AgdaPkt 2016-02-08 Closed and Joint SA PFA

Browse Search

On January 25, 2016, the City Council conducted a study session on possibilities presented by a Community Choice Aggregation program. The Council indicated general support of the program. The recommended actions are required for the City of Redwood City to become a charter member of the Peninsula Clean Energy Authority. ANALYSIS Section 366.2(c)(12)(B) of the Public Utilities Code expressly contemplates creation of a Joint Powers Authority so that a county and a city or cities can “participate as a group in a community choice aggregation program.” In order to participate in the existing program, each city must: (1) enter into a Joint Powers Agreement forming a Joint Powers Authority under Section 6500, et seq. of the Government Code; and (2) adopt an Ordinance “elect[ing] to implement a community choice aggregation program within its jurisdiction” as required by Section 366.2(c)(12)(A). Provided with this report is an Ordinance that complies with the requirements of Section 366.2(c)(12)(A). Adoption of an Ordinance requires two public meeting: the first meeting is to introduce the Ordinance, followed by a second public meeting adopting the Ordinance. Also provided with this report is a Joint Powers Agreement, executed by the County and several cities, which creates the Peninsula Clean Energy Authority. The Agreement provides that: · each city is a full member of the JPA rather than a “participant” in the program; · each city has a member on the JPA Board, represented by an elected public official; · the County has two members on the JPA Board; · the JPA has a two-tiered voting system based both on majority vote as well as a weighted vote that allocates voting power in relation to the energy used within each jurisdiction so as to create a fair balance of power among the members; · any liabilities of the JPA are incurred by the JPA and not the constituent members; and · constituent members may withdraw from the Authority without financial obligation if, prior to launch, it is clear that the Authority cannot meet its pricing and environmental goals. In addition, it is of note that 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 continue to receive service from the incumbent utility will be able to do so. PCE is required to provide customers at least four notices of their rights to continue to receive service from the incumbent utility. Those who do receive power from PCE will still receive that power over the incumbent utility transmission lines and receive the same billing statement from the incumbent utility. The benefits and risks of program participation are addressed below. 9.B. - Page 2