REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Amending Rate Schedules for Electric Service for All Classes of Customers, Effective January 1, 2022
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara's Electric Utility, Silicon Valley Power (SVP), is proposing a rate increase of 3% for all classes of customers, effective January 1, 2022 (Bill Cycle 716). SVP's biennial budget for FY21-22 and FY22-23 assumed a 3% rate increase effective January 2022. The budget, with this assumption, was approved by the City Council on June 22, 2021 and this proposed action is to implement the existing Council direction.
Electric Utility staff have reached out to the Energy Task Force (large customers), school districts, numerous individual customers, City news and SVP news subscriptions by way of GovDelivery. Staff also has provided information via social media: Nextdoor, Twitter and Facebook. The rate increase notice will be published in the Outlet Newsletter that is mailed to all commercial customers.
DISCUSSION
The proposed 3% rate increase is needed to cover the increased cost of generating and delivering power to SVP customers including:
? Transmission access charges that apply to all electric energy that SVP receives via the PG&E transmission system. PG&E's electric transmission rate has tripled over the past 10 years and more stringent wildfire safety requirements and significantly higher insurance costs are expected to continue to add to the rise in these charges.
? Additional renewable energy and reliability requirements that have been legislated.
? Additional energy storage and load shaping required to integrate a higher level of renewable energy while maintaining system resiliency.
? Continuing upgrades and maintenance of distribution infrastructure required to maintain SVP's high service reliability.
? Increase mandated wildfire mitigation activities and increase insurance pr...
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