC BENEFITS
PROGRAM GRANT TO FUND PROJECTS SPECIFICALLY
DESIGNED FOR THE RESIDENTIAL ELECTRIC CUSTOMER
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 amounts to approximately $1M 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; and
_.. WHEREAS, the City of Lodi's Public Benefits Program is comprised of four segments or
customer groups: commercial/industrial, residential, community/non-profit, and municipal; and
WHEREAS, this project is the third in a series of projects specifically designed for Lodi
residential electric customers. The Residential HVAC Retrofit Rebate Project will provide a
rebate of $100 per ton (not to exceed $600 per home) when a customer chooses to replace an
existing heating and air conditioning unit with a new, energy efficient heating & air conditioning
unit. The rebate is also good on those existing residential units which have no existing HVAC
system, and the customer opts to install a new, energy efficient HVAC system. (* Note: 1 -ton
will condition approximately 400 square feet of space; a typical 1,600 square foot, single -story
home, will utilize a 3-5 ton HVAC unit; thus, the customer would be eligible for a rebate of $300
to $500); and
WHEREAS, other specifics or guidelines of the project include:
• the HVAC must have a 13 SEER (Seasonal Energy Efficient Ratio) rating or better;
• the rebate is only for City of Lodi Electric Utility customers;
• rebates are available from August 1, 1999 to October 31, 1999 (rebate may end
sooner if funds are exhausted);
• rebates are good for single-family dwellings only (one per customer service address),
• rebates are deducted from the cost of the system by the vendor at the time of purchase
(the City of Lodi Electric Utility then reimburses the participating vendors); and
WHEREAS, by installing or retrofitting an energy efficient HVAC system in their home,
a residential customer can reduce their annual heating and cooling costs from 10 to 15
percent. in addition, the customer will also reduce repair and maintenance costs by
retrofitting their home with a new, more efficient HVAC system; and
WHEREAS, to date, the City of Lodi Electric Utility has established two other
energy efficiency projects for residential customers:
• The Lodi Energy Survey Program — designed to assist the customer in assessing their
home energy usage, and ways to reduce energy consumption; and
• The Lodi Residential Energy Efficient Refrigerator Rebate Program — offering
residential customers a $100 rebate for purchasing a new, energy efficient refrigerator.
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager to
provide a Public Benefits Program grant in the amount of $150,000 to fund the Residential HVAC
Rebate Project, specifically designed for Lodi residential electric customers.
Dated: July 7, 1999
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I hereby certify that Resolution No. 99-99 was passed and adopted by the Lodi City
Council in a regular meeting held July 7, 1999 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Mann, Nakanishi, Pennino and Land
(Mayor)
NOES: COUNCIL MEMBERS — None
__ ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
ALICE M. REI CHE
City Clerk