Mayor Elizabeth Patterson will ask the City Council on Tuesday to oppose Assembly Bill 2145 that affects Community Choice Aggregation programs.
CCA is a system that lets cities and counties join, or aggregate, the buying power of individual power customers so they can secure alternative energy contracts on a communitywide basis.
They’re alternative programs to investor-owned operations, such as Pacific Gas and Electric.
Power users are converted to the aggregation, unless they prefer to remain customers of the investor-owned utility, which in any case continue to deliver electricity through their distribution systems. If users wish to remain with the utility, they have the choice to opt out of the aggregation program.
Marin Clean Energy (MCE), in Marin County, is California’s first CCA program. It was formed in 2010, after California legislation authorized such operations in 2002.
Though Benicia’s Climate Action Plan states that the city “should consider a CCA feasibility study and financial analysis to determine viability,” Benicia has no Community Choice Aggregation of its own.
A solely Benicia aggregation may prove too expensive, representatives of the Marin organization recently told a group of Benicia residents attending a presentation at the Benicia Community Center.
Instead, the city’s interest in procuring independent and renewable-source electricity could be furthered either by forming a new aggregation in Solano County in collaboration with the county government and those of neighboring cities, or by allying with an established entity, such as the one in Marin, residents were told.
The Climate Action Plan acknowledges that Benicia may need to partner with other agencies in a CCA.
Assemblymember Steven Bradford, D-Gardena, authored AB 2145, an amendment to the Public Utilities Code. Patterson told City Manager Brad Kilger that the bill proposes changes to the Public Utilities Act that governs the formation and operation of CCA programs.
“Specifically, AB 2145 would change the current community aggregation customer ‘opt-out’ process to an ‘opt-in’ one,” Kilger wrote the City Council in a report on the matter.
“Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations such as a Community Choice aggregator,” he wrote.
In addition, the Public Utilities Act requires Community Choice programs to provide customers the opportunity to opt out, Kilger wrote.
“The act provides that customer participation in the Community Choice Aggregation program does not require a positive written declaration for participation, but each customer shall be informed of his or her right to opt out of the program,” he wrote.
AB 2145 would change that, so that each customer who wants to participate in a CCA program would need to make “a positive declaration.”
Kilger wrote, “Interest groups in support of the expansions of Community Choice Aggregation have contacted the city of Benicia and requested that the city take an opposed position on AB 2145. It is their opinion that the bill would limit a CCA’s ability to viably exist at the local level due to several bill provisions, including mandatory customer opt-in.”
The bill would also exempt notification expenses from being reimbursed by the state, and would require potential CCA customers to be informed of greenhouse gas emissions associated with the various power sources. It would not affect the enrollment of those belonging to a CCA program before Jan. 1, 2015.
Kilger wrote that CCA proponents believe the bill “will severely hamper the ability of a CCA to achieve minimum scale, will increase costs and thwart a local government’s statutory right to pursue a CCA program for their community.”
He said the California League of Cities already has written a letter opposing the bill.
Jason Rhine, that group’s legislative representative, has written Bradford, saying the organization “does not fully understand the need to alter the existing ‘opt-out’ process, which seems to be operating in an effective and transparent manner with few, if any, customer complaints.”
Rhine told Bradford the CLC worked with Carol Migden, then a member of the Assembly, and other interested parties to pass Assembly Bill 117 that lets cities and counties form CCAs on “an ‘opt-out’ basis.”
He described the extensive public notice and due process in establishing a CCA as “ensuring full transparency” that gives utility customers “multiple opportunities over a minimum four-month public noticing process to ‘opt-out’ of the CCA before it begins offering service in a new community.”
He wrote that other states with CCA statutes impose the same opt-out process as California to give customers choice as well as to provide smaller CCAs “greater certainty in the market.”
AB 117 “helps level the playing field for small CCAs attempting to compete in a highly competitive market,” he wrote.
“It should also be noted that the final amended version of AB 117, as signed into law, received wide bipartisan support and had no opposition,” Rhine wrote.
In other matters Tuesday, the Council will hear Benicia Unified School District Superintendent Janice Adams describe the district’s Measure S, to be decided by voters June 3.
The $49.6 million general obligation bond has been proposed to bring school buildings to current health, safety and technological standards, including those recommended by Benicia police for security improvements.
Should the measure pass, property owners would be assessed approximately $39 for each $100,000 of assessed taxable property value, or about $3.25 a month, according to information provided by the school district.
Benicia City Council will meet at 6 p.m. Tuesday in the Council Chamber of City Hall, 250 East L St.
Bob Livesay says
The MCE which made a presentation to anyone interested was sparcely attended. Most of the folks there were present or former CSC mermbers along with Mayor Patterson. This is not good for Benicia. It will take a $35,000 study first then I assume a partnership with another participant. The big problem with these CCA’s is when you choose a level of renewable energy you are not guaranteed to get that amount. As an example lets say MCE is the city choice, You choose a level or % of renewable energy you want. All energy of the CCA energy purchase goes thru the Public Utility . In Benicia that is PG&E. It is integrated into their system. At present PG&E is at 19% renewable energy. So it sounds good to buy in at say 50%. 75% or even 100 %. You will not get that amount in fact the customer who chooses to not make a change could benefit as much as the opt-in/opt-0ut customer. So why would anyone sign up for say 75% and not even know how much of that 75% they will actually receive. The city is not in the energy business. It is up to the provider/producer to gradually add more renewable energy as PG&E is doing. These CCA’;s are a very bad thing for any city or group. It only satisfies an agenda driven group with no concern about cost. We can accomplish greater results from working with PG&E in the case of Benicia. This is just another agenda driven issue backed by and fully supported by the mayor and her small group of followers. Even goes as far as to blame an unamed council member as the reason it is even on the agenda. This is just another example of the Mayors wrong agenda driven ideals that slows the city down in getting other much needed projects moving forward. It sounds like it is not a big deal but the Mayor has made AN issue of this silly thing. I ask the council to oppose the Mayor on this time consuming issue. Not good for the city. Lets just see what council members stand up to the Mayor on this one. It could be none, who knows. This city must move forward on many other very im,portant issues rather than let the mayor stand in its way with this personal agenda driven ideals. Not good leadership..
Bob Livesay says
In a LTTE today 4-29-14 Kathy Kerridge states “the ability to have 100 percent of their electricty from renewable sources”. That statem3ent is not a correct statement. The electricty /renewable ernergy that sdy MCE buys is intergrated into PG&E enerrgy and then distributed to PG&E customers. The electricity cannot be tracked to see if a sign up actually is getting the amount they signed up for. As I said before benefit goes to PG&E customers who do not sign up. They could get more than the 19% and MCE customer considerably less than say the 100% they signed up for. That has been verified and clearly stated. This is not good for the city of Benicia. I urge all residents to contact your council member to not side with the mayor or this very small selfish group. You will not get what you are paying for. Very bad issue. Stop it now.