City of San Luis Obispo Community Choice Aggregation Study Session

SLOCityHall

When: Tuesday December 3rd at 6pm

Where: San Luis Obispo City Hall

Agenda and Staff Report

On Tuesday, the City of San Luis Obispo will begin to consider the feasibility of a local CCA program. This is an important opportunity for you to speak in support of taking a deeper look into Community Choice Aggregation. Your town needs your voice.

Partial Staff Report, Next Steps:

Should Council be interested in further exploring the formation of a CCA or expressing its support for such a venture, more fully understanding the exact cost of participating in a feasibility study and funding sources for such a study will be important. Some other items for consideration would be any electricity data access restrictions, collective community support for CCA formation, the current energy mix of PG&E, and a broader study of the successes/challenges experienced by other cities and/or counties who are doing this or attempted such an action. Exploration of the formation of a CCA is not currently on the work program of any city department. Undertaking such exploration would require a very significant commitment of interdepartmental staff resources and financial resources, not currently contemplated or budgeted. Thus, if the Council is interested in further studying the formation of a CCA, staff would recommend that Council consider options and priorities in the context of the City’s existing budget processes, whereby current Major city goal and work program impacts, workload re-prioritizations, and/or additional staff and financial resource needs can be evaluated in a comprehensive way.

– City of San Luis Obispo Staff Report

Letter from SLO Clean Energy to City Council

Communities around the state and nation are exploring, launching, and operating Community Choice energy programs. These communities are recognizing that CCA is a powerful tool for communities in support of local values and priorities.

Opportunities made possible by CCA
Local Control & Accountability

A CCA program operates as a Business with a locally accountable board of directors.

Goals, programs, and rates are decided based on local values and priorities.

All aspects of the business are funded through ratepayer funds NOT taxpayers funds.

Choice & Competition

Allow families and businesses a choice where they currently have none.

Leverage market competition to encourage innovation and performance.

Long Term Electric Rate Stability

Existing CA CCA programs offer customers competitive rates for more renewable energy.

Programs for low income and medical customers are not affected.

Local Economic Growth & Jobs

A program focused on local power production and energy efficiency programs will maximize positive impacts to the local economy and jobs.

Potential to invest over $100 million per year of local money back into the local economy.

Recognizing that Diablo Canyon is a valuable economic engine for SLO County, a CCA can coexist without any negative impacts to the plant or its beneficiaries while taking proactive steps to diversify our local economy in preparation for Diablo Canyon’s eventual closure.

Clean Energy & Local Self-Reliance

Existing CCA programs in CA offer renewable energy options of 33%, 53%, and 100%.

Expand the local market for increased investment in efficiency and clean energy.

Update on CCA progress within SLO County Communities

There is rapidly growing interest in CCA from both elected and business leaders.

The City of Morro Bay has passed a resolution supporting the exploration of CCA.

SLO Clean Energy is hosting the first meeting of the CCA Exploration Advisory Committee (CEAC) in the 1st quarter of 2014. Interested communities, business leaders, and other stakeholders are invited to attend.

Comments and Clarifications to the Staff Report

Major City Goals – In support of SLO City’s Major Goals, a CCA program could:

Make financial tools available and non-taxpayer funded resources focused on facility utility cost reduction, efficiency & on-site generation projects, and CAP implementation.

Over time, this would reduce demands on city resources allowing staff to focus on other important priorities such as infrastructure and openspace.

Focus on programs and projects that increase business competitiveness, create local jobs, and generate tax revenues from increased local economic activity.

Offer special rates to attract and retain business clusters such as agriculture, specialized manufacturing, and knowledge & innovation.

Feasibility Study Costs

The developing CCA market is driving down exploration costs. SLO Clean Energy now anticipates exploration to cost between $50,000 and $100,000. Additionally, private-sector support and other private funding may be available.

Pre-formation Issues

As public organizations that have already gone through the formation process, MCE and Sonoma Clean Power (SCP) offer a significant library of publicly available resources which support communities exploring CCA including: feasibility studies, implementation plans, JPA formation documents, sample contracts, surveys, marketing materials, etc.

Startup Cost Recovery

Upon launch of SCP in May 2014, Sonoma County and Sonoma County Water Agency (SCWA) expect full reimbursement for costs incurred during exploration, formation, and start-up of SCP. Creating a cost-center for tracking CCA related expenses is recommended.

Resources for Council and Staff

SLO Clean Energy is a group of citizen-volunteers committed to supporting the exploration of CCA in SLO County communities. SLO Clean Energy offers support from the leadership team, technical advisory group and network of topic experts. Please utilize SLO Clean Energy as a resource during your exploration of CCA.

In closing, SLO Clean Energy requests that the City of San Luis Obispo in cooperation with other interested SLO County communities, and with the support of SLO Clean Energy, formally explore Community Choice Aggregation.

Respectfully,

Eric Veium, June Cochran, Mladen Bandov, Scott Mann

Leadership Team

SLO Clean Energy

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