The URL can be used to link to this page

Home My WebLink About11-13-2018 Item 16 Community Choice Energy Program Options Meeting Date: 11/13/2018 FROM: Robert A. Hill, Interim Deputy Director, Office of Sustainability Prepared By: Chris Read, Sustainability Manager SUBJECT: COMMUNITY CHOICE ENERGY PROGRAM OPTIONS INCLUDING INTRODUCING AN ORDINANCE AND ADOPTING A RESOLUTION TO JOIN MONTEREY BAY COMMUNITY POWER RECOMMENDATION Report with recommendation will be included in Council Agenda Report available on Friday November 9, 2018. DISCUSSION The first meeting of the Board of Directors of Central Coast Community Energy (CCCE) will take place on November 7, 2018 from 3:00 to 5:00 PM at 990 Palm Street, San Luis Obispo, CA. Item No. 5 on that agenda includes a discussion of several options for moving forward with implementation of a Community Choice Energy program. Depending on the outcome and direction received on Item No. 5 from the CCCE Board of Directors, further action may be requested of the City Council of the City of San Luis Obispo including introducing an ordinance and adopting a resolution to join Monterey Bay Community Power. If so, a complete Council Agenda Report detailing the prospective action will be available for the City Council and general public’s review at least 72 hours prior to the November 13, 2018 City Council meeting. Packet Pg. 621 Item 16 Community Choice Energy 1 November 13, 2018–City Council Public Hearing Recommendation..approvalfinalforCounciltoreturnandrepresentationMBCPforstrategyfairandcollaborativeaprovidetostaffBayMorroofCitywithUnderstandingofMemorandumanegotiatetostaffDirect.5;and;DirectorBoar dPolicyPowerCommunityBayMontereyinitialtheasCitytherepresenttoCouncilmemberCityoneIdentify.4and;amendedasC)(Attachment\]”…\[(MBCP)PowerCommunityBayMontereytheinmembershiprequestingCalifornia,Obispo,L uisSanofCitytheofCouncilCitytheofResolution“Aentitled,ResolutionaAdopt.3and;B)(Attachment\]”…\[programaggregationchoicecommunityaofimplementationtheauthorizingandSeries))2018(1654.No(Ordinanceordinan ceaggregationchoicecommunityexistingtherepealingCalifornia,Obispo,LuisSanofCitytheofCouncilCitytheofOrdinance“Anentitled,OrdinancetheIntroduce.2and;A)(AttachmentmemoupdateStudyTechnicalthefileandRece ive.1 2 19%3 RecommendationResolution joining Monterey Bay Community PowerImplementing OrdinanceMonterey Bay Community Power OpportunityProjectionsRegulatory Change and Updated Financial Project HistoryAgenda GasNatural 21%Electricity Community Choice Energy Overview 4 Project History 5 Powerrecommendation to join Monterey Bay Community return the decision to each member city with In November of 2018, CCCE unanimously voted to (CCCE)resolutions creating Central Coast Community Energy of Morro Bay adopted ordinances and passed In September of 2018, City of San Luis Obispo and City not feasible, to pursue joining an existing CCE. pursue forming a new CCE program and if that option is In December 2017, the City Council directed staff to community choice energy (CCE) since 2013City of San Luis Obispo has been considering  19%6 economic stressorsextremely vulnerable to future regulatory and years to build sufficient reserves and would be Base case projections show the project would take 8 Using third party creditReduced administrative costsIncreased carbon intensityRates equal to PG&EUpdated operating assumptions:financial projectionsIndifference Adjustment decision substantially affected California Public Utilities Commission Power Charge Financial ProjectionsRegulatory Change and Updated GasNatural 21%Electricity 19%7 Base-Updated Financial Projections GasNatural 21%Electricity 19%8 Stress-Updated Financial Projections GasNatural 21%Electricity 19%9 Operations Board, and Community Advisory CommitteeMonterey Bay Community Power’s Policy Board, Obispo and the City of Morro Bay to share a seat on Direct staff to identify a process for the City of San Luis Monterey Bay Community PowerDirect staff to return to member cities with a request to join Unanimously voted to :of Directors and Operations BoardSpecial joint meeting of the Board –November 7, 2018 Central Coast Community Energy GasNatural 21%Electricity Monterey Bay Community Power 10 shared seat> 50,000 residents = full seat; < 50,000 residents = CouncilPolicy Board, Operations Board, Community Advisory Governance and Representationabove PG&EPremium product is 100% renewable; 1 cent/kWh 3% rebateBasic power product is carbon free and comes with a Rate structuresSan Benito countiesExisting program covering Monterey, Santa Cruz, and  Monterey Bay Community Power 11 Community Energy JPASimilar goals and objectives to Central Coast reservesAlready paid off initial debt and has $40 million in Established governance, staff, vendors, and creditFinancial Health Implementing Ordinance 12 Requirement under state law the City as a CCE program implementerNew uncodified ordinance establishing October 2, 2018Rescinds CCE Ordinance adopted on Resolution to Join MBCP 13 provided in Council Agenda Report:Staff requests minor amendments from attachment the City of San Luis Obispo and the City of Morro BayProvides for one seat on each board to be shared by Community Energygoals and objectives, is very similar to Central Coast JPA language, including governance structure and Requested Amendment to Resolution 14 within its jurisdiction; andauthorizing Community Choice Aggregation (CCA) JPA Agreement as amended, as well as an ordinance or City Manager to execute the its Mayor authorizing membership in Monterey Bay Community Power and San Luis Obispo adopt a resolution requesting Whereas, MBCP also has requested that the City of 15 Early 2020ServiceMBCPBegin2019PreparationOperationsandImplementationProgram12/5/18.CPUCthetoPlanImplementationthesubmitandapprovetoMeetingBoardPolicyMBCP11/27/18.Obispo)LuisSanof(CityordinanceCCEt heofreadingsecondconducttohearingPublic11/14/18.programtheintoBayMorroofCitytheandObispoLuisSanofCitytheaccepttoMeetingBoardPolicyandOperationsJointMBCP11/13/18.ordinanceCCEtheofreadingfirstconductan dMBCPjoinresolutionpassproceed,tochoosesCouncilIf.CouncilCitytooptionMBCPthepresenttohearingpublicBayMorroofCity11/13/18.ordinanceCCEtheofreadingfirstconductandMBCPjoinresolutionpassproceed,tochooses CouncilIf.CouncilCitytooptionMBCPthepresenttohearingPublicDateActivity Schedule and Next Steps 1.16 Alternatives community choice energy at this time. City Council could elect to not proceed with 2.launching in 2021. Board to reconsider creating a regional program City Council could direct staff to return to the CCCE Recommendation 17..approvalfinalforCounciltoreturnandrepresentationMBCPforstrategyfairandcollaborativeaprovidetostaffBayMorroofCitywithUnderstandingofMemorandumanegotiatetostaffDirect.5;and;DirectorB oardPolicyinitialtheasCitytherepresenttoCouncilmemberCityoneIdentify.4and;amendedasC)(Attachment\]”…\[(MBCP)PowerCommunityBayMontereytheinmembershiprequestingCalifornia,Obispo,LuisSanofCitytheofCounc ilCitytheofResolution“Aentitled,ResolutionaAdopt.3and;B)(Attachment\]”…\[programaggregationchoicecommunityaofimplementationtheauthorizingandSeries))2018(1654.No(Ordinanceordinanceaggregationchoicecom munityexistingtherepealingCalifornia,Obispo,LuisSanofCitytheofCouncilCitytheofOrdinance“Anentitled,OrdinancetheIntroduce.2and;A)(AttachmentmemoupdateStudyTechnicalthefileandReceive.1 Contact Information 18 www.slocity.org/ccecread@slocity.org7151-(805) 781Chris Read, Sustainability Manager THE Newspaper of the Central Coast RECEIVED APS -3 0 2019 SLO CITY CLERK 3825 South Higuera • Post Office Box 112 • San Luis Obispo, California 93406-0112 • (805) 781-7800 In The Superior Court of The State of California In and for the County of San Luis Obispo AD #3936980 CITY OF SAN LUIS OBISPO COMMUNITY DEVELOPMENT STATE OF CALIFORNIA ss. County of San Luis Obispo I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen and not interested in the above entitled matter; I am now, and at all times embraced in the publication herein mentioned was, the principal clerk of the printers and publishers of THE TRIBUNE, a newspaper of general Circulation, printed and published daily at the City of San Luis Obispo in the above named county and state; that notice at which the annexed clippings is a true copy, was published in the above-named newspaper and not in any supplement thereof — on the following dates to wit; NOVEMBER 3, 2018 that said newspaper was duly and regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior Court of San Luis Obispo County, State of California, on June 9, 1952, Case #19139 under the Government Code of the State of California. I certify (or declare) under the penalty of perjury that the foregoing is true and correct. • r (Si turf of Principal Clerk) DATE: NOVEMBER 3, 2018 AD COST: $148.48 CITY' QF is 89n LUIS OBWPO SAN LUIS OBISPO CITY COUNCIL NOTICE OF PUBLIC HEARING The San Luis Obispo City Council invites all interested persons to attend a public hearing on November 13, 2018, at 6:00 p.m, in the City Hall Council Chamber, 980 Palm Street, San Luis Obispo, Call - fertile, relative to the following: Introduce an Ordinance authorizing the City of San Luis Obispo to enter into the Joint Exercise of Powers Agreement of the Monterey Bay Community Power Authority for the purposes of joining a Community Choice Aggregation pro- gram. For more information, contact Chris Read of the City's Administration Department at (805) 781-7151 or by email at creed®slo city.ora The City Council may also discuss other hearings or business items before or after the items listed above. If you challenge the proposed project in court, you may be limit- ed to raising only those issues you or Someone else raised at the public hearing described in this notice, or in written corre- spondence delivered to the City Council at, or prior to, the public hearing. Reports for this meeting will be available for review In the City Clerk's Office and on- line at www.slo�ty.ory on Wednesday, No- vamber 7, 2018 and the report for this spe- clflc item will be available at least 72 hours prior to the hearing. Please call the City Clerk's Office at (805) 781-7100 for more Information. The City Council meeting will be televised live on Charter Cable Channel 20 and live streaming on www.slo city.m. Teresa Purrington, City Clerk City of San Luis Obispo NoyornWr 3, 2018 3936980