Archive for CCA

Community choice aggregation expands into New York

June 27, 2016 | By

New York is the seventh state to allow community choice aggregation, the Associated Press reported, joining California, Illinois, Massachusetts, Ohio, Rhode Island and New Jersey with a state policy that permits local governments to aggregate electricity demand, often requiring alternative energy sources, while maintaining the existing electricity provider for transmission and distribution services.

Consumers pay a fixed price for power under a contract negotiated by the local buying group, or can opt out and switch back to the local utility. In New York, the development of community choice programs began as part of the state’s 2014 energy reforms intended to promote more renewable energy development, energy efficiency and a move from large-scale centralized power plants to a locally generated power network.

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Sign up for our FREE newsletter for more news like this sent to your inbox!Westchester Smart Power, which includes 112,000 homes in 20 communities in Westchester County, took bids from energy service companies to supply electricity for two local utility territories. ConEdison Solutions, sister company to utility Consolidated Edison, and Constellation Energy won the contracts, and agreed to charge lower rates than 2015 prices for either 100 percent renewable energy or a mix of fossil fuels, nuclear and some renewables.

“As an energy delivery company, we aren’t affected by our customers’ choice of energy supplier,” Clay Ellis, a spokesman for the utility NYSEG, which serves part of Westchester, told the AP. “We do buy energy since we’re also the default supplier for many customers, but the energy supply costs we pay are passed directly through to the customer with no markup.”

Consumers are expected to save $4 to $5 million a year, according to AP’s reporting. The region has some of the highest energy prices in the country, and 14 of the 20 communities opted for 100 percent renewable energy. About 7,000 customers, or 6.3 percent, opted to switch back to buying energy through the local utility.

“We’re getting calls from municipalities and grass-roots activists throughout New York,” said Mike Gordon, coordinator of Westchester Smart Power, launched as a pilot project in 2015 as the first community choice energy program in the state. “We are transforming the way we buy, consume and generate energy.”

Paris Climate Deal Seen Costing $12.1 Trillion Over 25 Years

January 29, 2016

By Alex Morales, Bloomberg

If the world is serious about halting the worst effects of global warming, the renewable energy industry will require $12.1 trillion of investment over the next quarter century, or about 75 percent more than current projections show for its growth.

 

That’s the conclusion of a report setting out the scale of the challenge facing policymakers as they look for ways to implement the Paris Agreement that in December set a framework for more than 195 nations to rein in greenhouse gases.

 

The findings from Bloomberg New Energy Finance and Ceres, a Boston-based coalition of investors and environmentalists, show that wind parks, solar farms and other alternatives to fossil fuels are already on course to get $6.9 trillion over the next 25 years through private investment spurred on by government support mechanisms. Another $5.2 trillion is needed to reach the United Nations goal of holding warming to 2 degrees Celsius (3.6 degrees Fahrenheit) set out in the climate agreement.

 

“The clean energy industry could make a very significant contribution to achieving the lofty ambitions expressed by the Paris Agreement,” said Michael Liebreich, founder of Bloomberg New Energy Finance, a London-based research group. “To do so, investment volume is going to need to more than double, and do so in the next three to five years. That sort of increase will not be delivered by business as usual. Closing the gap is both a challenge and an opportunity for investors.”

 

The required expenditure averages about $484 billion a year over the period, compared with business-as-usual levels of $276 billion, according to Bloomberg calculations. Renewables attracted a record $329 billion of investment in 2015, BNEF estimates.

 

While the figures are large, they’re not as eye-watering as the International Energy Agency’s projection that it will cost $13.5 trillion between now and 2030 for countries to implement their Paris pledges, and that an extra $3 billion on top of that will help meet the temperature target. Those figures aren’t just limited to renewables: they also include energy efficiency measures.

 

Envoys from 195 nations sealed the first deal to fight climate change that binds all countries to cut or limit greenhouse gases at a United Nations summit in Paris last month. They agreed to hold temperatures to “well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius.”

 

“Policymakers worldwide need to provide stable, long- lasting policies that will unleash far bigger capital flows,” said Sue Reid, vice-president of climate and clean energy at Ceres, a nonprofit group. “The Paris agreement sent a powerful signal, creating tremendous momentum for policymakers and investors to take actions to accelerate renewable energy growth at the levels needed.”

Cheers,
Bruce Karney

CPUC Rejects Plea for PCIA/Exit Fee Relief

Join_us_header
Dear LEAN Members, CCA Supporters and Friends,
Our efforts at the CPUC this morning yielded disappointing results with a 4-1 vote (Sandoval in opposition) to approve the proposed decision increasing the 2016 Power Charge Indifference Adjustment (PCIA) by an uprecedented 95%.  This outcome was not a big surprise but disappointing nonetheless. The Commission did, however, agree to include additional parties in the next phase of the ERRA proceeding (having previoulsy rejected them) and hold a workshop on the PCIA issue, tentatively scheduled for February 16, 2016. More on that as plans develop.
On the plus side, the press conference and public comment period were a success and covered by a number of regional and statewide news outlets.  Commissioner Florio, the assigned Commissioner to this case, received a deluge of letters and e-mails which did not go unnoticed by the Commission. More than 50 people showed up for the press conference and hundreds expressed their concern through correspondence and during public open time. Thank you so much!
Our hope is that the February workshop will yield some positive results for long-term PCIA reform. But hope springs eternal, and we expect that any reforms will be modest at best. Legislative action may be required.
In an e-mail earlier today, Beth Kelly, Legal Director of MCE said it best: “We’ve lost this battle, but with your continued support, we hope to win the war.”  We couldn’t do this work without all of you and we are grateful for your steadfast participation.
Onward and stay tuned…today wasn’t the last word on utility exit fees.
A few photos from today’s event:
Ratha Lai_ Sierra Club
Ratha Lai, Sierra Club
Shawn Marshall_ LEAN
Shawn Marshall, LEAN Energy US
Tom Butt_ Richmond Mayor
Richmond Mayor, Tom Butt
Geof Syphers_ Sonoma Clean Power
Woody Hastings, Center for Climate Protection
Lane Sharman, San Diego Energy District Foundation
Francesca Vietor_ SF Water Sewer
Francesca Vietor, San Francisco Public Utilities Commission
 LEAN Energy US is committed to the accelerated expansion and competitive success of clean energy CCA nationwide. LEAN (Local Energy Aggregation Network) is a member-supported organization, serving a national network of community leaders, local governments, consumers, advocacy organizations, power suppliers and developers working toward the protection and establishment of CCAs in their States and cities. To learn more, please visit us at 

 

Bay Area communities gearing up to create their own power systems

From Silicon Valley to the East Bay to the Central Coast, a “people’s power” movement is sweeping through California that will give local residents a choice to ditch PG&E and buy cleaner — and possibly cheaper — energy from the cities and counties where they live.

To its proponents, the idea is a no-brainer. But to its critics, it’s just a lot of hype — a feel-good solution that will lead to unstable prices, empty promises and — at least for the time being — no additional green energy.
  Overseen by a team of energy experts and a board of elected officials, new community-run utilities are buying power from the grid, procuring a higher percentage of renewable energy — think solar and wind, as well as methane from dairy cows — than PG&E, while aiming for a price around or even below the giant utility’s rates. The new power systems also are charged with developing more local renewable energy.

Elected officials in Silicon Valley — representing an alliance of Santa Clara County and most of its cities — are poised to decide in March whether to take the key steps necessary to develop a new electricity system that they say could be lighting homes by early 2017. And San Jose, the region’s largest city, is considering creating its own system.

Similar alliances are moving forward in San Mateo, Alameda, Contra Costa, Santa Cruz and Monterey counties. San Francisco’s power system is set to launch next year.

Whenever these plans are adopted, customers in the cities and counties are automatically enrolled, though they can opt out of the program at any time.

CCA Digest

CALIFORNIA Roundup, November 2015

    

A Message from LEAN’s Executive Director

As California’s CCA representatives prepare for participation in the United Nations’ Conference on Climate Change, the recent tragedy in Paris has put the topics of the conference in tragic and immediate perspective.

It is no longer open to question that climate change is here and already affecting communities all over the world. Climate change will increasingly affect the availability of arable land, energy resources and water supplies, which will in turn impact food security and local economies. Scarcity and dramatic environmental changes disrupt stable political systems and create tensions that can evolve into war. We must stand up to the potential challenges climate change presents with concrete, collaborative action. And so we travel to Paris to share the effective, local climate solution that is community choice aggregation.

We look forward to reporting on the UN Conference on Climate during next month’s CCA Market Call on December 11. In the meantime, please follow us on Facebook and Twitter for daily updates.
Happy Thanksgiving to one and all!
Shawn Marshall signature
SDG&E Plans Independent Marketing Affiliate



On November 20, SDG&E filed an advice letter with the CPUC stating its intention to form an independent marketing division through its parent company, Sempra. To comply with State law, the affiliate’s marketing activity must be funded by shareholders (not ratepayers), and must comply with the Code of Conduct in terms of factual content and accuracy related to CCA information.
SDG&E proposes an effective date of December 21, 2015, although the CPUC could slow the process if it has concerns regarding compliance with Commission rules.
LEAN Energy and the CCA community are still reviewing the advice letter and discussing a coordinated response.  Protests are due to the CPUC byDecember 10, 2015.  Information about where to send protests is included in the SDG&E Advice Letter, which you can find here.

Update on CCA Program Developments in California
The City of Paradise in Butte County recently hosted a meeting on the County’s potential move toward CCA.

Dozens of other California communities continue to move ahead with technical studies, community outreach and program planning. The following provides highlights only– for more information about activities in other communities, get in touch with LEAN Energy.

Other updates …   

City / County of San Francisco  
Prop H passed with support of CleanPowerSF advocates: IBEW 1245 measure (Prop G) removed from ballot / defeated
Humboldt & Lake Counties   Plan to issue RFP for CCA technical and program services–week of November 16
San Mateo County   
Board of Supervisors passed CCA ordinance; JPA resolution to be heard on 11/17; October 2016 program launch
City of San Jose  
Business and local government outreach underway; may form as a single city
Los Angeles County / South Bay Cities  
County moving ahead with tech study and business plan. Hermosa Beach pursuing two options: form as a single city or join County’s effort
Contra Costa County  
Exploring program options: form county-wide JPA, join MCE or join Alameda County’s effort
Silicon Valley Clean Energy   
Tech study complete; outreach to other Santa Clara County cities underway with March 2016 deadline for passage of JPA resolutions and CCA ordinances. Plan for early 2017 launch
Monterey Bay Tri-Counties
Tech study complete in December; targeted summer 2017 launch

CALL TO ACTION!
PUSH BACK ON A DOUBLING OF THE PCIA
PG&E’s proposal to nearly double its PCIA in 2016 would affect the viability of existing CCAs as well as communities considering launch in 2016, and will hurt all CCA customers, especially low income customers. In the CPUC’s proceeding on this issue (A1506001), MCE and LEAN have opposed the drastic increase in the PCIA and proposed ways to stabilize the PCIA without hurting existing utility “bundled” customers.

On November 13, the CPUC Administrative Law Judge (ALJ) issued a proposed decision that would approve PG&E’s proposal and reject all proposals to reduce the impacts of the PCIA on CCA customers.Here is the link to the decision.

PLEASE CONSIDER WRITING A LETTER TO THE CPUC OPPOSING PG&E’S PROPOSAL AND THE ALJ’S PROPOSED DECISION.

Click here for more detailed information including draft letters, where to send your letter, and an overview of the PCIA provided by MCE. Your letter must reach the CPUC Commissioners before December 17 when the Commission will vote on the decision or an alternative.
LEAN and the state’s CCAs will continue to work at the CPUC to assure fair cost allocations to CCA customers and policies that assure Californians get the benefit of customer choice and other benefits of CCA programs.

The Future of Behind-the-Meter Solar:
Net Energy Metering 2.0
CCAs care about solar power as a supply resource and as a way to serve their customers’ interests in local clean power and lower utility rates. All three of California’s operating CCAs have made a commitment to developing local solar as a way to support their local economies. One of the ways CCAs promote customer investments is to pay customers for the excess power they produce and deliver into the grid–called “net energy metering” (NEM).

NEM has been a successful incentive for investments in onsite solar projects by customers of CCAs and private utilities. The economics of investments in small solar systems, however, may be changing soon. The CPUC is currently considering changes to utility rates and NEM tariffs in response to AB 327, signed by the Governor in October 2013.

CCAs and CALSEIA (California Solar Energy Industry Association) report in on CCA NEM programs and utility proposals before the CPUC.
Sonoma Clean Power’s NEM Tariffs — Amy Rider, SCP Program Manager, describes SCP’s net metering tariff, called ProFit, which pays solar customers retail for excess power and permits customers to “cash out” their credits rather than rolling over credits to the following year (as PG&E does). SCP has so far paid out more than $200,000 to its customers, mostly to local schools, for the excess solar generation they have produced onsite.

Marin Clean Energy’s NEM Tariffs — Justin Kudo, MCE Customer Accounts Manager, reports that MCE has over 5,000 NEM accounts and customers may cash out their credits at any time. MCE pays the retail rate plus $.01/kwh as an incentive for its customers to produce solar power. Please see MCE’s updated NEM information here.
Utility Proposals to Change Solar NEM Payments and Other Rates 

California utilities have proposed some significant changes to NEM transmission charges that will affect CCA solar customers. As part of an elaborate rulemaking inquiry at the CPUC in response to AB 327PG&E, for example, has proposed changes that could cut into solar customer bill savings by more than 10%.  The most significant of these proposed changes include:
  • A “demand charge” on residential solar customers of $3/kilowatt/month (plus a new $10 minimum bill/month)
  • Reduced payments for power going into the grid from average 16.3 cents/kwh to 9.7 cents/kwh — effectively eliminating credits related to T&D for utility customers as well as CCA customers.
CALSEIA Response to Utility Proposals

CALSEIA’s Director of Policy, Brad Heavner, reports on solar industry concerns regarding proposed changes to net energy metering presented to the CPUC:

  • Utility estimates of bundled customer support for solar customer rates is about 8-9 cents, compared to CALSEIA’s estimate of about 1 cent;
  • For customers who invest in solar projects, utility proposals would increase payback period to as much as 20 years, compared to current payback of about 7 years;
  • The timing of the utility rate changes presents a negative double whammy for solar development– utility proposals are timed to coincide with the phase-out in 2017 of the “investment tax credit,” which will add additional ‘rate shock’ to the market.
  • Utility proposals would disporportionally affect the cost-effectiveness of residential and small commercial customer investments, not those of large commercial or agricultural customers;
  • CALSEIA is proposing gradual increases to proposed NEM 2.0 charges and is considering proposals to extend or increase the current peak period “caps” on net energy metering
The CPUC’s proposed decision is expected in December 2015. We will keep you posted on how this issue unfolds in the coming months!
Regulatory Update from Lancaster Choice Energy
 
Barbara Boswell, LCE’s Program Director, reports that the CPUC staff rejected SCE’s advice letter proposing that CCA CARE customers pay the PCIA. Although SCE’s PCIA is expected to be zero for 2016, this staff decision protects LCE’s low-income customers from increases in subsequent years (at least for the time being). Almost 40% of LCE’s residential customers are low-income CARE customers.

LEAN Energy US
www.LEANenergyus.org / 415-888-8007

PO Box 961 / Mill Valley / CA  94941

Marin Clean Energy

What’s Inside?
  • MCE Travels to Paris to Participate in 21st United Nations Conference of the Parties
  • MCE Commits to 80% Renewable, 95% Carbon-Free by 2025
  • Tips to Reduce Your Energy Bill This Holiday Season
  • Take the Cool California Challenge and Reduce Your Carbon Footprint
  • Deep Green Champion of the Month – Tamalpais Community District Services

Local Leadership to Present Story of Marin Clean Energy at COP21 United Nations Framework Convention on Climate Change in Paris
Marin Clean Energy (MCE) is honored to be joining countries and world leaders from around the globe later this month at the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) in Paris. This year’s annual conference is critical because the expected outcome is a new international agreement on climate change, applicable to all, to keep global warming below 2 degrees Celsius.
 
Official COP21 Video
After the devastating attack
on Paris earlier this month, many events have been cancelled; however, COP21 has decided to move forward proving the importance of creating a binding agreement to protect our global environment.
On behalf of MCE, our
thoughts and prayers go out to the victims of the devastating attack in Paris. We hope that the Climate Conference will serve as a shining light for a
brighter future.
COP21 will feature an esteemed delegation representing California’s trailblazing CCA policies-including leadership from the Governor’s office, Marin Clean Energy, LEAN Energy US, and the City of Richmond-organized by Kyoto USA and the Sequoia Foundation.

“Our mission is to address climate change by reducing energy related greenhouse gas emissions and securing energy supply, price stability, energy efficiency and local economic and workforce benefits. We are honored to be joining nations from all over the world to discuss a matter of critical importance to our communities, and to share solutions that can make change.”  MCE CEO, Dawn Weisz

MCE Sets Goal to Reach
80% Renewable, 95% Carbon-Free By 2025
MCE strives to provide electric services to its customers at stable and competitive rates, utilizing the cleanest possible sources of electric energy 
MCE is continuing to push the envelope with its mission to reduce energy related greenhouse gas emissions. By 2025, MCE has set the goal for its Light Green program to be 85% renewable and 95% carbon-free, currently 56% renewable and 60% carbon-free.

In addition to its ambitious renewable and carbon-free goal, MCE is also planning for increases of new, in-state energy generation. MCE set a policy to limit unbundled renewable energy certificates (RECs) to 3% of its energy supply starting 2016.

What’s a REC you ask? Click here to learn what they are and how they are used.

‘Tis the Season to Reduce Your Electricity Bill

Lower Your Carbon Footprint – Win Your City

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The CoolCalifornia Challenge is a statewide competition between 22 communities to see who can lower their carbon footprint the most. The challenge runs from October 1, 2015 – March 31, 2016. Only one community will prevail, but when it comes to reducing our energy and water use, everyone wins!
Proudly, nine of this year’s 22 Challenge communities are MCE members – Benicia, Corte Madera, El Cerrito, Fairfax, Larkspur, Mill Valley, Richmond, San Pablo, and Sausalito!
 
 
We Invite You to Join the Challenge and 
Earn Points Here
This online tool will track your energy usage and record the points you earn.

Meet Tamalpais Community Services District
Deep Green Champion of the Month
The mission of the Tamalpais Community Services District (TCSD) 
is to protect and enhance a healthy community in Tamalpais Valley
TCSD programs are carefully crafted to serve the public and  preserve the environment. Thanks to TCSD, residents in Tam Valley enjoy: free woodchips and compost collection, along with complimentary collection buckets and rolls of BioBags©. Composting participation in Tam Valley is almost double the national average! TCSD also collects e-waste, batteries, CFL light bulbs, and medical waste, making  it easy for households to dispose of waste properly.
“Choosing Deep Green 100% renewable energy aligns perfectly with the mission of the Tamalpais Community Services District to protect and enhance a healthy     community in Tamalpais Valley. Reducing greenhouse gas emissions through Deep Green is an easy way for us to be better stewards of the environment.” 
General Manager, Jon Elam

 

Community Choice Aggregation

VIDEO

Community Choice Aggregation (CCA) from the film “The Future of Energy: Lateral Power to the People” January 2015   
>> VIEW

Market-based, Flexible, Local.

Aggre-what? We know—it’s a wonky name for a relatively simple concept called group purchasing: in this case, electricity. In dictionary speak, Community Choice Aggregation1 allows local governments and some special districts to pool (or aggregate) their electricity load in order to purchase and/or develop power on behalf of their residents, businesses, and municipal accounts.2Established by law in six states thus far, CCA is an energy supply model that works in partnership with the region’s existing utility, which continues to deliver power, maintain the grid, provide consolidated billing and other customer services.

how it works_final

Why Do It?

Through CCA, local governments and their constituents are achieving a powerful range of objectives:

  • Competitive, often significantly lower, electricity rates3
  • Transition to a cleaner, more efficient energy supply
  • Consumer choice, consumer protection, and local control4
  • Local jobs creation and economic development
  • Local delivery channel for new and existing energy programs such as feed-in-tariff, net energy metering, energy efficiency retrofits, PACE, distributed rooftop and community-shared solar, and demand response technologies
  • Development of new power projects to augment contracted power

Options, Options

Energy aggregation can be done on an opt-in or opt-out basis (depending on state statute), but the most common and successful programs are opt-out. This means that customers are automatically enrolled after a successful public referendum at the local level, as in Illinois and Ohio; or, enrolled when their local elected representatives (city council or county board) vote to form or join a CCA program, as in California. The opt-in approach is voluntary but participation rates are traditionally very low which reduces the value of group purchasing and makes it harder for local programs to achieve economic viability. Opt-out aggregation achieves the necessary market scale for effective group purchasing, but allows a customer to switch back to utility service at any time.5 Either way, customers always have the choice to stay or go.

Public Power Benefits Without the Infrastructure Price Tag

Non-profit municipal utilities, or munis, provide highly reliable electricity supply at rates averaging 15 to 20 percent below the rates of traditional investor-owned utilities. Like munis, CCAs offer cost efficiencies, flexibility, and local control. But unlike munis, they do not face the capital-intensive and open-ended challenge of valuing, purchasing, and maintaining expensive utility infrastructure. CCA offers a “hybrid” approach that exists between the investor-owned (often monopoly) utility and a municipal (or member coop) utility. CCA reaps the benefits of controlling power supply and generation without the financial drag of purchasing and maintaining sometimes antiquated utility infrastructure. In this way, it is a great option for municipalities who want control over their power supply but don’t want the financial and operational burdens of owning their own utility.

Utility Chart 10_15_13

How Do You Pay for It?

Because CCA is revenue-based—not government subsidized—CCA programs are self-supporting from an existing revenue stream. That is, the electricity rates that consumers pay to a retail electric supplier or an investor-owned utility are bundled and redirected to support the group purchase of electricity through a local CCA program.

So What Happens to the Utility?

In restructured (or “retail”) states, there is a defined functional separation between energy generation and energy distribution. In this scenario, the partner/distribution role of the incumbent utility is well established and retail supply competition already exists. In these states, the utility is a ready and willing partner for aggregated communities. The retail energy suppliers understand the market value of group purchasing and compete at the municipal rather than “door to door” sales level to win supply contracts.

In partially restructured or un-restructured states (“wholesale” markets) where utilities hold monopoly positions, the reaction to CCA has been less than supportive. After all, a CCA disrupts their monopoly control of the power supply market. It’s important to note, however, that bundled utility customers are not adversely impacted and the utilities themselves are “made whole” on departing load through a mechanism called cost recovery surcharges (or exit fees). In both models (retail and wholesale), the utility retains ownership and management of the transmission and distribution infrastructure, and all power delivery, line repair, billing, and customer service functions remain with the existing utility.

  1. Also called municipal aggregation and government energy aggregation in the midwest and northeast, respectively
  2. CCA is statutorily enabled in CA, IL, OH, MA, NJ and RI with a handful of other states considering legislation; CCAs in CA and IL are permitted to develop power projects as well as contract for power. Some states (e.g. OH) also allow for gas aggregation.
  3. Current aggregation contracts in the midwest are yielding up to 25% rate savings with rate savings on the east coast averaging between 10%–14% (as of 9/2013)
  4. Especially relevant in non-restructured states such as California
  5. National average opt-out rates range from 3-5%

Nexamp installs Northeast’s largest community solar project at ski resort

Nexamp announced the completion of construction at its first community solar project, the 2.3-MW “Nexamp Peak” at Jiminy Peak Mountain Resort, the largest ski and snowboard resort in southern New England. Covering 12 acres near the base of the resort, the project is the largest community solar project in the northeast. Local community solar subscribers joined officials from Jiminy Peak and Nexamp for a ceremonial “flip the switch” celebration at Nexamp Peak. Commercial operation of the project will commence in the coming weeks, upon final approval from the local electric utility.

DCIM100MEDIA

Combined with Jiminy Peak’s existing 1.5-MW wind turbine, 75-kW cogeneration unit, and extensive conservation efforts, this new solar array will enable the resort to offset 90% of its energy needs from local renewable resources, making Jiminy Peak one of the greenest four-season resorts in the nation.

“It’s important to us that we operate our resort as good neighbors and good stewards of the environment, which is why we’ve worked so hard to leverage as many renewable energy sources as we can,” said Tyler Fairbank, CEO of Jiminy Peak Mountain Resort. “We were thrilled to partner with Nexamp on both of these fronts to add solar energy into the mix in such a way that the neighboring community can benefit from the facility, too.”

Over 100 local residents will directly benefit from the project through Nexamp’s Solarize My Bill community solar program. Participants will pay a 15% discounted rate for the value of the electricity generated by their share of the Nexamp-owned solar project, which will be applied directly to their existing electricity bills.

“This project marks a tremendous milestone for us,” said Zaid Ashai, CEO of Nexamp. “Massachusetts has an opportunity to be a national leader in solar energy, and its residents and businesses are more aware than ever of the potential for clean solar power to lower their utility costs. Nexamp’s fully-integrated project development capabilities, combined with our Solarize My Bill community solar program’s unparalleled savings, ensure that we will remain a key piece of the energy transformation within the Commonwealth and beyond.”

CA Digest CALIFORNIA Roundup, October 2015

A Message from LEAN’s Executive Director

Over the past year, CCA has evolved from an anomaly to an almost-standard item on the agendas of many local governments in California. Many coastal counties and several inland communities are in some stage of inquiry, and several are in pre-launch. Case in point, the San Mateo County Board of Supervisors had the first reading of their CCA ordinance on October 20, putting them on pace to be the next operational CCA in California!

California’s state leadership has recognized CCA as a viable and important part of the state’s energy strategy. And yet, there remain inconsistent signals about where the state’s energy policy and infrastructure is headed– in ways that will affect CCA in the future. For example, California has made a commitment to new and better green technologies, but the CPUC continues to approve gas-fired central station generation and appears to support utility proposals that could hurt development of behind-the-meter energy resources. While the State says it’s committed to increasing distributed resources, it seems to be setting up a process to support massive investments in transmission and huge, utility-scale renewable projects that have significant environmental impacts.

Bigger and more centralized resources may be increasingly anachronistic and yet we will be saddled with their environmental and economic costs for many years to come. Although the state’s CCAs have and should continue to have different power supply strategies, a few things are constant: California CCAs are proving to be effective vehicles for new clean power development, energy conservation programs, and the integration of clean technology at the local level. And that’s a story we plan to tell the world as we head to the UN Conference on Climate in Paris next month.

With the passage of SB 350 and the Governor’s explicit commitment to leadership on climate and energy, we will have many opportunities to raise these issues and inconsistences–and we appreciate your support and participation in the process.
Shawn Marshall signature
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We’re Headed to Paris!     

LEAN Energy US is among a small but mighty CCA delegation that is attending the UN Climate Talks in Paris this December. Thanks to the efforts of Tom and Jane Kelly and the support of the Sequoia Foundation, we’ll be sharing the results of California’s CCA leadership on Saturday, December 5thalongside colleagues from Columbia and India who will be sharing their stories of local energy innovation and climate solutions. It is a wonderful collaboration!
Watch our Facebook page for up-to-the-minute posts on the happenings in Paris. And check our website page for updates and downloads. We are thrilled to have the opportunity to bring clean energy CCA to the world stage!
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Update of CCA Program Developments in California
Earlier this week! The Contra Costa County Board of Supervisors approved exploration of CCA program options for the county and its cities. The San Mateo County Board of Supervisors voted unanimously to pass their CCA ordinance, putting Peninsula Clean Energy in the lead to be the next operational CCA in the State.
Other updates …   

City / County of San Francisco  
Announced a 6 week delay in program launch to deal with 50+ bids for power services exceeding SFPUC spending cap!
Los Angeles County  Technical Study underway; BKi is lead author; SouthBay Clean Power has secured supporting resolutions from 13 of the 16 Southbay COG communities.
City of San Diego  
Initial study published by Protect Our Communities Foundation shows viability in San Diego with one big regulatory challenge. Validation study planned shortly.
Mendocino County 
Has engaged LEAN to support community education effort, working on service RFP and program options with Lake and Humboldt Counties.
City of Davis / Yolo County  
Technical Study underway which will include an analysis of forming their own CCA or joinging Marin’s program; The Energy Authority is lead author.
Santa Barbara County / Ventura & San Luis Obispo 
SLO County voted to join with Santa Barbara County and Ventura County to develop tech study and allocated $50,000 to the work; load data authorizations and CCE advisory committee development underway.
Elsewhere…   
First New York program soon to launch with approximately 150,000 customers, expansion already occurring to neighboring counties in NY. Interest from some areas in UT is re-emerging.

 

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The Latest from California CCAs
MCE UPDATE–MCE’s CEO, Dawn Weisz, reports on MCE’s progress with various programs:

    Energy Efficiency–MCE has applied to the CPUC to be default services provider, which would allow MCE to roll in cheaper program components (now performed by PG&E) into more comprehensive building envelope projects, making MCE projects more cost-effective overall. MCE also wants to be the single point of contact for customers in order to improve market penetration and level of service. As part of this approach, MCE would offer services related to traditional energy efficiency improvements, storage, demand response, solar, water heating and water conservation measures. MCE is already working with the local water district to leverage the conservation programs of both agencies.

    Hiring for Local Energy Project Construction –MCE has a 50% local hire requirement for its 10.5 MW solar project in the City of Richmond. It is working with RichmondBUILD’s construction training program to get local residents work on the project. It has also coordinated efforts with the Laborer’s Union and iBEW. IBEW states it will not be able to provide job candidates for the project but the Laborer’s Union continues to collaborate with MCE on this.

    Integrated Resource Planning–MCE’s new 10-year integrated energy planincludes a supply portfolio that is 80% renewable and 95% greenhouse gas free by 2025! The County’s new climate action goal for 2030 would reduce greenhouse gas emissions to levels 30% below 1990 levels. Press release here…
For more information on MCE’s programs, please visitwww.mcecleanenery.com
LCE FULLY LAUNCHED! Lancaster Choice Energy’s program director, Barbara Boswell, reports that the City launched its citywide CCA program on October 1. Opt out rate so far is less than 5%, although Barbara warns that number could go up with additional customer notices. LCE has experienced some operational challenges in its interface with SCE but they are not expected to be ongoing or expensive to fix.

Kudos to LCE for some great regulatory victories this past week including the Energy Division’s rejection of SCE’s attempt (in an advice letter) to remove the PCIA exemption for CARE customers.  This sets important precedent for CCAs in Edison territory. See the SCE disposition letter here. We’ll have more to report about LCE’s regulatory victories next month.

For more info on LCE’s program please visit www.lancasterchoicenergy.com
SCP UPDATE –Kate Kelly, Director of Public Affairs and Marketing, reports on some key SCP updates:
  • SCP hosted the “Drive Electric” vehicle event with Tesla that was well-attended; SCP has stated its objective to support EV development in its service area as part of its resource strategy
  • SCP’s feed-in tariff is already 50% subscribed
  • SCP has started its “Recapture” campaign, designed to invite opt-out customers back to SCP

For more info on SCP’s programs, please visit www.sonomacleanpower.org

What Are “Back Office Operations,” Anyway?

Drake Welch, VP of Customer Care at Noble Energy Solutions, describes the nature of CCA “back office” services.
Back office functions are the components of a CCA’s operations that manage load and meter data, and interface with customers and the utility on billing issues and data requirements. These services include:

  • Electronic Data Communication, including EDI certification
  • Customer Information System (CIS)/ Customer Relationship Management (CRM) System that provides electronic data management and information
  • Billing Administration Services
  • Settlement Quality Meter Data Reporting Services
  • Customer Call Center Services
  • Qualified Reporting Entity (QRE) Services, including reports required by CAISO for firming and shaping delivered supplies and settlements
  • Reporting Services, including information about Aging, Call Center Statistics, Cash Receipts, Collections, Invoice Summary, Opt Up/Out Transactions, Snapshot, Unbilled 810s
For a copy of Drake’s slide presentation on this topic, please contact Alison Elliott at LEAN Energy, aelliott@leanenergyus.org.
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Regulatory and Legislative Happenings
A couple of CPUC updates this month…
  • PG&E 2016 ERRA Application (A. 15-06-001) MCE, SCP and LEAN filed briefs opposing PG&E’s proposal to increase the PCIA by 70%. The briefs proposed addressing ways to stabilize the PCIA rate with a sort of amortization account or in another phase of the proceeding. LEAN will be asking for your support on the opposition to this unprecedented rate increase during the decision-making process – more on this soon.
  • Long Term Procurement Planning Rulemaking (LTPP) (R. 13-12-010) – The ALJ in the proceeding published a proposed decision that would, among other things, require SCE and PG&E to incorporate CCA forecasted load losses in their demand forecasts. While this is already Commission policy, its application has been in question.
In Sacramento…
  • Governor Vetoes SB 660 (Leno)–In spite of overwhelming support from both sides of the aisle, Governor Brown vetoes SB 660, which would have required various reforms to CPUC decision-making. You can see the veto message here.
PCIA and CAM Decoded…
  • MCE has provided an overview of two regulatory “mechanisms” that are key for CCAs, which should help the rest of us understand these complicated issues and how they affect CCA operations and customers. This is an important document that outlines policy recommendations and regulatory fixes to these vexing issues. (view here)
If you would like more information or have ideas for collaboration, please contact Kim Malcolm  kmalcolm@leanenergyus.org

 
Thanks to our Members!
barn raising pix
We’d like to extend an enthusiastic thanks to all our members, whether you’re new on the scene or renewing your membership. Your support is critical to our success, and to the success of CCA everywhere.

Thanks to our newest members!

BKi Energy Services
San Mateo Community Choice
South Bay Clean Power
David McCoard 

What?

You say you’re not a member yet?! You can join through our website
 sign-up form, or contact LEAN’s Administrative Coordinator, AlisonElliott, at aelliott@leanenergyus.org

Click here for our membership flyer information.
You can see logos of all our current members on our website HOME page. Please take the time to peruse their websites–you may find some important contacts there.

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Our Consulting Clients 
In addition to providing information resources to all interested parties, LEAN Energy also provides consulting services to communities involved in CCA investigation and development.

Whether you’re just considering formation or further along, LEAN can help flatten your learning curve, provide critical guidance, and prep you for launch in record time. You’ll learn from those who’ve already done it successfully and from those who are well along the path.

Here are some of LEAN’s current CCA consulting clients:

Alameda County

Contra Costa County

San Mateo County
Silicon Valley CCE Partnership
Santa Cruz County/Monterey Bay        Community Power
City of Davis
Santa Barbara County
Mendocino County

Looking for help with CCA Formation? Call Us!   

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Odds and Ends
Educational Workshops Available

Would a workshop on CPUC regulation or an informational CCA webinar be useful for your community or working group? LEAN Energy can help!

To inquire or schedule a session, contact Alison Elliottaelliott@leanenergyus.org

 

 

Next Monthly Market Call
Friday, Nov. 13th, 10-11 am
Join us to hear about all the latest developments in the CA marketplace. Contact Alison Elliott for more information.aelliott@leanenergyus.org or register here.

Help Design our Market Calls
We’re asking for input and suggestions about what’s most important to YOU.

Please

click here

to take our very brief survey and make sure your voice is heard!
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of the Latest News! 

Remember to follow us on facebook and Twitter for up-to-the-minute news flashes on the CCA marketplace.

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Acronym Cheat Sheet 

Are the acronyms and abbreviations stumping you? Here’s a quick glossary of some frequently used terms:

 

ALJ – Administrative Law Judge 

BoS – Board of Supervisors

CAISO – California Independent System Operator

CAM – Cost Allocation Mechanism

CIS – Customer Information System

CPUC – California Public Utility Commission

CRM – Customer Relationship Management

ERRA – Energy Resource Recovery Account

iBank – California Infrastructure & Economic Development BankIBEW – Int’l Brotherhood of Electrical Workers

ISO – Independent System Operator 

JPA – Joint Powers Authority

PCIA – Power Charge Indifference Adjustment

PPA – Power Purchase Agreement

QRE – Qualified Reporting Entity

REC – Renewable Energy Credit

T & D Rates – Transmission and Distribution Rates
TOU Rates – Time of Use Rates

CCA vs. CCE – What’s the difference? Nothing!
Community Choice Aggregation is sometimes called Community Choice Energy. The first is a legal term; the second is more descriptive and consumer-friendly.

LEAN Energy US
www.LEANenergyus.org / 415-888-8007

PO Box 961 / Mill Valley / CA  94941

 

 

PG&E Imposes Customer Fees for Choosing Cleaner Electricity Service and Calls for Increase, Despite Having $1 Billion to Cover Fees

PG&E argues that Community Choice customers need to pay their “fair share”

 

San Rafael, CA – PG&E recently proposed that Marin Clean Energy (MCE) and Sonoma Clean Power customers should pay even more “exit” fees than they already do to the Pacific Gas and Electric Company (PG&E) every month. The proposed increase ranges from 44% to 127% depending upon customer class, and forces residential customers, including low-income, to pay the highest rates associated with these fees.

 

The California Public Utilities Commission (CPUC) currently authorizes PG&E to impose exit fees on customers who choose to buy their electric generation from local providers like MCE or Sonoma Clean Power. Although these fees are always included in cost comparisons, they reduce the savings that MCE and Sonoma Clean Power customers receive and increase the cost of choosing a local provider.

 

PG&E’s exit fee, called the Power Charge Indifference Adjustment (PCIA), is billed monthly, based on usage, and charged to customers who choose to buy energy from another provider. When a customer makes this choice, PG&E sells the excess electricity that they bought for that customer. Depending on the market conditions, PG&E may earn or lose money when they sell the power. PG&E has accumulated more than $1 billion from earning money on the market when selling this excess power. However, if PG&E doesn’t earn money through the sale of the excess power, the PCIA fee is applied. This covers any losses incurred by PG&E, forcing the customer to bear this burden and pay for energy that they will never use.

 

Along with their request to increase the exit fees, PG&E also requested to close the account with over $1 billion. When asked how the money would be used, PG&E indicated that it “simply goes away.”

 

“What PG&E is proposing is outrageous. They’ve collected $1 billion from selling excess power on the market but when they aren’t able to make a profit, they collect from our customers to avoid pulling funds from their billion dollar stockpile,” said Dawn Weisz, CEO of Marin Clean Energy. “Those profits should be applied against any losses, so that the homes, schools, non-profits and businesses in our communities are not burdened further.”

 

This year, MCE estimates that its customers will be forced to pay PG&E $19.3 million in PCIA fees. Should the CPUC approve PG&E’s proposed increase, MCE customers are projected to pay $30.6 million to PG&E, in 2016 alone, and residential customers, including low or fixed-income customers, will be forced to pay more than half of it ($16.3 million). PG&E is the only California utility to impose these fees on low-income customers.

 

MCE is protesting the proposed surge in the PCIA fee and calling attention to PG&E’s attempt to close the $1 billion account of ratepayer funds. The CPUC is scheduled to make its determination on the PCIA increase in December 2015.

 

Jamie Tuckey

MCE Director of Public Affairs

415.464.6024 | jtuckey@mcecleanenergy.org

mceCleanEnergy.org