HomeMy Public PortalAbout13) 10B Energy Efficient LED Fixture Replacement with So Cal EdisonAGENDA
ITEM 10 .8 .
COMMUNITY DEVELOPMENT DEPARTMENT
DATE :
TO:
FROM:
MEMORANDUM
May 1, 201 8
The Hono rab le City Council
Bryan Cook , City Manager
Via : Michael D. Forbes , Community Development Director
By : Ashley Avery , Management Analyst
SUBJECT: ENERGY EFFICIENT LIGHT EMITTING DIODE (LED) FIXTURE
REPLACEMENT AGREEMENT WITH SOUTHERN CALIFORNIA
EDISON , LS -1 OPTION E
RECOMMENDATION:
The City Council is requested to direct staff to bring back for City Council approval , an
agreement with Southern California Edison (SCE) to convert existing High Pressure
Sodium (HPS ) streetlight fixtures to Light Emitting Diode (LED) fixtures (Attachment
"A "), and to provide add itional direction as appropriate regarding the replacement
fixtures .
BACKGROUND:
1. In 2013 , Assemb ly Bill (AB ) 719 was passed by the State of Californ ia . The inten t
of AB 719 is to have e lectrical corporat io n owned streetl ights , whose electricity use
is paid by local governments , be converted to use cost-effective technology that
w ill reduce electricity consump tion and lead to lower utilit y bills for these local
governments .
2 . In September, 2017 , SCE staff provid ed the City with inform ation about SCE 's
"Option E" program , which was developed in response to AB 719 . Option E
prov ides an opportun ity to rep lace HP S f ixt ures with more efficient LED fixtures on
streetlights owned by SCE with e lectricity paid for by cities (referred to as LS -1
l ig hts ). The resulting electric cost savings is used to finance the f ixt ure replacement
over a 20-year period .
City Council
May 1, 2018
Page 2 of 5
ANALYSIS:
HPS streetlights were first introduced around 1970 and quick ly became a popular street
lighting solution due to it being more energy efficient than other light alternatives available
at the time . However, today LED lighting fixtures are more cost effective and consume
less energy than HPS; as a 30W LED bulb produces the same lumens (brightness ) as an
SOW HPS bulb. LED fixtures also have a much longer service lifespan of 11 .5 years on
average compared to 3 years for HPS fixtures .
LED fixtures can display both warm and cool white light depending upon the color
temperature (CT) of the bulb selected . CT denotes spectral content or how much blue ,
green , yellow , and red is present in the light and is measured in Kelvin (K). The higher
the CT, the greater the blue content and the whiter the light appears. HPS lights have a
CT of about 2200K and contain more red and yellow giving the light a "warm " appearance ,
while lights that have a CT of 5000K contain high amounts of blue and give the light a
"cool " appearance .
SCE has LED lighting available in CT 3000K and 4000K. Street li ghts using 3000K lamps
produce a warmer white light while those using 4000K produce a slightly coo ler neutral
white light. LED lighting can sometimes change the overall nighttime look and feel of a
city. Cities often consider multiple perspectives when deciding which LED CT is most
appropriate for the needs of the city and its residents . Some cities choose 3000K bulbs
to maintain a "small town " feel , while others choose 4000K bulbs to match the cities ' more
"modern" aesthetic. However, many cities in California have opted to use both , using the
warmer 3000K lights along residential streets and the cooler 4000K lights on main roads
and busy intersections. The only LED streetlights in Temp le City are Rosemead
Boulevard 's pedestrian level sidewalk lights , which are LED lamps with a CT of 3000K.
As is common with implementing new technology , there have been some pub lic concerns
about the wide spread usage of LED lighting . LEOs produce b lue light that is similar to
daylight. Two major research studies conducted by UC Davis and NYU , found that
exposure to blue light at night may interfere with hormone production and make it difficult
for people to sleep. Although there are no conclusive studies , there are also concerns
that blue light exposure at night may also affect the behavioral patterns of nearby plants
and animals , such as birds being active at night or flowering plants blooming too early .
In late 2016 the American Medical Association (AMA) re leased a report recommending
that outdoor lighting have a CT no greater than 3000K to mitigate certain sleep related
health issues . Some lighting engineers , while not disputing the research findings ,
disagree with the conclusion of the AMA recommendation and bel ieve the
aforementioned research had confounding variables. These engineers believe the issue
is caused by poorly designed fixtures that allow light to infiltrate into residences instead
of being directed at the street. SCE staff have stated that the LED fixtures d irect light
toward the street with minimal spillover to nearby properties.
City Council
May 1, 2018
Page 3 of 5
Cities that have already updated their streetlights with LED fixtures have received mixed
reception from the public . Fremont , CA had positive responses from residents , reporting
that it made the streets feel safer. However Davis, CA rece ived a large number of
complaints from residents reporting that 4000K lights were too bright , eventually leading
the city to replace the 4000K lights with warmer 2700K. Locally Rosemead , CA utilized
Option E in 2017, to update its light fixtures with 4000K lights . According to Rosemead
Public Works staff, the LED fixtures were well received and there have been no
complaints from residents .
Staff is recommending that Temple City go forward with this program due to energy
efficiency and increased service life of LED fixtures , and the resulting cost savings . Given
the real and perceived concerns about overexposure to blue light at n ight, staff
recommends that the City request fixtures with a CT of 3000K to provide a warmer light.
Some cities have opted to install 4000K fixtures on major or non-residential streets .
However, Temple City's major non -residential streets , Rosemead Bouleva rd and Las
Tunas Drive , are lighted primarily with City-owned streetlights that would not be converted
under this program. Also as noted above , the pedestrian level lights on Rosemead
Boulevard already use LED fixtures with aCT of 3000K.
In November of 2017, the Facilities , Infrastructure, and Public Works Comm ittee
discussed Option E and had the following questions about SCE's Option E program.
Responses are listed underneath each question :
1. Does SCE have a program or schedule for replacing existing lamps (HPS or LED )?
SCE typically replaces lamps when they burn out , but the replacements are done on
a "like for like" basis . HPS lamps are repla ced with new HPS lamps and are not
changed out to LED . LED lamps are installed only through the Option E program .
2 . What cities have already used Option E?
Local cities that have used Option E include Rosemead , Baldwin Park , Covina , La
Palma , and Fontana.
3. Can the city choose from different brightness and light throw options , or just CT ?
SCE only offers the 3000K and 4000K color temperatures . A representative of SCE
stated that the LED lights have very good coverage toward the street, with minimal
wash back towards homes or windows .
4. Can the current HPS be replaced with an LED that has a lower lumens ?
City Council
May 1, 2018
Page 4 of 5
Yes , since LED lights generate a whiter light and distribute light differently than HPS ,
an LED with lower lumens can provide similar illumination to an HPS with higher
lumens .
5 . What would be the total annual savings as a percentage of t he total electric bill?
Based on an analysis conducted by SCE using FY 2016-17 rates , the estimated
savings during the 20-year repayment period is $6 ,565 per year or about three
percent of the streetlight e lectric bill. After the 20-year repayment period , the
estimated annual savings is $29,919 .28 per year, about 15 percent of the bill.
A nnua lA moun t E f t d A s 1ma e nnua IS . avmgs
Actual LS-1 Total $191,862.90 -
(FY 16-17)
Projected LS-1 Total $185 ,298 .00 3% or $6 ,565 .00
(during repayment)
Projected LS-1 Total $161,943 .62 15 % or $29,919 .28
(after repayment)
If the City Council directs staff to proceed , staff will bring back the LS -1 Option E
Agreement with SCE for formal approval in the near future . Once the agreement is
executed , staff will work with SCE on the schedule and phasing for imp lementation . The
time length to complete the i nstallation of all LED fixtures is currently unknown , but for
reference , City of Rosemead staff stated that the installation process took approximately
one month .
CITY STRATEGIC GOALS:
Updating the LS-1 streetlights in Temple City from HPS lights to LED lighting is consistent
with the City Strategic Goals of Good Governance , Public Health and Safety, Quality of
Life , and Sustainable Infrastructure .
FISCAL IMPACT:
SCE's conversion program is funded by an LED Fixture Replacement fee , w hich is
amortized over a 20-year period and added to the City's electric bill. Since the electric
cost of LEOs is lower than HPS f ixtures , the electric bill will still be lower than the current
bill , resulting in a net savings to the City. Based on estimates prepared by SCE , if all HPS
fixtures are replaced with LED , Temple City is estimated to save $6 ,565 .00 annually
during the 20 year repayment period , and save $29 ,919 .28 annually once the
replacement cost is fully amortized .
City Council
May 1, 2018
Page 5 of 5
ATTACHMENT:
A. Energy Effic iency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement
Schedule LS-1 Option E
ATTACHMENT A
Southern Cal ifornia Ed ison Origina l Cal. PUC Sheet No. 57074-E
Rosemead, California (U 338-E ) Cancelli ng Cal. PUC Sheet No.
Sheet 1
SC HEDULE LS -1 OPTION E,
ENERGY EF FI C IE NCY-LIGHT EMITIING DIODE (LE D) FIXTURE REPLACEMENT
RATE AGREEMENT
(To be inserted by uti lity)
Advice 3241-E
~~~~---------Decision 14-1 0-046
1P8
Form 14-965
Issued by
R.O . Nichols
Senior Vice Presiden t
(To be inserted by Ca l. PUC)
Date Filed Jun 30 , 2015
Effective Jun 1, 2016
Resolution
SOUTHERN CALIFORNIA EDISON COMPANY
SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED)
FIXTURE REPLACEMENT RATE AGREEMENT
This Sc hedule LS-1 Option E, Energy Efficie ncy-Light Emitting Diode (LED ) Fixture Replacement Rate
Agreement (Agreem ent), effective t his day of
_____ ,(Effective Date ), is entere d into between South ern Ca liforn ia Edison Company (SCE)
and , an SC E c ustomer tak ing service on Schedule
LS -1 (A ppli ca nt), refe rred to collectively as "Parties," a nd ind ividually as "Party." This Ag reement provides
for SCE, at Applicant's r equest, to rep lace the existing st reet lighting fixtu res servi ng Applicant's
premises with Light Em itting Diod e (LED ) street lighting fixtures to ac hieve energy efficiency benefits for
A pp li cant , as set forth in Special Conditio n 14 , Option E, Energy Effi ciency-Lig ht Emi tt ing Diode (LED )
Fix ture Replacement , of Schedule LS -1.
Th e Partie s agree as follows :
1. LED FIXTURES
SCE shall install , own , operate , and maintain LED Fixtures for App li cant as set forth in Exh ibit "A"
attached hereto and incorporated herein by this reference . Th e LED Fixtures provided hereunder
shall at all times remain th e property of SCE .
2 . LED FIXTURE REPLACEMENT COSTS
2.1 The replacement cos ts of th e LED Fixtures provided hereunder shall be borne by
Applican t.
2.2 Ap pli cant sha ll pa y t he charge for the LED Fixtures Rep lacement rate , which incl udes an
Energy Efficiency Premium C harge (EE PC) and a Ba se LED Charge , under Option E of
Schedule LS -1. Applicant elects Option E in lieu of an upfront, one -t ime payment of the
replacem en t costs.
2.3 SCE does not guarantee tha t any energy or bill savings will accrue to App li cant as a result
of the LED Fixture repla ceme nts.
3. COMMENCEMENT OF SERVICE
Th e Parties ag ree that SCE has the rig ht to charge App licant, and Applicant has an obligation to
pa y SCE , for the charg es set forth in Schedule LS-1 , Option E, commenc ing on t he date SCE
begin s serving the LED Fix t ures insta lled pursuant to this Agreement.
4. TERM AND TERMINATION
4 .1 Th is Agree ment s hall be effective as of t he Effective Date and shall con tinu e for a te rm of
twenty (20) years from the co mmen cemen t of se rvice as specified in Section 3 above
(Term).
4 .2 Applican t may terminate this Agreement at any time during t he Term upon a thirty (30 ) -
day advance written notice, provided that Appl ican t , prior to or with in the 30-day advance
notice period , assigns the Agreement to any New Party In (NPI ) that owns , rents or
leases the prem ises served by the street ligh ting fixt ures replaced unde r this Agreement
and will take service under Op tion E of Schedule LS -1 effective as of the date of termination ;
otherwise , Applicant shall pay a one-time termination charge equal to the present value of
the balance of th e EEPC of Option E over t he remain ing T erm . T he present value is
determi ned based on SCE 's authoriz ed rate of return on ra te base , or discounted rate of
7.90 %.
Form 14-965
06/2016
,------------~---
SOUTHERN CALIFORNIA EDISON COMPANY
SCHEDULE LS-1 OPTION E , ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED)
FIXTURE REPLACEMENT RATE AGREEMENT
5. AMENDMENTS ; ASSIGNMENTS
5.1 Any c hanges or amendments to th is Agreement mus t be in writing and m us t be executed
by the Applicant and SCE and , if required , be app roved b y the Cali fornia Publi c Utilities
Commiss ion (Commission).
5.2 Applica nt s hall not assign thi s Agreement withou t the prior written consent of SCE;
provided , howeve r , that App li ca nt may assig n t he Agreement pursua nt to the terms and
condi ti o ns of Section 4 .2 abo ve , and th e NPI must assume all righ ts and obligations
under this Agreement for the remaining Term . Any assignment and assumption shall be in
a form acceptable to SCE.
6. NOTICE
A ny notice eithe r Appl icant or SCE may wish to provide th e other regarding t his Agreement must
be in writing . Such notice must be either ha nd -delivered or sent by U.S. certified or registered
mail , postage prepaid , to th e person designated to rece iv e notice for the other Party be low, or to
such other address as either may desig nate by written notice. Notices delivered by hand shall be
deemed effective when delivered . Notices de live red by ma il shall be deemed effective when
received , as acknowledged by the rece ipt of the certified or registered mailing.
App li cant:
(Name)
(Title )
(Address )
(C ity , State Zip)
7. NONWAIVER
SCE :
Bu siness Customer Di vision
Southern California Edison Company
2244 Walnut Grove Avenue
Ro semead , CA 9177 0
Th e failure of either Party to enforce a ny of the terms and cond itions or to exercise any right or
priv il ege in this Agreemen t shall not be construed as a waive r of an y such term an d conditio ns or
r ights or privileges, a nd the same s hall con tinue and re main enforce and effect as if no such
failure to e nforce or exercise had occurred .
8 . SEVERABILITY
In t he even t th at any of the provisions , or portions thereof, of th is Agreemen t are held to be
unenforceable or invalid by the Commi ss ion , or any court of competent jurisdiction , the va li dity
and enforceability of t he remaining prov isions or any port ion thereof shall not be affected .
9. APPLICABLE LAWS , RULES , AND REGULATIONS
This Agreemen t s hall be subject to , and interpreted under th e laws, rules , decisio ns and regulations
of t he State of Californ ia, without regard to its con flict of laws pri nciples , the Commission , and SCE's
Commiss ion-ap proved tar iffs .
Form 14 -965
06/2016
2
SOUTHERN CALIFORNIA EDISON COMPANY
SCHEDULE LS-1 OPTION E , ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED)
FIXTURE REPLACEMENT RATE AGREEMENT
10. CALIFORNIA PUBLIC UTILITIES COMMISSION JURISDICTION
10 .1 This is a fil ed f orm tariff agreement authorized by t he Commission f or use by SCE . No
office r, inspec tor, so licitor, agen t or employee of SCE has any au t hori ty to waive , alter , or
amend any pa rt of th is Ag reement except as prov ided herein or authorized by the
Commissio n. T his Agreement is to be used in conjunct ion with Sc hedule LS-1 and
suppleme nts the terms and co nd itions of the Applicant's elec tr ic service under Schedu le
LS-1.
10.2 Th is Agreemen t shall at all t imes be subject to s uch c hanges or modi fica tions by the
Commission as said Comm iss ion may, from time to time, direct in the exercise of it s
jurisdict ion.
10.3 Notwithstanding any other provisions of th is Agreemen t, SCE has the right t o un il aterally
file with the Commission , purs uan t to the Com m ission's rules and regu lations , an
application for change in rates , cha rges , classification , service , or rul e or any agreement
relating th ereto.
1 1. ENTIRE AGREEMENT
Th is Agreement , incl ud ing SCE 's Commission -approved tariffs, constitutes t he comp lete agreement
an d understandi ng between the Applica nt an d SCE regarding the LED Fixtures replacement cos ts.
Prior agreemen ts, represen tations, und e rstandings , whether exp ressed or implied , an d
communicatio ns , ora l or wr itten , betwee n the Applicant and SCE shall not be co nstrued to be a part
of t his Agreement.
12 . AUTHORIZATION SIGNATURE
In w itness whereof , t he Part ies here to have caused this Agreement to be signed by their duly
authorized re prese ntatives.
APPLICANT
BY:
NAME :
TITLE :
DATE SIGNED :
SOUTHERN CALIFORNIA EDISON COMPANY
B Y:
NA ME:
T ITL E:
DAT E SIGNED:
Form 14-965
06/2016
3
SOUTHERN CALIFORNIA EDISON COMPANY
EXHIBIT "A"
SCHEDULE LS-1 OPTION E,
ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT
APPLICANT
CUSTOMER ACCOUNT NO .
SERVICE ACCOUNT NO .
(Addi tiona l account numbers/addresses may be attached hereto.)
SERVICE ADDRESS
APP LI CANT REQUESTED READY TO SERVE DATE
SCEREADYTOSERVEDATE ________________________________________ __
DESCRIPTION OF LED FIXTURES/SCOPE OF WORK: SPEC IF Y HOW MANY STREET LIGHTING
FI XTURE REPLACEMENTS ARE BEING REQUESTED AND AGREED TO UNDER THIS
AGREEMENT AND OTHER RELEVANT DETAILS .
W .O. No(s): -----------------------------
Form 14-965
06/2016
4