* NOT YET APPROVED *
Attachment A
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Resolution No. ____
Resolution of the Council of the City of Palo Alto Approving Utility Rate Schedule E-1 TOU (Residential Electric Time of Use Service)
R E C I T A L S
A. Each year the City of Palo Alto (“City”) adopts Financial Forecasts or Plans for its utilities, to ensure adequate revenue to fund operations with the goal of providing safe, reliable, and sustainable utility services at cost -based rates. Council adopted the FY 2026 Electric Financial Forecast on June 16, 2025.1
B. 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.
C. On September 15, 2025, at a noticed public hearing, the City Council heard and approved the proposed optional electric residential time -of use rate s available for qualified residents.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-1 TOU (Residential Electric Time of Use Service) shall become effective January 1, 2026;
SECTION 2. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 3. 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 4. The Council finds that changing electric rates to introduce an optional Residential Time of Use rate is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Sec. 15273(a).
After reviewing the staff report and all attachments presented to Council, the Council incorporates
1 https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2025/june-16/rates-attachments/finalized-attachment-d-exhibit-1-fy26-electric-utility-financial- forecast-and-cip-detail.pdf
* NOT YET APPROVED *
Attachment A
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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
APPROVED AS TO FORM:
APPROVED:
Assistant City Attorney
City Manager
Director of Utilities
Director of Administrative Services