HomeMy WebLinkAboutAgenda Report - October 18, 2017 C-06TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
C-6
AGENDA TITLE: Adopt Resolution Regarding Evaluation of Energy Storage Systems for Lodi
Electric Utility in Compliance with Assembly Bill 2514
MEETING DATE: October 18, 2017
PREPARED BY: Business Development Manager
RECOMMENDED ACTION
Adopt a resolution regarding the evaluation of energy storage
systems for Lodi Electric Utility in compliance with Assembly Bill
2514.
BACKGROUND INFORMATION: On October 16, 2013, the City Council approved a resolution
supporting the staff assessment that no cost-effective energy
storage systems were viable for the Lodi community at the time. As
defined under California law (Assembly Bill 2514), energy storage system means commercially available
technology capable of absorbing energy, storing it for a period of time, and then discharging it for use.
For municipal service providers, the law requires the governing board of each local utility to initiate a
process to determine targets for energy storage systems and to reevaluate energy storage systems not
less than every three years.
In a collaborative effort, the Northern California Power Agency (NCPA) and Southern California Public
Power Authority (SCPPA) contracted with an energy consultant, DNV GL, to support their members in re-
evaluating energy storage targets, energy storage technologies, as well as cost effectiveness
methodologies that can be used to make storage procurement decisions.
After reviewing the 2017 DNV GL report, and after further consideration, Electric Utility staff still does not
find energy storage as a viable or cost-effective technology to invest in at this time and has declined to
recommend setting energy storage targets. Staff will continue to review and identify projects that are cost
effective for our utility and energy portfolio as technology advancements are made and market conditions
change. Staff respectfully recommends supporting the resolution submitted, which states at this time, no
cost effective energy storage systems are viable for the Lodi community.
Adam Brucker
Business Development Manager
APPROVED:
,-4
,}—.r Stephen Schwabauer, City Manager
RESOLUTION NO. 2017-196
A RESOLUTION OF THE LODI CITY COUNCIL
REGARDING EVALUATION OF ENERGY STORAGE
SYSTEMS FOR LODI ELECTRIC UTILITY IN
COMPLIANCE WITH ASSEMBLY BILL 2514
WHEREAS, pursuant to Assembly Bill 2514, State law requires the governing board of
each local utility to initiate a process for determining targets for energy storage systems, and to
re-evaluate energy storage systems not less than every three years; and
WHEREAS, on March 21, 2012, the City Council approved a resolution acknowledging
Lodi Electric Utility's obligation regarding energy storage systems as defined under Assembly
Bill 2514; and
WHEREAS, on October 16, 2013, the City Council approved a resolution regarding the
viability of energy storage for Lodi Electric Utility and supporting Electric Utility staff's
assessment that no cost-effective energy storage systems were viable for the Lodi community
at the time; and
WHEREAS, the Northern California Power Agency (NCPA) and Southern California
Public Power Authority (SCPPA) contracted with an energy consultant, DNV GL, to support
their members in re-evaluating energy storage targets, energy storage technologies, and
cost-effectiveness methodologies that can be used to make storage procurement decisions;
and
WHEREAS, Electric Utility staff reviewed the 2017 DNV GL report, and after further
consideration, staff still does not find energy storage as a viable or cost-effective technology to
invest in at this time.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does, by adoption of
this Resolution, support Lodi Electric Utility's assessment that no cost-effective energy storage
systems are viable for the Lodi community at this time.
Dated: October 18, 2017
I hereby certify that Resolution No. 2017-196 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held October 18, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and
Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NIFER
City Clerk
2017-196
RRAIOLO