The URL can be used to link to this page

Home My WebLink AboutAGENDA REPORT 2020 1202 CCSA REG ITEM 09BCITY OF MOORPARK,  CALIFORNIA City Council Meeting of December 2, 2020 ACTION Approved Staff Recommendation. (Roll Call Vote: Unanimous). BY B.Garza. B. Consider Agreement with Southern California Edison for Energy Efficiency-Light Fixture Replacement Rate. Staff Recommendation: Authorize the City Manager to sign the Schedule LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement, subject to final language approval of the City Manager. (Staff: Shaun Kroes) Item: 9.B. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Shaun Kroes, Program Manager DATE: 12/02/2020 Regular Meeting SUBJECT: Consider Agreement with Southern California Edison for Energy Efficiency-Light Fixture Replacement Rate BACKGROUND AND DISCUSSION On November 30, 2018, the City executed an Agreement with Siemens Mobility, Inc. (Siemens), for streetlight turnkey services for the purpose of acquiring streetlights from Southern California Edison (SCE) and then converting them from high pressure sodium (HPS) to light emitting diode (LED) fixtures. The first phase of the service was to perform a system-wide field audit to identify which poles could be purchased from SCE. Eventually, the City acquired 2,229 SCE poles, with a combined 2,363 fixture heads (including decorative lights on High Street, single-mast poles and double-mast poles). Conversion of the City-owned streetlights occurred in late spring/early summer, with the lights along High Street pending final fixture selection and installation. The City has the ability to request that the remaining lights (approximately 158) owned by SCE be converted to LED through SCE’s LS-1 Option E program. The LS-1 Option E program enables SCE to estimate the capital cost of converting the HPS light to LED on a per-light basis. The City does not pay any additional costs to participate in the program and SCE’s capital costs are recovered over a 20-year period through energy cost savings which will be rolled into the existing rate schedule. SCE has estimated that the conversion of 158 Edison-owned streetlights from HPS to LED will cost approximately $59,100 (or $374.04 per light). The cost recovery will be spread over the course of 20 years, paid for with energy savings. The SCE Agreement specifies; however that SCE does guarantee that any energy or bill savings will accrue to the City as a result of the LED Fixture replacement; however, by participating in the LS-1 Option E program the City will be able to establish a more uniform streetlight look throughout the City. The City has the option of selecting a 3000 Kelvin degrees (3000k) color temperature light or a 4000 Kelvin degrees (4000k) color temperature light. The 3000k color temperature light is considered a “warm white” and the 4000k color temperature light is between warm and cool on the spectrum. The City selected 3000k color temperature Item: 9.B. 47 Honorable City Council 12/02/2020 Regular Meeting Page 2 lights for City-owned streetlights and staff recommends that 3000k color temperature lights be selected for the LS-1 Option E program. FISCAL IMPACT There is no fiscal impact associated with entering into the Agreement with SCE as the City will pay no upfront costs for the conversion. SCE estimates that the City will see a cost savings of $1,310 per year during the 20-year repayment period and a $4,265 per year cost savings after 20 years. COUNCIL GOAL COMPLIANCE This action is consistent with City Council Strategy 5, Goal 2, Objective 3 (5.2.3): “Complete Purchase and Convert Streetlights.” STAFF RECOMMENDATION Authorize the City Manager to sign the Schedule LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement, subject to final language approval of the City Manager. Attachment: Southern California Edison Agreement 48 ATTACHMENT Southern California Edison Original Cal. PUC Sheet No. 57074-E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. Sheet 1 SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3241-E R.O. Nichols Date Filed Jun 30, 2015 Decision 14-10-046 Senior Vice President Effective Jun 1, 2016 1P8 Resolution 49 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 1 This Schedule LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement (Agreement), effective this day of _, _(Effective Date), is entered into between Southern California Edison Company (SCE) and __________________________, an SCE customer taking service on Schedule LS-1 (Applicant), referred to collectively as "Parties," and individually as "Party." This Agreement provides for SCE, at Applicant’s request, to replace the existing street lighting fixtures serving Applicant’s premises with Light Emitting Diode (LED) street lighting fixtures to achieve energy efficiency benefits for Applicant, as set forth in Special Condition 14, Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement, of Schedule LS-1. The Parties agree as follows: 1. LED FIXTURES SCE shall install, own, operate, and maintain LED Fixtures for Applicant as set forth in Exhibit "A" attached hereto and incorporated herein by this reference. The LED Fixtures provided hereunder shall at all times remain the property of SCE. 2. LED FIXTURE REPLACEMENT COSTS 2.1 The replacement costs of the LED Fixtures provided hereunder shall be borne by Applicant. 2.2 Applicant shall pay the charge for the LED Fixtures Replacement rate, which includes an Energy Efficiency Premium Charge (EEPC) and a Base LED Charge, under Option E of Schedule LS-1. Applicant elects Option E in lieu of an upfront, one-time payment of the replacement costs. 2.3 SCE does not guarantee that any energy or bill savings will accrue to Applicant as a result of the LED Fixture replacements. 3. COMMENCEMENT OF SERVICE The Parties agree that SCE has the right to charge Applicant, and Applicant has an obligation to pay SCE, for the charges set forth in Schedule LS-1, Option E, commencing on the date SCE begins serving the LED Fixtures installed pursuant to this Agreement. 4. TERM AND TERMINAT ION 4.1 This Agreement shall be effective as of the Effective Date and shall continue for a term of twenty (20) years from the commencement of service as specified in Section 3 above (Term). 4.2 Applicant may terminate this Agreement at any time during the Term upon a thirty (30) - day advance written notice, provided that Applicant, prior to or within the 30-day advance notice period, assigns the Agreement to any New Party In (NPI) that owns, rents or leases the premises served by the street lighting fixtures replaced under this Agreement and will take service under Option E of Schedule LS-1 effective as of the date of termination; otherwise, Applicant shall pay a one-time termination charge equal to the present value of the balance of the EEPC of Option E over the remaining Term. The present value is determined based on SCE’s authorized rate of return on rate base, or discounted rate of 7.90%. 50 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 2 5. AMENDMENTS; ASSIGNMENTS 5.1 Any changes or amendments to this Agreement must be in writing and must be executed by the Applicant and SCE and, if required, be approved by the California Public Utilities Commission (Commission). 5.2 Applicant shall not assign this Agreement without the prior written consent of SCE; provided, however, that Applicant may assign the Agreement pursuant to the terms and conditions of Section 4.2 above, and the NPI must assume all rights and obligations under this Agreement for the remaining Term. Any assignment and assumption shall be in a form acceptable to SCE. 6. NOTICE Any notice either Applicant or SCE may wish to provide the other regarding this Agreement must be in writing. Such notice must be either hand-delivered or sent by U.S. certified or registered mail, postage prepaid, to the person designated to receive notice for the other Party below, or to such other address as either may designate by written notice. Notices delivered by hand shall be deemed effective when delivered. Notices delivered by mail shall be deemed effective when received, as acknowledged by the receipt of the certified or registered mailing. Applicant: SCE: (Name) Business Customer Division (Title) Southern California Edison Company 2244 Walnut Grove Avenue (Address) Rosemead, CA 91770 (City, State, Zip) 7. NONWAIVER The failure of either Party to enforce any of the terms and conditions or to exercise any right or privilege in this Agreement shall not be construed as a waiver of any such term and conditions or rights or privileges, and the same shall continue and remain enforce and effect as if no such failure to enforce or exercise had occurred. 8. SEVERABILITY In the event that any of the provisions, or portions thereof, of this Agreement are held to be unenforceable or invalid by the Commission, or any court of competent jurisdiction, the validity and enforceability of the remaining provisions or any portion thereof shall not be affected. 9. APPLICABLE LAWS, RULES, AND REGULATIONS This Agreement shall be subject to, and interpreted under the laws, rules, decisions and regulations of the State of California, without regard to its conflict of laws principles, the Commission, and SCE's Commission-approved tariffs. 51 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 3 10. CALIFORNIA PUBLIC UTILITIES COMMISSION JURISDICTION 10.1 This is a filed form tariff agreement authorized by the Commission for use by SCE. No officer, inspector, solicitor, agent or employee of SCE has any authority to waive, alter, or amend any part of this Agreement except as provided herein or authorized by the Commission. This Agreement is to be used in conjunction with Schedule LS-1 and supplements the terms and conditions of the Applicant's electric service under Schedule LS-1. 10.2 This Agreement shall at all times be subject to such changes or modifications by the Commission as said Commission may, from time to time, direct in the exercise of its jurisdiction. 10.3 Notwithstanding any other provisions of this Agreement, SCE has the right to unilaterally file with the Commission, pursuant to the Commission's rules and regulations, an application for change in rates, charges, classification, service, or rule or any agreement relating thereto. 11. ENTIRE AGREEMENT This Agreement, including SCE’s Commission-approved tariffs, constitutes the complete agreement and understanding between the Applicant and SCE regarding the LED Fixtures replacement costs. Prior agreements, representations, understandings, whether expressed or implied, and communications, oral or written, between the Applicant and SCE shall not be construed to be a part of this Agreement. 12. AUTHORIZATION SIGNATURE In witness whereof, the Parties hereto have caused this Agreement to be signed by their duly authorized representatives. APPLIC ANT BY: NAME: TITLE: DATE SIGNED: SOUTHERN CALIFORNIA EDISON COMPANY BY: NAME: TITLE: DATE SIGNED: 52 Form 14-965 06/2016 4 SOUTHERN CALIFORNIA EDISON COMPANY EXHIBIT “A” SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT APPLICANT CUSTOMER ACCOUNT NO. SERVICE ACCOUNT NO. (Additional account numbers/addresses may be attached hereto.) SERVICE ADDRESS APPLICANT REQUESTED READY TO SERVE DATE ASAP SCE READY TO SERVE DATE DESCRIPTION OF LED FIXTURES/SCOPE OF WORK: SPECIFY HOW MANY STREET LIGHTING FIXTURE REPLACEMENTS ARE BEING REQUESTED AND AGREED TO UNDER THIS AGREEMENT AND OTHER RELEVANT DETAILS. W.O. No(s): 53