Resolution No. 96621
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RESOLUTION NO. 9662
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON CONSIDERING THE ADOPTION OF A FORMAL PLAN
TO INCREASE FUEL DIVERSITY PURSUANT TO THE ENERGY
POLICY ACT OF 2005
WHEREAS, the City of Vernon ("City") is a chartered municipal
corporation of the State of California that owns and operates a system
for the generation, purchase, distribution and sale of electric
(capacity and energy; and
WHEREAS, Congress passed the Energy Policy Act of 2005
("EPACT 2005"), which requires every public and private utility to
consider adopting a formal plan to increase the diversity of fuel
sources used to produce electricity and thereby minimize dependence on
one fuel source; and
WHEREAS, in EPACT 2005, "fuel diversity" is defined as the
process of procuring electricity from different sources, such as
natural gas, coal, nuclear power, solar power, wind power and
hydroelectric power; and
WHEREAS, in EPACT 2005, Congress takes the position that
increased fuel diversity can protect energy customers from the risk of
fuel scarcity and price shocks; and
WHEREAS, the City currently acquires the electricity to serve
its peak electricity demand from the following sources:
(a) approximately 67% from natural gas -fired turbines;
(b) approximately 11% from hydroelectric generating systems;
(c) approximately 5.5% from nuclear generation;
(d) the remainder through wholesale power contracts with a
variety of power marketers; and
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WHEREAS, the City has taken steps to further increase its
fuel diversity, and to increase the use of renewable energy, by
implementing a net metering program which allows the City's electrical
customers to meet some of their electrical demand with on -site
generation of electricity from solar and wind energy; and
WHEREAS, the majority of the City's electrical customers are
industrial in nature and require reliable and consistent delivery of
electricity at competitive rates; and
WHEREAS, a Notice of Public Hearing was posted on June 19,
2008, notifying all interested parties that a hearing to consider
evidence regarding the adoption of a plan to increase fuel diversity
was scheduled for July 7, 2008, at approximately 10:00 a.m., subject to
the hearing being continued to a stated time and place without further
notice; and
WHEREAS, on July 7, 2008, the City Council held a public
hearing in which the City Council took evidence from staff and those
other persons in attendance who wished to be heard regarding the
adoption of a plan to increase fuel diversity; and
WHEREAS, the Light & Power Department has prepared a Staff
Report, dated June 26, 2008, a copy of which is attached hereto as
"Exhibit 1" and made a part hereof, which:
(a) reports that the City already procures energy from
diverse sources;
(b) recommends that the City maintain its current level of
fuel diversity so as to ensure the reliable and cost-effective delivery
of electricity to the City's electrical customers;
(c) recommends that the City continue to monitor the
effects of the solar and wind net metering program on the City's
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electrical supply; and
WHEREAS, the City Council has heard and considered all
evidence, written and oral, presented in consideration of the adoption
ofa plan to increase fuel diversity.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.,
SECTION 2: The City Council of the City of Vernon hereby
finds and determines that all persons have had the opportunity to be
heard or to file written comments regarding the adoption of a plan to
increase fuel diversity.
SECTION 3: The City Council of the City of Vernon hereby
finds that the City's customer base, which is almost entirely
industrial in nature, has different electrical demands then a
residential customer base and is dependent upon the City's delivery of
reliable and cost-effective electricity.
SECTION 4: The City Council of the City of Vernon hereby
finds that the City's electrical supply is currently provided by a
diverse mix of fuel sources and generation, to include natural gas,
hydroelectric power and nuclear power.
SECTION 5: The City Council of the City of Vernon, after
due consideration of the evidence and testimony presented, finds that
it is not necessary at this time for the City to adopt a formal ten-
year plan to increase fuel diversity.
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SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and thereafter
the same shall be in full force and effect.
APPROVED AND ADOPTED this 7th day of July, 2008.
ATTE T:
ri
M U'L�GIRON. Cittl� Clerk
t
Name: Leonis C. Malburg
0
Title: Mayor
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1 STATE OF CALIFORNIA )
ss
2 COUNTY OF LOS ANGELES )
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I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
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5 certify that the foregoing Resolution, being Resolution No. 9662, was
6 duly adopted by the City Council of the City of Vernon at a regular
7 meeting of the City Council duly held on Monday, July 7, 2008, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
9 Vernon.
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iz: '-� �
11 MANUELA GIRON, City Clerk
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(SEAL)
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EXHIBIT 1
CITY OF VERNON LIGHT & POWER DEPARTMENT STAFF
REPORT REGARDING THE PROPOSED ADOPTION OF A
FORMAL PLAN TO INCREASE FUEL DIVERSITY PURSUANT TO
THE ENERGY POLICY ACT OF 2005
June 26, 2008
The Energy Policy Act of 2005 ("EPACT 2005" or the "Act") requires all
utilities, including municipal utilities, to consider implementing proposed
standards intended to increase fuel diversity and to decrease independence on
any single fuel source used to generate electricity. Under the Act, the City of
Vernon (the "City") must complete its consideration of the proposed standards,
and make a determination on adopting the standards, by August 8, 2008.
"Fuel Diversity" is defined by EPACT 2005 as the process of generating
electricity from different sources, such as natural gas, coal, nuclear power, solar
power, wind power and hydroelectric power. In EPAct 2005, Congress
encouraged all utilities, including municipal utilities, to consider adopting'a formal
plan to increase the utility's level of fuel diversity and thereby reduce the risk that
commodity price shocks or fuel scarcity might harm the utility's ability to provide
sufficient electricity to serve customer demand.
Current Fuel Diversity
The City currently acquires approximately 67% of the electricity to serve
its peak electricity demand from natural gas -fired turbines, acquires
approximately 11 % of its peak electricity demand from hydroelectric generating
systems, acquires approximately 5.5% of its peak electricity demand from
nuclear generation and acquires the remainder of its peak electricity demand
through wholesale power contracts with a variety of power marketers.
Industrial Customer Base
The City's customer base is almost exclusively industrial in nature. The
City has very few residential customers. Industrial customers are heavily
dependent on the ability of the City to provide reliable, efficient and cost-effective
electricity. Industrial customers are less able than residential customers to tailor
their -individual use and demand to accommodate less reliable energy sources.
For example, solar energy, although promising for residential use, is not always
sufficiently reliable or efficient to serve industrial customers' baseload electricity
needs. Likewise, wind energy, which is by its very nature intermittent, is also not
sufficiently reliable or efficient to serve the baseload electricity needs of industrial
customers.
The City's current electricity supply, primarily dependent on natural gas
but also relying heavily on hydroelectric and nuclear power, is provided in such a
fashion as to ensure that customers receive reliable, efficient and competitively -
priced electricity.
The City's Existing Solar and Wind Net Metering Program
In the interest of promoting fuel diversity and encouraging the use of
renewable energy, the City has adopted a solar and wind net metering program.
This program allows customers to install and operate on -site solar and wind
generation facilities, and to thereby reduce their total demand for electricity from
more traditional fuel sources. The Light & Power Department will continue to
monitor the solar and wind net metering program to determine if the program can
be expanded or otherwise provide further opportunity for increasing fuel diversity.
As of now, solar and wind energy cannot be expected to serve a significant
amount of the City's industrial customers' demand.
RECOMMENDATIONS
1. Do not adopt a formal ten-year plan to further increase fuel diversity.
2. Continue to monitor the solar and wind net metering program.
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: July 14, 2008
TO: Donal O'Callaghan, Director of Light & Power
FROM Nelly Giron, City Clerk
RE: Resolution No. 9662 - A Resolution of the City Council of
the City of Vernon Considering the Adoption of a Formal Plan
to Increase Fuel Diversity Pursuant to the Energy Policy Act
of 2005
Transmitted herewith is a copy of Resolution No. 9662 referenced
above, which was approved by City Council on July 7, 2008.
Thank you.
NG:dr
c: Resolution No. 9662
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hear
you may attend.
PLACE: Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
DATE AND TIME: Monday, July 7, 2008, at 10:00 a.m., or
as soon thereafter as the matter may be
heard
PURPOSE: To determine whether to (1) adopt a
plan for fuel diversity to minimize
dependence on one fuel source and
ensure a diverse range of fuels and
generation technologies; (2) adopt a
ten (10) year plan to increase
efficiency in its fossil fuel
generation; and (3) expand and
implement Net Metering for on -site
customer generation in accordance with
the Energy Policy Act of 2005.
Any interested person may attend and may make an oral
presentation to the City Council at the time of the
hearing, or may present written comments prior to the
hearing.
If you challenge the approval of the adoption of a
plan for fuel diversity, the adoption of a 10-year plan to
increase efficiency in fossil fuel, and the implementation
of Net Metering or any provision thereof in court, you may
be limited to raising only those issues you or someone else
raised at the hearing described in this notice or in
written correspondence delivered to the City of Vernon at,
or prior to, the meeting.
The hearing may be continued or adjourned to a stated
time and/replace without further notice.
Dated: 0®
k
MANUELA '�-IP/0N, City Clerk
AFFIDAVIT OF POSTING
I, Manuela Giron, City Clerk, of the City of Vernon do hereby certify
that on the 19th day of June 2008, I did post three (3) copies of the
following:
NOTICE OF PUBLIC HEARING - to determine whether to (1) adopt
a plan for fuel diversity to minimize dependence on one fuel
source and ensure a diverse range of fuels and generation
technologies; (2) adopt a ten (10) year plan to increase
efficiency in its fossil fuel generation; and (3) expand and
implement Net Metering for on -site customer generation in
accordance with the Energy Policy Act of 2005.
On each of the following places, to wit: on the bulletin board outside
the main entrance to the City Hall of the City of Vernon located at
4305 Santa Fe Avenue; at the northwest corner of 38th Street and Santa
Fe Avenue; the northeast corner of Leonis Blvd., and Pacific Blvd.,
all in said City, there being no newspaper of general circulation
printed and publishel in the City of Vernon.
/
Date: (LlC/C,c�r�
Manuela Giro
City Clerk
State of California )
) ss
County of Los Angeles)
On J_02e. d 5, 90d' before me, 14, 1,e,,492-
Notary Public, personally appeared Manuela Giron
who proved to me on the basis of satisfactory evidence to be the
person O whose name O is/a— subscribed to the within instrument and
acknowledged to me that-ire/she/t4iey executed the same in +4-s/her/tom
authorized capacity O, and that by h"/her/t4signature�6) on
the instrument the person(, or the entity upon behalf of which the
person O acted,,executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of
California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal
JUDITH A. LEHR
Commission # 1646396✓.
•,. Notary Public - Callkmft
LOS M061" County
MVComm. E"w Feb14.?A1