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1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />RESOLUTION NO. R-83-13 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON TO <br />ESTABLISH AN ELECTRIC ENERGY STORAGE SYSTEM (ESS) <br />EVALUATION PLAN FOR THE COLTON ELECTRIC DEPARTMENT <br />WHEREAS; On October 29, 2010, California's Governor signed Assembly Bill 2514 <br />(AB 2514) requiring the governing board of a local Publically Owned Utility (POU) to open a <br />proceeding to determine appropriate targets to procure viable and cost-effective energy storage <br />systems (ESS); and <br />WHEREAS, the Colton City Council is the governing board for the Colton Electric <br />Department (CED), a POU; and <br />WHEREAS, AB 2514 requires that, if appropriate, such ESS procurement target shall <br />be adopted by October 1, 2014, with the initial target to be achieved by the CED by December <br />31, 2016, and a second target to be achieved by December 31, 2021; and <br />WHEREAS, the CED is required to report certain information to the California <br />Energy Commission (CEC). <br />NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON <br />DOES HEREBY RESOLVE AS FOLLOWS: <br />The following Energy Storage System (ESS) Evaluation Plan (Plan) has been developed for <br />use by the Colton Electric Department (CED) to determine the viability and cost-effectiveness <br />of an energy storage system(s) for its electric utility. The purpose of this plan is to determine if <br />it is cost-effective for the CED to pursue further investment in storage options. If the Plan <br />results indicate that ESS's are not cost-effective, the CED will recommend a policy for City <br />Council consideration and possible approval specifying that, at this point in time, the City of <br />Colton should not pursue any storage investments. However, if the Plan does identify positive <br />results, CED will recommend a specific energy storage system procurement target <br />(Procurement Target) for City Council consideration and possible approval by October 1, <br />2014. <br />Although the framework for the establishment of specific procurement targets has not been set <br />for POUs, it is expected that such targets will be established by the CEC prior to October <br />2014. The preliminary version of the regulation suggests that the targets should be 2.25% of <br />the system peak load by 2014 and the second target should be 5% of the system peak load by <br />2021. Based on current demand forecasts, this could mean storage capacity of between 2 and 5 <br />MW by 2016 and 2021, respectively, for CED. <br />1 <br />