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HomeMy WebLinkAboutAgenda Report - November 3, 1999 E-12AGENDA TITLE: Public Benefits Program — Demand-side Management Project — Lodi Residential Air Duct Testing & Attic Insulation Rebate ($175,000) MEETING DATE: November 3, 1999 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council approve the Lodi Residential Air Duct Testing & Attic Insulation Rebate, a demand-side management component of the City of Lodi Public Benefits Program, for a total of $175,000. BACKGROUND INFORMATION: This project is the fourth in a series of projects specifically tailored for Lodi residential electric customers. The Lodi Residential Air Duct Testing & Attic Insulation Rebate project is designed in such a way that residential customers may receive cash rebates of up to $600 per service address. By strengthening existing duct work, and/or enhancing the amount of attic insulation in their home, residential customers can reduce their annual heating and cooling costs by a minimum of 15 percent. To participate in the program, residential customers must first consent to a free air/ventilation duct leakage test, as well as a post -inspection. The cost per home for both services is approximately $100, and will be funded from the Public Benefits Program. This test will address the homed duct work and attic insulation. If it is determined that the home is in need of duct repair and/or increased attic insulation the residential customer would then qualify for the following rebates: a) duct repair rebate: up to $250; b) attic insulation rebate: up to $250. Other specifics or guidelines of the project include: • Rebate is only for City of Lodi electric utility customers; • Rebates are available from January 1, 2000 to December 31, 2000; • Rebates are good for single-family dwellings only (duplexes are acceptable; one per customer service address); and • Electric Utility staff will be responsible for providing rebates to residential customers. To date, the City of Lodi Electric Utility has established three other energy efficiency (demand-side management) projects for residential customers: • Lodi Energy Survey Program; i APPROVED' H. Dixon Flynn - City anager Lodi Residential Energy Efficient Refrigerator Rebate Program; and, Lodi Residential Cool(ing) Cash HVAC Retrofit Rebate Program. These projects, as well as those designed for commercial and industrial customers, are all part of the City of Lodi's Public Benefits Program. This state -mandated effort has four main components: 1) renewables, 2) assistance for low-income customers, 3) demand-side management, and 4) energy research & development. 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 AVAILABLE: Vicky McAthie, Finance Director Alan N. Vallow Electric Utility Director PREPARED BY: Sondra Huff, Sr. Electric Utility Rate Analyst and Rob Lechner, Manager of Customer Programs ANV/SH/RUlst C: City Attorney APPROVED: H. Dixon Flynn - City Manager RESOLUTION NO. 99-174 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 (LODI RESIDENTIAL AIR DUCT TESTING & ATTIC INSULATION REBATE) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 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 fourth in a series of projects specifically designed for Lodi residential electric customers. The Lodi Residential Air Duct Testing & Attic Insulation Rebate Project will provide up to a $250 rebate for duct repair, and up to a $250 rebate for attic insulation (not to exceed $600 per service address) when a customer chooses to strengthen existing duct work, and/or enhance the amount of attic insulation in their home, thus, reducing annual heating and cooling costs by a minimum of 15%. WHEREAS, other specifics or guidelines of the project include: • Rebate is only for City of Lodi electric utility customers; • Rebates are available from January 1, 2000 to December 31, 2000; • Rebates are good for single-family dwellings only (duplexes are acceptable; one per customer service address); and • Electric Utility staff will be responsible for providing rebates to residential customers. To date, the City of Lodi Electric Utility has established three other energy efficiency (demand-side management) projects for residential customers: • Lodi Energy Survey Program; • Lodi Residential Energy Efficient Refrigerator Rebate Program', and • Lodi Residential Cool(ing) Cash HVAC Retrofit Rebate Program. BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager to provide a Public Benefits Program grant in the amount of $175,000 to fund the Lodi Residential Air Duct Testing & Attic Insulation Rebate Project, specifically designed for Lodi residential electric customers. Dated: November 3, 1999 I hereby certify that Resolution No. 99-174 was passed and adopted by the Lodi City Council in a regular meeting held November 3, 1999 by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Mann, Nakanishi and Land (Mayor) NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — Pennino LI E M. REIIy�CHE itv Jerk (J 99-174