HomeMy WebLinkAboutAgenda Report - February 17, 2021 C-15AGENDA ITEM Coo I
CITY OF LODI
l
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Setting the City of Lodi Electric Utility Energy Efficiency
Program 10 -Year Target
MEETING DATE: February 17, 2021
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution setting the City of Lodi Electric Utility (LEU)
Energy Efficiency Program 10 -Year Target_
BACKGROUND INFORMATION: Per Assembly Bill 2021, State law requires publicly -owned electric
utilities to identify all potentially achievable cost-effective energy
efficiency savings, and to set targets for energy efficiency for the
upcoming 10 -year period. This information is used by the California Energy Commission (CEC), which is
required to set statewide energy efficiency targets in consultation with the publicly -owned utilities,
investor-owned utilities, and the California Public Utilities Commission. Including preliminary estimates
for 2020 to be reported to the CEC in March of this year, LEU was very close to meeting its previously
approved target reaching nearly 90 percent of its stated goals with major savings primarily resulting from
commercial and industrial energy efficiency efforts - including, but not limited to, lighting improvements.
To assist in developing an updated energy efficiency target model, the Northern California Power Agency
(NCPA), in conjunction with the California Municipal Utilities Association (CMUA), retained the services of
GDS Associates, Inc. (GDS) to assist Lodi and other members with development of market potential
estimates for a range of feasible measures to assist LEU with future energy efficiency program planning
efforts. Based on this effort, the City of Lodi's energy efficiency program target for the next 10 years is
set at 11,461 MWhs or an average annual target of 0.27 percent of total projected energy sales. While
slightly lower than the previously established target(s), this most recent analysis continued to evaluate
the potential impacts of COVID and anticipated delays in energy efficiency investments, increased
regulatory changes requiring certain energy efficiency improvements under existing codes and
standards, as well as a certain "leveling off" of sorts when such efforts may reach their maximum
potential in terms of energy efficiency savings_
FISCAL IMPACT: Approximately $1 million is allocated annually from the LEU Public Benefits
(PB) Program to fund customer rebate and ihcentive programs to
implement energy efficiency improvements to help meet annual targets.
FUNDING AVAILABLE: PB Funding will continue to be budgeted each fiscal year as part of the
annual budget preparation and planning process.
Andrew Keys
Andrew Keys
Deputy City Manager/internal Services Director
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Jeff Berkheimer
Electric Utility Director
RESOLUTION NO. 2021-42
A RESOLUTION OF THE LODI CITY COUNCIL SETTING THE CITY OF LODI
ELECTRIC UTILITY ENERGY EFFICIENCY PROGRAM 10 -YEAR TARGET
WHEREAS, per Assembly Bill 2021, State law requires publicly -owned electric utilities to
identify all potentially achievable cost-effective energy efficiency savings, and to set targets for
energy efficiency for the upcoming 10 -year period; and
WHEREAS, this information is used by the California Energy Commission (CEC), which
is required to set statewide energy efficiency targets in consultation with the publicly -owned
utilities, investor-owned utilities, and the California Public Utilities Commission; and
WHEREAS, including preliminary estimates for 2020 to be reported to the CEC in March
of this year, Lodi Electric Utility (LEU) was very close to meeting its previously approved target,
reaching nearly 90 percent of its stated goals with major savings primarily resulting from
commercial and industrial energy efficiency efforts - including, but not limited to, lighting
improvements; and
WHEREAS, to assist in developing an updated energy efficiency target model, the
Northern California Power Agency, in conjunction with the California Municipal Utilities
Association, retained the services of GDS Associates, Inc., to assist Lodi and other members with
development of market potential estimates for a range of feasible measures to assist LEU with
future energy efficiency program planning efforts; and
WHEREAS, based on this effort, the City of Lodi's energy efficiency program target for the
next 10 years is set at 11,461 MWhs or an average annual target of 0.27 percent of total projected
energy sales; and
WHEREAS, approximately $1 million is allocated annually from the LEU Public Benefits
Program to fund customer rebate and incentive programs to implement energy efficiency
improvements to help meet annual targets.
NOW, THEREFORE, BE IT RESOLVED, the Lodi City Council does hereby set the City
of Lodi Electric Utility Energy Efficiency Program 10 -Year Target under California law as outlined
above.
Dated: February 17, 2021
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hereby certify that Resolution No. 2021-42 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held February 17, 2021 by the following votes:
AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JENNIFER CUSMIR
City Clerk
2021-42