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2.1 PresentationTown Council Meeting February 2, 2016 Community Choice Energy SOURCE v SV((E DELIVERY v PG&E CUSTOMER v YOU 2 Why are Communities Considering This? a Transportation and Electricity Consumption are largest community contributors to GHG Transforming Electricity Sourcing can significantly reduce GHG Emissions Greenhouse Gas Reduction ■ Increasing Renewable 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 Composition by Jurisdiction Geographic Distribution of Electric Consumption Monte Sereno i Los Altos Hills ■ Saratoga Los Altos � Los Gatos � Campbell � Morgan Hill � Cupertino � Gilroy �ml Unincorporated Santa Clara Mountain View Sunnyvale 0% 5% 10% 15% 20•x6 25% 30% 35% 40% SVCCEP GOALS ■ Renewable 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 Technical Study PGE Renewable 27%; mandated 33% by 2020 and 50% by 2030 Renewable 36% 51% 76% TA C I GHG-free 63% 70% 85% Cost 4% savings 3% savings 1% savings Renewable 49% 66% 76% 0 TA GHG-free 75% 80% 97% CO m � Cost 3% savings 1% savings Rate Parity PGE Renewable 27%; mandated 33% by 2020 and 50% by 2030 Risks J Financial Risk- • Could lose initial investment What if CCE • JPA structure buffers Partner liability fails? • Required bond posting supports return of customers to PG&E bundled service Rates not • Use conservative estimates Competitive • Do not guarantee cheaper but competitive • Invest in energy contracting expertise • Phase in conservation programs Risks PG&E Fees • Technical study conservative Increase • Continued CPUC discussion on appropriate fee • Could lose initial investment • JPA structure buffers Partner liability • Required bond posting supports return of customers to PG&E bundled service Rates not • Use conservative estimates Competitive • Do not guarantee cheaper but competitive • Invest in energy contracting expertise • Phase in conservation programs Agency Adoption Date/ Time Agency Tuesday, i2/i/i5 Tuesday, 12/15/15 Cupertino City Sunnyvale C Thursday, 12/16/15 Tuesday, 1/12/16 Morgan Hill Mountain Vncil Thursday, 1/27/16 Los Altos Hi Tuesday, 2/2/16 Campbell City Council Tuesday, 2/2/16 Los Gatos Council Wednesday, 1/20/16 & 2/3/16 Saratoga City Council (Approved 151 Reading 1/20/16) Tuesday, 2/9/16 County Board of Supervisors Tuesday, 2/9/16 Los Altos City Council Tuesday, 2/16/16 Monte Sereno City Council Monday, 2/22/16 Gilroy City Council Potential Actions for Los Gatos ■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 JPA Agreement Key Provisions: Purpose Board of Directors Voting -Funding of Initial Costs Withdrawal Provisions Fiscal Impact 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 Santa Clara County $170,000 $350,000 $170,000 $350,000 $450,000 $450,000 Saratoga - $100,000 $150,000 Sunnyvale $170,000 $350,000 $450,000 Total $680,000 $2,050,000 $2,750,000 Schedule Fall 2015 Winter 2015.16 Technical Study Communities Completed Decide Spring 2016 J Implementation Plan to CPUC Summer 2016 Ramp -up Operations and Communications Winter 2016-17 J Program Launch! ■ 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 15