Street Light Acquisition External Customer_4 August 2016 JCKLocal Government Street Light Update
Process and Information Overview
Version 4 August 2016 JCK
Acquisition Opportunity Update
Acquisition Queue and Project Status
An amendment to SCE’s AB 719 tariff proposal was approved by the CPUC on 1 June 2016. The amended allows customers to request LED replacements for LS-1 high pressure sodium fixtures
with a net savings
SCE stopped accepting checks and requests for street light valuations as of the close of business on August 15, 2015. Local governments had an opportunity to enter the valuation queue
and be included by requesting an invoice and paying the $10,000 valuation fee during the several years leading up to August 15, 2015.
Local government customers that are currently awaiting valuation studies or who have received their valuation report continue to be eligible to purchase street lights. Local Government
customers that received their valuation report prior to August 15, 2015, will have until August 15, 2016, to enter into a sales agreement with SCE. Customers that are in the queue and
receive their valuation report after August 15, 2015, will have one year (365 days) from the date that the valuation report is presented to the local government customer to complete
and enter into a sales agreement with SCE.
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LS-1 Option E (AB 719 Tariff)
On 1 June 2016, LS-1 Option E (also referred to as the AB 719 Rate) became available as an option for customers to request LED technology on SCE owned LS-1 street lights. Customers
do not pay any up-front cost, and in most cases, should expect to see a savings after implementation when compared to their current High Pressure Sodium Vapor (HPSV) tariff. The LS-1
Option E tariff incorporates an energy efficiency premium, which recovers the capital cost of new fixtures. The premium remains on the customer’s bill for 20 years, while other components
of the LS-1 tariff that are applicable to LED fixtures fluctuate in accordance with CPUC rate increases or decreases. Current capital constraints will limit the number of LS-1 Option
E light replacement projects SCE undertakes during the 2016-2017 time frame. SCE is including a capital funding request to perform LS-1 Option E replacements in the company’s 2018 General
Rate Case for the period of 2018 -2020. Customers interested in participating in LS-1 Option E will be placed into a queue after signing the LS-1 Option E agreement for service, and
will enter the queue as agreements are finalized and received by SCE on a first come-first served basis (John King will receive agreements and manage the queue).
HPSV 50 watt (converts to 29 watt LED) (0.50) (50 watt HPSV conversions do not yield a net cost savings)
HPSV 70 watt (converts to 29 watt LED) 0.13 savings/lamp/month
HPSV 100 watt (converts to 39 watt LED) 0.65 savings/lamp/month
HPSV 150 watt (converts to 70 watt LED) 1.56 savings/lamp/month
HPSV 200 watt (converts to 130 watt LED) 1.10 savings/lamp/month
HPSV 250 watt (converts to 185 watt LED) 0.99 savings/lamp/month
HPSV 400 watt (converts to 275 watt LED) 1.22 savings/lamp/month
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6 key stages of the Acquisition Process
LG reviews Inventory and determines feasibility to pay for valuation services
SCE invoices LG $10,000 for valuation work and places LG into valuation queue upon receiving payment
Kick-off meeting held with LG to review field inventory process
LG participates in ride along with SCE to understand field work and valuation methodology
SCE performs valuation inventory of street lights, over head conductor, wood pole counts, etc…
SCE compiles results and presents LG with an estimated sales price
LG confirms desire to move forward with purchase and enters into Sales Terms development with SCE
SCE and LG submit 851 Application or Advice Letter to CPUC for review and approval of sale
Local Government (LG) reaches out to SCE Account Manager, Region Manager or BCD Street Light Team for acquisition process information
SCE provides valuation process overview and reviews current inventory
Process stage
Description
Stage 1
Initial Engagement and Education
Stage 2
Invoicing and Payment
Stage 3
Valuation Coordination and Kickoff
Stage 4
Evaluation Field Inventory
Stage 5
Sales Terms Development and CPUC Filing
Stage 6
Asset Transfer
Following CPUC approval of sale, SCE and LG enter into transition phase of assets
Broken out by phases agreed upon by SCE and the LG, the street light system is systematically physically transferred over to LG and rate changed from LS-1 to LS-2
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Differences in Tariffs LS-1 vs. LS-2 Monthly Cost Comparison- 100W HPSV lamp
Facilities
$8.39
Energy
$2.89
SCE Facilities
$0.75
LS-1
LS-2A
Facilities Charges
O&M Charges
Total
$11.28
Total
$3.64
Energy
$2.89
Energy
$2.89
SCE Facilities
$2.29
Total
$5.18
LS-2B
The LS-1 to LS-2 rate differential is entirely facilities related
Energy is 40kWh/month charged at $0.07230/kWh for LS-1 & LS-2
Generation
Non-bypassable Charges
kWh-based Delivery Charges
John King – Manager, Street Light Projects
John.King@sce.com
626-278-4057
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Who to Contact