Channel Islands Clean Energy Providing Consumer Choice for
Ventura County and Beyond July 2015
Slide 2
Community Choice Aggregation Authorized by CA Assembly Bill 117
in 2002 CCA allows communities to pool their electricity demand in
order to purchase and potentially develop power on behalf of local
residents, businesses, and municipal facilities. CCAs in 6 States
California Illinois Massachusetts New Jersey Ohio Rhode Island
Under Consideration Utah, New York, Delaware, Minnesota
Slide 3
How Does It Work? CCA leverages the market power of group
purchasing and local control. It creates a partnership between
municipalities and investor-owned utilities. CCA allows local
governments to procure power on behalf of all customers within its
borders. Channel Islands Clean Energy SoCal Edison
Slide 4
Why is CCA So Powerful? Responsive to local environmental and
economic goals Offers consumers a choice where none currently
exists Revenue supported, not taxpayer subsidized Stable, often
cheaper, electricity rates Allows for rapid switch to cleaner power
supply and significant GHG reductions Provides funding for energy
efficiency and innovative energy programs like energy storage and
EV charging stations
Slide 5
Basic Program Features JPA or special district can operate a
CCA in CA; local governments participate by passing an ordinance
Southern California Edison continues to provide consolidated
billing, customer service, line maintenance CCA procures
electricity, sets rates and develops new community programs CCA is
an opt-out program; Customers receive minimum 4 opt-out notices
over 120 days and can return to Edison service any time. CPUC
certifies CCA Plan; oversees utility/ CCA relationship and other
requirements such as RPS and RA requirements.
Slide 6
Sample Energy Bill Marin Clean Energy 6 Page 1 Page 2
Slide 7
7 Channel Islands Clean Energy Potential Scope All of Ventura
County Southern Santa Barbara County Part of Los Angeles County
(Malibu) Sliver of Kern County
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How Do We Make It Happen? Get the word out to government and
business! Resolutions from participating governmental entities:
Ventura County Cities in Ventura County Navy bases Southern Santa
Barbara County Malibu Feasibility Study Santa Barbara County has
just funded a study, which could include portions of Ventura County
Implementation Plan Must be approved by California Public Utilities
Commission Channel Islands Clean Energy begins operation!
Non-profit government agency
Slide 9
CCA: What are the Risks And how are they mitigated ? Rate
Competition/Market Fluctuation: Power market expertise and well
crafted power RFPs are essential; Diversified supply portfolio and
value add programs. Customer Opt-Out: Competitive rates are a must;
Articulate additional consumer and community benefits; Political:
Align CCA to local policy objectives; Appeal to both progressive
and conservative minds by making the environmental AND business
case Regulatory/Legislative: PUC decisions may adversely affect
CCA; also example of AB 2145; Participate in the regulatory and
legislative process.
Slide 10
Why the Timing Is Good Historic gas lows help achieve
competitive pricing Solar tax credit shrinking or expiring at end
of 2016 Utilities are fully resourced through 2018-2020 excess
power available Affordable financing available
Slide 11
Success Story: Sonoma Clean Power Started in 2014 Now the
dominant energy supplier in the county with over 200,000 customers
90% share of residential and commercial Includes all cities except
Healdsburg, which had its own power company Customer plans Standard
33% renewable at rates 5% below incumbent utility Option of 100%
renewable option at 20% premium to regular rates (sourced from
Calpine local geothermal) Customers saved $6 million in first
year
Slide 12
Sonoma Clean Power (contd) Power Purchase Agreements 70 MW of
new solar through Recurrent Energy in Central Valley and Sonoma -
doubles the amount of solar in Sonomas mix 12.5 MW new solar
provided by Pristine Sun on floating docks in county irrigation
ponds (cooperating with Sonoma Water Agency, which celebrated 100%
clean energy goal this year) Geothermal through Calpine that will
bring geothermal to 23% of SCPs supply by 2018 30% lower GHG
emissions than the incumbent utility.
Slide 13
Success Story: Marin Clean Energy Began service in 2010 Now has
165,000 customers (75% of customers in Marin and Richmond) Recently
celebrated fifth anniversary, meeting or beating incumbent utility
rates Customer Plans: 50% renewable at 6-9% below the incumbent
utility 100% option available
Slide 14
Marin Clean Energy (contd) 200 MW of new renewable energy
contracted or developed Local community projects: Solar panel array
on airport hangars at San Rafael Airport Solar panels on Novato and
Richmond carports Biogas from a county landfill 24 supply
agreements with 12 different energy suppliers 1800 jobs
created/supported; most in construction 59,000 tons of GHG
reductions Reached Governor Browns 50 % renewable target 18 years
early
Slide 15
Success Story: Lancaster Choice Energy Lancaster Choice Energy
rolled out in May 2015 with municipal accounts Full operation in
October 2015 First CCA working with Southern California Edison
Mayor Rex Parris (R) expects direct purchases from solar farms to
save Lancaster users 15-30%. Customer Plans: 35% renewable (rates
3% lower than incumbent utility) 100% renewable
Slide 16
Lancaster Choice Energy (contd) City of Lancaster Population of
156,000 with 350 days of sunshine Located just south of the
Tehachapi Mountains, which host one of the worlds largest wind
farms Adjacent Antelope Valley region also houses some of the
largest utility- scale solar projects. Focus on Solar Energy
Lancaster branded itself as a leading solar city (named solar
capital of California in July 2012) Currently producing 118 MW of
solar within city limits Aiming to become one of worlds first net
zero cities for electricity use by 2020, producing 530 MW of clean
energy.
Slide 17
Lancaster Choice Energy (contd) Solar Initiatives In 2010
Lancaster hired Solar City to construct solar panels covered
parking lots at city buildings, saving 7 cents per kwh over
previous rates. All of Lancasters 25 schools have panels, saving
city $50,000 per year and school district $420,000 Worked with
eSolar to bring its 20 acre Sierra Sun Tower solar project to
completion in 14 months; first operating solar thermal power tower
plant in U.S. Applications for more than 4,000 MW of generation by
photovoltaic plants have been received in High Desert/Antelope
Valley region, providing Lancaster with a wide range of
options.
Slide 18
Lancaster Choice Energy (contd) Other renewable/green
investment in Lancaster or nearby: First Solars solar ranch U.S.
Topco Energy Inc. Chinas BYD, leading supplier of advanced battery
technology Beautiful Earth Group Solar Star Projects Sunpower
Technology Project Solar Homes (over 1700 single-family home solar
permits) EV quick charging