CITY OF POMONA
COUNCIL REPORT
June 6, 2022
To: Honorable Mayor and Members of the City Council
From: James W. Makshanoff, City Manager
Submitted By: Chris Diggs, Water Resources Director
SUBJECT: A UTHORIZE THE CITY MANAGER TO EXECUTE FUTURE ENERGY AGREEMENTS ON BEHALF OF POMONA CHOICE ENERGY RECOMMENDATION:
It is recommended that the City Council take the following action:
Authorize the City Manager to execute future energy agreements through FY 2022-23.
EXECUTIVE SUMMARY:
Staff is seeking City Council approval to authorize the City Manager to execute energy agreements through FY 2022-23 on behalf of Pomona Choice Energy (PCE).
FISCAL IMPACT:
This action does not have specific dollar cost associated at this time, however, CalChoice attorney’s and staff review and approve energy agreements before they are executed by City Manager. Funds for energy purchases are approved by Finance staff and paid from an escrow account that limits the types of transactions that can be made and are exclusive to PCE activities. It is anticipated the escrow account will have sufficient funds to cover all energy purchases made.
PREVIOUS RELATED ACTION:
On March 15, 2021, City Council authorized the City Manager to execute future energy agreements through FY 2021-22.
DISCUSSION:
To assist in purchasing power, PCE utilizes the purchasing expertise and economies of scale by utilizing CalChoice. In doing so, PCE purchases the power needed for its customers on a larger scale than could be done on its own resulting in a savings and reduced rates to PCE customers. Additionally, CalChoice members often trade power amongst themselves when one member has excess power and another is in need of power. This significantly reduces risk of over or under purchasing power.
For FY 2021-22 to date, the City Manager has executed 45 contracts. The table below shows the total volume of power and type secured.
Because not all the necessary power purchases have been executed to meet Pomona customer demands, numerous additional agreements will need to be executed. At this time, staff is seeking Council approval to authorize the City Manager to execute said agreements through the end of FY 2022-23. If approved, staff will update the Council in a similar fashion as seen in the report. This approval will assist in eliminating staff time to generate the necessary reports and allow for action to be taken quickly when necessary to solidify the necessary agreements.
Prepared by:
Julie Carver, Environmental Compliance Supervisor
Authorize City Manager to execute energy agreements