REPORT TO COUNCIL
SUBJECT
Title
Note and File Ten-Year Goals for Silicon Valley Power’s Energy Efficiency Program
Report
COUNCIL PILLAR
Promote Sustainability and Environmental Protection
BACKGROUND
State law (AB 2021) requires local publicly owned electric utilities to identify all potentially achievable cost-effective electricity efficiency savings and to set annual targets for energy savings and demand reduction over 10 years. The first targets were due on June 1, 2007 and must be updated every 4 years. Publicly Owned Utilities (POUs) must also report those targets to the California Energy Commission (CEC) within 60 days of adoption.
SVP contracts with the firm GDS Associates, through its membership in the California Municipal Utility Association, to develop the targets for energy efficiency. GDS Associates reviewed historical and proposed sales by customer class, energy efficiency technical and cost potential, and the feasible goals that could be set by SVP for the next 10 years to meet this potential. A summary of the market potential by customer class is attached for both gross and net energy savings goals. The incremental market potential goals represent the feasible energy efficiency savings that can be achieved by the City and that are proposed for adoption by the City. Historically, net energy savings goals have been adopted, but some utilities are moving toward the adoption of gross energy goals, so SVP is providing both. For program tracking purposes, SVP will use net goals so that they can be compared to historic net goals and energy savings results.
DISCUSSION
The results indicate in 2022 that SVP has a feasible net market potential for energy efficiency of 11,584 MWh or approximately 0.29% of total sales. The market potential is higher in non-residential customer with a feasible goal representing 0.31% of non-residential annual sales, while the annual energy efficiency goal for residential energy efficiency was only 0.06% of total residential sales. SVP programs currently underway include rebates for interior and exterior lighting upgrades, efficient food preparation equipment, refrigerator recycling, efficient ceiling fans, and improved air conditioning and heat pump equipment. Additionally, energy efficiency grants for small businesses impacted by COVID and for non-profit entities contribute to achieving these goals. By 2031, the annual feasible market potential drops to 5,372 MWh based on current technologies and reduced number of accounts that have not already previously taken action.
These ten-year energy efficiency goals meet SVP’s regulatory compliance obligations. The information gained from the potential study continuously helps SVP understand the energy efficiency market potential and design programs that are tailored to meet the needs of the Santa Clara community. These energy efficiency goals will be achieved using funds from existing state-mandated Public Benefit Charges that are collected from customers on monthly electric utility bills.
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
There is no fiscal impact as this is an information item to note and file only.
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>.
RECOMMENDATION
Recommendation
Note and File Ten-Year Goals for Silicon Valley Power’s Energy Efficiency Program.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. 2021 Net Energy Efficiency Potential Results
2. 2021 Gross Energy Efficiency Potential Results