AGENDA TITLE:
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Adopt a Resolution Setting City of Lodi Electric Utility Energy Efficiency Program 10-Year Target (EU)
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MEETING DATE:
June 4, 2025
PREPARED BY:
Melissa Price, Assistant Electric Utility Director
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RECOMMENDED ACTION:
Adopt a resolution setting the City of Lodi Electric Utility (LEU) Energy Efficiency Program 10-Year Target.
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BACKGROUND INFORMATION:
Per Assembly Bill 2021, State law requires publicly-owned electric utilities to identify all potentially achievable cost-effective energy efficiency savings, and to set targets for energy efficiency for the upcoming 10-year period. This information is used by the California Energy Commission (CEC), which is required to set statewide energy efficiency targets in consultation with the publicly-owned utilities, investor-owned utilities, and the California Public Utilities Commission. Including achieved efficiencies recently reported to the CEC, LEU exceeded its previously approved 10-year target reaching 103 percent of its stated goal from 2014 through 2023 with major savings primarily resulting from commercial and industrial energy efficiency efforts - including, but not limited to, lighting improvements.
To assist in developing an updated energy efficiency target model, the Northern California Power Agency (NCPA), in conjunction with the California Municipal Utilities Association (CMUA), retained the services of GDS Associates, Inc. (GDS) to assist Lodi and other members with development of market potential estimates for a range of feasible measures to assist LEU with future energy efficiency program planning efforts. Based on this effort, LEU's energy efficiency program target for the next 10 years is set at an average annual target of 0.15 percent of total projected energy sales, ranging from 580 MWhs in the early years up to over 800 MWhs in the later years. This updated target is approximately 40 percent lower than the previously established target. The decrease is a result of increased regulatory changes requiring certain energy efficiency improvements under existing codes and standards, market saturation when such efforts may reach their maximum potential in terms of energy efficiency savings, and a shift away from energy efficiency in favor of fuel switching and electrification activities.
STRATEGIC VISION:
5A. Infrastructure: Invest in innovative infrastructure with a high Return of Investment.
FISCAL IMPACT:
Approximately $1 million is allocated annually from the LEU Public Benefits (PB) Program to fund customer rebate and incentive programs to implement energy efficiency improvements to help meet annual targets.
FUNDING AVAILABLE:
PB Funding will continue to be budgeted each fiscal year as part of the annual budget preparation and planning process.