May 2015
CALIFORNIA REPORT
houses with logo, tigher crop
CCA Digest
CALIFORNIA Roundup, May 2015 
    
A Message from LEAN's Executive Director

What an exciting time this is for Community Choice programs in California! In the past year, more than twenty counties and hundreds of cities within them are exploring the prospects for CCA in their communities. 

 

Why all the sudden interest? Most obviously, Marin Clean Energ y (MCE) and Sonoma Clean Power (SCP) have demonstrated they can offer cleaner, greener energy services at competitive, currently cheaper rates while supporting local jobs and their local economies. Wholesale energy prices continue to be low, CA utilities are resourced through 2020 with excess power available, and renewable technologies are improving. And self-supporting CCA programs are the lowest cost way for cities and counties to make immediate progress toward their Climate Action Plan goals.

With the launch of Lancaster Choice Energy by the City of Lancaster and dozens more jurisdictions considering their options, LEAN Energy is ramping up its policy and program design activities to support the development of successful CCA programs in California.  

 

We have plenty of work ahead to assure the long term sustainability of CCA around the State. You'll be hearing more from us in the coming months and we encourage you to continue to reach out to us as well -- we are here to help!  One of our new services for LEAN members is a  monthly "CCA Market Call" to share the latest information, intel and ideas. Our first was May 8, and this newsletter offers a "digest" of the conversation. If you're a LEAN member, we hope you can join us on June 12 for our second call.  
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Status of CCA Program Development in California

California is going gangbusters! Congratulations to the City of Lancaster, which launched Lancaster Choice Energy on May 1 and Happy Birthday to Sonoma Clean Power which just celebrated one year of service. MCE is moving further north and east in 2015, adding the Cities of Benicia, Albany and El Cerrito, and Napa County cities.  

 

 

Initial studies are underway in the Counties of Alameda, Los Angeles, Santa Clara, Santa Cruz (tri-county Monterey Bay) and San Mateo, and in the City of San Diego. Santa Barbara County and the City of Davis are also considering funding initial studies, and San Francisco is back on track with a target launch later this year.

 

Interest in California's inland communities has been slower, but we think some of those communities may realize significant benefits from CCA programs, even with a greater emphasis on rate savings. Stay tuned on central valley and northeast CA progress.  

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Key Issues, Opportunities and Challenges


 

Energy Markets 

Wholesale prices in California continue to be stable and relatively low. Big issues for CCAs will continue to be: their ability to procure and manage diverse supply portfolios, the cost to CCA customers related to (arguably unneeded) utility supply additions, exit fees, and ISO regulations.  

 

Energy and the Environment

Governor Brown has announced his commitment to reducing the State's greenhouse gas emissions to 40% below 1990 levels by 2030. In response, the California Public Utilities Commission (CPUC) and San Diego Gas & Electric Company (SDG&E) have agreed to defer construction of the 600 MW gas-fired Carlsbad Energy Center in order to analyze the prospects for cleaner energy resources. This is good news for the environment and good news for CCAs, because a share of plant costs would otherwise have been billed to future CCA customers as "stranded investment."

 

Technologies and New Projects


MCE and SCP continue to make the most of energy resource opportunities and the integration of clean power and clean tech into their service offerings. MCE has partnered with Tesla to offer residential and commercial battery storage that will help customers manage their bills and MCE to manage its demand. (At left, Executive Director Dawn Weisz with Tesla batteries)


SCP is working with Sonoma County Water Agency (SCWA) to install a 12.5 MW "floatovoltaics" solar project on SCWA wastewater ponds, an innovative approach to land use and local power partnership. (At right, Cordell Stillman, Deputy Chief Engineer at SCWA, at the wastewater solar ponds site.)    

  

 

 

Labor Issues

MCE estimates it has so far created 1800 state and local jobs, mainly in the construction sector, thanks mainly to its new renewables and energy efficiency contracts. IBEW 1245 continues to raise concerns about CCA in some communities, although we do not hear reports of the aggressive anti-CCA campaigns that occurred in San Francisco in 2013 and earlier in Marin County. Alameda County has created an advisory committee that includes a number of labor representatives, as has San Mateo County. LEAN Energy will continue to support approaches that include union participation and CCA programs that minimize the use of unbundled RECs and boost energy-sector jobs creation. 

 

Other CCA Challenges

The City of Chicago, which is in a volatile retail energy market, recently stated its intent to dial back its CCA program by returning customers to the utility this fall after the city's rates were expected to exceed ComEd's. Chicago electricity customers may voluntarily remain with the City's program and the City is working on "Aggregation 2.0" that will include other service offerings (think community solar and energy efficiency) to add program value beyond price.  Overall, the state of Illinois has seen about 75% retention in its municipal aggregation programs since 2012.  

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Regulatory and Legislative Happenings   

 

MCE continues the heavy lifting to represent California CCA interests at the CPUC and the State Legislature, with the help of consulting attorneys and experts. Thanks to the MCE team, Scott Blaising, Geof Syphers and Ty Tosdale for helping us put together some highlights. With Kim Malcolm, former ALJ at the Commission and director of Clean Power SF now on board, LEAN looks forward to increasing its presence and participation in CCA proceedings at the Commission. 

 

At the CPUC:

  • PCIA Vintaging:  The CPUC is currently revisiting how "exit fees" (called the "power charge indifference adjustment") should apply to CCA customers, in particular with regard to the timing of their subscriptions to CCA service. PG&E is proposing ways to maximize these charges in contradiction of adopted CPUC rules. MCE is opposing PG&E's methodologies. (Proceeding #A1404024)
     
  • Residential Rate Design:  An administrative law judge (ALJ) has recently issued a proposed decision that would, over time, dramatically change how customer rates are structured. The main issues involve reducing the number of tiers and whether the utilities may impose a fixed bill charge. The main losers of the proposals will be low usage customers, low income customers, and efforts to promote conservation. A fixed charge will penalize residential CCA customers with on-site solar projects. The way these changes may affect CCA customers will depend on whether and how CCAs restructure their own rates to keep their customers and maintain revenues. This will be one to watch. (Proceeding #R1206013)
     
  • SCE CARE Rates:  Southern California Edison (SCE) has filed an informal "advice letter" that proposes to impose the PCIA exit fee on CCA low income CARE customers. The proposal is procedurally improper and would substantially increase low income CCA customer bills. MCE and LCE are intervening in this proceeding and needs support to oppose it. Please make your opposition heard at the CPUC today! 
     
  • LTPP:  The CPUC has so far not required the utilities to incorporate forecasts of CCA load in procurement planning, which ultimately increases costs to CCA customers who end up paying for a share of utility power that is unneeded. MCE reports it is making some headway in the planning process.  (Proceeding #R1312010))
     
  • Utility Green Tariffs:  The CPUC approved a conceptual framework for utility "green" tariffs, which are expected to be finalized in May or June by way of utility advice letters. MCE reports these services are expected to be subsidized by the general body of ratepayers, contrary to statute, which will put CCAs at a competitive disadvantage (since CCAs do not have a huge body of ratepayers to cross-subsidize rates). (Proceeding #A1201008))
     
  • Electric Vehicles:  PG&E and Sempra have proposed major investments in electric vehicle charging stations which would be subsidized by other ratepayers and deny access to CCAs. MCE is opposing this approach, so that CCAs can offer these services to their customers. (Proceeding #A1502009)
     

At the California Legislature:

  • SB 350 (deLeon and Leno):  Would increase the renewable portfolio standard requirements to 50% by 2030 consistent with the Governor's goals. The requirements would apply to CCAs. One concern is that energy capacity costs allocated to utility customers should not be implemented (through the "CAM") in ways that would require CCAs to pay twice for resource adequacy.
  • AB 674 (Mullin):  Would reduce "non-bypassable" charges applied to utility customers that install clean renewable technologies. The bill should specify that CCA customers should not be required to pay a share of associated lost utility revenue.
  • AB 1330 (Bloom):  Would set specific requirements for savings from energy efficiency and would apply to CCAs. The bill needs to be amended to recognize that CCAs report to their own governing boards, not the CPUC.
  • SB 286 (Hertzberg):  Would increase the level of participation of commercial customers in Direct Access programs, by nearly doubling the current program cap. Although in principle LEAN supports competitive alternatives for all customers, this bill could skew markets by increasing reliance on short term power procurement and economically hurt CCA by reducing its commercial and industrial customer base.

If you would like more information or want to join our regulatory and legislative alliances, please contact Kim Malcolm kmalcolm@leanenergyus.org.

 

 
Thanks to our Members!
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We'd like to extend a hearty handshake and an enthusiastic thanks to all our members, whether you're new on the scene or renewing your membership. Your support is critical to our success, and to the success of CCA everywhere. 


 

What? You say you're not a member yet?! You can join through our website  sign-up form, or contact LEAN's Administrative Coordinator, Alison Elliott, at aelliott@leanenergyus.org

Click here for our membership flyer information. Or here for our quick digital brochure, explaining why the work we do is so important.


You can see logos of all our current members on our website HOME page. Please take the time to peruse their websites--you may find some important contacts there.
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Odds & Ends
 

Congratulations to Jeff Shields!  

Jeff is retiring from his general manager position at the South San Joaquin Valley Irrigation District in October. Jeff is a LEAN Energy board member and an icon in the CCA world. While it's a loss for the energy world, it's a well-deserved retirement for Jeff!

 

Aloha to Steve Hoffmann!  

Steve Hoffmann is moving to Hawaii in June. Steve has done a great job supporting our efforts in San Diego and we will miss him!

 

HOPE TO SEE YOU THERE-- May 18  

"Understanding Community Choice Energy," a conference at the Los Angeles Biltmore Hotel, hosted by Local Government Sustainable Energy Coalition and LEAN Energy. Registration is closed, but there's still room if you want to register on site!  www.lgsec.org/cca-forum

 

Monthly Market Call - June 12, 

10-11 am. Join us to hear about all the latest developments in the CA marketplace. Contact Alison Elliott for more information. aelliott@leanenergyus.org 

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LEAN Energy Activities in California

 

Now that we are three and counting, LEAN has been refocusing its own work on support for cities and counties investigating CCA and those already in operation.  

 

Currently, LEAN is providing program development services to several jurisdictions including San Mateo County, Silicon Valley, Alameda County and San Diego. Our focus is on developing public, independent, long-term  programs through the JPA model, but we're here to help with whatever is needed.   

 

Perhaps more critical over the long haul, LEAN is also developing the California Energy Initiative in recognition of the need for increased collaboration and information-sharing statewide. We've identified four main program components:

 

  1. Outreach, Education, and Information
  2. Regulatory and Legislative Monitoring and Advocacy 
  3. Policy Development and Best Practices
  4. Strategic Support to Local Jurisdictions
 
LEAN Energy has recruited some impressive help for this effort.

Kim Malcolm
is our new Director of California Policy and Programs. Welcome!

We are also raising funds to retain a lobbyist in Sacramento. Let us know if you can help out! 
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Our Members are Doing Great Things!
 
Readers: Watch this small but exciting corner to learn about the cool things our members are doing these days. We'll bring you the hottest news flashes available each month.

LEAN Members: Please send us your press releases and CCA related news!

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