HomeMy WebLinkAboutF-3.1. ANNUAL SB 1037 REPORT_APPROVEDINFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: MAY 31, 2022
SUBJECT: ANNUAL SENATE BILL 1037 REPORT
BACKGROUND:
In response to various State laws requiring publicly owned utilities (POU) such as Azusa Light & Water
(ALW) to offer energy efficiency (EE) education and programs for their customers, all California POUs
collaborate annually to prepare a combined compliance report for submission to the California Energy
Commission (CEC). For Fiscal Year (FY) 2021 ALW’s EE programs saved a total of 2.392 million
kilowatt-hours, or 1.0% of retail sales, which meets the current 1% energy savings target. This fifteenth
annual combined POU report, which was submitted to the CEC, is hereby submitted to the Utility Board
for receipt and filing.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file informational report.
ANALYSIS:
The FY 2021 California POU Energy Efficiency report reflects public power’s response to the following
statutes requiring utility sponsored EE programs and education:
•Assembly Bill 1890 (Brulte, 1996) plays a prominent role in California’s EE legacy. The bill
established the Public Goods Charge, which has served as the primary funding source of POUs
EE programs for over two decades.
•Senate Bill 1037 (Kehoe, 2005) required each POU to report annually to its customers and the
CEC on its EE and demand reduction (DR) programs.
•Assembly Bill 2021 (Levine, 2006) directed each POU to identify all potentially achievable cost-
effective, reliable, and feasible EE savings and establish 10-year EE targets.
F-3Approved
Utility Board
05/31/2022
Annual SB 1037 Report
May 31, 2022
Page 2
• Senate Bill 350 (De León, 2015) required the annual report to include a comparison of actual EE
savings to the annual target adopted in the most recent 10-year potential study. The bill also
directed POUs to develop EE targets consistent with the statewide EE targets adopted by the
CEC.
The purpose of this report is not only to look back on the success of the past year, but also to look ahead
and to inform discussions on how to achieve additional energy savings in the future.
California Senate Bill 1037 (Kehoe) established several important policies regarding EE. Among the
many provisions of the law is a statewide commitment to cost-effective and feasible EE, with the
expectation that all utilities consider EE before investing in any other resources to meet growing
demand.
The California Municipal Utilities Association (CMUA), in partnership with the Northern California
Power Agency (NCPA) and the Southern California Public Power Authority (SCPPA), began a
collaborative effort in October 2005 to develop an evaluation tool to measure EE program effectiveness
and report program savings in a consistent and comprehensive manner. ALW is among the over three
dozen POUs submitting EE data in compliance with the provisions of the legislation.
In summary, the report indicates the following:
• During Fiscal Year 20/21, ALW spent approximately $1,326,000 on EE programs, reducing
gross peak demand by approximately 603 kilowatts, and in excess of 2.392 million gross
kilowatt-hours on an annual basis.
• The levelized cost for POUs to deliver all EE programs in the aggregate is $0.075 per kilowatt-
hour, while ALW is currently at $0.072 per kilowatt-hour.
• The report indicates that residential and non-residential lighting programs, residential cooling
programs, and non-residential process programs are generally the most cost-effective programs
offered by POUs. This is in line with the more successful programs currently being offered by
ALW.
• As a result of cost-effective and targeted programs, ALW once again met the annual energy
savings target of 1% of retail sales.
ALW Staff will continue to modify and refine the EE programs in a continued effort to provide the
maximum savings at the lowest cost of implementation.
FISCAL IMPACT
There is no fiscal impact as a result of this report.
Annual SB 1037 Report
May 31, 2022
Page 3
Prepared by:
Paul Reid
Environmental Programs Manager
Reviewed and Approved:
Tikan Singh
General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) Customer Energy Efficiency Annual Report 2022