AgdaPkt 2016-02-08 Closed and Joint SA PFA

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Benefits The benefits of PCE include: · providing greater consumer choice about the environmental attributes of their electricity supply, · introducing competition into the energy marketplace to help lower costs for consumers, · potentially reducing communitywide GHG emissions, and · establishing local control over energy procurement, rate-setting, and programs. PCE offers consumers a choice between service providers where there currently is none. Businesses and residents could opt out of the program and stay with PG&E or opt in and choose from among the portfolio options offered by PCE. Consumers may be able to choose between multiple power options, each with a different percentage of renewable energy. The County forecasts that the JPA will choose to provide a default option that is price competitive with PG&E’s current rates but with a higher percentage of renewable energy, similar to the existing CCAs in California. Consumers may be able to opt up, out of PCE’s default option, and receive a higher percentage renewable energy, through a process established by the JPA (e.g., online registration, email request, or marking an opt-up option indicated on a paper bill). Some jurisdictions have expressed a desire to make only the 100% renewable option available in their communities. However, the options offered will ultimately be determined by the JPA. With respect to the City’s Climate Action Plan goals, PCE has the potential to achieve a deep, rapid reduction in GHG emissions. The City’s goal is to reduce communitywide GHG emissions to 15% below 2005 levels by 2020. As of 2013, the City has been able to reduce emissions 4.7% below 2005 levels. Extrapolating from the technical study, PCE has the potential to help the City reduce its emissions as much as an additional 7% or more at start up, allowing the City to achieve up to 80% of its 2020 goal within a year. PCE will operate as a non-profit. Revenues in excess of costs will go back into the community through reduced rates, energy efficiency programs, and local renewable development projects. Local control offers the potential to increase the renewable content of the energy portfolio beyond what the utility provides, to concentrate on developing local projects and creating local jobs. Local control also provides opportunities to create energy efficiency and renewable energy programs that are customized for local businesses and residents. Risks The risks associated with CCAs include: · Rate risk – the risk that rates will be higher under PCE than PG&E · Procurement risk – the risk that PCE will not be able to procure enough renewable energy 9.B. - Page 3