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RES-2014-146 RESOLUTION NO. 2014- 146 A R�SOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DETERMINING THAT A PROCUREMENT TARGET FOR ENERGY STORAGE SYSTEMS IS NOT APPROPRIATE DUE TO LACK OF COST-EFFECTNE AND VIA'�LE OPTIONS AND AUTHORIZING THE PUBLIC UTILITIES GENERAL MANAGER OR DESIGNEE TO PREPARE, EXECUTE, AND SUBMIT DOCUMENTS AND TAKE SUCH ACTIONS AS NECESSARY IN CONNECTION WITH THE DETERMINATION MADE HEREUNDER. WHEREAS, Assembly Bill (AB) 2514 requires the governing boards of each publicly-owned utility, including the Ciry of Anaheim (Anaheim), to determine any cost- effective and viable energy storage technologies for its utility systems and to set procurement targets by October 1, 2014; and WHEREAS, the Anaheim Public Utilities Department (Department) prepared an Energy Storage System Evaluation Plan to outline the evaluation process for energy storage (F,S) systems, and, on April 17, 2012, the Anaheim City Council approved this plan and directed the Department to undertake an evaluation of the efficacy of ES systems within Anaheim consistent with AB 2514; and WHEREAS, the Department evaluated ES systems, their viability and availability as well the cost effectiveness of these systems for the Department and its electric service system; and WHEREAS, the Energy Storage System Plan (the "Plan"), which is attached to the staff report accampanying this resolution, lays out the Department's evaluation of ES systems and contains its findings; and WHEREAS, the Plan concluded that ES technologies are relatively new and expensive, not to mention vary in maturation; and WHLREAS, the Plan also concluded that ES technologies are space intensive and difficult to site in an urban setting such as Anaheim; and WHI�REAS, the Plan also found that the ES technologies do not assist Anaheim with reducing peak demand as Anaheim is already well-resourced to meet such demands; and WHEREAS, the Plan determined that the ES technologies will not add to Anaheim's system reliability as (1) Anaheim already has high system reliability; (2) ES technologies at Anaheim substations will be useful in rare broader supply occurrences but will not be useful for outages caused by vehicle accidents or tree branches; and NOW, THEREFORE, BE IT RESOLVED by the Anaheim City Council as follows: 1. The findings set forth above and within the Plan are hereby adopted by the Anaheim City Council. 2. Based on the foregoing, the Anaheim City Council determines that the adoption of procurement targets are for ES systems for either December 31, 2016 ar December 31, 2021 is not appropriate due to lack of cost-effective energy storage system options. 3. The Anaheim City Council authorizes the Public Utilities General Manager, or design�e, on behalf of Anaheim, to prepare, execute, and submit any documents and take such actions, as necessary, in connection with the determination made hereunder. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this � Zth day of A„ , 2014, by the following roll call vote: AYES: Mayor Tait, Council Members Eas�ma.n, Murray, Brandman and Kring NOES: N�ne ABSENT: None ABSTAIN: None CITY OF NAHEIM MAYOR OF TH CITY OF ANAHEIM ATTES • CITY CLERK OF THE CITY O ANAHEIM CAO# 102353 2