HomeMy WebLinkAbout10/2/2018 Item 6, Hill ��� � �:c�ur�ci� N��mc�r�r�dum
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DATE: September 28, 2018
TO: City Council
FROM: Robert Hill, Interim Deputy Director, Office of Sustainability
VIA: Derelc Johnson, City Manager ��jl
PREPARED BY: Chris Read, Sustainability Manager
SUBJECT: Item#6 - CCE Update
This memoranduin provides updates on two Community Choice Energy(CCE) items:
L Morro Bay's September 25th City Council meeting; and
2. the California Public Utilities Commission (CPUC) proceeding regarding the Power
Charge Indifference Adjustment (PCIA).
Morro Bav Citv Council Meetin�
On September 25, the City of Morro Bay City Council voted 5-0 to adopt a CCE ordinance and the
resolution to create Central Coast Community Energy(CCCE). Council Members Robert Davis and
Marlys McPherson were selected to represent Morro Bay on CCCE's Board of Directors. Staff will
now file the JPA document to the California Secretary of State and will begin scheduling the initial
Board of Directors meetings in November.
Power Char�e Indifference Adiustment Proceedin�
At the September 18, 2018 City of San Luis Obispo City Council meeting, staff presented the
importance of the California Public Utilities Commission (CPUC) proceeding regarding the Power
Charge Indifference Adjustment (PCIA) to the financial feasibility of the Central Coast Community
Energy Community Choice Energy (CCE) program. At the September 18, 2018 meeting, staff
reported that the CPUC would decide on the proceeding at its September 27, 2018 meeting. Staff was
notified on Septeinber 24 that the CPUC has delayed the ruling until its October 11, 2018 meeting.
At the September 18 City Council meeting, staff presented contingencies for further delay and a
potential negative PCIA proceeding outcome. Given the delay to October 11, 2018, staff has updated
the contingencies as follows:
1. The Energy Authority (TEA) has agreed to "pause" transitioning to Phase II of the work
program until the CPUC has issued a ruling on the PCIA. This means that the "go/no gd'
decision point triggering Ciry responsibility for deferred time and material costs to TEA
would be not occur until after the ruling. Should the City not move forward based on the PCIA
ruling, it would not be responsible for repaying TEA for wark completed to date.
Item #6-CCE Update Page 2
2. Staff will prepare an ex parte communication to submit to the CPUC Commissioners
communicating the timing challenges for submitting an Implementation Plan by January l,
2019 given the delayed ruling. Staff will formally inquire about a waiver from the CPUC
allowing for submittal of the Implementation Plan after January 1, 2019, while still being
allowed to begin service in 2020. It is not known if the CPUC would grant the waiver.
3. Staff has confened with outside counsel regarding the ability to cancel the CCE ordinance. If
a negative PCIA decision occurs on October 11, Council could adopt an Ordinance rescinding
the CCE Ordinance.
4. Staff has conferred with outside counsel regarding the ability to dissolve Cenhal Coast
Community Energy(CCCE)joint powers authority(JPA). To dissolve CCCE, consistent with
Section 6.4 (Mutual Termination) of the agreement(Council Agenda Report Attachment C),
the Board of Directors could vote unanimously to dissolve the agency.
If you have any questions, please contact Chris Read, Sustainability Manager at (805) 781-7151 or
cread@slocity.org.