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SCE Streetlight LED Conversion <br />December 7, 2021 <br />Page 2 <br />2 <br />3 <br />1 <br />2 <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Southern California Edison will convert 3,690 utility-owned street lights to LED. SCE will <br />furnish all materials and labor to complete the lighting retrofits. SCE would recover these <br />costs through amortizing those costs in the form of the Energy Efficiency Premium Credit <br />(EEPC) on the City’s monthly electricity bill over the course of 20 years. The monthly cost <br />of the EEPC will be $6,121. <br />Despite the addition of the EEPC to fund the retrofits, the reduced electricity consumption <br />would still lead to the City saving money on a monthly basis. Based on the current rates, <br />SCE projects the City would reduce electricity charges by $14,945 per month. When <br />factoring in the addition of the EEPC, the City could expect to realize $8,824 in monthly <br />cost savings as shown below: <br />Estimated Monthly Energy Cost Savings $14,945 <br />Estimated EEPC Charge $6,121 <br />Net Monthly Savings $8,824 <br />At the conclusion of the EEPC payback period (20 years), it is estimated that the annual <br />cost savings will increase to $14,945 per month, assuming electricity rate increases are <br />consistent with historic averages. Should electricity rates increase at a greater rate, there <br />is a potential for greater cost savings. <br />Cost savings would be credited to Public Works Street Light Maintenance Account No. <br />01117630-62000. <br />EXHIBIT(S) <br />1. Agreement with Southern California Edison <br />Submitted By: Nabil Saba, Executive Dir Public Works <br />Approved By: Kristine Ridge, City Manager