HomeMy WebLinkAbout12-12-2017 Item 1, CodronCouncil Memorandum
Date: December 8, 2017
TO: Mayor and Council
COUNCIL MEETING: ��- 1 i -Z 0 l7
r
rEM NO.:
FROM: Michael Codron, Community Development Director
Greg Herman,cting Assistant City Manager
VIA: Derek Johnson, ity Manager
SUBJECT: Item #1: Community Choice Energy Questions
DIC 08 M'/
A Council Member has asked two questions regarding the Community Choice Energy (CCE) that
staff will be prepared discuss during the study on Tuesday. The questions and responses follow.
1. If cities continue to remove from the PG&E regular customer base, does this weaken PG&E's
service and organizational capacity?
Answer: Staff researched the answer to this question and sought input from experts in other
communities that are involved in launching or developing new CCE programs. It is important
to keep in mind that even after a CCE is launched, PG&E would remain the service provider
in the community responsible for transmission and distribution of energy.
Under California Public Utility Commission (CPUC) regulations, utility companies are not
permitted to profit from generation activities. Profits are allowed from infrastructure
investments associated with transmission and distribution components of the business
operations, for which PG&E would continue to be responsible. In addition, the CPUC allows
for PG&E to assess "exit fees" to make them whole on the associated administrative costs.
Based on these provisions, the development and expansion of CCE programs in California —
which are primarily concerned with generation activities and procuring energy from renewable
sources — is allowed by the CPUC and not expected to weaken the utility companies that will
continue to provide essential services for their customers.
2. PG&E reported a renewable portfolio of 55%. What are the state targets and what renewable
portfolios are offered by CCEs?
Answer: To answer this question it is important to note that the term "renewable" is used in
different contexts. The California Legislature has established a 50% Renewable Portfolio
Standard (RPS) for utilities by 2030. In 2016, PG&E's portfolio was 32.9% RPS compliant.
Nuclear energy from Diablo, and large hydroelectric generation facilities (greater than 10
megawatts) are not considered "renewable" per the Legislature's standards, even though they
are GHG free sources. As noted in PG&E's 2015 Power Mix report, its portfolio included 59%
GHG free sources.