COMMUNITY CHOICE AGGREGATORS (CCA)
ORANGE COUNTY POWER AUTHORITY RATE SELECTION
Huntington Beach City Council HUNTINGTON BEACH
February 1, 2022
SUPPLEMENTAL
COMMUNICATION
2/1/22
Meeting Date:
Agenda item No.: 18(22-074)
WHAT IS A COMMUNITY CHOICE
AGGREGATOR (CCA)?
• Mechanism authorized by the State in 2002 via AB 117, whereby electrical service customers are provided with an option of determining to procure power through a traditional investor-owned utility provider (SCE in our case) or through a local government entity known as a CCA (or CCE) alternative (Orange County Power Authority in our case).
Energy Purchased by the Energy Transmitted Energy Delivered to the CCA by the IOU Customer by the IOU
CCA BACKGROUND IN HB
• The City explored the possibility of engaging a CCA program during the past few years - August 5, 2019: City Council directed that staff engage a firm to assess the feasibility of establishing a CCA program for Huntington Beach
- February 23, 2020: MRW & Associates was engaged by the City to perform a CCA feasibility analysis, including an assessment related to Irvine's efforts to form a regional CCA JPA - December 10, 2020: City Council voted to join the Irvine-led effort to create a regional CCA JPA, called the Orange County Power Authority (OCA)
-January 26, 202l: A virtual community informational meeting on CCA/OCA was conducted - February 1, 202l: City Council elected to maintain membership in the OCPA JPA as a Founding Member
ALTERNATIVE DEFAULT ENERGY PRODUCT OFFERINGS
Basic Choice
If the City selects 38.5% renewables as its default energy product offering, then all Huntington Beach customers will automatically be enrolled in the Basic Choice product (38.5% renewables) unless the customer opts-up to either the Smart Choice product (at least 69% renewables) or 100% Renewable Choice product or the customer opts-out of OCPA service altogether and stays with SCE.
Smart Choice
If the City selects at least 69% renewables as its default energy product, then all Huntington Beach customers will automatically be enrolled in the Smart Choice product (at least 69% renewables) unless the customer opts-up to the 100% Renewables product, opts-down to the Basic Choice product, or the customer opts-out of OCA service altogether and stays with SCE. 100% Renewable Choice
If the City selects 100% renewables as its default energy product, then all Huntington Beach customers will automatically be enrolled in the 100% Renewables product unless the customer opts-down to either the Basic Choice or the Smart Choice products or the customer opts-out of OCPA service altogether and stays with SCE.
Low-income qualified customers (customers currently enrolled in the California Alternate Rates for Energy - CARE program) will continue to see lower rates reflective of that program.
ORANGE COUNTY POWER AUTHORITY MEMBER
AGENCIES
• Buena Park: Selected 100% Renewable Choice product as a default energy product offering for its residential and commercial customers. The City is slated to make a determination concerning the default energy product offering for City facilities in February 2022.
• Irvine - Selected Smart Choice product (at least 69% renewables) as a default energy product offering for its residential and commercial customers and is expected to take final vote on February 8, 2022. The Irvine City Council also decided that all City facilities will default into the 100% Renewable Choice product. • Fullerton - Expected to choose a default Energy Product on February 1, 2022. • Huntington Beach - Presented for your consideration.
BASIC CHOICE
Estimated Typical Residential Bill Comparison
Basic Choice, 425 KWh Per Month
Rates set so total bill is same for OCA and SCE bundled customer Charge Type OCPA SCE Difference
Generation $41.51 $49.96 ($8.45)
SCE Surcharges $8.45* $0.00 $8.45
SCE Delivery $64.44 $64.44 $0.00
Total $114.40 $114.40 $0.00 0.0%
* SCE surcharges include rates that CCA customers pay to the IOU to recover costs that become stranded as a result of the customers' departure from bundled service. Almost all of the cost recovery surcharge is the Power Charge Indifference Adjustment (PCIA) that recovers the 'above market costs' of SCE's existing power supply portfolio. It also includes the municipal surcharge, which ensures SCE continues to collect franchise fees after customers depart bundled service. 6 SMART CHOICE
Estimated Typical Residential Bill Comparison
Smart Choice, 425 KWh Per Month
At least 69% renewable energy for 1.0 cent/kWh over Basic Choice* Charge Type OCPA SCE Difference
Generation $45.76 $49.96 ($4.20)
SCE Surcharges $8.45 $0.00 $8.45
SCE Delivery $64.44 $64.44 $0.00
Total $118.65 $114.40 $4.25 3.7%
* Based on current OCPA projections, rates subject to change. 100% RENEWABLE
Estimated Typical Residential Bill Comparison
100% Renewable Energy Choice, 425 KWh Per Month
100% renewable energy for 1.5 cent/kWh over Basic Choice* Charge Type OCPA SCE Difference
Generation $47.89 $49.96 ($2.07)
SCE Surcharges $8.45 $0.00 $8.45
SCE Delivery $64.44 $64.44 $0.00
Total $120.78 $114.40 $6.38 5.6%
* Based on current OCPA projections, rates subject to change.
POLICY DECISIONS
• Residential/Commercial Default Rate • City Facilities Default Rate • Basic Choice (38.5% renewables) • Basic Choice (38.5% renewables) • Smart Choice (at least 69% renewables) • Smart Choice (at least 69% renewables) 100% Renewable Choice • 100% Renewable Choice
• Cost to customers differs by plan. • Cost to City differs by plan.
Questions?
Orange County Power Authority
Brian Probolsky
Chief Executive Officer
HUNTINGTON BEACH
Tiffany Law
Chief Financial Officer