Development of a Carbon-Neutral
Electric Portfolio
Monica Padilla
City of Palo Alto Utilities
August 16, 2012
Council Policy
1. Energy Efficiency: top priority resource
2. Renewable Portfolio Standard: at least 33%
by 2015 with rate impact of 0.5¢/kWh
3. Climate Protection Plan goals: By 2020, the
City and Community will reduce emissions
by 15% from 2005 levels
4. Develop Plan to have a Carbon Neutral
Electric Portfolio by January 2015
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Electric Portfolio 2020
Additional
Renewables
7%
Market
12%
Large Hydro
48%
Minimum
Renewables
33%
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Renewable Portfolio
400
33% Target
350
FIT
Geothermal
GWh per Year
300
250
200
LFGTE
Short-term RECs
150
100
50
Wind
small hydro
0
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
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Preliminary Analysis
 Electric portfolio is already low carbon
– Renewable Portfolio Standard: at least 33%
by 2015 (up to ~40% RPS within the ½ cent
rate limit)
– Hydroelectric Resources: ~50% in average
year
 Carbon neutral electric portfolio options exist
that would not increase rates more than 5%
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Carbon Neutral Plan Elements
 Definition of Carbon Neutral electric portfolio
 Timeline to achieve Carbon Neutrality
 Acquisition and portfolio management
strategies
 Cost, rate and bill impacts
 Risks and cost uncertainty
 Implementation Plan
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Timeline to Develop the Plan
Define Carbon Neutrality
Refine Portfolio Options
Seek Community
Input
Refine Analysis
Develop/Recommend
Plan
June
July
August
September
October
November
December
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