Earlier this spring, both the City of Davis and Yolo County Board of Supervisors voted unanimously to jointly develop a local Community Choice Energy (CCE) Program. This informational workshop provides key steps in the formation process over the next 12 months with the goal of beginning CCE service in the fall of 2017.
The City and County have formed a joint working group to develop a draft Joint Powers Authority (JPA) document for a local CCE. The working group meets twice a month and includes 2 Board of Supervisors Representatives, 2 City Council Representatives each from the City of Davis and City of Woodland,the City of Davis Assistant City Manager, Sustainability Manager, and City Attorney, and the County’s Deputy County Administrator, Director of Community Services, Climate Action and Sustainability Manager and Deputy County Counsel. The City of Woodland is attending the meetings as it assesses the benefits of participating in the CCE. Other cities in Yolo County have been invited to participate as well. Under the City’s existing consulting contract, LEAN Energy advises the working group on the approaches other CCE formation efforts around the state are taking.
To date, the working group has undertaken the following activities:
- Naming the pending CCE, Valley Clean Energy Alliance.
- Drafting a JPA document for consideration by the Board and Council in early Fall. The working group and LEAN Energy are currently providing comments on the draft document.
- Drafting a mission statement. The working group has developed a draft CCE Mission Statement.
- Utilizing a master calendar/work plan. Working from a master calendar developed with LEAN Energy, the working group is proceeding with tasks associated with the launch of the CCE in the fall of 2017. Short term work plan tasks focus on developing the draft JPA documents, a draft CCE Ordinance, and developing RFP’s for technical/energy services, communications/marketing, data management/call center, and financial services.
- Drafting a budget. The working group reviewed the master budget estimates for the current JPA formation and CCE launch phase (costs through fall 2017). The $1 million budget estimate is based on findings included in the CCE Technical Study and will pay for CCE start-up costs including development of the draft JPA documents, a draft CCE Ordinance, development of RFP’s for technical/energy services, communications/marketing, a data management/call center, financial services, the development and submission of the CCE Implementation Plan to the California Public Utilities Commission, and initial JPA staff and consultant costs. The City and County are splitting the $1 million reimbursable loan equally. As identified in the CCE Technical Study, an additional loan or loan guarantee for initial energy purchases to serve CCE customers will be determined based on the number of CCE customers closer to the launch date. The technical study estimates the initial energy purchases to be less than $3 million, which would be reimbursed over several years as the CCE establishes service and begins to collect revenue. The draft CCE JPA document includes language regarding reimbursement of all of these start-up costs. As noted in earlier staff reports, this is a similar approach that Marin Clean Energy and Sonoma Clean Power used at start-up. The more precise timing, mechanism, and amount of this bridge funding will be considered at future Council and Board meetings. .
- Interim Advisory Committee. The CCE Ad-hoc Advisory Committee has recommended the appointment of a technical advisory committee that includes rate payer classes (e.g. business, agriculture, residential, disadvantaged communities, etc.), and local subject matter experts (e.g. energy, finance, etc.). A joint CCE advisory committee will reflect the broader interests of both rural and urban rate payers while maintaining a manageable size to be able to work efficiently. City and County staff will continue to participate with the group as the JPA is formed and the CCE moves toward launch.
On October 25, 2016, the JPA formation and CCE Ordinance first reading will take place at the Board meeting as well as at the City Council meeting. On November 8, 2016, the final reading and adoption will be recommended for Board approval. |