CC 2019-06-11_09a Community Choice Aggregation ProgramMEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
By: RORY R. MCCLISH, PUBLIC WORKS INTERN
SUBJECT: CONSIDERATION OF INTRODUCTION OF AN ORDINANCE AND
ADOPTION OF A RESOLUTION AUTHORIZING THE
IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION
PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER AUTHORITY’S COMMUNITY CHOICE AGGREGATION
PROGRAM
DATE: JUNE 11, 2019
SUMMARY OF ACTION:
The Council will consider joining Monterey Bay Community Power (MBCP), a community
choice energy program. The Council may begin the process of joining MBCP by
introducing an implementation ordinance and adopting a resolution to join MBCP under
a Joint Powers Authority agreement.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
If the City moves forward with joining, it is estimated that the financial obligation to amend
the implementation plan and joint powers authority agreement would be $5,000 to $7,500.
This cost may be reduced depending on the number of cities that join MBCP next year.
RECOMMENDATION:
It is recommended the City Council: 1) introduce an Ordinance authorizing the
implementation of a community choice aggregation program by participating in Monterey
Bay Community Power Authority’s community choice aggregation program; and 2) adopt
a Resolution requesting membership in the MBCP Joint Powers Authority and authorizing
the Mayor to execute the Joint Powers Authority agreement as amended with MBCP.
BACKGROUND:
Community Choice Energy
Community Choice Energy, also referred to as Community Choice Aggregation
(CCE/CCA), authorized by Assembly Bill 117, is a state law that allows cities, counties
Item 9.a. - Page 1
CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AND ADOPTION OF A RESOLUTION
AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER AUTHORITY’S COMMUNITY CHOICE AGGREGATION PROGRAM
JUNE 11, 2019
PAGE 2
and other authorized entities to aggregate electricity demand within their jurisdictions to
purchase and/or generate electricity supplies for residents and businesses within their
jurisdiction while maintaining the existing investor owned utility (IOU) provider for billing,
physical transmission and distribution services. CCEs are typically created to provide a
higher percentage of renewable or carbon-free electricity, such as wind and solar, at
competitive and lower rates than existing investor owned utilities, while giving consumers
local choices and promoting local economic development. Currently, there are nineteen
(19) operational CCEs across California serving close to 10 million customers. As of late
2018, there are twelve (12) CCEs operating within Pacific Gas and Electric’s (PG&E’s)
service territory and average customer participation is around 93%.
The CCE model is an opt-out program, meaning all eligible PG&E customers are enrolled
in the CCE’s service upon the stated date in the implementation plan. CCEs are required
by law to send out notices 60 days pre-enrollment, 30 days pre-enrollment, 30 days post-
enrollment and 60 days post-enrollment in an effort to inform each customer about the
switch in electric service provider. CCEs do engage in a significant amount of community
outreach and engagement through advertising, sponsorships, events, presentations,
networking and general marketing efforts in order to educate and inform customers about
their options. Customers can opt out at any time and return back to bundled service with
PG&E, the IOU serving San Luis Obispo County. PG&E still manages the billing and
receives payments and if there are any electrical issues with electrical service, customers
still call and request service from PG&E.
Monterey Bay Community Power
On April 9, 2019, the Council received a presentation by J.R. Killigrew, MBCP Director of
Communications and Energy Programs. Mr. Killigrew introduced the concept of CCE,
outlined the necessary steps and timeline for the City to join MBCP, and spoke of the
potential for establishing a unified central coast community choice energy agency. Mr.
Killigrew responded to questions from Council, and responded briefly to questions posed
by the public regarding the CCE program. Council directed staff to place this item on a
future agenda in order to provide more specific information about the program and
discussion on potentially joining MBCP.
Monterey Bay Community Power is the first tri-county community choice energy program
that began service in early 2018 and serves the counties of Santa Cruz, San Benito, and
Monterey, as well as sixteen (16) incorporated cities therein. Most recently, the cities of
Morro Bay and San Luis Obispo joined MBCP and their residents and businesses will
begin electric service in January 2020. Currently, MBCP has about 275,000 customers
and will increase to close to 305,000 in early 2020 once the Cities of Morro Bay and San
Luis Obispo are enrolled. Key components of MBCP are described below.
Item 9.a. - Page 2
CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AND ADOPTION OF A RESOLUTION
AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER AUTHORITY’S COMMUNITY CHOICE AGGREGATION PROGRAM
JUNE 11, 2019
PAGE 3
ANALYSIS OF ISSUES:
Rate Structure
The basic product provided by MBCP is carbon free electricity provided at rates that are
identical to the rates of the incumbent utility on a monthly basis. In FY 2017-2018,
customers received a 3% rebate off their MBCP electric generation charges, 3.7% in FY
2018-2019, and MBCP expects this to increase 5% in FY 2019–2020. MBCP applies the
customer rebate as a bill credit in the following schedule: December for residential
customers, June and December for small to mid-size commercial customers and quarterly
for large industrial and agricultural customers. The rebate is strictly associated with the
amount of electricity a customer uses. Customers may choose to opt up to “MBprime”,
which supports 100% California wind and solar. MBprime is set at 1 cent/kWh above
MBCP default rates. Additional rebate options include “MBgreen+” and “MBshare” which
allow customers to donate their rebate to local renewable generation projects or to
regional non-profits that lower greenhouse gas emissions and support low income rate-
payers. For homes and businesses with rooftop solar that generate power in excess of
the premises’ needs on an annual basis, MBCP offers a net energy metering (NEM) rate
that is more than double the standard PG&E rate. Additionally, customers who receive
financial assistance through CARE/FERA, Medical Baseline and LIHEAP do not need to
re-apply and will continue to receive their electric discounts.
Billing and Customer Service
From a customer perspective, all billing and payments to PG&E stay the same. MBCP
now assumes the role of electric generation supplier and replaces the charges and cost
of electricity supply from PG&E at a lower cost. Customers will see a new line item on the
front page of their bill for “Monterey Bay Community Power Electric Generation Charges”.
Most importantly, customers will see a “Generation Credit” on the PG&E electric delivery
page which credits customers back for the cost of electricity from PG&E. There will be a
new page for MBCP’s electric generation charges which are replacement charges for
electricity generation/procurement, not extra charges. Customers can contact MBCP’s
call center to discuss all aspects of their bill as well as learn about upcoming events and
programs. Customers may also call PG&E to discuss their bill.
Governance and Representation
Of the twenty-one (21) jurisdictions in MBCP, the three (3) counties and three (3)
jurisdictions with population of 50,000 or greater hold six (6) Board seats. An additional
six (6) Board seats are shared by multiple jurisdictions based on geography. Shared seats
rotate every two years within the representatives of those shared communities. MBCP
has a Policy Board that meets quarterly and is comprised of elected officials and an
Operations Board that meets eight (8) times per year and is comprised of city managers
and county administrative officers. MBCP also has a Community Advisory Council.
Item 9.a. - Page 3
CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AND ADOPTION OF A RESOLUTION
AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER AUTHORITY’S COMMUNITY CHOICE AGGREGATION PROGRAM
JUNE 11, 2019
PAGE 4
Members of the Community Advisory Council are community members appointed at large
by the Policy Board.
Energy Programs and Local Economic Benefits
MBCP re-invests 2% of revenue into local energy programs focused on transportation
electrification, building electrification and distributed energy resources. MBCP currently
offers an electric vehicle incentive program worth $1.1 million dollars as well as a
$100,000 solar effort to support low income customers. MBCP evaluates and deploys a
suite of energy programs each year with considerable input from business and agricultural
stakeholders, community members and MBCP’s three boards. To date, MBCP has
rebated over $4.4 million dollars to customers in calendar year 2018. Specifically, the
commercial and agricultural sectors received $2.4 million and $800,000, respectively, in
bill savings. Residential customers received over $850,000 but that was due to a partial
year of service. MBCP estimates over $8 million in bill savings in calendar year 2019.
Energy Procurement
MBCP procures carbon-free energy on the wholesale market through a variety of energy
suppliers and contract lengths. MBCP’s portfolio mix meets the state’s renewable portfolio
standard with the remaining sources coming from large hydro-electric suppliers. MBCP
states they are committed to increasing innovative California renewables. Recently,
MBCP teamed with Silicon Valley Clean Energy to sign contracts for California’s largest
solar-plus-storage project, as well as a joint-procurement project from a 200-megawatt
wind farm which will come online in 2021 and meet 20% of the current electrical demand.
MBCP has annual requests for proposals (RFPs) for carbon free and renewable energy
resources to help meet the necessary state mandates but also to ensure price certainty
and stability for the customer base. MBCP’s energy procurement is supported by its
energy risk management policy.
Financial Health
MBCP has been able to pay off initial debt and build reserves of approximately $57 million
as of February 28, 2019. MBCP estimates reaching its reserve target by late 2020 or early
2021 which allows for greater flexibility on rates, programs as well as the potential of
receiving a credit rating. Currently, MBCP financial policy for net revenues is to allocate
70% towards reserves and 30% for rebates in FY 2018-2019. Once the reserve target is
met, 50% of reserves will be put towards energy programs and 50% will be put towards
rebates. This policy will be subject to board approval and direction once the reserves
target is met. MBCP is the one of the strongest financial CCEs in California.
MBCP has stated their commitment to unifying the Central Coast under one community
choice energy program. MBCP has expressed a willingness to set up a satellite office
within San Luis Obispo County to better serve south Monterey County, San Luis Obispo
County, and communities in north Santa Barbara County (within PG&E service territory).
Item 9.a. - Page 4
CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AND ADOPTION OF A RESOLUTION
AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER AUTHORITY'S COMMUNITY CHOICE AGGREGATION PROGRAM
JUNE 11 , 2019
PAGES
MBCP also understands t he regio nal landscape, and is ope n to re-branding the agency
to i nclude the Central Coast. The cities of Grover Beach and Paso Rob les introduced
ord ina nces and adopted resolutions o n May 20 , 20 19 and May 21 , 20 19, respect ive ly.
T he ci ty of Pismo Beach is schedu led to co nsider taking act ion on June 4 , 2019 ,
Atascadero has sc heduled an age nda item on CC E on June 25, 2019 , a nd the Cou nty of
San Lu is Ob ispo on June 18 , 20 19 .
Next Steps
Sho uld t he Council choose to j oi n MBCP, the Co unc il w ould be required to int rod uce and
later adopt an Ordi nance authorizi ng the implementation of a comm unity choice
agg regat ion program by participating in MBCP 's comm unity choice aggregatio n prog ram.
T he Counc il w ou ld f urther adopt a reso lution j oi ning MBCP and adopt ing its Joi nt Pow ers
Au t hority (J PA ) Ag reement. Pend ing Cou ncil act ion , below is an est imated outl ine of the
imp lementat ion sched ule t hro ugh 202 1:
Activity Date
Public hearing to introduce an d conduct first reading of the CCE J une 11, 2 0 19
ordinance and adoption of resolu t ion to ioin MBCP.
Adoption of t he CCE ordinance. J une 25, 2 0 19
Submit required documents (resolution and o rdinance ) to MBCP Ju ly 3 1, 20 19
MBCP Policy Board Meeting to accept the City of Arroyo Gran de Sept. 20 19
as a member of the J PA.
MBCP Policy Board Meeting to approve an d submit t he Nov -Dec 20 19
Imp lement ation Plan to the CPUC .
P rogram Implementat ion and Operations Preparation Mid 2020 -Late 202 0
Begin MBCP Service Early 2021
MBCP is encouragi ng all i nterested commu nities to submit t he req uired documentatio n
by Ju ly 31, 2019 i n order to effectively update the imp lementa t io n plan and JPA
agreeme nt to fi le w it h Ca liforn ia Pub lic Ut ilities Comm issio n by December 2019.
ALTERNATIVES:
T he follow ing altern atives are provided for t he Counc il's co nsiderat io n :
1. Introduce an Ord ina nce authorizing the implementation of a commu nity choice
agg regat ion program by participat ing i n Monterey Bay Pow er A ut hority's commu nity
cho ice aggregat io n prog ram a nd adopt a Resol ut ion re questi ng membersh ip i n
Monterey Bay Commu nity Power; or
2. Do not introduce an Ordinance or adopt a Reso lutio n and prov ide alternat ive direction
to staff.
Item 9.a. -Page 5
CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AND ADOPTION OF A RESOLUTION
AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER AUTHORITY’S COMMUNITY CHOICE AGGREGATION PROGRAM
JUNE 11, 2019
PAGE 6
ADVANTAGES:
There are several benefits of joining a large operational and financially sound CCE
program with existing governance, staff, vendors and operations, credit and reserves, and
that has already covered initial startup costs. The size of MBCP allows it to be more
resilient to fluctuations in the regulatory and market environments. Joining MBCP could
involve a low implementation cost relative to significant cumulative savings coupled with
high emission reductions. Arroyo Grande residents and businesses are estimated to save
$165,616 in the first year and $1,656,159 in the first five years of enrollment. This estimate
by MBCP relies on publicly available electricity consumption data, assumes 95%
enrollment to MBCP, and is based on a 3% rebate for weighted electric generation rates
for February 2019. However, by 2021 the rebate is expected to be up to at least 3.7%,
and increasing up to 8% by 2023 (Attachment 1). The conservative cost estimate does
not include all of the eligible program dollars that residents and businesses would have
access to.
The City is committed to emission reductions as stated in Arroyo Grande’s Climate Action
Plan (CAP). It is unlikely that the 2020 CAP reduction goal will be met on time. Switching
to carbon-free electricity would result in large emission reductions that are more cost-
effective than alternative reduction measures of similar magnitude. Although Arroyo
Grande is unlikely to meet the 2020 GHG emission reduction goal of a 15% reduction
below 2005 levels, State legislation has pushed ahead with ambitious goals of 40% below
1990 levels by 2030 and 80% below by 2050. In order for the City to remain committed
to reducing emissions under the duress of future reduction targets becoming unfeasible
and correspondingly cost prohibitive, timely and significant mitigation measure are
required. Adopted in 2013, the CAP is a plan to cut 3,914 MT CO2e (Metric Tons of
Carbon Dioxide equivalents) annually by 2020. The City has cut roughly 50% of this goal
to date. However, it is conservatively estimated that joining MBCP could cut up to well
over 5,400 MT CO2e, and likely could be in excess of three times the remaining gap of
the 2020 reduction target. Additional benefits include increased local control via a shared
seat on the Policy and Operations board, the opportunity for customers to apply for seats
on the Community Advisory Council, and significant cost effective methods of progressing
towards achieving adopted emission reduction goals outlined in the CAP. A portion of
revenue is reinvested in community programs and offers funding options for implementing
existing recommended CAP measures. Finally, there is a simple implementation and
transition process.
DISADVANTAGES:
There is larger discussion at the California Public Utility Commission (CPUC) about how
to handle IOUs as electricity providers moving forward and whether or not to make them
only a “lines and poles” service provider. CalCCA (the representative body for CCA at the
State level) is a proponent of this as a goal because it would likely expand the number
and range of CCA. However, opponents point to the 2001 energy crisis when the State
Item 9.a. - Page 6
CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AND ADOPTION OF A RESOLUTION
AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER AUTHORITY’S COMMUNITY CHOICE AGGREGATION PROGRAM
JUNE 11, 2019
PAGE 7
allowed for widespread Direct Access (DA) by deregulating the energy sourcing market
(which similarly made PG&E a “lines and poles” service provider). For a multitude of
reasons, energy prices soared, rolling blackouts occurred, PG&E went bankrupt, and the
State had to step in. However, the CCA model was created in part as a solution to the
energy crisis (AB 117 passed in 2002). The modern regulatory context is very different
and there are fundamental differences between DA versus CCA. Indeed, DA is likely the
largest threat to the CCA model. PG&E, like MBCP, is held to state regulations calling for
a percentage of their energy portfolio to be from renewable sources (close to 30%). The
CPUC could mandate an additional increase in percentage of renewables ahead of the
state legislative schedule (SB 100 requires carbon free electricity by 2045), which would
lessen the difference of estimated emission reductions between PG&E and MBCP. CCA
is not the only option to offer community programs; PG&E provides information on its
website about the status of community projects, however any current programs are
indefinitely on hold and will be re-evaluated “in light of the current situation”.
ENVIRONMENTAL REVIEW:
The establishment of a CCE 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 because energy will be transported through existing
infrastructure (14 Cal. Code Regs. § 15378(a)). Further, establishing a CCE is exempt
from CEQA as there is no possibility that this it would have a significant effect on the
environment (14 Cal. Code Regs. § 15061(b)(3)). Further, the establishment of a CCE 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).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. MBCP Cost Savings Estimates
2. Public Correspondence
Item 9.a. - Page 7
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, CALIFORNIA, AUTHORIZING THE IMPLEMENTATION OF
A COMMUNITY CHOICE AGGREGATION PROGRAM BY
PARTICIPATING IN MONTEREY BAY COMMUNITY POWER'S
COMMUNITY CHOICE AGGREGATION PROGRAM
WHEREAS, the City Council has previously 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 Arroyo Grande (City) 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, Monterey Bay Community Power Authority (MBCPA) is an established CCA
program capable of providing the desired financial and environmental benefits, and
WHEREAS, MBCPA will enter into agreements with electric power suppliers and other
service providers and, based upon those agreements, MBCPA 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 MBCPA, MBCPA will be able to provide
service to customers within the City; 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 April 9, 2019 the City Council received a presentation and on June 11,
2019 the City Council held a public meeting on the manner in which the City 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 through
MBCPA; 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).
Item 9.a. - Page 8
ORDINANCE NO.
PAGE 2
NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Arroyo Grande
as follows:
SECTION 1. The above recitations are true and correct and material to this Ordinance.
SECTION 2. Based upon the forgoing, and in order to provide businesses and residents
within the City 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 MBCPA, as generally described in its Joint Powers Agreement.
SECTION 3. This Ordinance shall take effect thirty (30) days after its adoption.
On motion of Council Member , seconded by Council Member , and
on the following roll call vote to wit:
AYES:
NOES:
ABSENT:
The foregoing Ordinance was adopted this ________ day of __________, 2019.
Item 9.a. - Page 9
ORDINANCE NO.
PAGE 3
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
Item 9.a. - Page 10
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, REQUESTING MEMBERSHIP IN THE MONTEREY BAY
COMMUNITY POWER JOINT POWERS AUTHORITY (MBCPA) AND
AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE THE
JOINT POWERS AUTHORITY AGREEMENT AS AMENDED WITH
MBCPA
WHEREAS, AB 117, adopted as California state law in 2002, permits cities, counties, or
Joint Power Authorities comprised of cities and counties to aggregate residential,
commercial, industrial, municipal and institutional electric loads through Community
Choice Aggregation (CCA); and
WHEREAS, pursuant to Section 366.2 of the Public Utilities Code, two or more entities
authorized to be a community choice aggregator may participate as a group in a
community choice aggregation program through a joint powers agency established
pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, if each entity adopts the aforementioned ordinance; and
WHEREAS, in March 2017, MBCPA was established as a joint powers agency pursuant
to a joint powers agreement; and
WHEREAS, the purpose of MBCPA is to address climate change by providing locally
controlled carbon-free electricity at affordable rates; and
WHEREAS, the City Council supports the mission of MBCPA and its intent to promote
the development and use of a wide range of carbon free and renewable energy sources
and energy efficiency programs, including solar and wind energy production at
competitive rates for customers; and
WHEREAS, in order for the City to become a member of MBCPA, the MBCPA Joint
Powers Agreement (JPA) must be amended to permit the City join as a party; and
WHEREAS, MBCPA also has requested the City adopt a resolution requesting
membership in MBCPA and authorizing its Mayor or City Manager to execute the JPA
as amended, as well as an ordinance authorizing CCA within its jurisdiction; and
WHEREAS, the City wishes to be a CCA pursuant to the JPA and has introduced the
Ordinance required by Public Utilities Code Section 366.2 in order to do so; and
WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt-
out of the CCE program and continue to receive service from the incumbent utility.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Arroyo Grande:
SECTION 1. The City Council of Arroyo Grande requests the Board of Directors of
MBCPA approve the City of Arroyo Grande as a member of MBCPA.
Item 9.a. - Page 11
RESOLUTION NO.
PAGE 2
SECTION 2. The Mayor or City Manager is hereby authorized and directed to execute
the JPA on behalf of the City after the JPA is amended, which will establish the City's
membership in MBCPA.
SECTION 3. The joining of MBCPA is exempt from the requirements of the California
Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, as it is not
a "project" since this action involves organizational and administrative activities of
government that will not result in direct or indirect physical changes in the
environment. (14 Cal. Code Regs.§ 15378(b)(5).)Further, the ordinance is exempt from
CEQA as there is no possibility that the ordinance or its implementation would have
a significant negative effect on the environment. (14 Cal. Code Regs.§ 15061(b)(3)) . A
Notice of Exemption shall be filed as authorized by CEQA and the State CEQA
guidelines.
SECTION 4. This resolution shall be effective immediately upon passage and adoption.
On the motion of Council Member , seconded by Council Member ,
and on the following roll call vote to wit:
The foregoing Resolution was adopted this ________ day of _________, 2019.
Item 9.a. - Page 12
RESOLUTION NO.
PAGE 3
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
Item 9.a. - Page 13
ATTACHMENT 1
Preliminary Cost Savings for all customers in the City of Arroyo Grande (5 year projection from 2021 -2025)*
City of Arroyo Grande Bill Savings 2021 2022 2023 2024 2025 Total
Re bate(%) 3% 3% 8% 8% 8% -
Scenario 1 -3 % Customer Rebate Residential $ 60,532 $ 60,532 $ 161,420 $ 161,420 $ 161,420 $ 605,325
(2021/2022) then 8% Cu stomer Commercia l $ 105,083 $ 105,083 $ 280,222 $ 280,222 $ 280,222 $ 1,050,834
Rebate (2023 -2025)
Total ($) $ $ $ $ $ $ 1,656,159 165,616 165,616 441,642 441,642 441,642
Re bate(%) 4% 4% 8% 8% 8% -
Scenario 2 -4 % Customer Rebate Residential $ 80,710 $ 80,710 $ 161,420 $ 161,420 $ 161,420 $ 645,680
{2021/2022} then 8% Cu stomer Commercia l $ 140,111 $ 140,111 $ 280,222 $ 280,222 $ 280,222 $ 1,120,890
Rebate {2023 -2025}
Total ($) $ $ $ $ $ $ 1,766,569 220,821 220,821 441,642 441,642 441,642
Preliminary Cost Savings for all customers in San Luis Obispo County (5 year projection from 2021-2025)*
Entire San Luis Obispo County Bill Savings 2021 2022 2023 2024 2025 Total
Re bate(%) 3% 3% 8% 8% 8% -
Scenario 1 -3 % Customer Rebate Residential $ 1,107,976 $ 1,107,976 $ 2,954,602 $ 2,954,602 $ 2,954,602 $ 11,079,758
(2021/2022) then 8% Cu stomer Commercia l $ 2,040,149 $ 2,040,149 $ 5,440,398 $ 5,440,398 $ 5,440,398 $ 20,401,492
Rebate (2023 -2025)
Total ($) $ $ $ $ $ $ 31,481,250 3,148,125 3,148,125 8,395,000 8,395,000 8,395,000
Re bate(%) 4% 4% 8% 8% 8% -
Scenario 2 -4 % Customer Rebate Residential $ 1,477,301 $ 1,477,301 $ 2,954,602 $ 2,954,602 $ 2,954,602 $ 11,818,409
{2021/2022} then 8% Cu stomer Commercia l $ 2,720,199 $ 2,720,199 $ 5,440,398 $ 5,440,398 $ 5,440,398 $ 21,761,591
Rebate {2023 -2025}
Total ($) $ $ $ $ $ $ 33,580,000 3,310,435 3,310,435 6,620,871 6,620,871 6,620,871
*both tables of analysis are subject to future change s with the Power Cha rge Ind ifference Adjustment & PG&E 's status as an electric supplier
Item 9.a. -Page 14
.Jun. 5. 20 l9 2:3lPM
From: Gina Mori
No. 0003 P. i
ATTACHMENT 2
f?ECEIVED
JUN O 5 2019
CITY OF ARROYO GRANDE
Please support MBCP: Clean Energy
and lower energy costs.
Monterey Bay Community Power
(MBCP) is a successful community
choice energy program that is
providing carbon free energy and
savings to its members. Support
MBCP so our cities can enjoy the
benefits of community choice.
Item 9.a. -Page 15
> On Jun 4, 2019, at 10:57 PM, Paul Fordyce < wrote:
>
> Dear Members of the Arroyo Grande City Council,
>
> I urge you to support Community Choice Energy. Please vote to join Monterey Bay Community Power. I am a
resident of Arroyo Grande and I look forward to the opportunity to save on my energy costs and to purchase carbon
free electricity. Community Choice is cost effective, creates local jobs, and will help us reach climate action goals.
Please give me this choice by voting to join MBCP.
>
> I am very concerned about our environment and the future we are leaving to the generations that follow.
Community Choice is a significant step in the right direction. As leaders of our community you have the
opportunity to provide energy customers with a simple choice to reduce their carbon footprint. Please vote yes.
>
> Thank you for supporting a better future.
>
> Paul Fordyce
>
> Arroyo Grande
>
Item 9.a. - Page 16
-
On Jun 6, 2019, at 12:12 AM, Shirley Ward
wrote:
I am an Arroyo Grande resident and would like to voice my support
for community choice energy.
Shirley Ward
Sent from my iPhone
Item 9.a. - Page 17
On Jun 6, 2 019, at 7:12 AM, Elizab eth For dyce wrote :
Dear Members of the Arroyo Grande City Co unci l,
I urge you to support Community Cho ice Energy. Please vote to join
Monterey Bay Community Pow er. I am a resident of Arroyo Grande and I
look forward to the opportun ity to save on my energy costs and to
purchase carbon f ree e lectricity. Commun ity Choice is cost effective ,
creates local jobs, and w ill help us reach climate act ion goals . P lease give
me this cho ice by vot ing to join MBCP.
I am very concerned about our en v ironment and the future w e are leaving
to the generat ions that follow . Comm unity Choice is a significant step in
the right d irect ion . As leaders of our comm unity you have the opportun ity
to provide energy customers w ith a s imple cho ice to reduce their carbon
footprint. Please vote yes .
T han k yo u for supporting a better and cleaner f ut ure for all of us.
Elizabeth Fordyce
Item 9.a. -Page 18
On Jun 5, 2 019, at 6:49 PM , Gil and Sandy -w rote :
Th is is an important communit y issue. Please j oin the other cities in support of SLO
Climate Coalition. Than k you all.
G il bert Pitt and Sandra Pitt (A.G. residents for 16 years)
Item 9.a. -Page 19
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Item 9.a. - Page 20