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HomeMy WebLinkAboutResolutions - No. 2020-272RESOLUTION NO. 2020-272 A RESOLUTION OF THE LODI CITY COUNCIL REGARDING EVALUATION OF ENERGY STORAGE FOR LODI ELECTRIC UTILITY WHEREAS, pursuant to Assembly Bill 2514, as amended by Assembly Bill 2227, each local publicly -owned electric utility (POU) must initiate a process to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems and adopt said targets, if determined appropriate, by 2014; and WHEREAS, each POU is then required to reevaluate its energy storage target determinations not less than every three years and report to the California Energy Commission (CEC), any applicable adopted targets and modifications to those targets as a result of the periodic evaluations; and WHEREAS, each POU is also required to submit reports to the CEC demonstrating that it has complied with any previously -adopted energy storage targets; and WHEREAS, on March 21, 2012, the City Council adopted Resolution No. 2012-24 acknowledging Lodi Electric Utility's (LEU) obligation regarding energy storage systems; and WHEREAS, on October 16, 2013, the City Council adopted Resolution No. 2013-183 regarding the feasibility of energy storage and supporting staff's assessment that no cost-effective energy storage systems were viable for Lodi at the time; and WHEREAS, on October 18, 2017, the City Council adopted Resolution No. 2017-196 once again determining, based on an analysis completed in partnership with the Northern California Power Agency (NCPA), Southern California Public Power Authority (SCPPA), and a contracted energy consultant, that no cost-effective energy storage systems were viable at that time; and WHEREAS, NCPA, on behalf of several utilities including LEU, recently contracted with the Smart Electric Power Alliance (SEPA) to re-evaluate the costs and benefits of energy storage systems; and WHEREAS, SEPA's analysis concluded that no foreseeable battery cost reductions or retail rate increases would make energy storage systems economical for LEU under current market conditions; and WHEREAS, LEU continues to maintain that energy storage is not a viable or cost-effective technology to invest in at this time; and WHEREAS, the Risk Oversight Committee received a report on the evaluation of energy storage systems for Lodi at its October 15, 2020 meeting and recommended City Council approval of LEU's assessment regarding the viability of energy storage at this time. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby conclude that, by adoption of this resolution, no cost-effective energy storage technology is viable to invest in at this time for Lodi. Dated: November 18, 2020 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2020-272 was passed and adopted by the City Council of the City of Lodi in a regular meeting held on November 18, 2020 by the following vote: AYES: COUNCIL MEMBERS — Chandler, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mounce ABSTAIN: COUNCIL MEMBERS — None /I 77zele— , JENNIFER CUSMIR City Clerk 2020-272