2.1 PresentationTown Council Meeting
February 2, 2016
Community Choice Energy
SOURCE
v
SV((E
DELIVERY
v
PG&E
CUSTOMER
v
YOU
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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
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