CCE Presentation
Community Choice Energy
Town Council Meeting
December 15, 2015
WHAT IS COMMUNITY CHOICE ENERGY?
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Why are Communities Considering This?
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Transportation and Electricity Consumption
are largest community contributors to GHG
Transforming Electricity Sourcing can
significantly reduce GHG Emissions
Greenhouse Gas Reduction
Increasing Renewable Energy
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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
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Composition by Jurisdiction
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SVCCEP GOALS
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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
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Technical Study
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Scenario 1 Scenario 2 Scenario 3
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Renewable 36% 51% 76%
GHG-free 63% 70% 85%
Cost 4% savings 3% savings 1% savings
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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
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Risks
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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
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Community Engagement
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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
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Potential Actions for Los Gatos
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Council Action
Council preparatory info tonight
then:
Adopt CCE Ordinance
Resolution to Join JPA
Approve Cost-sharing Contribution
Target of March 31, 2016
First JPA meeting in April 2016
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JPA Agreement
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Key Provisions:
Purpose
Board of Directors
Voting
Funding of Initial Costs
Withdrawal Provisions
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Fiscal Impact
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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
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Schedule
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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
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