HomeMy WebLinkAboutAGENDA REPORT 2018 0207 CCSA REG ITEM 09E ITEM 9.E.
CITY OF MOORPARK,CALIFORNIA
City Council Mooting
MOORPARK CITY COUNCIL of 07-7—A0/ :"
AC BION.
AGENDA REPORT /,
`. •
TO: The Honorable City Council /6
FROM: Jessica Sandifer, Community Services Mana•,4
DATE: January 22, 2018 (CC Meeting of 2/7/18)
SUBJECT: Consider Selection of Primary Director and Alternate Directors to
Serve on the Los Angeles Community Choice Energy Authority
(LACCE) Board and Make Default Rate Tier Selection
BACKGROUND
On January 17, 2018, the City Council voted to join the Los Angeles Community Choice
Energy Authority (LACCE). The ordinance will be read for the second time on February
7, 2018 and will become effective on March 9, 2018.
There are two items that the City Council needs to decide as a part of joining LACCE.
The first item is selecting a Primary Director and one or two alternate Directors and the
second item is selecting a default rate tier for participation in LACCE.
DISCUSSION
Director Selection
The regular LACCE Board meetings are the first Thursday of the month at 1:00 p.m.
and, so far, have been held at varying locations within Los Angeles. Since the
organization is new and there are many decisions to be made, there are likely to be a
number of special meetings during the first one to two years. Other LACCE member
jurisdictions have typically appointed two of their governing board members to serve as
Primary and Alternate Directors. Staff is recommending that one councilmember be
appointed as Primary Director and one or two City Council members be appointed
Alternate Directors to serve on the LACCE Board.
Default Rate Tier Selection
As a part of joining LACCE, the City Council must make a choice about which rate tier
will be offered as the default rate. LACCE needs the City's default rate tier selection by
March. LACCE offers three choices of rate tiers:
66
Honorable City Council
February 7, 2018
Page 2
• LACCE RPS Bundled Tier— projected to save 5.4% over SCE's standard rate
• LACCE 50% Green Bundled Tier — projected to save 4.1% over SCE's standard
rate
• LACCE 100% Green Bundled Tier — projected to cost 6.3% more than SCE's
standard rate tier.
As the Council will recall, under current California law 33% of electrical power provided
by utilities needs to come from 33% renewable resources by 2020. This is known as the
Renewable Portfolio Standard or RPS. The LACCE RPS Bundled Tier is the lowest
renewable resource power tier provided. This tier will always be tied to the RPS
standard, as it may be amended from time to time, such as with SB 350 which
increased the RPS Standard to 50% renewable resources by 2030. LACCE also offers
the 50% Green Bundled Tier which provides power from 50% renewable resources,
ahead of the 2030 deadline as required by SB 350; and the 100% Green Bundled Tier
which provides power from 100% renewable resources.
Staff is recommending that the City Council choose the RPS standard as the Default
Rate Tier for the community. Not only will selecting the RPS Tier provide the greatest
savings to those electrical consumers that choose to stay with LACCE, but it will also
give consumers the choice to opt up to a greener power portfolio, rather than the City
choosing for them. Leaving the choice with the consumers will also create a smoother
transition for them. Choosing the RPS standard as the default rate does not impact the
City's choice for City operations. We could still decide, as an electrical consumer, to opt
up to a higher renewable resource tier, if we should choose to do so. That opt-up would
be a separate process from the selection of the default rate tier and would take place
when LACCE becomes operational in the City of Moorpark.
FISCAL IMPACT
Last fiscal year, the City spent approximately $637,000 on electricity under SCE. Under
the current rate savings projection, the RPS standard rate will save the City of Moorpark
operations $34,000 annually. These savings will fluctuate in future years depending on
the rates approved by the LACCE Board.
STAFF RECOMMENDATION
1. Select one Primary Director and two Alternate Directors from the City Council, to
serve on the Los Angeles Community Choice Energy Authority Board; and
2. Approve the Renewable Portfolio Standard (RPS) rate tier as the default rate tier
with the Los Angeles Community Choice Energy Authority.
67