The URL can be used to link to this page

Home My WebLink AboutItem 25 - SCE Streetlight LED Conversion Public Works Agency www.santa-ana.org/pw Item # 25 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 7, 2021 TOPIC: SCE Streetlight LED Conversion AGENDA TITLE: Approve an Agreement with Southern California Edison, for Schedule LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Southern California Edison, for Schedule LS-1 Option E, Energy Efficiency – Light Emitting Diode (LED) Fixture Replacement Rate Agreement, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION Southern California Edison (SCE) owns and maintains approximately 3,690 of the street lights throughout the Santa Ana, along residential and arterial streets. These street lights presently utilize high pressure sodium (HPS) lamps, which are a common technology for outdoor lighting uses. The utility charges a monthly fee, known as an LS-1 tariff, to provide electricity, as well as operations and maintenance for each fixture. SCE, as the owner, provides for all maintenance, including lamp replacements, troubleshooting, and replacement following knockdowns. SCE offers an LS-1 Option E tariff program (Option E program) to retrofit current HPS street lights to LED. LED lamps can produce light as much as two times more efficiently than HPS lights, leading to lower electricity use, lower greenhouse gas emissions, and lower electricity costs. Under the Option E program, the City of Santa Ana could enter into an agreement with SCE that funds the retrofit of the lights with an Energy Efficiency Premium Charge (EEPC) that would be added to the existing City street lighting bill. The reduced electricity costs would fund the EEPC and provide additional cost savings to the City of Santa Ana of approximately $73,457 per year. Staff recommends approving the LS-1 Option E agreement (Exhibit 1) with Southern California Edison for retrofit of Utility-owned High Pressure Sodium Vapor (HPS) Street Lights citywide to LED technology. SCE Streetlight LED Conversion December 7, 2021 Page 2 2 3 1 2 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Southern California Edison will convert 3,690 utility-owned street lights to LED. SCE will furnish all materials and labor to complete the lighting retrofits. SCE would recover these costs through amortizing those costs in the form of the Energy Efficiency Premium Credit (EEPC) on the City’s monthly electricity bill over the course of 20 years. The monthly cost of the EEPC will be $6,121. Despite the addition of the EEPC to fund the retrofits, the reduced electricity consumption would still lead to the City saving money on a monthly basis. Based on the current rates, SCE projects the City would reduce electricity charges by $14,945 per month. When factoring in the addition of the EEPC, the City could expect to realize $8,824 in monthly cost savings as shown below: Estimated Monthly Energy Cost Savings $14,945 Estimated EEPC Charge $6,121 Net Monthly Savings $8,824 At the conclusion of the EEPC payback period (20 years), it is estimated that the annual cost savings will increase to $14,945 per month, assuming electricity rate increases are consistent with historic averages. Should electricity rates increase at a greater rate, there is a potential for greater cost savings. Cost savings would be credited to Public Works Street Light Maintenance Account No. 01117630-62000. EXHIBIT(S) 1. Agreement with Southern California Edison Submitted By: Nabil Saba, Executive Dir Public Works Approved By: Kristine Ridge, City Manager 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 Form 14-965 (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3241-E R.O. Nichols Date Filed Jun 30, 2015 Decision 14-10-046 Senior Vice President Effective Jun 1, 2016 1P8 Resolution SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 1 This Schedule LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement (Agreement), effective this day of _, _(Effective Date), is entered into between Southern California Edison Company (SCE) and ________, 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: 1.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 TERMINAT ION 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%. City of Santa Ana SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 2 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: SCE: Executive Director (Name) Public Works Agency Business Customer Division (Title) Southern California Edison Company 20 Civic Center Plaza 2244 Walnut Grove Avenue (Address) Rosemead, CA 91770 Santa Ana, CA, 92702 (City, State, Zip) 7.NONWAIV ER 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. SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 3 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 agreem ent 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. APPLIC ANT BY: City of Santa Ana NAME: TITLE: City Manager DATE SIGNED: SOUTHERN CALIFORNIA EDISON COMPANY BY: NAME: TITLE: DATE SIGNED: Form 14-965 06/2016 4 SOUTHERN CALIFORNIA EDISON COMPANY EXHIBIT “A” SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT APPLICANT City of Santa Ana CUSTOMER ACCOUNT NO. 700258790384 SERVICE ACCOUNT NO. 48990787, 8001446061, 8002377986, 8002535760, 8002814042 (Additional account numbers/addresses may be attached hereto.) SERVICE ADDRESS APPLICANT REQUESTED READY TO SERVE DATE ASAP 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): CUSTOMER NAME SANTA ANA, CITY OF Customer Number: 3‐000‐0071‐30 Lamp Wattage Lamp Count EEP Per Month* Estimated Monthly Savings 50 Watt 33 $1.42 $47 70 Watt 137 $1.48 $203 100 Watt 2,383 $1.55 $3,694 150 Watt 210 $1.67 $351 200 Watt 871 $1.93 $1,681 250 Watt 24 $2.26 $54 400 Watt 32 $2.88 $92 Total 3,690 $6,121 Estimated Additional Monthly Savings After 20 Years: $6,121 Estimated Additional Annual Savings After 20 Years: $73,457 Estimated Annual Savings During 20 Year Repayment: $179,342 Estimated Annual Savings Post 20 Repayment: $252,799 *EEP (Energy Efficiency Premium) is based on rate factors effective 1/1/2021 CONFIDENTIAL AND/OR PROPRIETARY INFORMATION OF SOUTHERN CALIFORNIA EDISON AND/OR ITS CUSTOMERS OR VENDORS. PUBLIC DISCLOSURE IS RESTRICTED. This analysis is provided to help you evaluate your current Southern California Edison (SCE) bill and/or compare your projected bills to other SCE rate options. These results are based on your past usage and/or assumptions about your energy usage and cannot be guaranteed by SCE. This rate analysis may not reflect all of the rate options that are available to you as an SCE customer. Your actual bills will vary from this analysis due to changes to your actual usage and assumptions such as operating hours, the equipment you use, kVAR charges, weather patterns, service voltage, firm service levels, taxes, and added facilities charges. Moreover, the rate options used in this analysis are subject to change by the California Public Utilities Commission (CPUC), which would also alter the outcome of this analysis. If your current rate schedule becomes unavailable — either by action of the CPUC or because you are no longer eligible to be placed on the rate — you will be notified of your rate options. If you do not select a different applicable rate option at that time, you will be placed on a default rate schedule. SCE, Confidential Post EEP Template_02.01.21.xlsx 4/29/2021 CUSTOMER NAME SANTA ANA, CITY OF Customer Number: 3‐000‐0071‐30 Lamp Wattage Lamp Count Estimated High Pressure Sodium Vapor (HPSV) Annual Costs Estimated Light Emitting Diode (LED) Annual Costs Estimated Annual Savings 50 Watt 33 $4,819 $4,574 $246 70 Watt 137 $22,342 $19,991 $2,351 100 Watt 2,383 $442,666 $359,452 $83,214 150 Watt 210 $50,702 $38,203 $12,499 200 Watt 871 $244,577 $170,681 $73,896 250 Watt 24 $7,834 $5,754 $2,079 310 Watt 0 $0 $0 $0 400 Watt 32 $14,100 $9,043 $5,057 Total 3,690 $787,041 $607,698 $179,342 This analysis is only a 12 month estimate and the results presented are based on HPSV Lamp Wattage and counts above as of January 2021, LED wattage conversion lamps available at this time, and February 1, 2021 rates. This analysis excludes the following when applicable: Tap Device Charge, State Tax, Utility Users Tax, and Generation Municipal Surcharge. The analysis does not include costs associated with Incandescent, Mercury Vapor, Low Pressure Sodium Vapor, Metal Halide, or already existing LED Lamps. Actual costs may vary due to factors including but not limited to, rate changes, factor changes, wattage conversion changes, excluded cost components. CONFIDENTIAL AND/OR PROPRIETARY INFORMATION OF SOUTHERN CALIFORNIA EDISON AND/OR ITS CUSTOMERS OR VENDORS. PUBLIC DISCLOSURE IS RESTRICTED. This analysis is provided to help you evaluate your current Southern California Edison (SCE) bill and/or compare your projected bills to other SCE rate options. These results are based on your past usage and/or assumptions about your energy usage and cannot be guaranteed bySCE. This rate analysis may not reflect all of the rate options that are available to you as an SCE customer. Your actual bills will vary from this analysis due to changes to your actual usage and assumptions such as operating hours, the equipment you use, kVAR charges, weather patterns, service voltage, firm service levels, taxes, and added facilities charges. Moreover, the rate options used in this analysis are subject to change by the California Public Utilities Commission (CPUC), which would also alter the outcome of this analysis. If your current rate schedule becomes unavailable — either by action of the CPUC or because you are no longer eligible to be placed on the rate — you will be notified of your rate options. If you do not select a different applicable rate option at that time, you will be placed on a default rate SCE, Confidential HPSV Template_02.01.21.xlsx 4/29/2021