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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 25, 2016 <br /> <br />SUBJECT <br />Peninsula Clean Energy Community Choice Aggregation Program Study Session <br /> <br />RECOMMENDATION <br />1. Receive background information on the County of San Mateo’s efforts to <br />establish a Community Choice Aggregation Program, “Peninsula Clean Energy”, <br />in San Mateo County. <br /> <br />2. Provide direction to staff on the City’s participation in the program. <br /> <br />BACKGROUND <br />In 2014, the San Mateo County (SMC) Office of Sustainability began exploring <br />Community Choice Aggregation (CCA) as a way to reduce Greenhouse Gas (GHG) <br />emissions and assist agencies with meeting their climate goals. Through a CCA, <br />residents and businesses will receive electrical power purchased through the program <br />and delivered through the Pacific Gas & Electric (PG&E) grid. CCAs by state statute are <br />opt-out, so all customers will participate unless they opt out and choose to continue with <br />their incumbent utility, PG&E. Because the electrical grid maintenance and billing would <br />continue to be provided by PG&E, customers typically would not observe differences in <br />CCA versus traditional energy delivery other than a line item on their utility bill with the <br />cost, which may vary from what PG&E would charge. <br />State Law and Precedent <br />In 2002, the State of California enacted AB 117, allowing CCA. CCA, also known as <br />Community Choice Energy (CCE), enables local governments individually or together in <br />a JPA to aggregate demand and purchase energy on behalf of their communities. A <br />number of other states have similar enabling legislation and active CCA programs. In <br />California, there are three CCAs: Marin Clean Energy, Sonoma Clean Power, and <br />Lancaster CCA. Currently in San Mateo County, electricity and natural gas are <br />distributed by the Investor Owned Utility (IOU), PG&E. <br />SMC CCA Efforts to Date <br />7.A - Page 1