Administrative
Report
N.3., File # 22-3771 Meeting Date: 4/5/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
DISCUSSION AND POSSIBLE ACTION ON THE RECONSIDERATION OF THE SELECTION OF 100% RENEWABLE CLEAN ENERGY AS THE DEFAULT RATE FOR ALL CLEAN POWER
ALLIANCE ENERGY ACCOUNTS IN THE CITY
EXECUTIVE SUMMARY
The City Council has requested an agenda item to revisit the December 7, 2021 decision by City Council, to set the default rate for all Clean Power Alliance (CPA) energy customers in Redondo Beach at 100% Green Power. The default rate, which is currently 50%, will adjust to 100% in October 2022.
BACKGROUND
On February 15, 2022, the City Council requested an agenda item to revisit the decision made on December 7, 2021 (on a 4-1 vote with Nehrenheim dissenting) to adjust the default rate for all Clean Power Alliance (CPA) energy customers in Redondo Beach to 100% Green Power. The adjustment is scheduled to be implemented in October 2022. The default rate was set at 50% renewable Clean Power when the City first joined the program in 2018. It should be noted that customers have the ability to switch their individual accounts to different options or to opt out of the program and purchase energy solely from Southern California Edison (SCE).
The three rate options currently offered by CPA are Lean Power, Clean Power and Green Power.
The renewable content and percentage cost differences compared to SCE rates are summarized as follows:
Name Renewable Content Cost Difference vs. SCE
Lean Power 40% 1% overall bill discount
Clean Power 50% Similar to SCE
Green Power 100% 3% overall bill increase
The environmental benefits and associated cost increases that result from moving all energy accounts in the City from 50% renewable Clean Power to 100% renewable Green Power are illustrated in more detail in the attached summary.
COORDINATION
This item was coordinated by the Public Works Department.
N.3., File # 22-3771 Meeting Date: 4/5/2022
FISCAL IMPACT
Adjusting the default rate for the City’s 248 energy accounts from 50% renewable Clean Power to 100% renewable Green Power will increase the City’s annual energy cost by approximately $36,000.
The cost increase to energy customers City-wide would generate approximately $95,000 per year in additional Utility User Tax revenue, assuming individual account holders stay at the 100% level and do not choose to opt out of the program or select a reduced rate.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
Green Power Impacts Fact Sheet
CPA Rate Option Information