HomeMy WebLinkAboutSB350_LtrToDeLeon_20150902Office of the City Council
990 Palm Sheet San Luis Obispo CA 93401-3249
805 781 7114
September 2, 2015
Senator Kevin de Le6n
President Pro Tempore
State Capitol, Room 205
Sacramento, CA 95814
RE: SB 350 SUPPORT, WITH AMENDMENTS
Reject San Diego Gas & Electric's Attempt to Limit Community Choice
Energy Programs)
Dear Honorable Senator de Le6n,
On behalf of City of San Luis Obispo, we write to you to express support for the goals of
Senate Bill 350. We value your leadership on this important matter. At this time we want to
also express concern about recent proposed amendments by San Diego Gas & Electric
SDG&E) to limit community choice energy programs. SDG&E's language limits local
decision-making and increases costs for customers of Community Choice Aggregation
CCA) programs.
First, SDG&E's proposal to allow the California Public Utilities Commission (CPUC) to
have authority over a CCA's procurement plan undermines local control and policy making.
According to existing state law, "A CCA shall be solely responsible for all generation
procurement activities on behalf of the CCA's customers, except where other generation
procurement arrangements are expressly authorized by statute." [Public Utilities Code
Section 366.2(a)(5)] Allowing the CPUC oversight of CCA procurement not only
contravenes existing law but also robs the community of local control of programs and
policies. It also adds a significant burden to the CPUC and reduces straightforward
governance structures by local elected leaders.
Second, SDG&E's proposed amendment to ensure that bundled customers do not experience
any cost increases as a result of implementation of a CCA program is both redundant and
dangerously expands current practices. Utilities are already able to recover procurement
costs lost due to CCA customers through departing load charges that are assessed to CCA
customers every month. Indeed, the implementation of a CCA by law is required to "not
result in a shifting of costs between the customers of the CCA and the bundled service
customers of an electrical corporation." [Public Utilities Code Section 366.2(a)(4)]
Expanding upon this language sets a dangerous precedent for CCA customers to subsidize
utility services.
CCA's are programs that embody many of the goals of SB 350 including increasing
renewable energy. We urge you to reject efforts to undermine local control, and to allow
consideration of energy efficiency programs to remain in the hands of local officials who are
in the best position to evaluate and implement innovative programs in their communities.
S'ncerely,
Marx
dyor, City of San Luis Obispo