REPORT TO COUNCIL
SUBJECT
Title
Action on Confirmation 0144 under NCPA Support Services Agreement for Efficiency Services Group, LLC to Provide the Commercial Refrigeration Direct Install Program
Report
BACKGROUND
In accordance with Public Utilities Code (PUC) Section 385, covering Public Benefits Charge, and with the City’s Public Benefits Program Policy Statement adopted by Council on May 12, 1998, Staff has developed a wide range of cost-effective energy efficiency and renewable energy programs for customers. State law requires that the utility spend a minimum of 2.85% of retail revenue on these programs, in order to encourage customer investments by reducing the payback period in these areas.
In order to expand its programs, Silicon Valley Power is utilizing the NCPA Support Services Agreement to provide additional energy efficiency programs. The Commercial Refrigeration Direct Install Program was previously offered to Silicon Valley Power customers, but the contract ended in January 2019. At that time, there was still significant potential for additional energy efficiency retrofits. In addition, new technologies have become available to further increase efficiency in commercial refrigeration, such as retrofit doors for open refrigeration cases. In order to determine the market potential for program enrollment if it were offered again, Efficiency Services Group, LLC contacted eligible customers who were previously unable to commit to participating in the program. This information was used to determine the program’s energy savings potential and program budget.
DISCUSSION
The Commercial Refrigeration Direct Install Program delivers energy efficiency measures that reduce the energy consumption of businesses with refrigeration equipment through the installation of strip curtains, door closers, anti-sweat heater controls, electronically commutated motors, Q-sync motors, LED case and canopy lighting, and retrofit doors for open refrigeration cases. Under this program, Efficiency Services Group, LLC will assist customers in identifying energy savings opportunities in their refrigeration equipment and will install the measures approved by the customers. Customers will pay a 30% co-pay for all installed measures and the remaining 70% of the cost will be covered under the program. This program is anticipated to achieve an additional 2.3 million kWh in first year energy savings.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The total cost of Confirmation Number 0144 under NCPA Support Services Agreement for Efficiency Services Group, LLC to provide the Commercial Refrigeration Direct Install Program will not exceed $815,000 through the contract end date of June 30, 2021. Sufficient funds in FY 2019/2020 and FY 2020/21 are available in the Electric Department’s Public Benefits Program operating materials, services, and supplies adopted budget.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute Confirmation Number 0144 under the NCPA Support Services Agreement Efficiency Services Group, LLC to provide the Commercial Refrigeration Direct Install Program until June 30, 2021 in an amount not-to exceed $815,000, subject to annual appropriation of funds.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Confirmation 0144 Under the NCPA Support Services Program Agreement