HomeMy WebLinkAboutO-1656 REPEALING THE EXISTING COMMUNITY CHOICE AGGREGATION ORDINANCE AND AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY POWERORDINANCE NO. 1656 (2018 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REPEALING THE EXISTING COMMUNITY
CHOICE AGGREGATION ORDINANCE AND AUTHORIZING THE
IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION
PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER'S COMMUNITY CHOICE AGGREGATION PROGRAM
WHEREAS, on December 12, 2017, the City Council directed staff to investigate the
feasibility and formation of a Community Choice Aggregation (CCA) program under the
provisions of the Public Utilities Code Section 366.2 in order to provide electric service to
customers within the City of San Luis Obispo with the intent of achieving reduced greenhouse gas
emissions, local renewable power development, competitive electric rates, and the implementation
of energy conservation and other energy programs; and
WHEREAS, the City of San Luis Obispo commissioned a technical study showing that a
CCA program serving the City and surrounding communities would provide several benefits,
including:
Providing customers a choice of power providers and power supply options;
■ Increasing local control and involvement in energy rates and other energy-related
matters;
■ Providing stable electric rates that are competitive with those provided by the
incumbent utility;
■ Reducing greenhouse gas emissions arising from electricity use within the City and
surrounding region;
■ Increasing local renewable generation capacity;
■ Increasing energy conservation and efficiency projects and programs;
■ Increasing regional energy self-sufficiency;
■ Improving the local economy resulting from the implementation of a CCA program
and local renewable and energy efficiency projects over time; and
WHEREAS, on September 18, 2018 the Cities of San Luis Obispo and Morro Bay, formed
a Joint Powers Authority called Central Coast Community Energy ("CCCE.") to host a CCA
program; and
WHEREAS, on October 2, 2018 the City of San Luis Obispo adopted Ordinance No. 1654
(2018 Series) as required by Public Utilities Code section 366.2 authorizing the implementation of
a Community Choice Aggregation program through CCCE; and
WHEREAS, on October 11, 2018 the California Public Utilities Commission amended
the Power Charge Indifference Adjustment, which negatively impacted CCCE's ability to develop
a program with the desired financial and environmental benefit; and
WHEREAS, Monterey Bay Community Power (MBCP) is an established CCA program
capable of providing the desired financial and environmental benefits, and
01656
Ordinance No. 1656 (2018 Series) Page 2
WHEREAS, MBCP will enter into Agreements with electric power suppliers and other
service providers, and based upon those Agreements MBCP will be able to provide power to
residents and businesses at rates that are competitive with those of the incumbent utility ("PG&E").
Once the California Public Utilities Commission certifies the amended Implementation Plan
adopted by MBCP, MBCP will be able to provide service to customers within the City of San Luis
Obispo; and
WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt -
out of a CCA program and continue to receive service from the incumbent utility. Customers who
wish to receive service from the incumbent utility will be able to do so; and
WHEREAS, on November 13 and November 27, the City Council held public hearings
on the manner in which San Luis Obispo will participate in a CCA program at which time
interested persons had an opportunity to testify either in support of or opposition to the
implementation of a CCA program serving the City of San Luis Obispo through MBCP; and
WHEREAS, this ordinance is exempt from the requirements of the California
Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines, as it is not a "project" as
it has no potential to result in a direct or reasonably foreseeable indirect physical change to the
environment. (14 Cal. Code Regs. § 15378(a)). Further, the ordinance is exempt from CEQA as
there is no possibility that the ordinance or its implementation would have a significant effect on
the environment. (14 Cal. Code Regs. § 15061(b)(3)). The ordinance is also categorically exempt
because it is an action taken by a regulatory agency to assume the maintenance, restoration,
enhancement or protection of the environment. (14 Cal. Code Regs. § 15308).
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The above recitations are true and correct and material to this Ordinance.
SECTION 2. Repeal of Ordinance No. 1654 (2018 Series). Based upon the forgoing, the
City Council hereby repeals Ordinance No. 1654 (2018 Series)
SECTION 3. Authorization to lm lement a Community Choice A e ation Pro am.
Based upon the forgoing, and in order to provide businesses and residents within the City of San
Luis Obispo with a choice of power providers and with the benefits described above, the City
Council hereby elects to implement a community choice aggregation program within the
jurisdiction of the City by participating as a group in the Community Choice Aggregation Program
of Monterey Bay Community Power, as generally described in its Joint Powers Agreement.
01656
Ordinance No. 1656 (2018 Series)
Page 3
SECTION 4. This Ordinance shall be in full force and effective 30 days after its adoption
and shall be published and posted as required by law.
INTRODUCED on the 13th day of November, 2018, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 27th day of November, 2018, on the following vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO
J. Wstrne Dietrick
ty Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 2—V day of Nc,�eAmV,,&, �p'.
Teresa Purrington
City Clerk
01656