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HomeMy Public PortalAbout08) 7F Reaffiring City Default Energy Rate with Clean Power AllianceMANAGEMENT SERVICES DEPARTMENT DATE: November 6, 2018 TO: The Honorable City Council MEMORANDUM AGENDA ITEM 7.F. FROM: Bryan Cook, City Manager By: (liana N. Flores, Administrative Assistant to the City Manager and City Council SUBJECT: REAFFIRMING CITY'S DEFAULT ENERGY RATE WITH CLEAN POWER ALLIANCE RECOMMENDATION: The City Council is requested to affirm City of Temple City's default energy rate option with Clean Power Alliance, BACKGROUND: 1. On December 2, 2017, the City Council voted 5-0 to introduce Ordinance No. 17- 1030 authorizing the City to enter into the LACCE JPA (a.k.a. Clean Power Alliance). Mayor Pro Tem Fish was appointed as the City's representative on the Clean Power Alliance Board. 2. On October 16, 2018, staff reported that Clean Power Alliance will be rolling out their program for municipalities. Temple City residents will automatically be enrolled in the default rate option of 36% renewable energy program (i.e., Lean Power) with the Clean Power Alliance. ANALYSIS: The Clean Power Alliance (CPA) is Joint Powers Authority compromised of 31 cities and two counties in California that will purchase electricity for sale to their communities. The authority is authorized under a 2002 state law that allows communities to create Joint Powers Authority to become locally controlled electricity providers. CPA purchases clean renewable energy and is provided as alternative to the current renewable clean power supply delivered by Southern California Edison. The CPA allows Cities and Counties to work together to buy and invest in renewable energy and deliver those resources directly to local communities at competitive rates. In addition to Temple City, other participating San Gabriel Valley Cities include, Alhambra, Arcadia, City Council November 6, 2018 Page 2 of 2 and South Pasadena. As a member of the CPA, the City is required to set a default rate tier of renewable energy for Temple City electricity customers. Of three tiers offered by the Clean Power Alliance (Lean Power — 36% renewable energy, Clean power- 50% renewable energy, Green Power — 100% renewable energy), the Lean Power option will offer 36% renewable electricity at cost that will be generally 1 to 2 percent less than Southern California Edison rates. Temple City customers can opt to purchase more renewable power, for example the 50% tier could be up to 1 % less than Edison rates, or the 100% could be 9% more than Edison rates. Beginning in February 2019, Temple City electricity customers will automatically be enrolled with CPA for electricity service at the 36% default tier rate. Customers that wish to opt out of the default tier rate to either purchased a larger portion of renewable electricity or rejoin Southern California Edison, may do so within a 60 day window. In anticipation of this program, CPA will begin mailing notices to all electricity customers informing them of this change. Up to three mailed notices will be distributed in December up until the transition in February 2019. This information will include details on how to choose a different percentage of renewable energy tiers and returning Southern California Edison, as well as CPA customer support contact information. It is important to note, that under the CPA program Southern California Edison is still responsible for all transmission lines and all related electricity infrastructure, additionally billing statement and payment processing will still be through Southern California Edison. The only difference from what customers experience now and will experience in February 2019 is that the CPA will be the entity purchasing and providing electricity. Staff will continue to provide public information regarding this program through the bi- weekly City Manager's Update and social media. However, the vast majority of information will be coming from the Clean Power Alliance. Clean Power Alliance will be setting residential rates at a public Board of Directors meeting on November 15, 2018, FISCAL IMPACT: This item will have a minor impact on the Fiscal Year 2018-19 City Budget associated with the cost for public outreach and noticing regarding the program. ATTACHMENT: A. Clean Power Alliance Graphic ATTACHMENT A 4-1 m = 30 COQ) u J u L a m N •� L d O 3 oc: o o .> o 0O. o� c Qom" 4.) 4-J0 r• to Q) Q 0 � a .� O 0 C: Q o '� D- c — 0 0 :Pfffft, U C o c C: 3 o Ln M N L Lootoo, Ln 19 W o N A' Q o o m a UW ` '+ cn O 3 C Q C: m E a a o u o) DIT a o O 4:•::•:•:•:•:•:•: ' m N V � o (6 . O. ca U O yU o -C N 1.0 O N M ° oc L—L" i. 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