pages: CityCouncil/2021-05-18.pdf, 6
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CityCouncil | 2021-05-18 | 6 | Councilmember Herrera Spencer inquired whether the cost is less to heat a house with electricity versus natural gas without looking at building costs. Mr. Farahmand responded in the affirmative; stated simulations were conducted for the climate zone and hourly energy consumption through the model of AMP utility rates; there would be an on bill increase for Pacific Gas and Electric (PG&E); the reduction in rates is predominately due to heat technologies operating at high efficiency. Councilmember Herrera Spencer inquired whether AMP is planning to keep lower rates as the demand for electrification grows. The AMP General Manager responded staff performs an in-depth analysis each year to forecast rates; stated the Public Utilities Board (PUB) adopts a load forecast; the PUB adopted a zero percent rate increase for the current and next fiscal year; staff expects the rates for PG&E to widen; based on the ten-year forecast, a modest rate increase in the range of 2% is anticipated; AMP is currently fully resourced and anticipates purchasing more carbon-free energy; as AMP adds additional loads through building electrifications or Electric Vehicles (EV) more revenue is produced, which puts downward pressure on rates. Councilmember Herrera Spencer outlined a previous power blackout; stated that she recalls being asked to prepare for multiple rolling blackouts; she does not support a long term plan which includes rolling blackouts; inquired whether there is a commitment that blackouts will not be experienced. Mayor Ezzy Ashcraft requested clarification about the rolling blackouts experienced in the past year. The AMP General Manager responded a variety of events occurred in August 2020; stated rolling blackouts were unprecedented; as a utility, AMP is obligated to participate; outlined the plan provided to and by AMP for service circuits; the blackout instance was about an hour in duration which resulted in one circuit being dropped for a time; stated another incident was due to a substation being hit by lightning causing a large outage; staff has brought the matter forth to the PUB for protocol and communication review; the situations outlined are out of the hands of AMP; staff is looking at ways to have local generation; AMP has limited capability; another way is to harden the system and limit any potential impacts from outages; generally, the outage statistics are good; customers typically do not experience many outages on average; staff is hopeful the number of rolling blackouts will reduce; there is a risk that blackouts will happen again in the current year. Councilmember Herrera Spencer inquired whether AMP will be able to keep up with the increased demand and if the increase will not contribute to rolling blackouts. The AMP General Manager responded electrification matters taken in totality will put pressure on the system; stated the implementation and capacity issues will not take Regular Meeting Alameda City Council 5 May 18, 2021 | CityCouncil/2021-05-18.pdf |