HomeMy WebLinkAboutAgenda Report - June 6, 2001 E-20CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Adopt resolution authorizing the City Manager to provide a Public Benefits Program
Grant in the amount of $17,765.50 to fund the Lodi Export Group Load Management
Pilot Project
MEETING DATE: June 6, 2001
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt resolution authorizing the City Manager to
provide a Public Benefits Program Grant in the amount of $17,765.50
to partially fund the Lodi Export Group Load Management Pilot
Project
BACKGROUND INFORMATION: In March of this year, Lodi Export Group approached the City of Lodi
Electric Utility to explore energy supply options. In consultation with
Planergy International (the City of Lodi's chosen energy services
provider), it was recommended that Lodi Export Group temporarily install a back-up power source that
would enable the company to sufficiently weather any potential rolling power outages (one of Lodi Export
Group's main concerns).
As a result of this inquiry, the City of Lodi Electric Utility is proposing a pilot project whereby the customer
(Lodi Export Group) utilize their back-up power source when requested by the utility. In the event of
energy curtailments over the ensuing months, Lodi Export Group, by way of this pilot project, would
temporarily disconnect from the city power grid, and operate on a back-up electric energy source.
This pilot project is consistent with numerous efforts currently being spear -headed by the California State
Legislature, the Governor's office, and the California Energy Commission. These entities are proposing
several load management (energy reduction) programs designed to help ease California's ongoing energy
crisis (there are three specific state sponsored load curtailment programs that the City of Lodi Electric
Utility has applied to participate in for the summer of 2001).
The Public Benefits Program grant requested for this load management pilot project totals fifty percent of
the entire project cost to Lodi Export Group. A new electric panel and a 180 kW back-up electric supply
unit are the two main components of this request.
As California's energy crisis enters its first summertime test the City of Lodi Electric Utility continues to
research and develop creative programs designed to ensure system reliability, while maintaining customer
safety. The City of Lodi Electric Utility believes that this pilot project is one such effort aimed at achieving
this goal, and thus respectfully recommends approval of this funding request as a qualifying component of
the City of Lodi Public Benefits Program.
APPROVED:
H. Dixon F nn - City ana r
" g CITY OF LODI COUNCIL COMMUNICATION
Funding:
Funding Available:
PREPARED BY:
ANWRUlst
C: City Attorney
164605 — Public Benefits Program — (Category: Demand-side Management)
S2, �w•tLTL
Vicky cAthie, Finance Director
Alan N. Vallow
Electric Utility Director
Rob Lechner, Manager of Customer Programs
APPROVED:
H. Dixon Flynn - City Manager
RESOLUTION NO. 2001-135
A RESOLUTION OF THE LODI CITY .COUNCIL_AUTHORIZING_
THE CITY MANAGER TO PROVIDE A PUBLIC BENEFITS
PROGRAM GRANT TO FUND THE LODI EXPORT GROUP
LOAD MANAGEMENT PILOT PROJECT
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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 Lodi Export Group has requested the Lodi Electric Utility to
explore energy supply options; and
WHEREAS, in consultation with Planergy International, it was recommended that
Lodi Export Group temporarily install a back-up power source that would enable the
company to sufficiently weather any potential rolling power outages; and
WHEREAS, as a result of Lodi Export Group's inquiry, the City of Lodi Electric
Utility proposes a pilot project whereby the customer (Lodi Export Group) utilize their
back-up power source when requested by the utility. In the event energy curtailments
over the ensuing months, Lodi Export Group, by way of this pilot project, would
temporarily disconnect from the City power grid, and operate on a back-up electric
energy source; and
WHEREAS, the Public Benefits Program grant requested for this load
management pilot project totals fifty percent of the entire project cost to Lodi Export
Group, which includes a new electric panel and a 180 kW back-up electric supply unit.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby
authorizes the City Manager to provide a Public Benefits Program Grant in the amount of
$17,765.50 to fund the Lodi Export Group Load Management Pilot Project.
Dated: June 6, 2001
I hereby certify that Resolution No. 2001-135 was passed and adopted by the
Lodi City Council in a regular meeting held June 6, 2001 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Pennino and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. 6eACKSTON
City Clerk
2001-135