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Resolution No.
Resolution of the Council of the City of Palo Alto Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master- Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) Effective November 1, 2024
R E C I T A L S
A. The City’s transportation costs for gas are based on the current Pacific Gas and Electric Company’s (PG&E’s) G-WSL rate for Palo Alto.
B. In October 2016, due to the variability in PG&E’s Gas Transportation Service to Wholesale/Resale Customers (G-WSL) tariff, which is largely dependent on the California Public Utilities Commission, the City Council adopted a resolution to identify the Transportation Charge as a separate, pass-through component of the City’s rates so that these transportation costs can be fully and timely recovered.
C. In June 2022, Council adopted a resolution raising the upper limit on the Transportation Charge from $0.15 per therm to $0.25 per therm due to increasing PG&E costs related to improving storage facilities, decommissioning older facilities, wildfire mitigation, and greenhouse gas mitigation costs D. In September 2024, PG&E’s G-WSL tariff increased to $0.27 per therm, and due to an estimated average increase of 5% annually over the next 5 years, the City is raising the upper limit on the Transportation Rate on the City’s gas rate schedules from $0.25 per therm to $0.30 per therm effective November 1, 2024.
E. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves raising the upper limit on the Transportation Rate on the City’s gas schedules from $0.25 per therm to $0.30 per therm effective November 1, 2024.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-1 (Residential Gas Service) is hereby amended to read as attached and incorporated to this Resolution as Exhibit A. Utility Rate Schedule G-1, as amended, shall become effective November 1, 2024.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby amended to read as attached and incorporated to this Resolution as Exhibit B. Utility Rate 60568902
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Schedule G-2, as amended, shall become effective November 1, 2024.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and incorporated to this Resolution as Exhibit C. Utility Rate Schedule G-3, as amended, shall become effective November 1, 2024.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as attached and incorporated to this Resolution as Exhibit D. Utility Rate Schedule G-10, as amended, shall become effective November 1, 2024.
SECTION 6. The City Council finds as follows:
a. Revenues derived from the gas rates approved by this resolution do not exceed the funds required to provide gas service.
b. Revenues derived from the gas rates approved by this resolution shall not be used for any purpose other than providing gas service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
B.
SECTION 7. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
SECTION 8. The Council finds that adoption of this resolution raising the upper limit on the Transportation Rate component on the City’s gas rate schedules is not subject to the California Environmental Quality Act’s (CEQA) under Public California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
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APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services