Presentation Community Choice Energy Town Council Meeting December 15, 2015
WHAT IS COMMUNITY CHOICE ENERGY? 2
Why are Communities Considering This? COMMUNITY CHOICE ENERGY Transportation and Electricity Consumption are largest community contributors to GHG Transforming Electricity Sourcing can significantly reduce GHG Emissions Greenhouse Gas Reduction Increasing Renewable Energy 3
COMMUNITY CHOICE ENERGY THE PARTNERSHIP Original Partners Sunnyvale Cupertino Mountain View Santa Clara County Additional Partners Los Gatos Campbell Gilroy Los Altos Los Altos Hills Monte Sereno Morgan Hill Saratoga 4
Composition by Jurisdiction COMMUNITY CHOICE ENERGY 5
SVCCEP GOALS COMMUNITY CHOICE ENERGY R enewable energy supply options that exceed PG&E levels Reduce GHG emissions Provide competitive, potentially lower, electricity rates for all customers Facilitate the use of clean technology , local clean power, and other energy innovations Create and maintain a local public agency that is well managed and financially sustainable 6
Technical Study COMMUNITY CHOICE ENERGY Scenario 1 Scenario 2 Scenario 3 Year 1 Renewable 36% 51% 76% GHG -free 63% 70% 85% Cost 4% savings 3% savings 1% savings Year 10 Renewable 49% 66% 76% GHG -free 75% 80% 97% Cost 3% savings 1% savings Rate Parity PGE Renewable 27%; mandated 33% by 2020 and 50% by 2030 7
Risks COMMUNITY CHOICE ENERGY Risk Mitigation Financial Risk - What if CCE fails? •Could lose initial investment •JPA structure buffers Partner liability •Required bond posting supports return of customers to PG&E bundled service Rates not Competitive •Use conservative estimates •Do not guarantee cheaper but competitive •Invest in energy contracting expertise •Phase in conservation programs 8
Community Engagement COMMUNITY CHOICE ENERGY Community Meetings Round 1 (6 meetings) complete Round 2 in December/January January 13 – Los Altos January 25 – Campbell TBD – Los Gatos and Saratoga Business Engagement Business Forum Meeting – early 2016 Customer Noticing 60 days before service 9
Potential Actions for Los Gatos COMMUNITY CHOICE ENERGY Council Action Council preparatory info t onight then: Adopt CCE Ordinance Resolution to Join JPA Approve Cost -sharing Contribution Target of March 31, 2016 First JPA meeting in April 2016 10
JPA Agreement COMMUNITY CHOICE ENERGY Key Provisions: Purpose Board of Directors Voting Funding of Initial Costs Withdrawal Provisions 11
Fiscal Impact COMMUNITY CHOICE ENERGY Party Phase 1 Phase 2 and 3 Phase 2 & 3 w/Contingency Campbell -- $100,000 $150,000 Cupertino $170,000 $350,000 $450,000 Gilroy -- $100,000 $150,000 Los Altos -- $100,000 $150,000 Los Altos Hills -- $25,000 $25,000 Los Gatos -- $100,000 $150,000 Monte Sereno -- $25,000 $25,000 Morgan Hill -- $100,000 $150,000 Mountain View $170,000 $350,000 $450,000 Santa Clara County (Unincorporated) $170,000 $350,000 $450,000 Saratoga -- $100,000 $150,000 Sunnyvale $170,000 $350,000 $450,000 Total $680,000 $2,050,000 $2,750,000 12
Schedule COMMUNITY CHOICE ENERGY 13
RECOMMENDATION Provide Feedback on the Program Direct the Town Manager to Return with: Enabling Ordinance Resolution to Execute JPA Agreement Funding Solution for $150,000 Startup Costs 14