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HomeMy WebLinkAboutStreet Lighting Update - Study Session 08-06-2012 � r x 1 r l �v ' tree " 1 ' &,-mhtiny-*-v 'u' pdate ly �Y City Council Study Se 1,40 "10,11, -7 August , - l � Agenda . , � Street lighting overview .............................. ............. z . GeneralRate Case - the nt g reement ® SCE PolicYn' 4 . upportunities State-of-the-art, streamlined, energy efficiency & lust inability N Street light overview ' o Street lighting is the most visible energy service to residents A brand statement for the city o Advancing Technology - o Old tech 1980 "s vs . New tech 2010 "s Orange vs . White light o Business as usual ( BAU ) vs . lower costs and environmental impact State-of- "ne -G ; .,. s -ea!rmn.. .., a-ind effective energy efficiency & sustainahiliq,, � F4u Nn i � � x i . i ' '— scN so Kan 0", ' Af y 33 �\ A � I — in pew ON k ' NAVY— § Y t� ow p y F �i i v ,�,., S KS �981�'.1�1. � r t �"' Nes .0 WON n ' � gtr , .- A s r� y :.r x � � F i Y 174 s X?N Eli INV INVd Sol 4 kw r P t x t r `. M1 1 As Pool T�Osjf y p r. U s 1 t -• d n , sit 7,4 w r _ «. Ae /bN/ MR s i UP 01 e"MEW' ID f ray TWA r� 5 k a ' z 1 a no say' i Owl 6 Not 6� �' fl 20 o � r _ vs- am ,.g ,, .., .,,;.„ �^s„ ,, G .; a1;�" 7.: _., •. _. .,.a a°y a s.,k N/ �: .a. .. rS ,': t t ,,.�`� .\,. . �E w ,s, �. g: ,, _......... ...,.... .. ., ..�,. a ,. ✓.., zr„1., s ,t.. J#sa ,.,,>. � a.. �•, ,<a�.,, Vie. 'oe ?s�\. .. '.,'?, -.. J ... .:..:a >... ., ..,.., ,..,, . .....m .. ✓ � ,:•, � ,:� � ,.,w. ..�'� ..� ... .____.. ,r Asa,. ��� a v ; 01 r € � v § a I y, WTV s z ,. B c{ Ono { £ � S p NOW To MR \'YP <q• O m`c9 "//�i <md 's. .,'ter:r { \� 'z� a ✓� 7^ /a/ %` {" sy,s IN6 / NJ Mow— Boo HIM mAl, 'S£.o .,, 1:1i �k., r sir•• POMP:��i x ` F ,r# cyq hi vv� \j .:. a .4 a. 4 Val 0. MD \ r 51 ,' .fin ^: h2`j" ./ War 3 t �r NP fox wo sSON= AT Holm mod TM MGM £ Z S 1 \ a h Za a ac ok ` w N �. WwwwWO E Its ' b 6 J i i n . r 4 i ///rf 3 H' B F'Y' 10/ 11 Electric Costs Electric Cost KWh SCE owned (LS-1) "rr SCE owned (LS-1) J ,. Customer owned .. .. . _ s' (LS 2) 1,418,517 Customer owned (LS-2) ': 9,049,7a ry,�.,\,, Customer owned ..... � 4..... ..... ; .. .. metered metd t 620 958 ( ) r` Customer owned Everything vw- rY 9 else metered (LS-3) 6r. Everything else ®r 61 $2,38 $172,487 $49,029 Street light overview o Paid out of the General Fund � ` o Street lighting cost containment is difficult to achieve to Cuts across many different organizations, cultures, departmental boundaries and skills o Distributed nature is challenging tg@ " 14 , 000 total poles 12 , 347 owned by SCE State-of-the-ai-t , . , . : Fective energy efficiency & sustainab;ury ti C P99SA 9 r Street lighting overview 0 1982 Council Resolution # 5170 o Request PUC to o 5ry o Cause rates to reflect actual use Clarify procedures for purchasing street lights Valuation respects source of capital funds Install energy efficient, economical street lighting Street lighting overview ' o Most OC Cities have outsourced street lighting to SCE , by default -l ' o Operational changes currently require equipment donated to SCE o Many unknowns the way it has always been done 3 State-of--the-art,,, streamtlnerP, and effective General Rate Case ( GRC ) o IRC approved joining the Coalition for ` Affordable Street lights ( CASE) Moreno Valley,, Yorba Linda , Torrance, Downey, Murrieta , Rancho Cucamonga and Upland N o Initial testimony and discovery phases o SCE proposed N5 % annual increases for the next 3 yrs o Reached a Settlement Agreement State-of-the-at-t ami"oried s t.re I ar7d er-r-ective erierntF e(ficiency dx sustafn�hility / r d * i $ GRC Settlement Agreement 21200,000 $2,1 1 • $2 100,000 Y"4 $2,050,000 $2,0 0 yo Business as usual (BAU) a Settlement Agreement $2,000,000 1,961,344 w 4 2 " 2 2 _; 1 950 000MW. My a r ,r E...: :... ; IN di IN IN rb /j $1,850,000 2012 2013 2014 2015 -ea: rn ed -i ct ' S ta te-o f--th a r tt, ai a effe ive N m w GRC Settlement Agreement o Eliminated wood pole equivalent - SCE s capital contribution ~ o Shifted from modeled rates with a negotiated cap to actual costs model N 0 2016 new rate case A o CASL is a good start on containing street lighting costs , but more can be done State-of-th&--art, strc-.zinfloed and effective energy efficiency & sustarnahility SCE policy change o SCE is willing to amicably sell street lights ......... A y m Replacement costs new less depreciation model SCE "s capital investment ( 2012 ) $ 642 or $ 710 per pole 0 2/ 3rds of HB "s street lights are beyond one or more of the expected useful lives 3 State-of-the-art, streamlined, t . , effective Ul .4 iT #$4 Aar'•,,. SCE policy change e o Unknowns still lurk o Costs for . Mr/ 4 4 Calibrating valuation studies o Deferred maintenance N e Confidential design standards differentials between SCE and customer owned service o Long -term maintenance provisions Opportunity — purchase ' s o Budget realities are forcing re - structuring of services Pension reform Layoffs Reduced service levels Street lights should not be an exception S ta te t h c 4 - mrf, , and effiective enet_ - efficicnqy & sustdinanili(p a , � light w « Street x $1,800,000 ya 1 600 000 ' ,. . $ is" 1,. $1,400,000 1'"001 9 $1,200,000 M u $ ,-210 6 $1,000,000 4/0 r. ; Utility Bill Savings $800,000 „� ``'�- Annual Utility Budget cry �; "���`" ,; ��":• .,. , pm- $400,000 y ' f u s;t- $200,000 a v, 00 $0 m SCE owned (LS-1) HB owned (LS-2) HB owned & costs costs upgraded (LS-2) a and f fi ti ve energy efficiency & sustainahility } I Purchase Pro Forma r: 1,800,000 $1,600,000 t. 1 400 000 $ $1,200,000 .::. 0. $ 4` $566, r..9. / t Rell $1 000 000 " $800,000 <:::: fir , ". $400 000 :.: ,, :. .. $200,000 " „ �w'� ii�•"'.��:-'for $O SCE owned (LS-1) HB owned (LS-2) HB owned & HB owned, upgraded costs costs upgraded (LS-2) & outsourced Annual Utility Budget Financing, Upgrade & Outsource M General Fund Savings State-of—the—airt, streat-nIfned, and � i u, 9i Public- Private Partnership o HB staff have preparedan RFQ/ P for a long -term partner : Guaranteed savings to General Fun o Val uation/negotiation/purchase support Leading to : Capital projects for conversion W o LE ® upgrades o Series circuits conversion operations and maintenance Ongoing membership in CASL Equipment replacement reserves State-of-the­art, r am ,n and effoectI've w Street light Update " w� o Street lights are an essential service that sends a brand message about HB o Large difficult to scrutinize item h� o Never been subject to competition o Purchasing & contracting for service can : Improve branding & public safety �n Provide near term and long -term cost savings State-of-the-art,, streamliried, anef effective N energ;� efficiency & sustainability 0 � $ � r � � Street lig # oQuestions ? ee � � �r �1 � � � � and , © \�{ _ ` ! ^ e ��} �! �� � ��/ , ener'-�,,,"iy efficiency & susta/nah///y