8. ACTION ITEMS

a. Glendale Water and Power, re: Revisions to the Public Benefits Charge (PBC) and Reallocation of 2018-2024 PBC Funds to Authorized Renewable Energy, Energy Efficiency, Demand Response and Energy Efficiency Customer Incentives

1. Introduction of Ordinance amending Section 13.44.425 of the Glendale Municipal Code, 1995, pertaining to the current Public Benefits Charge of 3.6% to the rate mandated by State law
2. Resolution adopting 2.85% as the Public Benefits Charge, pursuant to Glendale Municipal Code, 1995, Section 13.44.425, effective November 7, 2024
3. Motion declaring the allocation and use of funds collected from the 0.75% increase in Public Benefits Charge inadvertently collected from July 1, 2018, through November 6, 2024, for all authorized renewable energy, energy efficiency, demand response, and energy efficiency customer incentives
4. Resolution of Appropriation to appropriate $3,394,937 from the 2018-24 0.75% Public Benefits Charge, plus all additional unspent PBC revenues collected there from through November 6,2024, to the “Home Energy and Water Savings Rebate Program” to fund energy efficiency enhancements
5.Resolution of Appropriation to appropriate $3,394,937, and all additional unspent revenues from the 2018-24 0.75% Public Benefits Charge collected through November 6, 2024, to fund energy efficiency enhancements to the “Home Energy and Water Savings Rebate Program”

Staff Report

OUTCOME: Ordinance introduced (Unanimous, Mayor Asatryan absent)

These new rebates will be offered on November 7, 2024 until the surplus funds run out, at which time the rebate amounts will revert to the current amounts. The new rebate amounts are expected to be in effect for approximately one year.

STAFF REPORT HIGHLIGHTS (Bold is our emphasis) –  Why GWP over-billed the Public Benefits Charge for several years:

“In February 2008, GWP raised its PBC from 2.85% to 3.6% of annual electric revenues to fund solar energy incentives required by Senate Bill 1 (SB-1). SB-1 mandated new statewide expenditure requirements for solar incentive programs and required municipal utilities to offer incentives to all customer classes starting January 1, 2008, and meet certain California Energy Commission guidelines starting January 1, 2009. Based on our share of the statewide municipal utility load at the time, GWP was required to fund up to $15.3 million of incentives over ten years through fiscal year 2017-18. At the end of that fiscal year, the 0.75% increase in the PBC rate should have been reduced back down to the state-mandated rate of 2.85%, but this was inadvertently missed by staff, and the 3.6% rate remained in place until present time. As a result, the PBC fund over-collected approximately $9.2 million between FY 2018-19 and FY 2023-24. However, $5.8 million was properly and lawfully budgeted and spent on solar incentives during the over-collection period, leaving $3.4 million of over-collected funds in the Fund. The increase in the PBC rate was intended to fund SB-1 solar incentives, which is one of the four authorized categories. Since there are no existing solar incentive programs offered by GWP at this time, staff recommends retroactively approving the 0.75% PBC rate increase through November 6, 2024, for energy efficiency programs to help customers reduce energy usage and lower their electricity bills. These recommended actions reallocate $3.4 million of funds, plus any additional over-collections up to and including November 6, 2024, to enhance the existing “Home Energy and Water Savings Rebate Program,” including increases in rebates for efficient “Energy Star” air conditioners, heat pumps, water heaters, electric stoves, and electric ovens that will help GWP customers transition to cleaner and more efficient technologies.”