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HomeMy WebLinkAboutAGENDA REPORT 2019 0124 CC SPC ITEM 05ACITY OF MOORPARK, CALIFORNIA City Council Meeting of 01.24.2019 ACTION Heard Presentation BY M.Benson A. Clean Power Alliance Public Workshop. Staff Recommendation: Receive and file Community presentation from Clean Power Alliance Item: 5.A. Item: 5.A. MOORPARK CITY COUNCIL AGENDA REPORT TO: The Honorable City Council FROM: Jessica Sandifer, Community Services Manager DATE: 01/24/2019 Special Meeting SUBJECT: Clean Power Alliance Public Workshop SUMMARY The purpose of the report is to provide a timeline and background information of the City of Moorpark’s decision to join the Clean Power Alliance. BACKGROUND California law (AB 117) allows cities and counties that do not operate municipally-owned electric utilities to establish their own form of utility services on behalf of residents and businesses under a program known as Community Choice Aggregation (CCA), also referred to as Community Choice Energy (CCE). The intent of the legislation was to provide customer choice in utility providers and give cities and counties local control over power procurement and rate setting. The CCA model is a hybrid approach to utility operations where cities and counties become responsible only for power procurement/electricity generation, rate setting, and customer programs. Southern California Edison (SCE) would continue to provide delivery services including grid maintenance, as well as, meter reading, billing and customer service. CCA’s are governed by a Board of Directors with appointees from each of the jurisdictions that participate in the Joint Powers Authority for the CCA. This allows decisions regarding power procurement and rate setting to stay within the local jurisdictions. In November 2015, in response to inquiry from community interest groups, the City of Moorpark was asked to join the tri-county CCA feasibility study working group. The purpose of the group was to determine whether or not the three counties (San Luis Obispo, Santa Barbara, and Ventura) could launch a CCA program. City staff 1 Honorable City Council Special Meeting January 24, 2019 Page 2 participated with the Advisory Working Group during the feasibility study. At the conclusion of the study it was determined that a tri-county CCE would not be feasible because the CCE was unable to maintain long term rate competitiveness against the Investor Owned Utilities (IOU’s) and was unable to demonstrate long term financial viability. Factors that contributed to these findings include the fact that the Tri-County area is split between two IOU’s, PG&E and SCE and due to the sheer size of the Tri - County CCA, start-up costs would have to be financed by a 30-year bond issuance, which represents a longer term more costly start-up then other operational CCA’s have had to contend with. With the Tri-County CCA proving infeasible, particularly in the SCE territory, several of the Ventura County Advisory Working Group members had looked for other CCE options for their jurisdictions. Around the same time, the Los Angeles County Community Choice Energy Authority (LACCE), now Clean Power Alliance, was preparing to launch their CCA and had opened membership opportunities up to additional jurisdictions. On January 17, 2018, the City Council voted to join the Los Angeles Community Choice Energy Authority (LACCE), now the Clean Power Alliance (CPA), as it no longer involves only Los Angeles county cities. On February 7, 2018, the City Council selected a Board Member and Alternate directors to serve on the Clean Power Alliance Board and selected the default rate tier for the Moorpark Community using the Renewable Portfolio Standard rate, equivalent to the current “Lean” tier (36% renewable energy). Staff had recommended the Default Rate Tier for the community because it provided the greatest savings to those electrical consumers that choose to stay with CPA, while giving consumers the option, at their choice, to select a greener power portfolio. On October 28, 2018, the City Council reconsidered the default rate tier selected for the City of Moorpark because CPA was closer to setting their power rates for residential customers. At that meeting, the City Council elected the “Clean” Tier as the def ault tier because it was projected to provide rate parity with the current SCE rates while providing more renewable energy. The City Council made the decision knowing that ultimately the end user who chooses to remain with CPA, can opt up or down as often as they like throughout the year, so no one is locked in to any rate. Below are the default tiers chosen by the other CPA cities and the County of Ventura:  Camarillo 36% Renewable  Simi Valley 36% Renewable  Thousand Oaks 100% Renewable  Ojai 100% Renewable 2 Honorable City Council Special Meeting January 24, 2019 Page 3  County of Ventura, non-residential and residential - County unincorporated 100% renewable  City of Ventura 100% renewable  City of Oxnard 100% renewable Since joining the CPA, there have been a number of questions associated with rates, how varying renewable tiers will be provided to customers, how the CPA procures power, and many other assumptions regarding the CPA. In order to be responsive to the inquiries being made in the community, the City Council directed staff to work with representatives from the Clean Power Alliance to conduct an informational workshop where residents can learn about the operational facets of the program. Representatives from the CPA will discuss:  Background information on how CCAs work and how CPA operates within the community  Timing of CPA’s residential service launch in February 2019 and commercial service launch in May 2019  What information Moorpark residents and businesses should expect in the mail and what tools / resources are available online and through CPA’s Customer Service Center  The choices that CPA offers customers, what CPA’s rate options cost in comparison to SCE, and how to switch between CPA rate options or opt out and return to SCE Following a presentation from the CPA questions from interested parties will be fielded by CPA staff from those seeking additional information regarding the Clean Power Alliance. FISCAL IMPACT No Fiscal Impact. STAFF RECOMMENDATION Receive and file Community presentation from Clean Power Alliance. 3