Agenda Item No. 15
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer Fe, r 12 Todd Gutjahr, Public Works Analyst
FOR: City Council Meeting of January 24, 2022
SUBJECT: Agreement for LED Street Light Conversion - Southern California Edison RECOMMENDATION:
That City Council approve and authorize the City Manager or his designee to execute and administer an agreement with Southern California Edison for the LS-1 Option E, Energy Efficiency -Light Emitting Diode Fixture Replacement Program for street lights within the public right of way.
BACKGROUND:
The purpose and objective of street lighting within the public right of way are to:
1. Attain a level of visibility that enables motorists and pedestrians the ability to see road geometry and road obstructions both quickly and distinctly.
2. Improve public safety for motorists and pedestrians.
Enhance visibility and aesthetics on street frontage along residential, industrial, and commercial/retail properties.
The majority of the City's existing streetlights within the public right of way use High -Pressure Sodium Vapor (HPSV) light bulbs that use more energy compared to modern light fixtures to illuminate public streets. This old technology uses high-pressure gasses and materials considered to be more hazardous. Light Emitting Diode (LED) fixtures are a more modern solid-state technology that is hazardous material -free and recyclable. LED fixtures are a new and emerging green technology for street lighting purposes. The City of Yucaipa has over 1,170 streetlights Citywide. Of the streetlights identified, 1,117 are owned and operated by Southern California Edison (SCE).
The average service life for an HPSV light buld is approximately 24,000 operating hours, while the average service life for a LED light is approximately 50,000 to 100,000 operating hours. LED lights provide a more white and crisp type of light which can improve not only visibility and safety but general aesthetics during night-time hours. Conversely, HPSV lights tend to produce a more shadowy, yellow type of light. Ultimately, LED streetlights provide energy and cost savings, are dark sky friendly (minimize glare while reducing light trespass and skyglow), are environmentally friendly, and improve public safety through improved night visibility and color perception. -237-
City Council Meeting of January 24, 2022
Agreement for LED Street Light Conversion - Southern California Edison
LED streetlights are also better for the environment when compared to HPSV streetlights. The City of Yucaipa can reduce its Carbon footprint by reducing Green House Gas (CHG) emission by approximately 289 metric tons of carbon equivalent per year by converting to LED technology for streetlights. This is equivalent to removing 61.4 passenger vehicles from the road for a year, every year.
The following table identifies advantages and disadvanages for both LED and HPSV streetlights:
LED Advanta esl
HPSV (Advantages)
•
Superior Light Quality
• Less expensive
•
Long lifetime over 50,000 hrs
• Familiar technology, product availability
•
Directional lighting
•
Environmentally friendly
•
100% recyclable
•
Use less energy
LED (Disadvantages)
HPSV Disadvanta es
•
More expensive
• Poor color rendition
•
Technology is evolving
• Use more energy
• Not recyclable (contains hazardous
materials
• Short lifetime 24,000 hours
There are approximately 200 streetlights in the City's Landscape Lighting and Maintenance District (LLMD). If approved, the costs savings experienced from the HSPV to LED conversion will be passed down to the residentsibusiness owners in these zones. It is important to note, the City currently owns the LED streetlights in the Historic Uptown area, therefore there would be no conversion necessary.
DISCUSSION:
Since June 1, 2016, SCE has offered several streetlight service program options to cities that do not own their streetlights and their street lights are owned by SCE. One option, the LS-1 Option E Program (Program), allows SCE owned streetlights to be converted from HPSV fixtures to LED fixtures. There are no up -front costs for the conversion and cost savings are realized due to reduced energy usage. Under the Program, SCE absorbs the conversion costs using an incentive program offered by the California Public Utilities Commission (CPUC). This program incorporates an energy efficiency premium through which SCE's conversion costs for new LED fixtures are recovered over a 20-year term.
The Program is an extension of the SCE Street Light Acquisition Program which was in place from 2012 to 2015 and was discontinued by SCE management in 2016.
Cities that elect to go with the Program pay the energy costs associated with the LED Fixtures Replacement rates, which include an Energy Efficiency Premium Charge (EEPC) and Base LED Charge. The cost savings will be seen in the monthly SCE billing. -238-
City Council Meeting of January 24, 2022
Agreement for LED Street Light Conversion - Southern California Edison
SCE has reported very few complaints about the change in fixtures from residents in communities where the Program has been implemented. The Street Light Agreement with SCE would not interfere with the City's current Franchise Agreement with SCE.
The Program will require the City to enter into an agreement with SCE. For the City of Yucaipa, SCE calculated a preliminary analysis which shows an annual savings in energy costs of $36,139 in year 1 through year 20. The City currently pays approximately $206,107 per year in energy and maintenance costs for street light operation. SCE's analysis indicates that the City will realize a savings of approximately $56,808 per year based on the current energy costs for HPSV streetlights.
Of this savings, the City will pay the approximate amount of $20,669 per year over the first 20 years for a total of $413,380. This amount represents the cost for SCE to convert the City's streetlights from HPSV to LED and equals approximately $370 per light fixture. After 20 years, the City's annual energy savings will be the full amount o $56,808.
FISCAL IMPACT:
The tables below include the estimated annual cost for the current HPSV streetlights and the costs associated with the proposed Program:
HPSV Streetlights Current
Costs
Total Actual
Number of
Annual Energy
Annual
Annual
Annual Cost for
streetlights
Costs
Conversion Cost
Maintenance Cost
Streetlights
1,117
$ 97,131
$ -
$ 108,976
$ 206,107
LS-1 Op tion E Year 1 thru Year 20
Number of
streetlights
Annual Net
Energy Costs'
Annual
Conversion Cost
Annual
Maintenance Cost
Total Annual Cost
1,117
$ 40,323
$ 20,669
$ 108,976
$ 169,968
LS-1 Option E Year 2 1 +)
Number of
streetlights
Annual Net
Energy Costs'
Annual
Conversion Cost
Annual
Maintenance Cost
Total Annual Cost
1,117
$ 40,323
$ -
$ 108.976
$ 149,299
Annual Net Energy Costs = $97,131 (Annual HPSV Energy Costs)-$56,808 (Anticipted LED Energy Costs) The City of Yucaipa is also currently being considered by SCE for the Distribution Pole Street Light Discount Program (DPSLD). This a no cost, no effort offering that simply provides a discount for SCE owned streetlights that are currently not on their own dedicated streetlight pole and are placed on existing SCE owned wood poles used for SCE's distribution of electricity (typically poles that distribute electricity to customers and/or hold equipment that facilitates electricity to customers). This program is ongoing and is only available for SCE owned streetlights on wood distribution poles. A preliminary review shows that there are approximately 418 streetlights in the City of Yucaipa that are eligible for this program, which represents a monthly savings of $4.46 per streetlight, monthly savings of approximately $1,922 and an annual savings of approximately $23,073. This program is currently available to the City of Yucaipa either -239-
City Council Meeting of January 24, 2022
Agreement for LED Street Light Conversion - Southern California Edison
through the LS-1 Option E Program, which will result in additional savings, or if the City moves forward "as -is" with the current HPSV streetlights.
Attachment: Agreement for LED Street Light Conversion
Approved by:
-240-
Lj EDISON
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
(To be inserted by utility)
Advice 3241-E
Decision 14-10-046
1P8
Form 14-965
Issued by
R.O. Nichols
Senior Vice President
(To be inserted by Cal. PUC)
Date Filed Jun 30, 2015
Effective Jun 1, 2016
Resolution
-241-
SOUTHERN CALIFORNIA EDISON COMPANY
SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY -LIGHT EMITTING DIODE (LED)
FIXTURE REPLACEMENT RATE AGREEMENT
This Schedule LS-1 Option E, Energy Efficiency -Light Emitting Diode (LED) Fixture Replacement Rate Agreement (Agreement), effective this 24th day of January , zozz (Effective Date), is entered into between Southern California Edison Company (SCE) and the City of Yucaipa 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:
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 TERMINATION
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%.
Form 14-965
06/2016
-242-
SOUTHERN CALIFORNIA EDISON COMPANY
SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY -LIGHT EMITTING DIODE (LED)
FIXTURE REPLACEMENT RATE AGREEMENT
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:
Raymond A. Casey
(N-ame)
City Manager
(Title)
34272 Yucaipa Blvd
(Address)
Yucaipa, CA 92399
(City, State, Zip)
7. NONWAIVER
SCE:
Business Customer Division
Southern California Edison Company
2244 Walnut Grove Avenue
Rosemead, CA 91770
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.
Form 14-965
06/2016
-243-
SOUTHERN CALIFORNIA EDISON COMPANY
SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY -LIGHT EMITTING DIODE (LED)
FIXTURE REPLACEMENT RATE AGREEMENT
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.
APPLICANT
BY:
NAME:
Raymond A. Casey
TITLE:
City Manager
DATE SIGNED:
SOUTHERN CALIFORNIA
BY:
NAME:
EDISON COMPANY
TITLE:
DATE SIGNED:
Form 14-965
06/2016
9 -244-
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
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):
Form 14-965
06/2016
4 -245-