For EDC Meeting [April 25, 2018]
TO: Members of the Economic Development Committee
APPROVAL: Robb Steel, Interim City Administrator
FROM: Robert G. Eisenbeisz, P.E., City Engineer/ Public Works Director
Title
Approve an LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement with SCE
Body
BACKGROUND:
On July 26, 2016, the City Council approved the Purchase and Sale Agreement and No-Fee Lightpole License Agreement with Southern California Edison. With this approved agreement, the City purchased 3,729 street lights from SCE.
On May 9, 2017, the City Council approved the agreement with Siemens Industry, Inc. for the Conversion of the 3,729 City owned street lights from High Pressure Sodium Vapor (HPSV) to Light Emitting Diode (LED) technology. This conversion process is in the final stages of completion.
On June 1, 2016, the LS-1 Option E Tariff became available to cities for street light retrofits. This new tariff allows SCE to replace HPSV fixtures with more efficient LED fixtures with no up-front capital costs to cities. Instead, amortization of capital costs occurs through the energy cost savings over a 20-year period.
ANALYSIS/DISCUSSION:
There are approximately 890 street lights that remain under SCE’s ownership. These street lights are equipped with HPSV fixtures. In an effort to conserve energy and bring uniformity to the City’s street light system, under the LS-1 Option E program, SCE converts these lights to LED with no up-front costs to the City. SCE absorbs the conversion costs using an incentive program offered by the California Public Utilities Commission (CPUC). This program incorporates an energy efficiency premium through which SCE’s investment capital is recovered for the new LED fixtures.
The cost to convert the SCE owned street lights in Rialto is $293,361.60. The table below shows the cost per fixture that would be collected over a 20-year period.
The price per fixture is comparable to the LED conversion rates recently completed by the City. By converting the HPSV fixtures to LED, the City will realize an immediate annual energy savings of $7,480 per year.
Adopting the LS-1 Option E tariff requires the City to enter into an agreement with SCE to initiate the conversion process. The agreement is included as Attachment 1. If approved, the City’s conversion would be completed in 2019.
RECOMMENDATION:
Staff recommends that the Economic Development Committee consider a recommendation to the City Council to approve the LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement with SCE.