OFFICE OF THE CITY ADMINISTRATIVE

REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: October 3, 2012 To: From: The Mayor The City Council Q.'f Miguel A. Santana, City Administrative Officer Subject: ELECTRIC RATE ORDINANCE FOR ALTERNATIVE MARITIME POWER SUMMARY The Department of Water and Power (DWP; Department) Board of Commissioners (Board) requests approval of DWP Resolution No. 013055, and draft Ordinance, to modify the existing Electric Rate Ordinance No. 168436, adopted by the Board on September 12, 2012, providing an Electric Vehicle (EV) Service Rider and Experimental Alternative Maritime Power (AMP) Interruptible Rate Schedule. DWP states that implementation of the proposed Ordinance is intended to support the use of electric vehicles and to encourage the electrification of large cruise ships and qualifying merchant ships docking at the Port of Los Angeles (POLA). Specifically, the proposed Ordinance will 1) continue existing rate discounts and offer new incentives for the charging of electric vehicles, and 2) offer an experimental electric rate for qualifying ships docking at the POLA. City Council approval is required pursuant to Charter Section 676(a). City Attorney has approved the proposed resolution and draft Ordinance as to form and legality. The attached City Attorney Report No. R12-0300, dated September 18, 2012, notes the draft Ordinance shall not become effective until the associated Incremental Electric Rate Ordinance, which adds charges to the charges of corresponding rates prescribed in any other effective DWP Electric Rate Ordinance, also becomes effective. This Ordinance was approved by Council on October 2, 2012. EV Service Rider Residential and Commercial customers with time-of-use meters currently receive a discount of 2.5 cents per kilowatt hour (kwh) for EV charging up to 500 kwh per month during Base Period rates at night and on weekends. However, this limited incentive may not adequately accommodate the battery charging needs of customers with more than one EV, EV fleets, large electric trucks, or electric buses. Furthermore, participating customers with time-of-use meters currently incur a monthly service charge fee for the Time-of-Use Service which diminishes the rate discount for EV charging. The proposed EV Service Rider continues the existing 2.5 cents per kwh rate discount and provides new incentives to use a dedicated meter for EV charging. Additionally, the 2.5 cents per

CAO File No. 0160-01560-0000 PAGE 2 kwh discount is applied to all power consumed, without the 500 kwh per month limit that is currently in effect, for vehicle charging during Base Period rates at night and on weekends. Shifting the demand for EV charging to Base Period rates also benefits the Department since the power system's energy is available at a lower cost during the period. The EV Service Rider includes a demand response component that allows the DWP to remotely interrupt any dedicated electric vehicle charger during high system usage, power shortages, emergencies, and other power system contingencies. Furthermore, it provides an option to have a dedicated time-of-use meier for EV charging that is separate from other energy usage meters. DWP does not charge customers for the separate meter; although, a minimum monthly charge of ten dollars per month is required and will be credited to offset the usage charges of the separate meter. As an example, a customer that consumes $12 per month in energy for EV charging will be billed $12 for energy usage and not incur the monthly minimum charge. Conversely, a customer that consumes $3 per month in energy for EV charging will be billed $3 for energy usage and an additional $7 to meet the minimum charge of $10 per month. Experimental Schedule AMP Interruptible Rate Schedule The proposed Experimental Schedule AMP Interruptible Rate Schedule provides qualifying ships that dock at the POLA with partially interruptible electric service for electrification of their operations while in port. This allows the ships to pursue compliance with State of California mandates for air quality improvement. Similar to the EV Service Rider, this rate schedule includes a demand response component that allows for an interruption in service during high system usage, power shortages, emergencies, and other power system contingencies. Qualifying ships are limited to those with maximum demand of not less than seven MW per month and include both cruise and merchant ships. DWP states that the proposed AMP schedule sets an energy price range, which will attract mega-ships to the POLA, yet recovers the cost to serve these high electrical loads. The proposed AMP schedule will be effective for five years, unless terminated earlier, which will allow the DWP to study electricity usage patterns and additional opportunities to promote services, while also promoting business at the PO LA, reducing air pollution, and expanding DWP service. The above-mentioned aspects of the proposed Ordinance, and this report, are based upon information received from the Department subsequent to the initial request submittal. OFFICE OF PUBLIC ACCOUNTABILITY STATEMENT The Office of Public Accountability completed a review and supports approval of the proposed Electric Vehicle Service Rider and Experimental Alternative Maritime Power Interruptible Rate Schedule.

CAO File No. PAGE 0160-01560-0000 3 RECOMMENDATION That the Mayor and Council approve Resolution No. 013055 and draft Ordinance, to modify the existing Electric Rate Ordinance No. 168436, providing i) an Electric Vehicle Service Rider and ii) an Experimental Alternative Maritime Power Interruptible Rate Schedule. FISCAL IMPACT STATEMENT Approval of the proposed modification to the Electric Rate Ordinance No. 168436 is estimated to provide the Power Revenue Fund with approximately $2.9 million annually in net sales for every 10,000 electric vehicles; and approximately $1 million to $2 million annually from the electrification of ships at the Port of Los Angeles. The proposed Ordinance complies with the Department's adopted Financial Policies. Approval of the proposed resolution will have no impact on the City's General Fund. TIME LIMIT FOR COUNCIL ACTION The City Attorney advises that there is no time limitation for items approved by ordinance. MAS:RPR:I0130033 Attachment: City Attorney Report No. R12-0300

ANTONIO R. VILLARAlGOSA Mayor Commlssion THOMAS S. SAYLES, President ERIC HOLOMAN, Vi«Pmld.", RICHARD F. MOSS CHRISTINA E. NOONAN JONATHAN PARFREY BARBARA E. MOSCHOS, Secretory RONALD O. NICHOLS General M""rlggr September 13, 2012 The Honorable City Council City of Los Angeles Room 395, City Hall Los Angeles, California 90012 Honorable Members: Subject: Authorizes the Ordinance of the New Electric Vehicle Service Rider EV and Experimental Alternative Maritime Power Interruptible Rate Schedule Pursuant to Charter Section 676(a), enclosed for approval by your Honorable Body is Resolution No. 013 055, adopted by the Board of Water and Power Commissioners (Board) on September 12, 2012, approved as to fom1- ~djega1ity.byth~cityattorney, which authorizes the Ordinance of the N ew. ElectricVehicleService Rider BV'and Experimental Alternative Maritime Power Interruptible Rate Schedule for Mechant Ships with maximum demand of not less than 7 MW per month. As directed by the Board, transmitted to you are supporting.documents. If there are any questions regarding this item, please contact Ms. Winifred Yancy, Director of Local Government and Community Relations, at (213) 367-0025, Sincerely, Barbara E. Moschos Board Secretary BEM:oja Enclosures: LADWP Resolution Board Letter '., Water and Power Conservation. 0 a a way of life 111 North Hope Street, Los Angeles, California 90012-2607 Mailing address: Box 51111, Los Angeles 90051-5700 Telephone: (213) 367-4211 Cable address: DEWAPOLA 7f9) flootdclja. 'Ild -it"z-oofrom mcyr:!oo...tast!). '(J<7

clecc: Mayor Antonio Villaraigosa Councilmember Jose Huizar, Chair, Energy and the Environment Committee Gerry F. Miller, Chief Legislative Analyst Miguel A Santana, City Administrative Officer Rafael Prieto, Legislative Analyst, CLA William R Koenig, Chief Administrative Analyst Winifred Yaney

r-r-, L.OS ANGI5LESPl:PARTfiJlEN"r Of WATERANI) :'PO\NER (LAbWP') BOARP :AP,PROVA~:l,;ErtER, ii-to:..board 'OFWA1ER.ANDP.OWERCd~~fMlt{Stcir<ieRS PA1eJS~ptemtJ~r12,:.z012'....., i $UBaE:~rr:, AuthorJzati6nforOrcliriahce fo'r t\te)w' ele.c*ri~.v~j1t~d~$i,qyiq~m~!;jr a ndexpetil11'ental AltematiV~!VIf;\ritJm$. P9w~rin.t~rrup ~i~i~rate~cheth.ne for Merchant $hipswj"thm~~imljmi:).~m~ra~gf Not le!ssthan Seven Me.gaWai.'ts Per MiJnth ctty',qpqnqfj.;;'at3pr9va~ 1~QUIREO; Y?sJEl.{\JQD... JFYE$,I3YWH1CHCITY c:tfabti:r~ection: ~616(a) PURPOSE The attached 'jie$olution~recommendslq th~lo"$.anggi~,~oitycqynch~ppro.vf:li Qf. propo:se!d new~i$c.tr.iqrat~orqln~np~(qrqii}~n.c.~~,whi h in!qd~~ljjejj[9posed Eie'ctrlc V~hic!~ :ServiceHjq~r{Selvi F3.,~iq~rEVJ iht:l Exp~timeQtaiAlterhativeJvlatiilme]i»bWet (AM'p},Ir:i~efr"qpt,~:le~Rate$chedtlle-for MerchatifShipswHh' Maximum DemandoT Not Lesstha'nSe\ienM~~~!"aWa:tts(MW) per Month (Exp~rime.ntal.Scheduje.AMP). The pnjpq~~,dorqidang~will: G Eh 6tit~g$ : l1~6tfific~tion.oflargsch:.lis6,shlps docking at the Port ofttisangeles ip9"la){. ~. Pt6Y!9~;$,$.$tY.ice ridet'for:eieclri'c Vehicle cllarg'lhg,further encd'tlraglng customers to Use eledtric velildles,..... COST..AND.;DURATION EXpE.irimeritaJ:schedujeAM~ the ExIjeriRii13l1tal ScheddleAMp shall provide.a.n$w~xperimental rate,forcn.lisf;ll$hlp~ and otherquauwlng roerchant$tiip$wnhrnaxlrnuill1ppwer.pefl'lgnp, QfiJ.o~ I~$$lhan seven MV\rp@r,r:nml~Q, TbeQPfIQo?1 :$}{p~rwn:~tit~1 tfit will '.be $fftii"t:tjvefor'1iive years Yril${)$.t~rmjnaJ$d.$&ni$t~Tljet~Jsnb,ahticlp~tedfl$caj impa"ctteiated to::a:pproval bf the Experimental :SciiediileAMp,

.. ( (' 8:oardofVV~t~rElOdPOw,ef CO.reFrllssit'lherS R~gE?~ ts~pt.$~p'$r l4, 2'o1.r2 ( Service. Rider,lEV Th$t,APWP l3~p~pt~~oin.!;;r~~&~mqrifhlye}nergy$ale$ per ~a9heje tricv~hj le by $~~.,6,5,,-e~~m~ '~n~i9ip:at d :m!;mti11y lis.pq~ljt,pf$7.50~thi,~wuife$qltim $2~,15 additional"riel monthly sales pet electric vehicl~. For~~dJtipn~l.p l~.e!(i~q9f$vety.' to,qboelecklc:venicles, LAOWP wouid gain additlonaltlsfei'rlj1uai s aiesof$2.~million, BACKGROUND Experimental Schedule AMP " ' -,".,-.- -,. "',,:.",_.-... G~Wr~iJtIYiPfi9?f9.9hegql$f\MP.Qf EI.ec;~ri(}R~t lorginang~ No. 1E>a4$.6, as amended, merchant ships lhatdoc.k.j:~t the POIA,Will pe provigeq pf;lrti~uy.il1terruptrb{~ele.etric service 'for electrification orthelr opereitiotls While In patti a.119wi!1g1h e~ e~b.ip,~ tp work toward rn )etingsfat~qfcanfortlia mandales for alr quality Imptbv.emeht.SoTn~ofthe$e mer'c.h?1it ~h!p,jnpiy~:!inggrl!!s~&hip)s,htavf;l,shortihmportduratl~nwithhlghele ttical 16$d$,'nle~pe.r!m$nU:lISg!:le~yleAMP 'i~c.le~ignedfor,~uch'$i1!p&,1ti$ limited to merchant ships With maxirnum demand Ofri6~J~ss\h~h.'$$V ;l.n.mwp~rm.9n~n,th~ meijor components.of the rate are a monthly'minlmum qhar.ge fq.r e~9blqmjngp!3t1qq:~nq Co' :E! rt3quirej)nenlfor demand rel;1pons.e ftomthecustomer~ <rhe sxpetlmental rats setsan $h~.tgypric f.:inge, wl1.ich.wjllijttra,f.:~mega-ships that seldom dock fbr mote than a few hours stthe p.bla, yet recove:r$ th$t:9sf ~pseivethj3se IOCids,The 1.ADWP lsabh:) to s'tudyele6trici~y. usage panerrlsan~'additkih~1 9PPptt9.OiJ($$;toP(pl]lpte.iJ\PWP $f3.rvlc.~f)iwhilealsq promoting business at'the POLA, teduci~g air':pbhqtjqn, ~hq ~*p$in.~jng LAOWP lqaq........ Servi'ce 'Rider EV The currenlelectric RateOrdinahoo No. 1!684qf3,?s,~me~qElq,~lloVV$ lorce?cteljnpfll discounts fordharglngofejectricvehiciss; The LAOWPpsUeV$s :th$~$1~ trjqv~pj91.~~ Willmci.ke a.:sms.t~iriabledif:f~renq3 in the envirortmenttoday and for,gel1eitallohs to c:9.me arid desires lp h O'!Jr?g~ tt1$ir~9~ E:q(lo.l!r~gi.ng:the USe ofelel triovehides throygh favorable ratestrublures Isa practice9fl~@q.hig hauon$! utillties.toernbrace:the. upcoming electric yehioie ers,ladwp ISproposIng Ejaeryi $tiej$f (qr ell.;wlric vehlcl~ charging{qpr,ovif.lf? hew incentives to its.customersthatllseanejebtricv~hjo.len.}$t?r dedibelted it),~ef:;lsl,lringqqn~umpuonfore.rectflo vehldlechatglng. This ServicaRlder EV.isapplicableto b6thj;)(~s~i:i.dg$:rq~r~anq~f3~tve.m.iglesand:all.ows for Charging statibnsseparatefrom ofherenergycdnsumplloh, $q ha~inp[:lddn~ lots,... '. ('

Board afwater and Power Ocmmlesloners P.~ge9 Septembet12, 201.2 Fhe Pf9PO$sd rh:ferencourages chargingduring thl?~~$e Periog,8:QO,p,m. to 1O~OO }rn..w~~kqclysandall dayon weekends, by giving a di$cql!dt.fqr~pe.rgy consumed du'rir!'9this periqd for,c;?lactricvehicle charging. The exps'cieq in f$.a$~of Base Period load is beneficial to LJ\DVl/P because offhe existing availability 'of low",c9.~t,g~n\?ratjqn, transmlsslon,and distributioh cej'pclcity.the additlonalloadwill irriprovefhe L"PWP'sPqwer System operaliori~fficiehcy. A demand response compcmetlt is also part ofthe proposed Service Rjder EV~A. fime-of-uss meter with remote distbnneg,tipn qapelbihiy wihbepro\iidedto the cusidm$r l?ytaovvpsp that L'AoWp may remotely'interruptariy qeqi~teq electric vehicle chatgerqir ki!t during Gondiiiool;>of high system pea~s, IqW ge.hetauoo,hiqnmcu'ket ptic9s!uhuslial terripef'ature, and power system contingeli'cies. Customers served under rate sbh'edulesr"'1 RateS; A-1 Rgte a, A-2 Rate H,A-3}~ate A;~hd,A-4R~teA of ElectdcRate OrctinSrice'N'o:1684~p,~$'~lTlf:mdl?d, who' $re owners or lessees 9ff~gistEJr~d electric vehiclesh1ay have $epf;ir~~e,rfle,tejr~forthejir elec:tric vehicle charging liri,der S~rvicEJRjd~r'BVor otherwise have su6b9l1argiri9p13 rnf:iteredjoiritiy with other electric u~i3g~, Gl,lstqmars served Uhder6ther'electric. $rvj,e 't~te s,c,heid4ieswhl be r:equired to have their elect,tipvejljicle 'chcirging be se,patateiy"fhgt :r~d to-take 'Cidvantage of SSrVlceRlder EV, ~n,qq'orisumption metered by such separate electrjc v~hiclejmeters will be blhed according to lirn13"pf-qse rates, as describedln the proposed S~hiicei Rider EV.. RECCIVI.ivTENDATION Itlstequested that your HOIl9r~bl~Boardadopt theanaohed ~esqlqtiqljt$'pqmme;lnding th.elof:),an9~tescity Council's appr6val6f~he proposed Ordlnance, lnciuditigjhe. ptop9s~qs~rvlce Rider EVand Experimental Schedule AMP service option's. DET:sc,Aft~ch.ment e';gtc3.u: Ronald 0, Nlohols RichCl,rqM,arown AraiU~~,hY?mjn James B..McDaniel Philip Leiber GarYVYong ~~ffe.ryl:; P\"?,ltola GeorgeZ Chen

RESOLUTION NO. 0_1 3_05_5_ WHEREAS, the Department of Water and Power of the City of Los Angeles (Department) desires to encourage experimental usage of Alternative Maritime Power (AMP) by cruise ships at the Port of Los Angeles (POLA) for study of electricity usage patterns and additional opportunities to promote the Department's services by introducing an experimental interruptible rate schedule (Experimental Schedule AMP); and WHEREAS, the current Schedule AMP encourages electrification of merchant ships, which consume energy while in the POLA; and WHEREAS, cruise ship electrification power consumption requirements while at the POLA are significantly different than those of container liners due to the nature of their businesses; and WHEREAS, cruise ships have high load with short in-port durations; and WHEREAS, the Experimental Schedule AMP for cruise ships and other qualifying merchant ships with maximum demand of not less than seven megawatts per month, containing a monthly minimum charge for each billing period, better suits the operations and consumption behavior of such ships; and WHEREAS, the Experimental Schedule AMP allows partial service interruption with ten minutes' advance notice and will be effective for five years unless terminated earlier; and WHEREAS, electrification of the operations of cruise ships and other qualifying merchant ships while docked in the POLA allows these ships to work toward meeting State of California mandates for air quality improvement; and WHEREAS, electrification of cruise ship operations while in the POLA is expected to reduce air emissions significantly and improve air quality, while also increasing POLA business, improving the local economy; and WHEREAS, the Department also desires to provide a new Service Rider EV that encourages customers to embrace electric vehicles and make a sustainable difference in the environment; and WHEREAS, the proposed new Service Rider EV should be especially useful to support customers with fleets of electric motor vehicles; and WHEREAS, the proposed new Service Rider EV for electric vehicle charging allows for charging stations separate from other energy consumption; and

ORDINANCE NO, -c-- An ordinance approving the rates fixed by the Department of Water and Power of the City of Los Angeles and to be charged for electrical energy distributed and for service supplied by said Department to its customers and approving the time and manner of payment of the same, as prescribed by said Department. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. That the rates to be charged and collected and the terms, provisions and conditions to be effective respecting such rates for electrical energy distributed and for service supplied by the Department of Water and Power (Department) of the City of Los Angeles (City) to its customers, fixed by Resolution No. I adopted by the Board" of Water and Power Commissioners on, are hereby approved. Such rates and conditions so fixed are as set forth in the following sections: Sec. 2. That such service supplied to customers within the incorporated limits of the City of Los Angeles and to customers within the Counties of 1nyo and Mono, California, shall be in accordance with rate schedules prescribed in this section as follows and any rate schedules prescribed in any other effective ordinance of the City of Los Angeles: 1

(' ( A, EXPERIMENTAL AMP INTERRUPTIBLE RATE SCHEDULE FOR MERCHANT SHIPS WITH MAXIMUM DEMAND OF NOT LESS THAN 7 MWPERMONTH ( 1. Applicability Applicable to services with energy usage resulting from Merchant Ships with Maximum Demand of not less than 7 megawatts (MW) per month participating in the Port of Los Angeles (PoLA) Alternative Maritime Power (AMP). Seventy-five percent of energy consumed by services on this schedule must be from Merchant Ships, which are ships consuming electricity while docked at POLA'. POLA shall be responsible for the installation and maintenance of facilities up to the high-side of the 34.5 kilovolts (kv) Station which is serving the Merchant Ship loads. Not applicable to. customers served under Service Rider NEM Net Energy Metering and General Service Rider EZ Enterprise Zone of the Electric Rate Ordinance. The Department may remotely interrupt any AMP load under this service with ten minutes' advance notice to POLA even if other applicable ordinances of the City of Los Angeles prescribe a longer advance notice period for such purpose. Until the Department controls the equipment required for remote interruption, the Department may elect to initiate remote interruption of AMP load through a telephone call, text message telephone call, or e-mail message. The Department shall determine the interruption duration. POLA shall be responsible for purchasing and installing all equipment required for remote interruption. ( 2. Monthly Rates through June 30,2013 Rate B - Experimental AMP Interruptible Rate for Merchant Ships with Maximum Demand of not less than 7 MW per month Minimum Charge $ 10,000.00 1 Energy Charge - per kwh $ 0.00953 3. Monthly Rates beginning July 1~2013 Rate B - EXperimental AMP Interruptible Rate for Merchant Ships with Maximum Demand of not less than 7 MW per month MInimum Charge $ 10,000.00. 1 Energy Charge - per kwh $ 0.00953 4. Billing: The bill shall be Rate B part (1) above plus the sum of Rate A's parts (3) through (8) of the AMP interruptible Rate from Schedule AMP [ i] of the ( ')

Incremental Electric Rate Ordinance plus the sum of parts (1) and (3) through (7) of the AMP Interruptible Rate from Schedule AMP of the Electric Rate Ordinance; however, if the total of all these parts IS less than $10,000.00, then the bill shall be a Minimum Charge of $10,000.00. 5.: General Conditions a. Reactive Energy Charge The Reactive Energy Charge shall be based on the lagging kilovarhours (kvarh) recorded during each Rating Period, dependent upon the High Peak Period Power Factor. If reactive energy is unknown or unmetered, then the Reactive Energy Charge shall be replaced by additional kilowatt-hour charges. b. Interruptible Service Conditions To receive service under this rate schedule, POLA shall sign a contract with the Department, unless the provisions of an exlstinq contract already executed with the Department incorporate the charges and conditions of this rate schedule. The interruptible Demand is that portion of the demand which the Department will supply to POLA at all times except during a Period of Interruption for energy usage resulting from Merchant Ships with Maximum Demand of not less than 7 MW per month. During a Period of Interruption, the Department will supply POLA not more than the Firm Demand, The Department shall provide not less than 10-minutes' advance notice of a Period of Interruption even if other applicable ordinances of the City of Los Angeles prescribe a longer advance notice period for such purpose. A Period of Interruption is that interval of time, initiated and terminated by the Department, during which the Department is obligated to supply no more than the Firm Demand. A Period of Interruption will occur when operating reserves, in the Department's sole judgment, are inadequate to maintain system energy supply. Load interruption shall be initiated remotely by Department Load Dispatchers. Firm Demand, which may be specified at different values for High Season and Low Season, is that portion of demand which the Department will supply to POLA without limitation on the periods of availability for energy usage resulting from Merchant Ships with Maximum Demand of not less than 7 MW per month, 3

c ( _~_~_..'~~._._~._.,~..-,._~~_-.~~.. ~~..~_~c.~ ~~ ~..'. ~_.,. ~. ~.".~_"~<_, '0_._.._"._., c. Interruption Frequency and Duration Periods of Interruption are unlimited and interruption duration shall be at the sale discretion of the Department ( d. Substation Equipment on Customer's Site All equipment or structures necessary for Department to serve customer from the 34.5 kv Subtransmission Service Voltage shall be located on the customer's site and shall be owned and maintained by POLA... e. Metering Metering of energy and demand shall be from the 34.5 kv Subtransrniselon Service Voltage by meters provided by the Department on the primary side of the transformer, or at the Department's option, on the secondary side of the transformer and compensated by instruments or loss calculations to the primary side of the transformer. All non-amp load will be metered separately from the normal AMP service. POLA will provide metering facilities for non-amp load, and ('.' the Department will provide the TDK (non-billing) meters for the non-... AMP load to ensure more than seventy-five percent of energy consumption is from Merchant Ships..f. Selection of Rates POLA may elect to receive service for a Merchant Ship with Maximum Demand of not less than 7 MW per month participating 'in AMP either as prescribed in this schedule or as prescribed by the combination of other applicable rate schedules from any other effective ordinances of the City of Los Angeles. g. Conclusion of Rates This experimental schedule shall expire 5 years from its effective date unless terminated earlier. h. Applicability of Rules and Regulations Application of this schedule shall be subject to the rules and regulations adopted by the Board of Water and Power Commissioners, including the Rules Governing Water and Electric Service. C 4

6. Definitions Unless distinctly defined within this schedule, the terms utilized in this schedule share the definitions provided in the Definitions section of the Ceneral Provisions of the Electric Rate Ordinance and the Incremental Electric Rate Ordinance. For the purposes of this 'schedule, the following.definitions shall apply: 3. Electric Rate Ordinance Ordinance No. 168436, as amended by Ordinance Numbers 171968, 172338,172431,172706,172958,173788,174175, 174340, 174475, 174481,174503,175017,175722,177331,177868, 179268, 179801, 180127, and 181181. b. Incremental Electric Rate Ordinance A City of Los Angeles ordinance, other than the Electric Rate Ordinance and this ordinance, containing charges for electrical energy distributed and for service supplied by the Department to Its customers, which are to be added to the charges of corresponding rates prescribed in any other effective ordinance. c, Megawatt (MW) One million watts. d. Rules Governing Water and Electric Service The Rules Governing Water and Electric and Service in the City of Los Angeles as adopted by Resolution No. 56, dated September 8, 1983, by the Board of Water and Power Commissioners of the City of Los Angeles, and.all amendments, revisions, and replacements thereof. 5

( ( B. SERVICE RIDER EV ELECTRIC VEHICLE ( 1. Applicability Applicable to a customer of the Department that is the registered owner or lessee of a passenger or commercial Electric Vehicle. The lessor of an Electric Vehicle (EV) ls not eligible for the discount in this Service Rider EV for that leased Electric Vehicle. 2. Qualiflcati9n for Service Rider EV To qualify for service under this rider, it is a precondition that the customer must apply through the Department's web site, provide valid proof of Electric Vehicle registration from the State of California Departmentof Motor Vehicles, and provide charging station certification to the Department. Additionally, to qualify for service under this rider, the customer shall have an Electric Vehicle meter dedicated to measuring consumption for Electric Vehicle charging, which is exclusive of or separate from the customer's other billing meter or meters. 3. Selection of Rates Customers under this service rider may elect to receive service pursuant to either the Separately-Metered Time-of-Use EV Rate or the Separately- Metered Alternative EV Rate. ( a. Separately-Metered Tlme-of-Use EV Rate Service to be metered by the mandatory Electric Vehicle meter, which shall be a Time-of-Use Electric Vehicle meter, for customers electing the Separately-Metered Time-of-Use EV Rate shall be referred to as the Time-of-Use EV Service. The applicable Separately-Metered Time-of-Use EV Rate shall be Incremental Electric Rate Ordinance Schedule R-1 [ i ] Rate Band Electric Rate Ordinance Schedule R-1 Rate B, Incremental Electric Rate Ordinance Schedule A-1 [i] Rate B and Electric Rate Ordinance Schedule A-1 Rate B, Incremental Electric Rate Ordinance Schedule A-2 [ i] Rate B and Electric Rate Ordinance Schedule A-2 Rate B, Incremental Electric Rate Ordinance Schedule A-3 [i] Rate A and Electric Rate Ordinance Schedule A-3 Rate A, or Incremental Electric Rate Ordinance Schedule A-4 [ i] Rate A and Electric Rate Ordinance Schedule A-4 Rate A, as determined by the service voltage, demand, and customer class. ( 6

The bill under a customer's Separately-Metered Time-of-Use EV Rate shall be the sum of all parts of the applicable constituent rates, but the bill shall be adjusted as follows: (1) Instead of receiving the Electric Vehicle Discount detailed in the applicable schedule of the Electric Rate Ordinance, a discount of $0.025 per kwh shall be applied to energy consumed for Electric Vehicle charging during the Base Period, as measured by the Time-of-Use Electric Vehicle meter. (2) The Service Charge will be waived for the dedicated Time-of-Use EV Service.. (3) The bill shall not be less than a $10.00 Minimum Charge plus the sum of the following parts of the Incremental Electric Rate Ordinance as applicable: Parts (3) through (6) of Schedule R-1 [ i ] Rate B; or 9 Parts (4) through (7) of Schedule A-1 [ i] Rate B; or III Parts (5) through (8) of Schedule A-2 [ i] Rate B; or D Parts (5) through (8) of Schedule A-3 [ j'] Rate A; or 9 Paris (5) through (8) of Schedule A-4 Ii] Rate A; and the following parts of the Electric Rate Ordinance as applicable: G Parts (4) and (6) of Schedule R-1 Rate B; or II Parts (5) and (7) of Schedule A-1 Rate B; or iil Parts (6) and (8) of Schedule A-2 Rate B; or 9 Paris (6) and (8) of Schedule A-3 Rate A; or @ Parts (6) and (8) of Schedule A-4 Rate A. D. Separately-Metered Alternative EV Rate Service to be measured by the mandatory Electric Vehicle meter for customers electing the Separately-Metered Alternative EV Rate shall be referred to as the EV Service. The applicable Separately-Metered Alternative EV Rate shall be Rate A of the AMP Interruptible Rate from Schedule AMP [ i ] of the incremental Electric Rate Ordinance and the AMP Interruptible Rate from,schedule AMP of the Electric Rate Ordinance; however, no portions of Schedule AMP [ i]and Schedule AMP apply to service under this rider except for the Monthly Rates portions. The bill under a customer's Separately- Metered Alternative EV Rate shall be the sum of all parts of the constituent rates.

( ( 4. General Conditions ( <:!. Any discount from application of the Separately-Metered Time-of-Use EV Rate will only be applied to the bill far the connected Time-of-Use Electric Vehicle meter. b. Any discount from application of this Service Rider EV is inapplicable to taxes and Minimum Charges. c. The customer shall notify the Department when the customer no longer 'owns or leases an Electric Vehicle. Failure to notify the Department, which results in billing to a customer that incorporates this Service Rider EV for any period of ineligibility, shall be deemed to have caused a Department error in billinq, subject to correction in accordance with the Rules Governing Water and Electric Service and applicable law. d. If a customer is a registered owner or lessee of a passenger or commercial Electric Vehicle and is receiving service under Schedules R- 1 Rate.B, A-1 Rate B, A-2 Rate B, A-3 Rate A, or A-4 Rate A of the Electric Rate Ordinance, with Service Rider NEM of the Electric Rate Ordinance applied to such rate, such customer may elect not to install a separate meter dedicated to measuring EV charging consumption; however, such customer will not be eligible for service under this rider. ( e. Except for customers served under Schedule A-4 of the Electric Rate Ordinance, Service Rider Renewable Energy Option (REO) will be applied to the Electric Vehicle meier dedicated to measuring charging consumption if a customer elects to participate in the program to further the development and usage of renewable generation resources for the EV charging. 5. Interruption of Separately-Metered EV Service In order to support demand response, the Department may, at its sole discretion, remotely interrupt any dedicated EV charger circuit for customers receiving service under this Service Rider EV. Department remote interruption of service may include, but not be limited to, periods of high system peaks, low generation, high market prices, unusual temperature, and system contingencies. The Department will provide and instal! meters with remote disconnection capability prior to the customer receiving Time-of-Use EV Service or EV Service. ( 8

0. Definitions Unless distinctly defined within this schedule, the terms utilized in this schedule share the definitions provided in the Definitions section of the Genera! Provisions of the Electric Rate Ordinance and the Incremental Electric Rate Ordinance. For the purposes of this schedule, the following definitions shall apply: <:l. Electric Rate Ordinance City of Los Angeles Ordinance No. 168436, as amended by City of Los Angeles Ordinance Numbers 171968, 172338, 172431, 172706, 172958, 173788, 174175, 174340, 174475, 174481, 174503, 175017, 175722,177331,177868, 179268, 17980~, 180127,and181181. b. Incremental Electric Rate Ordinance A City of Los Angeles ordinance, other than the Electric Rate. Ordinance and this ordinance, containing charges for electrical energy distributed and for service supplied by the Department to its customers, which are to be added to the charges of corresponding rates prescribed in any other effective ordinance, c. Electric Vehicle An Electric Vehicle is a ground vehicle propelled by a motor powered by electrical energy from rechargeable batteries onboard the vehicle. Electric Vehicles that qualify for this Service Rider EV include only pure battery electric vehicles with a battery size of not less than 8 kwh energy storage and plug-in hybrid electric vehicles WIth a battery size of not less than 8 kwh energy storage, d. Rules Governing Water and Electric Service The Rules Governing Water and Electric and Service in the City of Los Angeles as adopted by Resolution No, 56, dated September 8, 1983, by the Board of Water and Power Commissioners of the City of Los Angeles, and all amendments, revisions, and replacements thereof 9

c ( I,., Sec. 3. That the general provisions relating to electrical service supplied under schedules prescribed herein shall be as stated in the General Provisions of both the Electric Rate Ordinance and the Incremental Electric Rate Ordinance. In the event of any discrepancy between a schedule prescribed herein and the General Provisions of either the Electric Rate Ordinance or the Incremental Electric Rate Ordinance, the terms and conditions under the schedule prescribed herein shall prevail. ( Sec. 4. That this ordinance shall not become effective until the effective date of a City of Los Angeles ordinance approving the rates to be charged and collected and the terms, provisions and conditions to be effective respecting such rates for electrical energy distributed and for service supplied by the Department to its customers, fixed by Resolution No., adopted by the Board of Water and Power Commissioners on.. Sec. 5. That the approval of the foregoing electrical rates by this Council is exempt from the requirements of the California Environmental Quality Act under the provisions of Section 21 080(b)(8), and this Council makes this claim of. exemption pursuant to said section and authorizes claim of exemption to be filed with the appropriate aqencies. Sec. 6. That if any section, subsection, sentence, clause, or phrase in this. ordinance or the application thereof to any person or circumstance is for any ( reason held invalid, the validity of the remainder of the ordinance or the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases or the application thereof to any person or circumstance be held invalid, 10 c

Sec. 7. The City Clerk shall certify to the passage of this ordinance and have it published in accordance with Council policy, either in a daily newspaper circulated in the City of Los Angeles or by posting for ten days in three public places in the City of Los Angeles: one copy on the bulletin board located at the Main Street entrance to the City Hall; one copy on the bulletin board located at the Main Street entrance to City Hall East; and one copy on the bulletin board located at the Temple Street entrance to the Los Angeles County Hall of Records. I hereby certify that the foregoing ordinance was passed by the Council of the City of Los Angeles, at its meeting of JUNE LAGMAY, City Clerk Deputy Approved _ Approved as to Form and Legality Mayor CARMEN A. TRUTANICH, City Attorney By (insert name here) Assistant City Attorney _ File No. _ BE!T FURTHER RESOLVED that this matter is forwarded to the Los Angeles City Council for approval by ordinance. I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of a Resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held SEP 1 22012 APPR(i)VED AS TO FORM AND LEGAlITY CARMEN A. TRLrr ANICH, CITY morney SEP 042012,Secretary By~t:.~ ElR1AN E, STEWART DEPUTY C!TY ATTORNEV 11

City H~ll East 200 N. Main Street Room 300 Los Angeles, CA 900!2 (2 i3) 973-8100 Tel (213) 978 8312 fax C'1 rut~nich@l~city.org www.lacity.org/nrry CARMEN A. TRVTANICH City Attorney REPORT NO. R 1 2-0 '3 0 0 SEP I 8 2012 REPORTRE: DRAFT ORDINANCE FOR AN ELECTRIC VEHICLE SERVICE RIDER FOR ELECTRIC SERVICE PROVIDED BY THE DEPARTMENT OF WATER AND POWER AND FOR AN OPTIONAL, EXPERIMENTAL RATE FOR CRUISE SHiPS AND OTHER MERCHANT SHIPS WITH MAXIMUM DEMAND OF NOT LESS THAN SEVEN MEGAWATTS PER MONTH PARTICIPATING IN THE PORT OF LOS ANGELES (POLA) ALTERNATIVE MARITIME PROGRAM (AMP) FOR ELECTRIFICATION OF SHIP OPERATIONS WHILE DOCKED AT POLA The Honorable City Council of the City of los Angeles Room 395, City Hall 200 North Spring Street los Angeles, California 90012 Honorable Members: This Office has prepared and now transmits for your consideration the enclosed draft ordinance, approved as to form and legality. This draft ordinance both establishes a service rider to facilitate the use of separate meters for charging of electric vehicles (EV) by customers of the Department of Water and Power of the City of Los Angeles (LADWP) and creates an experimental electric rate for cruise ships and other qualifying merchant ships with maximum demand of not less than seven (7) megawatts per month, which will be an option to the rate prescribed in the existing Schedule AMP Port of Los Angeles Alternative Maritime Power (Schedule AMP) of Electric Rate Ordinance No. 168436, as amended (Electric Rate Ordinance). The proposed experimental AMP rate will last for five (5) years unless terminated earlier. This draft ordinance shall not become effective until the associated draft incremental electric rate ordinance, which adds charges to the charges of corresponding. rates prescribed in any other effective ladwp electric rate ordinance, also becomes effective..

The Honorable City COUl of the City 01< Los Angeles Page 2 In 2008, the City Council approved electric rate restructuring that included Schedule AMP, a rate that was applicable to services with energy usage resulting from merchant ships participating in the Port of Los Angeles (POLA) Alternative Maritime Power (AMP) program. AMP-equipped vessels docked at POLA plug into shore side electrical power, which assists POLA in its efforts to improve air quality and meet State mandates. Seventy-five percent of energy consumed by AMP services must be from merchant ships, ships consuming electricity while docked at POLA. To receive service under Schedule AMP, POLA has a contract with LADWP. LADWP may remotely interrupt any AMP load with thirty minutes' advance notice to POLA when operating reserves, in the sale judgment of LADWP, are inadequate to maintain system energy supply. LADWP shall determine the interruption duration. During a period of Interruption, LAOWP is still obligated to provide a minimum level of electrical service, or. firm demand, as set by contract. Due to desires to study electricity usage patterns and additional opportunities to promote LADWP services, to promote business at the POLA, to help reduce air pollution, and to expand LADWP load, LADWP is proposing an optional, experimental rate for cruise ships and other qualifying merchant ships with maximum demand of not less than seven (7) megawatts per month. This experimental rate will expire five (5) years from its effective date unless terminated earlier. The experimental rate is designed to address the operations of cruise ships and other merchant ships of similar size. These ships tend to have power consumption requirements while at POLA that are Significantly different than those of container liners due to the nature of their businesses and often have short in-port durations. Consequently, a major component of the proposed experimental rate is a monthly minimum charge. POLA may elect to receive service for a cruise ship or other qualifying merchant ship either as prescribed in the experimental rate schedule or as prescribed by the combination of other applicable rate schedules from any other effective ordinances of the City of Los Angeles, including the existing Schedule AMP and the proposed draft incremental electric rate ordinance. One difference between the experimental AMP rate and the existing Schedule AMP is that LADWP may remotely interrupt any AMP load under the experimental AMP rate with ten minutes' advance notice to POLA Also, the experimental rate clarifies that, until LADWP controls the equipment required for remote interruption, LADWP may elect to initiate remote interruption of AMP load through a telephone call, text message telephone call or e-mail message. The existing Electric Rate Ordinance allows for bill discounts for charging of electric vehicles based on the block of energy designated by LADWP as necessary for basic EV charging. To further encourage the use of electric vehicles, LADWP is proposing a service rider for electric vehicle charging to provide new incentives to its customers that use an electric vehicle meter dedicated to measuring consumption for

The Honorable City Caul '. of the City of Los Angeles Page 3 electric vehicle charging. This EV service rider is applicable to both passenger cars and fleet vehicles and allows for charging stations separate from other energy consumption, If a customer elects the Separately-Metered Time-of-Use Rate, the proposed rider encourages charging during the Base Period, 8:00 p.m. to 10:00 a.m. weekdays and all day on weekends, by giving a discount of $0.025 per kilowatt-hour for energy consumed during this period for electric vehicle charging instead of giving the block Electric Vehicle Discount detailed in the applicable schedule of the existing Electric Rate Ordinance. Additionally, the Service Charge of the applicable schedule of the existing electric rate ordinance will be waived for the service under the Separately-Metered Time-of-Use Rate. An alternative EV rate is also available for separately-metered electric vehicle charging under the proposed service rider. A demand response component is also part of the proposed EV service rider. A meter with remote disconnection capability will be provided to the customer by LADWP so that LADWP may, in its sale discretion, remotely interrupt any dedicated electric vehicle charger circuit during periods of high system peaks, low generation, high market prices, unusual temperature and system contingencies. Summary of Ordinance~provislons Charter Section 676(21) provides that rates for electricity shall be fixed by the Board from time to time as necessary, subject to approval by the Council. Approving this ordinance will establish the electric rates as described above. Council Rule 38 Referral This draft ordinance has been approved by the Board of Water Commissioners pursuant to Council Rule 38, and Power Office of PUblic Accountagility Analys.i. The Office of Public Accountability, including a Ratepayer Advocate (RPA), was established to provide public independent analysis of LADWP actions as they relate to water and electric rates. The RPA has reviewed the proposed draft ordinance and recommended approval of the electric rate proposal.

The Honorable City COUI of the City of Los Angeles Page 4 If you have any questions reg arding this matter, please contact Deputy City Attorney Brian E. Stewart at (213) 367-5115. He or another member of this Office will be present when you consider this matter to answer any questions you may have. PBE:BES:ps Transmittal Sincerely, CARMEN A. TRUTANICH, City Attorney c/;::; /' //Y/ /~I By /='1/$>1",-" {~ :l~r(~~-------,.-/ PEDRO B. ECHEVERRIA Chief Assistant City Attorney M:IProprletary ~OCCIOVVPIBRIAN STEWARTIAMPReportWord9.14.12,c!oc

ORDINANCE NO, ~ _ An ordinance approving the rates fixed by the Department of Water and Power of the City of Los Angeles and to be charged for electrical energy distributed and for service supplied by said Department to its customers and approving the time and manner of payment of the same, as prescribed by said Department. THE PEOPLE OF THE CITY OF los ANGELES DO ORDAIN AS FOLLOWS: Section 1. The rates to be charged and collected and the terms, provisions and conditions to be effective respecting such rates for electrical energy distributed and for service supplied by the Department of Water and Power (Department) of the City of Los Angeles (City) to its customers, fixed by Resolution No. 013 055, adopted by the Board of Water and Power Commissioners on September 12, 2012, are hereby approved. Such rates and conditions so fixed are as setforth in the following sections: Sec. 2. Such service supplied to customers within the incorporated limits of the City of Los Angeles and to customers within the Counties of Inyo and Mono, California, shall be in accordance with rate schedules prescribed in this section as follows and any rate schedules prescribed in any other effective ordinance of the City of Los Angeles: A. EXPERIMENTAL AMP INTERRUPTIBLE RATE SCHEDULE FOR MERCHANT SHIPS WITH MAXIMUM DEMAND OF NOT LESS THAN., MW PER MONTH 1, Applicability Applicable to services with energy usage resulting from Merchant Ships with Maximum Demand of not less than 7 megawatts (MW) per month participating in the Port of Los Angeles (POLA} Alternative Maritime Power (AMP). Severity-five percent of energy consumed by services on this schedule must be from Merchant Ships, which are ships consuming electricity while docked at POLA. POLA shall be responsible for the installation and maintenance of facilities up to the high-side of the 34.5 kilovolts (kv) Station which is serving the Merchant Ship loads. Not applicable to customers served under Service Rider NEM Net Energy Metering and General Service Rider EZ Enterprise Zone of the Electric Rate Ordinance. The Department may remotely interrupt any AMP load under this service with ten minutes' advance notice to POLA even if other applicable ordinances of the City of Los Angeles prescribe a longer advance notice period for such purpose. Until the Department controls the equipment required for remote interruption, the Department may elect to initiate remote interruption of AMP load through a telephone call, text message telephone call or e-mail message. The Department shall determine the interruption duration. POLA shall be responsible for purchasing and installing all equipment required for remote interruption. 'I

2. Monthly Rates through June 30, 2013 Rate B - Experimental AMP Interruptible Rate for Merchant Ships with Maximum Demand of not less than 1 MW per month Minimum Charge $ 10,000.00 'I Energy Charge - per kwh $ 0.00953 3. Monthly Rates beginning July 1, 2013 Rate B - Experimental AMP interruptible Rate for Merchant Ships with Maximum Demand of not less than 7 MW per month Minimum Charge $ 10,000.00 1 Energy Charge - per kwh $ 0.00953 4. Billing: The bill shall be Rate B part (1) above plus the sum of Rate A's parts (3) through (8) of the AMP Interruptible Rate from Schedule AMP [ i] of the Incremental Electric Rate Ordinance plus the sum of parts (1) and (3) through (1) of the AMP Interruptible Rate from Schedule AMP of the Electric Rate Ordinance; however, if the total of all these parts is less than $10,000.00, then the bill shall be a Minimum Charge of $10,000.00. 5. General Conditions a. Reactive Energy Charge The Reactive Energy Charge shall be based on the laggjng kllovar-hours (kvarh) recorded during each Rating Period, dependent upon the High Peak Period Power Factor. If reactive energy is unknown or unmetered, then the Reactive Energy Charge shall be replaced by addition at kilowatt-hour charges, b. Interruptible Service Conditions To receive service under this rate schedule, POlA shall sign a contract with the Department, unless the provisions of an existing contract already executed with the Department incorporate the charges and conditions of this rate schedule. The Interruptible Demand is that portion of the demand which the Department will supply to POLA at all times except during a Period of interruption for energy usage resulting from Merchant Ships with Maximum Demand of not less than 7 MW per month. During a Period of Interruption, the Department will supply POLA not more than the Firm Demand. 2.

The Department shall provide not less than 1O-minutee' advance notice of a Period of Interruption even if other applicable ordinances of the City prescribe a longer advance notice period for such purpose, A Period of Interruption is that interval of time, initiated and terminated by the Department, during which the Department is obligated to supply no more than the Firm Demand, A Period of interruption wilf occur when operating reserves, in the Department's sale judgment, are inadequate to maintain system energy supply, load' interruption shall be initiated remotely by Department Load Dispatchers, Firm Demand, which may be specified at different Values for High Season and Low Season, is that portion of demand which the Department Will supply to POLA without limitation on the periods of availability for energy usage resulting from Merchant Ships with Maximum Demand of not less than 7 MW per month. c. Interruption Frequency and Duration Periods of Interruption are unlimited, and interruption duration shall be at the sale discretion of the Department. d. Substation Equipment on Customer's Site All equipment or structures necessary for Department to serve customer from tile 34.5 kv Subtransmission Service Voltage shall be located on the customer's site and shall be owned and maintained by POLA e. Metering Metering of energy and demand shall be from the 34.5 kv Subtransmission Service Voltage by meters provided by the Department on the primary side of the transformer, or at the Department's option, on the secondary side of the transformer and compensated by instruments or loss calculations to the primary side of the transformer. All non~amp load will be metered separately from the normal AMP service. POLA wlll provide metering facilities for non~amp load, and the Department will provide the TDf< (non-bllllnq) meters for the non~amp load to ensure more than seventy-five percent of energy consumption is from Merchant Ships. f. Selection of Rates POLA may elect to receive service for a Merchant Ship with Maximum Demand of not less than 7 MW per month participating in AMP either as prescribed in this schedule or as prescribed by the combination of other applicable rate schedules from any other effective ordinances of the City, 3