2013-12-04 ERC MinutesMINUTES OF THE REGULAR AD HOC ADVISORY COMMITTEE ON
ELECTRIC RATES MEETING HELD DECEMBER 4, 2013, AT
8:06 A.M. IN THE COUNCIL CHAMBER OF CITY HALL
LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA
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MEMBERS PRESENT: Greg Longstreet, Peter Corselli, Robert
Gutterman, Martin Perez, Stan Stosel, Mark
Whitworth
MEMBERS ABSENT: None
Chairperson Longstreet called the meeting to order.
Member Whitworth led the flag salute.
The Chairperson announced that there are no changes to the
agenda.
PUBLIC COMMENT
Chairperson Longstreet announced that this was time allotted for
public comment and inquired whether anyone in the audience
wished to address the Committee. No one responded.
MINUTES
It was moved by Gutterman and seconded by Corselli, that the
Minutes of September 4, 2013, be received and filed. Motion
carried, 6-0.
INFORMATIONAL ITEMS – NO ACTION REQUIRED
1. Renewable Portfolio Standard (“RPS”) updates.
a. RPS Cost Limitation Plan: Light and Power Staff is
currently developing a RPS cost limitation policy as a
way to not burden the businesses and to protect the
City’s ratepayers.
b. Biomethane Suspension: Update on the status of
biomethane deliveries due to the restraints placed by
the California Energy Commission “CEC” suspension of
RPS eligibility guidelines and the effect it had on
several source projects that were decommissioned, thus
Ad Hoc Advisory Committee on Electric Rates
December 4, 2013 Regular Meeting Minutes
Page 2 of 3
affecting the City, as well as the rest of the
marketplace.
c. Prospects for RPS Contributions: Progress in the
exploration of wind energy development has been
substantial and promising meteorological data has been
collected. The City intends to move forward with
project development on the Kern County land, assuming
that alignment is achieved with the City’s objectives,
wind-harnessing technology proves successful, and
taking into consideration any regulatory issues that
may arise. The City has enlisted the assistance of
SCPPA, a utility group, to optimize exploration
efforts in pursuing solar energy opportunities. The
City is currently researching the feasibility of
project implementation and is determined to capitalize
on this form of emerging technology.
Chairman Longstreet requested that Light & Power explain to
businesses the challenges of brown and green power and provide
comparisons of what they would pay if they used City of Vernon
or other power providers.
2. Kern County, Tehachapi Project Update: Overview of the
current issues and projects within the region. City staff
is exploring alternatives on how to best utilize the land.
Several options were discussed with the one option being
to enter into public-private partnership, whereby the
private party would develop the land as a wind farm at its
cost, and the City would secure the legal rights to some
or all of the power that is generated from the facility at
a specified price. Another option would be to lease the
land to a private party who would install wind turbines
and then sell the energy at market rates to public
utilities. The final option discussed was to allow some of
the property to be developed for solar energy. Staff is
in the process of issuing a “Request for Information,” to
explore possible additional options for the property that
the City may not have yet considered.
3. Electric Rates Update: Updates on electric rate changes
and other cost impacts proposed by surrounding utilities.
An electrical cost graph of a study done by SCPPA of data
comparing the electric cost from various utilities for
commercial users was presented, showing that the City was
the second lowest in rates. The Light and Power staff will
provide an annual graph of increases.
Ad Hoc Advisory Committee on Electric Rates
December 4, 2013 Regular Meeting Minutes
Page 3 of 3
Member Gutterman inquired about the grid surcharge being
discussed and what the City will need to do to prepare.
The Director of Light & Power, Carlos Fandino, informed the
members that it is too early to know how the grid surcharge will
affect the City. Abraham Alemu, Electric Resource and Planning
& Development Manager, also addressed the members to inform them
that the staff is researching backing up renewables with
resources that can be quick started as a way to supplement, and
concurred that it is too early to tell what the charges will be.
Member Gutterman stated that a resolution is needed from City
Council to authorize the Electric Rates Committee’s ongoing
purpose.
Chairman Longstreet requested a rate study and inquired about
the City’s load.
In response to the Chairman’s request, Fandino informed the
committee that he hopes to be able to provide the requested
study at the next meeting and also stated that the City’s load
has increased by up to 5 MW or has at least been holding steady.
Fandino informed the members that going forward, after each
meeting, he would provide electronic copies of all presentations
discussed at the meetings.
With no further business, at 9:26 a.m., it was moved by
Longstreet and seconded by Gutterman, to adjourn the meeting.
Motion carried, 6-0.
________________________
Greg Longstreet
Chairperson
ATTEST:
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Ana Barcia
Deputy City Clerk