Form revised: July 12, 2011

 

 

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

CBO Analyst/Phone:

City Light

Glenn Atwood  4-3740

Calvin Chow 4-4652

 

Legislation Title: A RESOLUTION relating to the City Light Department; acknowledging and approving City Light’s adoption of a biennial energy conservation target for 2012-2013 and ten-year conservation potential associated with Initiative 937. 

 

 

Summary of the Legislation: To comply with Initiative 937, City Light must establish and make publicly available a biennial acquisition target for cost-effective conservation and ten-year conservation potential.  This Resolution establishes a 24.01 aMW conservation target for 2012-2013 and a ten-year conservation potential of 120.01 aMW.   

 

 
 
 


Background:  Initiative 937 was passed by Washington state voters in November 2006 to establish renewable and energy efficiency targets for electric utilities serving more than 25,000 retail customers.  In complying with RCW 19.285.040, each qualifying utility shall pursue all available conservation that is cost-effective, reliable, and feasible.  RCW 19.285.040 (1)(a) states:  “By January 1, 2010, using methodologies consistent with those used by the Pacific Northwest electric power and conservation planning council in its most recently published regional power plan, each qualifying utility shall identify its achievable cost-effective conservation potential through 2019. At least every two years thereafter, the qualifying utility shall review and update this assessment for the subsequent ten-year period.”  And, 19.285.040 (1)(b) states: “Beginning January 2010, each qualifying utility shall establish and make publicly available a biennial acquisition target for cost-effective conservation consistent with its identification of achievable opportunities in (a) of this subsection, and meet that target during the subsequent two-year period. At a minimum, each biennial target must be no lower than the qualifying utility's pro rata share for that two-year period of its cost-effective conservation.”

City Light will use the “Utility Analysis Option” outlined in WAC 194-37-070 to establish both its conservation target for 2012-2013 and its ten-year conservation potential.  City Light has hired Global Energy Partners to complete an energy conservation potential assessment (CPA) that is consistent with the NWPCC methodology used for their Sixth Power Plan.  This CPA has identified a total of 24.01 aMW being achievable within the City Light service territory for 2012-2013 and a total conservation potential of 120.02 aMW for the ten-year period.  City Light will be updating the 2011 CPA in order to establish its 2014-2015 biennial target and its ten year potential. 

 

City Light anticipates meeting or exceeding the I-937 driven biennial acquisition targets.  City Light’s proposed 2012 budget will provide the resources necessary to meet the target and it is anticipated adequate resources will be available to meet the biennial acquisition targets for 2012-2013.  No increase in budget levels for 2013 are expected to be necessary at this time.

 

This Resolution is necessary as outlined in WAC 194-37-070 section (3) (d) which states “A utility will hold a noticed public meeting, which provides an opportunity for public comment, regarding its assessment of conservation potential. The utility will adopt the ten-year potential and the two-year conservation targets by action of the utility's governing board in a public meeting. Such public meeting may be conducted separately, or as part of public meetings conducted for resource planning, budget setting, or other related processes.  The public notice will indicate that the meeting agenda includes the establishment of the utility's ten-year and biennial targets.”

 

 

 

Please check one of the following:

 

__X__ This legislation does not have any financial implications.

 

 

____    This legislation has financial implications.

 

Other Implications: 

 

a)      Does the legislation have indirect financial implications, or long-term implications?

There is no direct financial impact of not implementing this legislation; the adoption of this Resolution is an administrative formality designed to comply with state law.  However, failing to meet the biennial conservation targets may result in an administrative penalty outlined in RCW 19.285.060: “(1) Except as provided in subsection (2) of this section, a qualifying utility that fails to comply with the energy conservation or renewable energy targets established in RCW 19.285.040 shall pay an administrative penalty to the state of Washington in the amount of fifty dollars for each megawatt-hour of shortfall.  Beginning in 2007, this penalty shall be adjusted annually according to the rate of change of the inflation indicator, gross domestic product-implicit price deflator, as published by the bureau of economic analysis of the United States department of commerce or its successor.”

 

City Light’s proposed 2012 budget provides the resources necessary to meet the target and it is anticipated that adequate resources will be available to meet the biennial acquisition targets for 2012-2013.  City Light does not expect any increase in budget levels for 2013 are necessary at this time.

 

b)     What is the financial cost of not implementing the legislation?

 

City Light is required by state law to set the conservation targets as outlined in RCW 19.285.040.  City Light anticipates meeting the conservation targets with anticipated budgets. 

 

c)      Does this legislation affect any departments besides the originating department? 

No

 

d)     What are the possible alternatives to the legislation that could achieve the same or similar objectives?

No.  City Light is required to set the conservation targets as outlined in RCW 19.285.040.

 

e)      Is a public hearing required for this legislation?

Yes.  Consistent with WAC 194-37-070 section (3) (d) the qualifying utility will hold a noticed public meeting, which provides an opportunity for public comment, regarding its assessment of conservation potential.  Our intent is to use the presentation to the City Council on December 7, 2011 as the venue for making the conservation target public.  We will work with the City Clerk’s Office to make this happen.

 

f)       Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

No.   

 

g)      Does this legislation affect a piece of property?

No.

 

h)     Other Issues:

 

List attachments to the fiscal note below: