Utility Advisory Commission Annual Workplan - FY 2027
City Council Priorities 2026:
UAC Purpose & Duties:
The purpose of the utilities advisory commission shall be to advise the city council on present and prospective
long-range planning and policy and major program and
project matters relating to the electric utility, gas utility, water utility, wastewater collection utility, fiber optics utility and recycled water matters, excluding daily
operations.
See PAMC UAC Purpose & Duties 2.23.050
Item # UAC Workplan FY 2027 Objectives – By Category
Referred by City Council
4 Review and advise on reserve policies changes informed by the Baker Tilly Utility Reserve Assessment that balance the need to be attractive to private markets and rates that are affordable to residents and competitive to businesses, for inclusion in the FY 2028 rate setting. (PAMC 2.23.050.(b).(4)) 13 Review materials that inform upcoming action items on the BAWSCA agenda regarding SFPUC water policies and provide advice to Council on a policy stance toward BAWSCA and SFPUC. (PAMC 2.23.050.(b).(1).(B)) Affecting Multiple Utilities
2 Review and recommend reliability, resiliency, emergency response, and preparedness metrics and goals related to the local supplies and distribution of water and power. (PAMC 2.23.050.(b).(2)) 5 Recommend FY 2028 and five-year capital improvement program, timing of the projects, pace of infrastructure replacements, and use of financing mechanisms vs pay-go to ensure affordability across the five-year rate projections and financial plans with a special focus on the electric and wastewater utilities. (PAMC
2.23.050.(b).(4))
3 Review and recommend to City Council FY 2028 rate changes to Water (including advise on a new Cost of Service Study), Gas, Electric, Wastewater Collection, Recycled Water, and Fiber Optic Services with priority on affordability. (PAMC 2.23.050.(b).(4))
Electric Utility
15 Electric Utility Business Strategy: Develop a flexible scenario-based business strategy that incorporates impacts on CPAU of increased and highly uncertain demand from data centers and other loads, both within CPAU territory and throughout CAISO.
7 Develop policies and fee and rate structures specifically for large electric load growth including but not limited to a financial charge for the reservation of electric system capacity, expansion of the large non-residential electric rate (E-7) or new rate structure for large commercial loads within Palo Alto. (PAMC 2.23.050.(b).(1) and
2.23.050.(b).(4))
8 Review and evaluate preliminary results of the E-1 T Electric Utility time-of-use rate pilot, changes in energy usage patterns and financial impacts to customers and utility to inform further implementation to the full Palo Alto community. (PAMC 2.23.050.(b).(2) and 2.23.050.(b).(4)) 9 Review and recommend approval of new Power Purchase Agreements or other supplies to ensure electric supply contracts are cost-effective and aligned with the City's long-term electric portfolio strategy and the integrated resources plan. (PAMC 2.23.050.(b).(2))
14 Electric Grid Modernization: Review load projections and strategy for City-wide grid upgrades, design standards and technologies, timing of investment and work, and customer impacts.
Fiber Utility
6 Review Fiber to the Premises (FTTP) pilot results including use of key performance indicators (KPI) and recommend next steps. (Examples of KPIs include: take rate, customer satisfaction, cost per passing, revised long-term financial model, and capital expenditure estimates) (PAMC 2.23.050.(b).(5)) Gas Utility
1 The UAC will review progress towards a gas transition study that addresses the political, economic, legal, environmental, regulatory, and operational elements of a potential gas decommissioning. (PAMC
2.23.050.(b).(1).(A) & 2.23.050.(b).(4))
Key Priorities or Ongoing
10 Advise on funding and financing strategies for S/CAP for City Council consideration (see S/CAP 2026-2027 Work Plan Item CA13) and advise on revision to current Carbon Neutral and Cap and Invest (C&I) funding City Council spending resolutions to clarify uses balancing S/CAP strategies, long-term affordability, and decarbonization incentives. (PAMC 2.23.050.(b).(5)
11 Review and recommend advisory positions on legislative proposals at the local, state, and federal level impacting any of the five utilities through new laws, regulations, or ordinances. (PAMC 2.23.050.(b).(3)) 12 Review customer survey results, communication methods, and new initiatives for the year (e.g., implementation of leak notifications), including review of effectiveness of engagements to inform continued iterative changes. (PAMC 2.23.050.(b).(5).(c))
The Utilities Advisory Commission reviewed the Commission accomplishments and draft workplan at its June 3, 2026 meeting Agenda item #3. FY 2026 UAC accomplishments can be found in the staff report. The agenda packet for Item 3 can be found here beginning on page 11: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=896997&dbid=0&repo=PaloAlto.