11 of 48 EXHIBIT 2
EXHIBIT A 1364
LOCAL STREET RESURFACING PROGRAM
FY 2021-22 SB1 MICRO-SURFACING
BIDDER'S CHECKLIST/AGREEMENT
CITY OF STOCKTON PUBLIC WORKS DEPARTMENT
(Checklist Not Required to be Submitted)
Did you complete and/or properly sign:
__You X have carefully examined the specifications and all other provisions of this form and understand the meaning, intent, and requirements of the same. __Review X and sign all Letters of Clarification on the City website at www.stocktonca.gov/pwbid prior to submitting your bid. Submit signed letters with bid.
X X
List of Subcontractors (Bid Forms)
Non-Collusion Declaration form (Bid Forms)
X X
Department of Industrial Relations Labor Compliance Self-Certification (Bid Forms) Title VI Violation Self-Certification (Bid Forms)
X X
Registered with the Department of Industrial Relations (California Labor Code Section 1725.5) Submit proof of registration (registration number, contractor name, license type/number) from Department of Industrial Relations for all Contractors/Subcontractors (regardless of tier). Proof of registration is due with bid submittal. Subcontractor proof of registration is due no later than four business days after bid opening. Bids will not be accepted from unregistered contractors.
X Local Employment Ordinance form (Bid Forms)
X Local Business Preference Ordinance form (Bid Forms)
__Advise X all subcontractors of prevailing wage rate, apprenticeship, Title VI, DIR, and all other contract compliance requirements
_x_lnclude your 10% bidder's security (bidder's bond, certified or cashier's check) __Review X and understand all Questions/Answers/Clarifications on the City website at www.stocktonca.gov/pwbid prior to submitting your bid
X Submit company name and contact information to Katrina Cooper at (209) 937-8676 or email at [email protected].
_x_Attend Job Walk, if mandatory: N/A
X Submit one (1) Original of all bid documents
X Deliver the sealed bid proposal to City Hall, City Clerk's Office (P1 floor), 425 N. El Dorado Street, Stockton, CA 95202 not later than Thursday, May 26th
, 2:00 pm. Sealed bid shall be marked
"BID" and indicate project name, number, and bid opening date. Due to the novel COVID-19, there are changes to the City's bid submission process. Please note that some overnight delivery services do not deliver directly to the City Clerk's Office. This could result in the bid arriving in the City Clerk's Office after the bid opening deadline and therefore not being accepted. During these times of local health concerns, bid openings are closed to the public. Bidders and the public are invited to view the live stream of the bid opening at http://www.stocktonca.gov/government/oMeetings/councilMeetings.html Bid Fonns Page 2 of 11 Last Revised 12/31/20
12 of 48 EXHIBIT 2
EXHIBIT A 1365
BID FOR PUBLIC WORK
CITY OF STOCKTON
Stockton, CA __ M_ay_2_6 __ , 20�2=2 __
TO THE HONORABLE CITY COUNCIL OF THE CITY OF STOCKTON:
Pursuant to your Notice Inviting Sealed Bids, I, we, or either of us:
Corporation
(State whether individual, firm, corporation, association, or co-partnership) hereby offer (and hereby promise and agree in case this bid is accepted) to furnish all labor, material, equipment and supplies necessary to complete the work mentioned in said Notice Inviting Sealed Bids in strict accordance with the plans and specifications for said work to be done and labor, materials, and equipment and supplies to be furnished, which plans and specifications are on file in the office of the City Clerk of the City of Stockton and made part hereof by reference, the same as if herein fully set out, at the following rates and prices, to-wit:
Bid Fonns Page 3 of 11 Last Revised 12/31/20
13 of 48 EXHIBIT 2
EXHIBIT A 1366
LOCAL STREET RESURFACING PROGRAM
FY 2021-22 SB1 - MICRO-SURFACING
PROJECT NO. WT22003D
BIDDING SCHEDULE
Each bidder shall bid each item, including all alternate bid(s). Failure to bid an Item shall be Just cause for considering the bid as non-responsive. Une item costs should include all Contractor's overhead and profit and indirect costs. Bids not presented on City fonns shall be cause for considering the bid as non-responsive .
..
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.. " .
. .
. - . .
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-:!tein :: . pe�pt1on·. ·- .. .. · U.nit · Quantity· Unif · price ·., · Total-Price: t .,
1 2
3 4
5 6
7 8
9 10
11 BidFonns
...
.. " '
Mobilization LS 1 $15,000.00 $15,000.00
Traffic Control LS 1 $28,200.00 $28,200.00
Water Pollution Control LS 1 $1,500.00 $1,500.00
Material Testing LS 1 $30,000.00 $30,000.00
Remove Existing Pavement LS 1 Striping, Marking, and Legends $21,500.00 $21,500.00 Install Detail 9 Striping LF 3,800 $1.18 $4,484.00
lnstaN Detail 22 Striping LF 2,700 $1.66 $4,482.00
lnstaU Detail 38 Striping LF 400 $1.78 $712.00
Install Speed Bump Legend EA 20 $220.00 $4,400.00
Install White Thermoplastic SF 1,500 $5.94 $8,910.00 (All Pavement Legends) Micro-surfacing (Type II) SY 281,000 $2.10 $590,100.00
TOTAL BID $709,288.QQ
BIDDER'S NAME Pavement Coatings Co.
14 of 48 EXHIBIT 2
EXHIBIT A 1367
BIDDER CERTIFICATION
The undersigned agrees that if this bid is accepted, he/she will contract with the City of Stockton in the form of contract attached hereto to perform all of the work in accordance with the contract and the drawings, specifications, and other documents incorporated therein; that he/she will take in full payment therefor, and for all other obligations assumed under the contract, the prices set forth in the following bid schedule except as otherwise provided in the specifications; and that he/she will execute such contract and furnish the required contract bonds in the manner and within the time provided in the bidding requirements and conditions. The undersigned further agrees that he/she has carefully examined the site of the work and the bid documents and any addenda thereto, and is fully informed of the nature and location of the work, the quantities of the work, and the conditions to be encountered in performing the work; that the only parties interested in this bid as principals are those named herein and that this bid is made without collusion with any other party; and that this bid is submitted in all respects in accordance with the bidding requirements and conditions and all other requirements of the bid documents.
A BID GUARANTY ACCOMPANIES THIS BID IN THE FORM OF: (Check one of the following) □
□
□
�
Cash, or
Cashier's check, or
Certified check payable to City of Stockton, or
Bidder's bond in favor of the City .
. For any amount not less than ten percent (10%) of the aggregate of the bid.
ALSO ACCOMPANYING THIS BID ARE THE FOLLOWING ATTACHMENTS, PROPERLY EXECUTED AND SIGNED:
1. List of Subcontractors 4. Title VI Self-Certification
2. Non-Collusion Declaration 5. Local Employment Ordinance Acknowledgement
3. DIR Self-Certification 6. Local Business Preference Acknowledgement
THE CITY RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS
Pavement Coatings Co. (916) 642-1751 95-2916670
Name of Firm Phone Tax I.D. No.
2150 Bell Ave., Suite 125 Sacramento, CA 95838
Address City State Zip
303609,A,C32 09/30/2022
Contractor Lie. No. & Classification Expiration Date
NOTE - State law requires bidders on public agency contracts to include on their bid: (1) their State contractors license number, (2) the license expiration date, and (3) a statement that the representations made therein are made under penalty of perjury. The law further states that "Any bid not containing this information, or bid containing information which Is substantially proven false shall be considered non-responsive and shall be rejected by the public agency." THE REPR .
.
ENTATIONS MADE HEREIN ARE MADE UNDER PENAL TY OF PERJURY . , ·· · BIDDER SIGN
·. . _____ <= HERE Tim Schmid, Vice President
Signature Title
Bid Forms Page 5 of 11 Last Revised 12/31/20
15 of 48 EXHIBIT 2
EXHIBIT A 1368
LIST OF SUBCONTRACTORS
GENERAL CONTRACTOR: Pavement Coatings Co.
PROJECT: Local Street Resurfacing Program FY 2021-22 S81 - Microsurfacing Project, Project No. WT22003D
PLEASE LIST BELOW ALL SUBCONTRACTORS CONTRIBUTING TO THIS WORK Each bidder shall give the name, business address, license number, description of the work, and the dollar amount to be PAID the subcontractor, for each subcontractor that will be used on the project, if the Bidder is awarded the contract. Only subcontractors with work in excess of one-half of one percent (0.5%) or $10,000 (whichever is greater) of the Bidder's total bid need to be listed. All work in excess of one-half of one percent (0.5%) or $10,000 (whichever is greater) of the Bidder's total bid, for which a subcontractor is not listed on this form, shall be performed by the Bidder's own organization.
Additional numbered pages listing proposed subcontractors may be attached to this page. Each page shall be headed "Proposed Subcontractors" and shall be signed by the Bidder.
BUSINESS
NAME/ADDRESS
C. r\f \ /;\t) (l\lilr.t-.1\.V'\\,I
I \
I fl m S-w,i ":e.':l A\J e .
Stt>cltoVI, C. A, q5 7., S
Bid Fonns
PRINT LEGIBLY OR TYPE
LICENSE DEPT. OF TYPE OF WORK AMOUNT
NUMBER & INDUSTRIAL
LICENSE RELATIONS
CLASSIFICATION REGISTRATION
NUMBER
3 7� �00 A.C.--\ 3 \ 0()000()"?.()lil l<i1il TW>.IM �� 1.1-�'. $t.\t.\,S1S,QD c--11. 'l L�GA'\-\c,,\') I S-\ D.
16 of 48 EXHIBIT 2
EXHIBIT A 1369
NON-COLLUSION DECLARATION
(Title 23 United States Code Section 112 and Public
Contract Code Section 7106)
To the CITY of STOCKTON DEPARTMENT OF PUBLIC WORKS.
The undersigned declares:
I am the Vice President , of Pavement Coatings Co. , the party making the foregoing bid.
The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.
Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, ' ,
limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on �'f{:J-3(:k:>:}-d- atsacramento(city), _CA __ (state). ��Vice President (Signature)
Bid Forms Page 7 of 11 Last Revised 12/31/20
17 of 48 EXHIBIT 2
EXHIBIT A 1370
Bid Fonns
DEPARTMENT OF INDUSTRIAL RELATIONS
LABOR COMPLIANCE
SELF-CERTIFICATION
We, the undersigned, self-certify that we will comply with all California Department of Industrial Relations (DIR) laws, rules and regulations that apply to Public Work as defined in Labor Code Section 1720(a)(1 ), as well as Senate Bill 854 (2014 ), and all other related statutes.
In addition, we acknowledge that to be eligible to bid on City of Stockton Public Works projects, we and all subcontractors under us are registered, and will remain registered with the DIR until project completion; otherwise, we will be disqualified from consideration as a bidder for the subject project.
CONTRACTOR: Pavement Coatings Co.
T
BY:�
ITLE: Tim Schmid, Vice President
DATE: §R-3/ JOrY I
18 of 48 EXHIBIT 2
EXHIBIT A 1371
TITLE VI VIOLATION SELF-CERTIFICATION
We, the undersigned, self-certify that pursuant to Federal Code of Regulations (CFR), 23 CFR 200.9, 633 and 49 CFR 21. 7, we do not have any unresolved violations under Title VI of the Civil Rights Act of 1964 and related statutes, including Americans with Disabilities Act (ADA). In addition, we acknowledge that an unresolved Title VI violation will disqualify us for consideration as a bidder for the subject project.
CQNJRACTOR: Pavement Coatings Co.
BY: 41/
Tim Schmid, Vice President
TITLE
Bid Fonns Page 9 of 11 Last Revised 12/31 /20
19 of 48 EXHIBIT 2
EXHIBIT A 1372
LOCAL EMPLOYMENT ORDINANCE
This contract is subject to the requirements of the City of Stockton's Local Employment Ordinance. By my signature below, I certify that I have read and understood the Local Employment Ordinance of the City of Stockton, and agree to abide by its provisions. If selected to perform this contract, I specifically agree to report data on the actual number of Stockton residents employed, and understand that data will be subject to verification by an independent auditor.
Signature of Bidder
Date Signed
�hmid, Vice President S-/�3(��:?--
20 of 48 EXHIBIT 2
EXHIBIT A 1373
LOCAL BUSINESS PREFERENCE ORDINANCE
The City of Stockton's Local Business Preference Ordinance applies to this project. By my signature below, I certify that I have read and understood the Local Business Preference Ordinance of the City of Stockton, and agree to abide by its provisions.
Signature of Bidder
Date Signed
�m Schmid, Vice President
s-/.?-3 I !Jo;)-;;,..
21 of 48 EXHIBIT 2
EXHIBIT A 1374
Contractor Information
Legal Entffy Name
PAVEMENT COATINGS CO.
Legal Entity l)pe
Corporation
Status
Expired
Registration Number
1000003382
Registration effective date
5/25/2018
Registration expiration date
6/30/2019
Malling Address
10240 SAN SEVAINE WAY JURUPA VALLEY 91752 CA United States ••• Physical Address
10240 SAN SEVAINE WAY JURUPA VALLEY 91752 CA United States ••• Email Address
Trade Name/OBA
PAVEMENT COATINGS CO.
Ucense Number(s)
CSLB:303609
Registration History
Effective Date Expiration Date
5/25/2018 6/30/2019
5/9/2017 6/30/2018
5/4/2016 6/30/2017
6/8/2015 6/30/2016
12/3/2014 6/30/2015
7/1/2019 6/30/2020
7/1/2020 6/30/2023
22 of 48 EXHIBIT 2
EXHIBIT A 1375
Legal Entity Information
Corporation Number:
con4948
Federal Employment Identffication Number:
President Name:
DOUGLAS FORD
Vice President Name:
TIMOTHY SCHMID
Treasurer Name:
Secretary
NATHAN SEYLER
Name:
TOM MUCENSKI
CEO Name:
Agent of Service Name:
STEPHEN CONCANNON
Agent of Service Malllng Address:
10240 SAN SEVAINE WAY JURUPA VALLEY 91752 CA United States of America Workers Compensation
Do you lease employees through
Professional Employer
Organization (PEO)?:
Please provide your current
workers compensation insurance
information below:
PEO PEO PEO
PEO InformationName Phone Email
Insured by Carrier
Policy Holder Name:PAVEMENT COATINGS CO.Insurance Carrier:TRAVELERS INDEMNITY COMPANY (THE)Policy Number:
VTC2JUB8J79408117Inception date:10 / 1/2017Expiration Date:10 / 1/2018 23 of 48 EXHIBIT 2
EXHIBIT A 1376
f.,Libertr, � Mutual.
SURETY
Liberty Mutual Surety
Attention: LMS Claims
P.O. Box 34526
Seattle, WA 98124
Phone: 206-473-621 O
Fax: 866-548-6837
Email: [email protected]
www.LibertyMutualSuretyClaims.com
The Ohio Casualty Insurance Company
BID OR PROPOSAL BOND
KNOW ALL MEN BY THESE PRESENTS, That we, ------------------- Pavement Coatings Co. of Jurupa Valley, CA
(hereinafter called the Principal) as Principal, and The Ohio Casualty Insurance Company principal office in the City of Boston , Massachusetts
Surety), as Surety, are held and finnly bound unto City of Stockton , with its
(hereinafter called the
-----------------------
of ------------------------------------�----
(hereinafter called the Obligee) in the penal sum of ----------------------- Ten Percent of Bid Amount ------------------------ Doll a rs 10% of Amount Bid lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns.
THE CONDITION OF THIS OBLlGA TION IS SUCH, that whereas, the Principal has submitted the accompanying bid dated May 26, 2022 for Local Street Resurfacing Program FY 2021-22 881 - Microsurfacing Project,
Project No. WT22003D
NOW, THEREFORE, if the Obligee shall make any award according to the tenns of said bid and the Principal shall enter into a contract with said Obligee in accordance with the tenns of said bid and give bond for the faithful perfonnance thereof within the time specified; or if no time is specified within thirty days after the date of said award; or if the Principal shall, in the case of failure so to do, indemnify the Obligee against any loss the Obligee may suffer directly arising by reason of such failure, not exceeding the penalty of this bond, then this obligation shall be null and void; otherwise to remain in full force and virtue,
Signed, sealed and dated: _.;-.......:...�-------------May 19, 2022 Principal
By: •
TfM
The Ohio Casualty Insurance Company
By: J:d
BrianA.McGoldrick, (Attorney-in-fact)
LMS-20e65e 11/17
24 of 48 EXHIBIT 2
EXHIBIT A 1377
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
\��--��- �&&������������- --�-������-�--��- �- ���� - -�-�-��� - A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
San Bernardino County of ____________ _
On May 19, 2022 before me, Brigid LopF-e=z�,�N�o�t=ary'-1-"P�u=b=l=ic�--------- Oate Here Insert Name and Title of the Officer
personally appeared Brian A. McGoldrick
Name(s) of Signer(�
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/tooy executed the same in his/txer/1:bair authorized capacity(m), and that by his/jqw/J:ooir signature(St) on the instrument the person($), or the entity upon behalf of which the person(s) acted, executed the instrument. 0 BRIGID0
LOPEZ O O i
COMM. #2287217 z
Notary Public • Calif.ornia �
Orange County ...
M Comm. Ex ires Ma 2, 2023
Place Notary Seal Above
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
........
...
..
----------------OPTIONAL _____ ,..... ________ _
Though this section is optional, completing this information can er alteration of the document or fraudulent reattachment of this form to an · tended document.
Description of Attached Document
Title or Type of Document: ---------"'----- Document Date: _______ _ Number of Pages: ___ Signer(s) Other Th
Capacity(ies) Claimed by Signer(s)
Signer's Name: ____________ _
·· � Corporate Officer - Title(s): ______ _
, Partner - Cl Limited :J Gener
,_J Individual � Attorney in ct
!.� Trustee □ Guardian r Conservator
7 Other: _______ ,,__ ______ _
Signer's Name: ____________ _
'J Corporate Officer - Title(s): ______ _
-, Partner - 0 Limited Cl General
:J Individual □ Attorney in Fact
7 Trustee O Guardian or Conservator
� l Other: ______________ _
Signer Is Representing: ________ _
�.;:;- "". _ . .:..•.:.. .:_• . -=-·- -����������
©2014 National Notary ssociation • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 25 of 48 EXHIBIT 2
EXHIBIT A 1378
f._Libe11J. \pl Mutual.
SURETY
Thi$ Power of Attorney lilllits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated, Liberty Mutual Insurance Company
The Ohio Casualty Insurance Company
West American Insurance Company
POWER OF ATTORNEY
Certificate No: 8205623·971991
KNOWN ALL PERSONS BY THESE PRESENTS: That The Ohio Casualty Insurance Company is a corporaliOn duly 01ganlzed under the laws of th& State of New Hampshire, that Liberty M.rtual Insurance COmpany is a corporation duty 01ganlzed under the laws of the State of Massachusetts, and West AmeriCan Insurance Company is a COIJ)Oration dUly organized under the laws of the State of lndiala (herein collectively called the "Coml)anies1, pursuant to and by arthonty herein set forth, does hereby nMltl, constitUte and appoint, Brian A.
McGoldrick; Brigid Loll$ Evett Lam; Richard L. Wells
all of the cily of Placentia
.
state of CA each Individually W there be more than one named, itS true and lawful attorney-in-fact to make, execute, seal, acknowledge and deliver, for and on itS behalf as surety and as Its act and deed, any and all undenakings, bonds, recognizances and other surety obligations, in pursuance of
person$
these presents and shall be as binding upon the Companies as if they have been duty signed by the president and attested by the secretary of the Companies in their own proper .
IN WITNESS WHEREOF, this Power of Attomey has been subsa'ibed by an authorized officer Of official of the Companie$ and the corporate seers of the Compa,ies haYe been affixed thereto this ..2Q!!!__ day of May ,..J.m._.
Liberty Wual Insurance Company
The Ohio Casualty lnsurooce �any
1 .____:_:__, er.�- l�
:t:f ; State of PENNSYLVANIA
David M. Garey, Assistant Secretary
_[ i 'g ::l County of MJNTGOMERY ss §
� �
.._ � On this 20th diJi of � , 2021 before me personally appeared David M. Carey, who acknowledged himself to be the AssistMt Secretary of Liberty �al Insurance rJ � � lii Company �hio Casualty pany, and West American Insurance Company, and that he, as such, being authoriZed so to do, execute the foregoing instrument for the purposes ! :l5 � > therein contained by signing on behalf of the COIJ)Orations by himself as a duly authorized officer. � .!R� I IN WITNESS WH�EOF. I haYe hereunto subscri>ed my name and affixed my notaial seal at King of Prussia, Pennsylvania, on the day and yeer first above written. � �- o-
_Q ,_. l'G:)
� ... 0 lJJ 'l�· 0
<:,
�
I' PJ\s1- !1-oNWf � 4<,, < T1!re$8 Pastella, Notary Publlo.----------, Commonwealth of Pemsytvania • Notaty Seal Ac--..
�>--
i Cl) ,.,, 0 "" " Montgomery County {I/, ; . . , II + I I Q) .!9 c: E g.! OF MycommissionexplresMaroh28,2025 By: µ.,iu-,µ � 0 co f!! '<k I';'!' Commlsslonnomber1126044 --J----_..,,--,....,_-,..,,.... _________ ,;s;:..., cu 'ti 1,,J'4'Nsy\?Jf' -fJ -.PennsylYaniaA$9ociotionofNotaries TeresaPastella, Notar,Publk: <( o O> 4> 7:.irit p\\'<>v o !ij!
.g> .$ This Power of Attorney is made and executed pwsuant to and by authOlity of the following By-laws and Authorizations of The Ohio casualty Insurance Company, Liberty Mutual j � � .!i_ Insurance Company, and West Amerlc.»1 Insurance Company which resolutions are now in fuU force and effect reading as follows: � � ,.. ,! ARTICLE IV • OFFICERS: Section 12, Power of Attorney. '- °I> .S I! Any officer or other � of the CO!poration autholized for that purpose in writing by the Chairman or the Presiden� and subject to such limitation as the Chairman or the :g � ;g O President may prescribe, shall appoint such attomeys-in-fact, as may be nooessary to act In behaf of the Corporation to make, execute, seat, acknowledge and deliver as surety � � � c: any and llll undertakings, bonds, �llZllll(j8$ and olher Sll'ety obligaions. Suell � subject to the Imitations set forth in their respective powers of atl!)me'f, shall "P rJ a � hcwe fuR power to bind the Corporation by thei' signature and execution of any such inslrufhents and to atladl lhef'eto the seal of the Corpoialk)n. When so executed, such .8 i z ij ilstruments Shal be as bin<1n9 as if signed by the President and attested to by the Secretary. Any power or authclnty granted to any represenfative or atlDmey..Jn-fact under the 0 ()l'OYisiOr1s ofthiS al1icle may be as
ARTICLE
revoked at any time by the Board, the Chaimlcrl, the President or by the officer or officers granting such power or authority, u.
XIII- Execution of Contracts: Section 5. Surety Boods and Undeltakilgs.
Any officer of the Company autholized for that purpose In writing by the chainniln or the president, and subject to such Umitations as the chairman or the president may prescribe, shall appoint such attorneys-in-fact, as may be necessary to act In behaf of the Company to make, execute, seal, acknowledge and deliver as surety any and atl undertakings, bonds,
Company
recognizances and other surety obligations, Such attomeys-in-ract subject to !he Umitations set forth in their l'flSl)8Clive powers of attorney, shall have full power to bind the by their signature and execution of any such instruments and lo attach thereto the seal of the Company. When so executed such instruments shall be as bindilY,I as K Certificate cl Designation -The
signed by the president and
President
attested by the secreta,y.
tact as may be necessa,y to act on behalf of the Company to of the Company, acting
make,
pursuant
execute,
to the Bylaws of the
seal, !ICknoWledge and deliver as Sll'ety any and al
Company, aulhorlzes David M. carey,
undertakings,
Assistant Secrela'y to
bonds, recognizances and olher
appoint such attorneys.insurety
Company,
obligation$.
Authorization -
wherever
By unamnous consent of the Company's Board of Directors, the Company consents that facsimile or mechlllk:aHy reproduced signature of any assistant secretary of the appearing upon a certified c:opy of any power of attorney issued by the Company in connection with surety bonds, Shall be valid and binding upon the Company with the sane force Md effeet as th(logh manually affixed.
hereby certify that the Ol'iginal power of attorney of which the foregoilg is a I, Renee C. Llewellyn, the undersigned, Assislant Secretary, The Ohio Casualty lnSll'ance Company, Lkty M.rtual Insurance Company, and West Amerlc.»1 lnSll'ance Company do ful, true and correct copy al 1he Power of Attorney executed by said Companie$, is in fut force and etrect and has not been revoked.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this� day of May , �.
By: -=-Renee=�.-?-/41"1-- ----.r,
. LI,.,..ewellyn----..,,-----, Assistant,,......,,...,....,,.,,Secretay,---..,....... ______ _ LMS-12873 LMIC OCIC WAJC Multi Co 02/21
26 of 48 EXHIBIT 2
EXHIBIT A 1379
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the Identity of the Individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
county of Sacramento
On May 23, 2022 before me, · Rick James Arias, Notary Public Date Here Insert Name and Title of the Officer
personally appeared _T_im_S_c_h_m_i
_d ______________________ _
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 1············ RICK JAMES ARIAS 1
: ' Notary Public • California :
1 Solano County � z Commission # 2278601 �
My Comm, Expires Mar 21, 2023
Place Notary Seal Above
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.
Si
---------------OPTIONAL---------------
Though this section is optional, completing this information can deter alteration of the document fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: --------------------:::a,,.C....-------- Document Date: _________________ _
Signer(s) Other Than Named Above: ----------=->""'------------- Capacity(ies) Claimed by Signer(s)
Signer's Name: --------------:::a,r;
□ Corporate Officer - Title(s): -----'""---
□ Part.ner - □ Limited □ General
□ Individual □ AttorneY. · act
□ Trustee □ Gu an or Conservator
□ Other:------::.,,,-=----------
Signer Is Re
Signer's Name: ___________ _
□ Corporate Officer - Title(s): ______ _
□ Partner - □ Limited □ General
□ Individual □ Attorney in Fact
□ Trustee □ Guardian or Conservator
□ Other: _____________ _
Signer Is Representing; ________ _
©2015 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 27 of 48 EXHIBIT 2
EXHIBIT A 1380
:ontractor Information
Legal Entity Name
CHRISP COMPANY
Leplllllityl)pe
Corporation
S1alus
Active
Reglstaatlo.'t Number
1000000306
lt6glltiation ..ffKIMdllte
07�1/19
06/'30/22.
RegisbalMI expeatlon date
Malling�
43650 OSGOOD ROAD FREMONT
Physical�
94539 CA United States -
43650 OSGOOD ROAD FREMONT 94539 CA United States _
jhansonOdvispcocom
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Trade Name/Dt.\
CHRISP
Uc:ame ....... (s)
CDMPANY
CSLB:374600
CSLB-374600
Legal Entity Information
Corporation Entity
Federal Employment lclentiftcation
Number:
Number:
Plesident Name:
Vice President Name:
y.....,..Name:
Seaetary Name:
CEOName:
�ency
Agent of Service Name:
foe Seryjce:
Agent of Service Mailing Address:
Reaistration
Efhdifto.te
Historv
06(11/18
05/(1:)/17
05/12/16
06/12/15
07/10/14
07/01/19
C0908398
942578099
ROBERT CHRISP
DAVID MORRIS
TAMMIE ALLISON
ROBERT CHRISP
CHRISP COMPANY
bpi! d11111>ate
06/30/19
06/30/18
06/30/17
06/30/16
06/30/15
06/'30/22.
43650 OSGOOD ROAD FREMONT 94539 CA nited States of America 28 of 48 EXHIBIT 2
EXHIBIT A 1381
, Worker's Compensation
Do you lease employees tlwaugh Protasslonal Employer
Please provide your current worker's compe11Atio11 inslnnce Information below:
Organization (PEO)?: No
PEO PEO PEO
PEO lnformationName Phone Email
Insured by Carrier
Policy Holder Name:
Insurance carrier:
Policy Number:
Inception elate:
Expiration Date;
ARl"HURJ.
1000004442
12/01/21
12/01/22
HER & COMPANY
29 of 48 EXHIBIT 2
EXHIBIT A 1382
EXHIBIT 2
EXHIBIT B
1 of 19 1383
EXHIBIT 2
EXHIBIT B
2 of 19 1384
EXHIBIT 2
EXHIBIT B
3 of 19 1385
EXHIBIT 2
EXHIBIT B
4 of 19 1386
EXHIBIT 2
EXHIBIT B
5 of 19 1387
35 of 48 EXHIBIT 2
EXHIBIT C 1388
36 of 48 EXHIBIT 2
EXHIBIT C 1389
37 of 48 EXHIBIT 2
EXHIBIT C 1390
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EXHIBIT C 1391
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EXHIBIT C 1392
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EXHIBIT C 1393
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EXHIBIT C 1395
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EXHIBIT C 1396
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EXHIBIT C 1397
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City of Stockton
Legislation Text
File #: 22-0709, Version: 1
CONSIDER A MEMORANDUM OF UNDERSTANDING ALLOWING STOCKTON UNIFIED SCHOOL DISTRICT’S FAMILY RESOURCE PROGRAM USE OF CITY MICRO LIBRARY SPACE
AT ARNOLD RUE AND STRIBLEY COMMUNITY CENTERS
RECOMMENDATION
It is recommended that the City Council approve a motion to enter into a memorandum of understanding (MOU) providing Stockton Unified School District’s (SUSD) Family Resource Program space to operate in the City’s Micro Libraries at Stribley and Arnold Rue Community Centers.
This action will also authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.
Summary
In March of 2022, City Council gave direction to the City Manager, under motion 2022-03-01-1504, to enter into discussions with the Stockton Unified School District (SUSD) in support of its proposed Family Resource Program. Staff worked with the SUSD to draft the attached MOU, which was approved by the SUSD board on August 23, 2022 (Attachment A).
DISCUSSION
Background
Following Council action in March, City staff worked with the SUSD to outline an MOU that provides the SUSD with operating space in the Micro Library rooms at the Arnold Rue and Stribley Community Centers for the purpose of conducting activities related to its Family Resource Program.
The negotiated agreement was provided to the SUSD in June of 2022. The SUSD board provided its review and approval during its meeting on August 23, 2022.
Present Situation
The attached MOU between the City of Stockton and the Stockton Unified School District provides the SUSD with room to operate its Family Resource Program from the Micro Libraries at the Arnold Rue and Stribley Community Centers, outlines schedule for access and use of the City’s facilities, as well as expectations and responsibilities of both parties.
FINANCIAL SUMMARY
Programming in the Micro Libraries has been adjusted to accommodate the schedule outlined in this City of Stockton Page 1 of 2 Printed on 9/7/2022
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File #: 22-0709, Version: 1
MOU. As is standard practice, the SUSD will be required to provide adequate evidence of insurance to align with its use of the City’s facilities. The space is being offered to the SUSD at no cost.
Attachment A: Facility Use Agreement with SUSD
City of Stockton Page 2 of 2 Printed on 9/7/2022
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ATTACHMENT A 1414
ATTACHMENT A 1415
ATTACHMENT A 1416
ATTACHMENT A 1417
ATTACHMENT A 1418
ATTACHMENT A 1419
ATTACHMENT A 1420
ATTACHMENT A 1421
ATTACHMENT A 1422
ATTACHMENT A 1423
ATTACHMENT A 1424
ATTACHMENT A 1425
ATTACHMENT A 1426
ATTACHMENT A 1427
ATTACHMENT A 1428
ATTACHMENT A 1429
ATTACHMENT A 1430
City of Stockton
Legislation Text
File #: 22-0763, Version: 1
APPROVE A MARKETING AGREEMENT FOR THE NATIONAL LEAGUE OF CITIES SERVICE
LINE WARRANTY PROGRAM
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City to enter into a Marketing Agreement with Utility Service Partners Inc. to offer the National League of Cities Service Line warranty program to homeowners in the City of Stockton’s Service Area over an initial term of five (5) years; and
2. Authorize the City Manager, or designee, to take appropriate and necessary actions to carry out the purpose and intent of this motion.
Summary
Water leaks waste valuable resources, and broken sewer pipes can lead to possible sanitary sewer overflows that can impact the health and safety of the community. Homeowners in the City of Stockton are responsible for the maintenance and repair of water pipelines that extend from the house to the water meter and sewer pipelines that extend from the house to the drain cleanout. The repair of these service pipelines can be a significant, unplanned expense for homeowners.
To help support homeowners in the City of Stockton’s Service Area, staff recommends that the City Council approve a Marketing Agreement with Utility Service Partners Inc. (USP) for an initial term of five (5) years to provide the National League of Cities (NLC) Service Line Warranty Program, a HomeServe Company, that homeowners may purchase to help offset costs related to the repair or replacement of water and sewer service lines and laterals. The National League of Cities first endorsed this program ten years ago, and more than 650 cities in 42 states have joined, including 25 California cities and agencies.
USP will pay the City a Brand Fee of $275,000 spread across the first five (5) years of the initial term of the agreement. Payments to the City under this agreement will be used to help fund a Turf Replacement Rebate Program that will be available to homeowners to increase water conservation efforts in the City’s Water Service Area.
DISCUSSION
Background
Utility Service Partners, Inc. (USP) offers a service line warranty program that homeowners may purchase to pay for costs related to the repair or replacement of water and sewer service lines or City of Stockton Page 1 of 3 Printed on 9/7/2022
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File #: 22-0763, Version: 1
laterals. Homeowners in the City of Stockton are responsible for maintenance and repair of water pipelines from the house to the water meter, and for sewer pipelines from the house to the cleanout.
The National League of Cities first endorsed this program ten years ago to educate property owners about their service pipeline responsibilities and to help residents avoid the out ‐
of-pocket expense for
unanticipated and potentially costly service pipeline repairs and replacements. This program, the only one of its kind endorsed by the NLC, can help homeowners in the City of Stockton to achieve affordable protection against significant and unexpected costs to remedy leaking, broken, clogged water lines, sewer lines, and in-home plumbing. Repairs are accomplished with the use of local contractors fully vetted by USP. The NLC Service Line Warranty Program is offered in more than 650 cities in 42 states, including 25 California cities and agencies. Staff have contacted and received information regarding the program from several cities including San Diego, Oceanside, Vallejo, and Los Angeles. In 2018, the City of San Diego had 8,500 homeowners enrolled in the program with an estimated savings in home repair costs of $1.2 million.
The NLC Service Line Warranty Program coverage for water and sewer pipelines is designed to help homeowners manage unplanned repair expenses. Single family residential customers in the City of Stockton Service Area will be eligible to select three (3) warranties to purchase from USP, which include the following:
Product Monthly Cost Annual Coverage Limit Annual Service Calls/Per Call Coverage
External Water
Line Warranty
$6.75/month Unlimited Unlimited Calls/$8,500 Per Call
External Sewer
Line Warranty
$9.75/month Unlimited Unlimited Calls/$8,500 Per Call
In-Home
Plumbing
$9.99/month Unlimited Unlimited Calls/$3,000 Per Call
Present Situation
The proposed Marketing Agreement limits product fee increases and would allow USP access to property owner contact information and the right to conduct limited marketing campaigns including the use of the City logo on mailers upon the review and approval of City staff. In exchange, the City would receive a Brand fee over the term of the agreement. USP will pay the City a brand fee of $275,000 spread across the first five (5) years of the initial term of the agreement. The Brand Fee will be $50,000 for each Renewal Term as follows:
· Year 1 - $ 75,000
· Year 2 - $ 50,000
· Year 3 - $ 50,000
· Year 4 - $ 50,000
· Year 5 - $ 50,000
Payments to the City under this agreement will be used to help fund a Turf Replacement Rebate Program that will be available to homeowners to increase water conservation efforts in the City’s City of Stockton Page 2 of 3 Printed on 9/7/2022
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File #: 22-0763, Version: 1
Water Service Area. Additional information on this program will be provided to the City Council prior to its implementation.
USP will be responsible for the official marketing, billing, and customer support associated with the program. City staff will not be responsible for any of these tasks, outside of the initial review of marketing material that USP prepares to notify residents of the program. USP will conduct up to three (3) direct marketing campaigns through the mail (two mailings) each year; the company does not engage in telemarketing. There is no cost to the City to participate in the program other than limited staff time needed to forward homeowner inquiries, complaints, or to provide clarification when marketing materials are sent out.
Staff recommends that the City Council approve a Marketing Agreement with Utility Service Partners Inc. for the NLC Service Line Warranty Program over an initial term of five (5) years.
FINANCIAL SUMMARY
There is no financial impact to the City's General Fund or any other unrestricted fund as a result of this action. If approved by Council, USP will remit a Brand Fee as follows:
· Year 1 - $ 75,000
· Year 2 - $ 50,000
· Year 3 - $ 50,000
· Year 4 - $ 50,000
· Year 5 - $ 50,000
The Brand Fee will be deposited into the MUD Water Conservation Division - Advertising and Branding revenue account 6511-514-461005-600-000-00-65-000-000. Brand Fee payments under this agreement will be used to fund a Turf Replacement Rebate Program available to homeowners to help increase water conservation efforts in the City’s Water Service Area.
Attachment A - Marketing Agreement with Utility Service Partners, Inc.
City of Stockton Page 3 of 3 Printed on 9/7/2022
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1433
MARKETING AGREEMENT
This MARKETING AGREEMENT (“Agreement”) is entered into by and between the City of Stockton, California (“City”), and Utility Service Partners Private Label Inc., a Delaware corporation, d/b/a SLWA Insurance Services (“Company”), herein collectively referred to singularly as “Party” and collectively as the “Parties”. This Agreement shall be effective on the last signature date set forth below (“Effective Date”).
RECITALS:
WHEREAS, sewer and water line laterals between the cleanout/meter and the connection on residential private property are owned by individual residential property owners residing in the City (“Property Owner”); and
WHEREAS, City desires to announce to Property Owners the opportunity, but not the obligation, to purchase a service plan and other similar products set forth in Exhibit A or as otherwise agreed in writing from time-to-time by the Parties (each, a “Product” and collectively, the “Products”); and
WHEREAS, Company, a subsidiary of HomeServe USA Corp., is the administrator of the National League of Cities Service Line Warranty Program and has agreed to make the Products available to Property Owners subject to the terms and conditions contained herein; and NOW, THEREFORE, in consideration of the foregoing recitals, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and with the intent to be legally bound hereby, the Parties agree as follows:
1. Purpose. City hereby grants to Company the right to market the Products to Property Owners subject to the terms and conditions herein.
2. City Obligations.
A. Grant of License. City grants to SLWA a non-exclusive license (“License”) to use City’s designated names, symbols, trademarks, service marks, logotypes, trade names and insignias owned by City or its affiliates (“Marks”), which may include the use of City’s logo and name in), in signature lines, and in marketing materials to be sent to Customers, all at SLWA’s sole cost and subject to City’s prior review and approval, which will not be unreasonably conditioned, delayed, denied, or withheld. Company's use of the Marks in accordance with this Agreement will not infringe any other party's rights. In consideration of the Brand Fee set forth in Exhibit A (“Brand Fee”), any other fees, and SLWA’s marketing activities, City shall not advertise, promote, administer, offer, or sell, directly or indirectly, any plans that are the same as, or substantially similar to, the Plans during the Term. In the event that City extends a similar license ATTACHMENT A 1434
to a competitor of SLWA during the Term, City shall provide thirty (30) days’ written notice prior to such grant of license and SLWA may immediately terminate this Agreement.
B. Property Owner Data. If City elects to do so, City may provide Company with Property Owner Data for use by Company in furtherance of the advertisement, marketing, and sale of the Products. Any name, service address, postal address, and any other appropriate or necessary data for Property Owners in City is defined as “Property Owner Data”. Property Owners Data shall be and remain City’s property. For any Property Owner Data provided by City to Company, City warrants that Property Owner Data has been and will be collected in compliance with all laws, statutes, treaties, rules, codes, ordinances, regulations, permits, official guidelines, judgments, orders and interpretations (“Applicable Laws”); and City is permitted by Applicable Laws and by any applicable privacy policy to provide Property Owner Data to Company and to permit Company to use Property Owner Data for the purposes of this Agreement. A Property Owner who has purchased a Product is a member (“Member”) and, following such purchase, all data in Company’s control or possession relating to Members is Company’s property.
3. Term. The term of this Agreement (“Initial Term”) shall be for Five Yearsfrom the Effective Date. The Agreement will automatically renew for additional one (1) year terms (each a “Renewal Term”, and collectively with the Initial Term, the “Term”) unless one of the Parties gives the other written notice at least ninety (90) days prior to end of the Initial Term or of a Renewal Term that the Party does not intend to renew this Agreement. In the event that Company is in material breach of this Agreement, the City may terminate this Agreement thirty (30) days after giving written notice to Company of such breach, if said breach is not cured during said thirty (30) day period. Company will be permitted to complete any marketing initiative initiated prior to termination of this Agreement after which time, neither Party will have any further obligations to the other and this Agreement will terminate.
4. Consideration. As consideration for the License granted in Section 2.A. above, SLWA shall pay City a fee (“Brand Fee”) as set forth in Exhibit A. Payment of the Brand Fee for the first year of the Initial Term is subject to the approval and mailing of the first campaign for that year.
Thereafter, payment of the Brand Fee is subject to City’s timely approval of all other marketing materials for the prior year of the Term and the approval and mailing of the first campaign of the then current year of the Term. SLWA will pay the applicable Brand Fee to City within thirty (30) days after such campaign mailings have been made and applicable City approvals secured.
5. Confidentiality. Each party will treat all non-public, confidential and trade secret information received from the other party as confidential, and such party shall not disclose or use such information in a manner contrary to the purposes of this Agreement. Notwithstanding the foregoing, the City shall not be liable for any disclosure of confidential information that is required to be disclosed under any applicable public records act or under court order. City shall provide notice to Company prior to any such disclosure.
6. Code Change. The Parties understand that the pricing of the Products and compensation provided for in this Agreement are based upon the currently applicable City, municipal or similar ATTACHMENT A 1435
codes. In the event Company discovers a code change, Company shall have the ability to reassess the pricing of this Agreement.
7. Indemnification. Each Party (the “Indemnifying Party”) hereby agrees to protect, indemnify, and hold the other Party, its officers, employees, contractors, subcontractors, and agents (collectively or individually, “Indemnitee”) harmless from and against any and all third party claims, damages, losses, expenses, suits, actions, decrees, judgments, awards, reasonable attorneys' fees and court costs (individually or collectively, “Claim”), which an Indemnitee may suffer or which may be sought against or are recovered or obtainable from an Indemnitee, as a result of or arising out of any breach of this Agreement by the Indemnifying Party, or any negligent or fraudulent act or omission of the Indemnifying Party or its officers, employees, contractors, subcontractors, or agents in the performance of this Agreement; provided that the applicable Indemnitee notifies the Indemnifying Party of any such Claim within a time that does not prejudice the ability of the Indemnifying Party to defend against such Claim. Any Indemnitee hereunder may participate in its, his, or her own defense, but will be responsible for all costs incurred, including reasonable attorneys' fees, in connection with such participation in such defense.
8. Notice. Any notice required to be given hereunder shall be deemed to have been given when notice is (i) received by the Party to whom it is directed by personal service, (ii) sent by electronic mail (provided confirmation of receipt is provided by the receiving Party), or (iii) deposited as registered or certified mail, return receipt requested, with the United States Postal Service, addressed as follows:
To: City:
ATTN: Harry Black
City of Stockton
425 N. El Dorado Street
Stockton, CA 95202
Email: [email protected]
Phone: (209) 937-8212
To: Company:
ATTN: Chief Sales Officer
Utility Service Partners Private Label Inc.,
d/b/a SLWA Insurance Services
4000 Town Center Boulevard, Suite 400
Canonsburg, PA 15317
Phone: (866) 974-4801
9. Modifications or Amendments/Entire Agreement. Except for the list of available Products under the Agreement, which may be amended from time to time by the Parties in writing and without signature, any and all of the representations and obligations of the Parties are contained herein, and no modification, waiver or amendment of this Agreement or of any of its conditions or provisions shall be binding upon a Party unless in writing signed by that Party.
ATTACHMENT A 1436
10. Assignment. Neither Party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other Party unless such assignment or delegation is to an affiliate or to an acquirer of all or substantially all of the assets of the transferor.
11. Counterparts/Electronic Delivery; No Third Party Beneficiary. This Agreement may be executed in counterparts, all such counterparts will constitute the same contract and the signature of any Party to any counterpart will be deemed a signature to, and may be appended to, any other counterpart. Executed copies hereof may be delivered by email and upon receipt will be deemed originals and binding upon the Parties hereto, regardless of whether originals are delivered thereafter. Nothing expressed or implied in this Agreement is intended, or should be construed, to confer upon or give any person or entity not a party to this agreement any third- party beneficiary rights, interests, or remedies under or by reason of any term, provision, condition, undertaking, warranty, representation, or agreement contained in this Agreement.
12. Choice of Law/Attorney Fees. The Parties shall maintain compliance with all Applicable Laws with respect to its obligations under this Agreement. The governing law shall be the laws of the State of California, without regard to the choice of law principles of the forum state. THE
PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY
WAIVE ANY RIGHT THAT MAY EXIST TO HAVE A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION BASED UPON OR ARISING OUT OF, UNDER, OR IN ANY WAY CONNECTED WITH, THIS AGREEMENT.
13. Incorporation of Recitals and Exhibits. The above Recitals and Exhibit A attached hereto are incorporated by this reference and expressly made part of this Agreement. [Signature Page Follows]
ATTACHMENT A 1437
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first written below.
CITY OF STOCKTON
______________________________
Name:
Title:
Date:
UTILITY SERVICE PARTNERS PRIVATE LABEL INC.,
D/B/A SLWA INSURANCE SERVICES
______________________________
Name: Michael Backus
Title: Chief Sales Officer
Date:
ATTACHMENT A 1438
Exhibit A
NLC Service Line Warranty Program
City of Stockton
I. Initial Term. Five Years.
II. Brand Fee. During the Initial Term, Company will pay City $ 275,000.00 spread across the first five years of the Initial Term, as follows:
A. Year 1 - $ 75,000.00
B. Year 2 - $ 50,000.00
C. Year 3 - $ 50,000.00
D. Year 4 - $ 50,000.00
E. Year 5 - $ 50,000.00
The Brand Fee shall be $50,000 for each Renewal Term
III. Products.
A. External water service line plan (initially, $6.75 per month) B. External sewer/septic line plan (initially, $9.75 per month) C. Interior plumbing and drainage plan (initially, $9.99 per month) Pricing does not include taxes. Company may adjust the foregoing Product fees; provided, that any such monthly fee adjustment shall not exceed $0.50 in any 12-month period. If such adjustment shall exceed $0.50, both Parties must agree in writing.
IV. Scope of Coverage.
A. External water service line plan:
i. Covers Property Owner responsibility: From the meter to the external wall of the home.
ii. Covers well service lines if applicable.
B. External sewer/septic line plan:
i. Covers Property Owner responsibility: From the external wall of the home to the clean-out.
ii. Covers septic lines if applicable.
C. Interior plumbing and drainage plan:
i. Covers water supply pipes and drainage pipes within the interior of the home.
V. Marketing Campaigns. Company shall have the right to conduct up to three campaigns per year (each campaign consists of two mailings) and such other channels as may be mutually agreed. Initially, Company anticipates offering the interior plumbing and drainage plan Product via in-bound phone or web only.
ATTACHMENT A 1439
Approve a Marketing Agreement for the
National League of Cities
Service Line Warranty Program
Stockton City CouncilSeptember 13, 2022Agenda Item No. 15.2 1440
Solutions for Municipalities, Utilities and Homeowners
Presentation for the City of Stockton
Bill Coffey, Regional Director
Jermaine Reed, Consultant
1441
Leaks are Painful for Utilities/Municipalities and Homeowners Unexpected
financial burden
on homeowner
for repairs and
lost water
Homeowners are unaware of their responsibility for private service lines Significant utility staff time to administer adjustments Utility/city costs related to adjustments
Stressful calls to
the city/utility
from homeowners
| Page 3
1442
HomeServe
We provide peace of mind for homeowners through partnershipswith utilities and municipalities | Page 4
part of the solution
in repair savings last three years
1,000+
8.2M
4.7M1.7M
$638M
municipal/utility partners in NAservice contractscustomersjobs in the last three years 1443
NLC Service Line Repairs
Endorsed by
| Page 5
1444
We provide peace of mind for
homeowners through partnershipswith utilities and municipalities | Page 6 | Page 6
• Up to $8,500 coverage per incident for repair/replacement of leaking, clogged or broken lines from the point of utility connection to the home exterior • No annual or lifetime limits, deductibles, service fees, forms or paperwork• 24/7/365 call center availability• Repairs made only by licensed, local-area contractors• Affordable pricing - $6.75/mo. Water and $9.75/mo. Sewer Water and Sewer Service Line Coverage
WATER LINE
COVERAGE
SEWER LATERAL
COVERAGE
1445
| Page 7
• Up to $3,000 per incident on all water, sewer and drain lines inside the home after the point of entry
• No deductibles, service fees, forms, or paperwork• 24/7/365 availability• Repairs made only by licensed, local-area contractors• Affordable pricing - $9.99/mo.• Offered via in-bound channel – enroll online or phone In-home Plumbing Coverage
IN-HOME PLUMBING AND
DRAINAGE COVERAGE
1446
HomeServe
| Page 8
Why should municipalities/utilities offer this program? BECAUSE an unforeseen repair expense could be hard on a budget.
BECAUSEhomeowners believe service line repairs are the City’s responsibility.
BECAUSEwithout a referral, your citizens may use inferior contractors.
BECAUSE the City can further help its residents by generating funds for important programs.
BECAUSE your homeowners deserve the very best customer experience. | | Page 8 Page 8
1447
HomeServe
| Page 9
30 Participants in California
| Page 9
City of Chula VistaCity of ClaremontCity of Culver CityCity of DuarteCity of FillmoreCity of GustineCity of Laguna BeachCity of La HabraCity of Lemon GroveCity of Los Angeles Alameda County Water DistrictCalifornia Water Service CompanyContra Costa Water DistrictDiablo Water DistrictGolden State Water Company Great Oaks Water CompanyLiberty Utilities San Bernardino MWD San Jose Water CompanyWoodlands MWD City of OceansideCity of PerrisCity of Port HuenemeCity of RialtoCity of San DiegoCity of Santa PaulaCity of VallejoCity of West CovinaCity of Yuba CityTown of Yountville 1448
QUESTIONS?
For more information contact:
Bill Coffey
[email protected]
(503) 597-9171 or
Visit us at www.servicelinepartner.com
Visit www.ServLine.com or www.NLC.o Visit
www.ServLine.com or
www.NLC.org/serviceline rg/serviceline
Questions?
1449
Recommendation
City Council Approve a Motion to:
Authorize the City Manager to enter into a Marketing Agreement with Utility Service Partners Inc. to offer the National League of Cities Service Line warranty program to homeowners in the City of Stockton service area over an initial term of five (5) years. 11 1450
City of Stockton
Legislation Text
File #: 22-0767, Version: 1
AUTHORIZE PURCHASE OF AN OMNI CATAMARAN MULTI-PURPOSE WORKBOAT AND ACCESSORIES FROM ELASTEC INC. FOR THE MCLEOD LAKE MAINTENANCE PROGRAM
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize the City Manager to execute the purchase of an Omni Catamaran multi-purpose workboat and proprietary accessories from Elastec Inc. of Carmi, Illinois for $133,276.71.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Summary
The Municipal Utilities Department (MUD) conducts periodic cleanups of the McLeod Lake waterway to remove trash and invasive hyacinth plant. The frequency of cleanings under the current contract has been insufficient to maintain McLeod Lake to a satisfactory level of cleanliness for public recreational use and aesthetic purposes.
To increase the frequency of cleanings to improve conditions in the waterway, MUD staff recommends the purchase and operation of a properly equipped multi-purpose workboat to perform in-waterway trash removal and maintenance at McLeod Lake and the ship channel. The waterway maintenance program would be conducted by MUD staff on a proactive and as-needed basis.
The purchase of an Omni Catamaran multi-purpose workboat will provide a cost-effective way to increase the frequency of cleanup efforts and the ability to better maintain McLeod Lake. Following a thorough review of modern product offerings, staff recommends the purchase of the Omni Catamaran multi-purpose workboat from Elastec Inc. of Carmi, IL for $133,276.71.
DISCUSSION
Background
Located at the head of the Deepwater Channel, McLeod Lake is a unique waterfront feature since the City’s beginnings. Traveling east along the waterway from the Port of Stockton, the channel has developed into the City’s popular central waterfront feature surrounded by the Weber Point Events Center, DeCarli Plaza, Downtown Marina, University Plaza Waterfront Hotel, Stockton Arena, Banner City of Stockton Page 1 of 3 Printed on 9/7/2022
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File #: 22-0767, Version: 1
Island Ball Park, Morelli Park and Boat Launch, Waterfront Towers, and other businesses that line Weber Avenue and Fremont Street.
For decades, the invasion of water hyacinth, harmful algal blooms, and the proliferation of trash, debris, and other materials in local waterways, particularly McLeod Lake, has been a principal concern for the CityThe MUD Stormwater staff were tasked in January 2020 to contract with a local contractor to clean up McLeod Lake twice per year. It was found later that two cleanups per year were insufficient due to the volume of water hyacinth and trash accumulation in McLeod Lake.
Present Situation
Over the past several months, MUD staff has researched and met with potential vendors that manufacture equipment that removes trash and other debris from waterways. This workboat must be gasoline-operated, made of marine grade aluminum for ease of transportation and operation and include interchangeable pods that allow the vessel to perform trash retrieval and hyacinth removal.
The devices that were reviewed work differently to collect trash. Most devices cannot meet the needs of the cleanup program due to factors like the total lake area to be serviced (30 acres), anticipated trash volume, per unit purchase cost, maintenance cost/requirements, and lack of reliability/effectiveness.
The Elastec Inc. Omni Catamaran multi-purpose boat’s stable design allows the vessel to perform a variety of waterway maintenance tasks in addition to the collection of floating trash and aquatic weeds.
In addition, the workboat would also replace the MUD pontoon boat that is used for in-waterway maintenance at the Delta Water Supply Project Intake Pump Station. The cost to crew the boat with two (2) MUD maintenance/operations staff to conduct cleanups would significantly reduce the contract cost per cleanup, as shown below:
McLeod Lake
Maintenance Program
Est. Program Cost Per Month
(4 weekly cleanups)
Est. Program Cost Per Year
Current Contract $15,200 $182,400
Proposed Program $5,500 $66,000
There is also a significant public outreach opportunity under the proposed maintenance program. The purchase and regular operation of the multi-purpose workboat at McLeod Lake will provide a variety of water quality, trash amendment compliance, water conservation, and education opportunities for the City, local schools, organizations, and members of the public.
Following a thorough review of modern product offerings and in-water trials, staff recommends the purchase of the Omni Catamaran multi-purpose workboat for $133,576.71 from Elastec Inc. of Carmi, IL (Attachment A). The boat would be crewed with two maintenance/operations staff and be available for monthly, weekly, or daily service.
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FINDINGS
Stockton Municipal Code section 3.68.070(A)(4) provides an exception to the competitive bidding process for sole source vendors in cases where the City Council has approved findings that support and justify the exception. The proposed findings are as follows:
1. The Elastec Inc. Omni Catamaran was the only vessel among the products evaluated that demonstrated reliability and effectiveness in the collection of trash, debris, and aquatic weeds, as well as the ability to provide adequate maintenance of the Intake Pump Station at the Delta Water Supply Project to meet all City-required needs.
2. Other products evaluated were either experimental technology, not commercially available or did not meet City needs.
3. Elastec Inc. is the manufacturer of the Omni Catamaran and is the only authorized vendor for upgrades, service, and proprietary parts. No comparable distributors or alternative procurement methods for this product exist.
4. The Elastec Inc. Omni Catamaran multi-purpose boat was thoroughly evaluated, sea-trialed and recommended by MUD staff as meeting and exceeding the operational requirements for use by the City.
FINANCIAL SUMMARY
There are sufficient funds available in the Water Treatment, Wastewater Collections, and Stormwater Collections Vehicle Acquisition accounts to complete the boat purchase in the amount of $133,276.71. The purchase will be equally split among the three accounts. The annual staff costs will be split between available Water, Wastewater and Stormwater Enterprise funds based on work assignment. Additional program costs and staffing will be reviewed during the annual budget process.
MUD will also pursue additional sources of long-term funding including State and Federal grants and possible local agency sponsorship.
There is no impact to the City’s General Fund or to any other unrestricted fund because of the recommended action.
Attachment A - Elastec Inc. Omni Catamaran Quote
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QUOTATION
Quote Number : ELAQ47220-03
Date : 07/05/22
Elastec Inc Quote Valid Until : 10/7/2022
1309 West Main Street, Carmi, Illinois, 62821. USA Payment Terms : TBD Phone: +1 618-382-2525 Fax: +1 618-382-3610 Shipping Method : Interstate Haulers Brian Koontz Shipping Terms : Prepay/Add [email protected] Ship To : Eric Johnson Eric Johnson
City of Stockton City of Stockton
2500 Navy Dr
Stockton, CA 95206-1147
UNITED STATES
2500 Navy Dr
Stockton, CA 95206-1147
UNITED STATES
Phone : 2099378788 Phone : 2099378788
Fax : Fax :
Here is the quote you requested.
Line Qty Part # Description Unit Price Extended Price
1 1 $110,904.00 $110,904.00
2 0BOATCA230
01 OMNI CAT - BASIC BOAT - TRAILER - 50 HP MOTOR
(Domestic)
The Elastec Omni Cat multi-purpose workboat's unique design allows for a variety of pod systems to be positioned between the hulls of the versatile catamaran to perform a variety of waterway maintenance and marine tasks. The optional interchangable pods allow for floating trash collection, quay wall and river walk wash down. Sanitation pump out systems, cargo hauling, and A-frame winching capabilities of 1500 lbs. When the deck plates are in place, the Omni Cat becomes a useful platform for conducting maintenance tasks.
Length: 23feet / 7m
Beam: 8 ft 3 inch / 2.5 m
Draft (lightships) 6in / 15 cm
Draft (full) 10in / 25 cm
Max Cargo /Payload Capacity 2,202lb / 1,000 kg
Aluminum construction 5052 alloy .190 inch (4.83mm) Hulls Removable deck plates
Center console with pivoting metal canopy
Hydraulic Steering
Crew seating with storage
Removable handrails
USCG LED navigational lighting
Depth Sounder / Water Temp Gauge
VHF marine Radio with Weather Channel
Horn
Deck Flood Light
PFD Life Ring
Zinc anode protection
Push Pole
Tread plate decking
Welded Deck Cleats
For additional information visit our website: www.elastec.com Page : 1 1 of 2
ATTACHMENT A 1454
Line Qty Part # Description Unit Price Extended Price
SUZUKI 50 HP OUTBOARD
Outboard includes - Digital Multi-function Gauges with NMEA 2000 Interface, Direction Controls (Binnacle control box, cables) Prop, Water separator / fuel filter, 18 gallon fuel tank Trailer: 5000 lb. Gross Capacity Galvanized Tandem Axel w/Disc brakes, with access ladder.
Optional : Litter Basket, Cargo Pod, Weed Cutter, A Frame, Pump Out Pod
3 ANTIFOUL (23) ANTI-FOULING PAINT applied to hull.
Price per ft
4 0POD-BA700 LITTER BASKET POD
The 99 cubic ft / 2.8 cubic meter capacity basket collects floating trash and debris and features
aluminum locking locating bolts for secure positioning between hulls. The forward gate is operated by the pilot at the console.
Safety screens covering the basket are easily manipulated to allow access to the collected litter. A pilot controlled electric winch raises and lowers the forward section of the basket for less drag while underway. A four leg lifting harness is included. 5 4CRANPO800
00 Spud Pole A-Frame
6 0MOWELA00
1 The Jensen Lake Mower is built to last and will give years of service.
Comprising of Cutting Blades 4 ft / 1.2 m wide, heavy-duty, self-sharpening, agricultural sickle section; 2 mm thick. 1/3 hp, 12 V DC heavy-duty gear motor
18.5 A. Continuous duty rating, Fuse protected, Tilts 90° to lift and lower blades, Rotates 360° to cut in any direction. Mounting bracket.
Optional ; Replacement Blades, Extender Poles 2ft or 4ft, Lake Rake , Spare Mounting Bracket
Requires - 12 V deep-cycle marine battery (not included) 7 TCUTTHE001 Cutter Head Build
8 Lead time is about 6 to 8 months ARO
9 Payment Terms 50% down and 50% To Ship
Terms: Prepayment unless otherwise specified. Visa, MasterCard and American Express accepted (3% charge will apply to all transactions over $6,000)
Shipping Terms: Ex-works unless otherwise specified
Shipping charges are estimates only, they are subject to change with the addition of the following but are not limited to: Appointment, Call Ahead, Driver Detention or Assistance, Liftgate, Reconsignment, Redelivery, Residential, Secure/Limited Access, Additional products added, special requirements added or freight term change.
SubTotal $110,904.00
Sales Tax $0.00
Shipping $12,391.35
Total $123,295.35
Please contact me if I can be of further assistance.
For additional information visit our website: www.elastec.com Page : 2 2 of 2
ATTACHMENT A 1455
Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING THE PURCHASE OF AN OMNI CATAMARAN MULTIPURPOSE WORKBOAT FROM ELASTEC INC. FOR THE MCLEOD LAKE MAINTEANCE
PROGRAM
The City of Stockton, Municipal Utilities Department conducts periodic cleanups of the McLeod Lake waterway to remove trash and invasive hyacinth plant. The frequency of cleanups under the current contract has been insufficient to maintain McLeod Lake to a satisfactory level of cleanliness for public recreational use and aesthetic purposes; and Over the past several months, MUD staff has researched and met with potential vendors that manufacture equipment that can be used to remove trash and other debris from waterways; and
Most devices reviewed do not meet the needs of the new McLeod Lake maintenance program; and
Purchase of an Omni Catamaran multi-purpose workboat will provide a cost-effective way to increase the frequency of cleanups and the ability to maintain McLeod Lake as well as provide in-waterway maintenance at the Delta Water Supply Project Intake Pump Station; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. Approve the following findings pursuant to Stockton Municipal Code section
3.68.070 (A)(4) in support of an exception to the competitive bidding process:
a. The Elastec Inc. Omni Catamaran was the only vessel among the products evaluated that demonstrated reliability and effectiveness in the collection of trash, debris, and aquatic weeds, as well as the ability to provide adequate maintenance of the Intake Pump Station at the Delta Water Supply Project to meet all City-required needs.
b. Other products evaluated were either experimental technology, not commercially available or did not meet City needs.
c. Elastec Inc. is the manufacturer of the Omni Catamaran and is the only authorized vendor for upgrades, service and proprietary parts. No comparable distributors or alternative procurement methods for this product exist. 1456
d. The Elastec Inc. Omni Catamaran multi-purpose boat was thoroughly evaluated, sea-trialed and recommended by MUD staff as meeting and exceeding the operational requirements for use by the City.
2. Authorize the City Manager to purchase an Omni Catamaran multi-purpose workboat and proprietary accessories for $133,276.71 from Elastec Inc. of Carmi, Illinois.
3. The City Manager, or designee, is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED September 13, 2022 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
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Authorize Purchase of an Omni Catamaran
Multi‐Purpose Workboat from Elastec Inc. for
the McLeod Lake Maintenance Program
Stockton City CouncilSeptember 13, 2022
Agenda Item No. 15.3
1458
Summary
• McLeod Lake is a unique waterfront feature that has
been present since the City’s beginnings
• For decades, the invasion of water hyacinth, harmful
algal blooms, and the proliferation of trash, debris, and other materials in local waterways, particularly McLeod Lake, has been a principal concern for the City
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Background
• The Municipal Utilities
Department (MUD) conducts
periodic cleanups of theMcLeod Lake waterway to
remove trash and invasive
water hyacinth
• The frequency of cleanings
by private contractor has
been insufficient to maintain
McLeod Lake to
a
satisfactory level of
cleanliness
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Present Situation
• MUD staff has researched equipment that
removes trash and other debris from waterways
• The devices that were reviewed work differently
to collect trash
• Most cannot meet the needs of the proposed
MUD cleanup program
• Program will be crewed by MUD staff• Program will provide benefits to Stormwater trash amendment requirements, improve water quality,and serve as a significant public outreach tool 1461
Findings
• The Elastec Inc. Omni Catamaran is the only vessel that demonstrated reliability and effectiveness in the
collection of trash, debris, and aquatic weeds
• Possesses the ability to provide adequate maintenance of the Intake Pump Station at the Delta Water Supply
Project to meet all City‐required needs
• Other products evaluated were either experimental
technology, not commercially available or did not meet
City needs
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Findings (continued)
• Elastec Inc. is the manufacturer of the Omni Catamaran and is the only authorized vendor for upgrades, service, and proprietary parts. No comparable distributors oralternative procurement methods for this product exist 1463
Recommendation
• Approve findings pursuant to Stockton Municipal
Code section 3.68.070 in support of an exception to
the competitive bidding process
• Authorize the City Manager to execute the purchase
of an Omni Catamaran multi
‐purpose workboat and
proprietary accessories from Elastec Inc. of Carmi,Illinois for $133,276.71 1464
City of Stockton
Legislation Text
File #: 22-0805, Version: 1
APPROVE A RESOLUTION AND ORDINANCE TO AUTHORIZE THE CITY OF STOCKTON’S
MEMBERSHIP IN THE EAST BAY COMMUNITY ENERGY AUTHORITY AND PARTICIPATION IN
ITS COMMUNITY CHOICE AGGREGATION PROGRAM
RECOMMENDATION
It is recommended that the City Council:
1. Adopt a resolution approving the agreement titled “East Bay Community Energy Authority - Joint Powers Agreement” in order to participate with other signatories in a Community Choice Aggregation JPA for regional municipalities and authorizing the City Manager to execute the agreement.
2. Adopt an ordinance approving the East Bay Community Energy Authority Joint Powers Agreement and Authorizing Implementation of its Community Choice Aggregation Program It is also recommended that the City Manager be authorized to take all appropriate and necessary actions to carry out the purpose and intent of the resolution and ordinance.
Summary
City Council directed staff to assess the viability of joining a joint powers authority (JPA) community choice aggregation (CCA) agency on November 9, 2021. The primary goal of this alternative is to avoid the significant upfront costs required for the creation of a sole jurisdiction CCA, while still reaping some of the benefits that come with CCAs. Following this direction, staff assessed CCA JPAs in the area and came to the conclusion that East Bay Community Energy (EBCE) is the most ideal entity for the City for numerous reasons, including its proximity to the City, alignment with the City’s sustainability objectives, and lower and/or competitive rates compared to our incumbent utility provider. Staff from EBCE assessed the viability of offering membership to the City and found, “…an enduring partnership between Stockton and EBCE would advance our mutual, energy-related interests.” (Attachment A) Thus, City staff recommends that Council commence proceedings to pursue membership with EBCE, beginning with consideration and approval of a resolution and ordinance.
DISCUSSION
Background
Under state law, customers are authorized to aggregate electrical loads (i.e., consumption of electricity) with community choice aggregators. Community Choice Aggregation (CCA) programs allow local governments to procure power on behalf of residents, businesses, and municipal City of Stockton Page 1 of 3 Printed on 9/7/2022
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accounts from alternative suppliers while still receiving transmission and distribution service from the existing utility provider (i.e., PG&E). Rather than default to receiving energy from the incumbent utility, CCA programs can consciously choose where to source electricity using existing infrastructure.
In doing so, communities gain leverage to negotiate rates with suppliers and choose power sources.
Electricity customers are automatically enrolled in the electricity service selected by the CCA, although customers may opt out if they do not want to participate in the CCA. According to Cal-CCA, the trade association for CCAs, there are over 170 towns, cities, and counties with community choice energy providers serving over 10 million customers in California. Three major attractions of participating in a CCA include lower electric rates, the potential for local control to accelerate the transition to sustainable power sources, and the opportunity to create local jobs in sustainable energy development.
On March 19, 2019, Council approved Motion 2019-03-19-1404 directing staff to complete an application for grant funds available from Sonoma Clean Power Authority (SCPA) to support a feasibility study. Following acceptance of grant funds, the City subcontracted with MRW & Associates to conduct a CCA feasibility study for Stockton (Attachment B). MRW & Associates completed a final draft of the feasibility study in February 2021, and it was presented to Council in March 2021. Their study found that a Stockton CCA is feasible, likely resulting in savings for customers, but not guaranteed. However, there are significant financial risks to consider associated with sole-jurisdiction CCA formation and operation.
There are several risks involved in the formation of a CCA that must be carefully considered as well.
The City would be entering a competitive power market and would be subject to evolving state requirements and regulations. Both present unknown risks that could potentially result in a reduction in the savings projected in the study. However, it should be noted the feasibility study included a sensitivity analysis (Chapter 4) which “stress tested” several negative scenarios, such as higher renewable costs and lower PG&E rates. The sensitivity analysis found that in every scenario the CCA would likely still be able to offer savings to customers, but not guaranteed. Another risk is the start-up cost associated with sole jurisdiction CCA formation, which is projected at $26.4 million for Stockton.
Present Situation
Council reconsidered the CCA feasibility study in November 2021. The discussion primarily revolved around considering viable alternatives to pursue CCA formation other than a sole-jurisdiction approach, such as joining an existing joint powers authority (JPA). By joining a JPA, the City can avoid the significant upfront costs associated with CCA formation (estimated at over $20 million for Stockton) as well as shield itself from any liability to the general fund. Following this discussion, Council directed staff to investigate the feasibility of joining a JPA.
Following this direction, staff assessed CCA JPA’s in the area and concluded that East Bay Community Energy (EBCE) is the most ideal entity for the City. The proximity of EBCE to Stockton allows for the pursuit of shared regional priorities, such as the electrification of light and medium duty travel between the Valley and the Bay Area. According to their invitation to join, “…a partnership with EBCE to deliver electric transportation solutions to residents and businesses will be a top priority.” (Attachment A) Furthermore, EBCE is committed to investing in local energy resilience, such as solar and battery storage systems at critical municipal facilities, which is increasingly important to the City as the impacts of climate change intensify. For example, these solar + battery systems could ensure that cooling centers continue to operate during blackouts and emergency response operation City of Stockton Page 2 of 3 Printed on 9/7/2022
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centers stay online. EBCE also offers competitive rates for customers - in fact, their analysis of Stockton’s electrical load data found that its residents and businesses would have saved $1.5 million on utility bills had they been EBCE customers in 2021.
Due to the limited window of time imposed by statutory requirements, the City must complete certain actions immediately to implement this program by the end of 2022. If an implementation plan is not filed by the end of this calendar year, implementation will be delayed by a full year.
Section 366.2 of the California Public Utilities Code requires that any agency seeking to implement a CCA in its jurisdiction must do so by ordinance. This item requests that the City Council adopt an ordinance (uncodified) authorizing the City of Stockton’s implementation of a CCA program. The City Council must also adopt a resolution approving a joint powers agreement (Attachment C) thereby authorizing the EBCE to act as the CCA on the City’s behalf. By approving the JPA, the City is joining EBCE as a member. The JPA contains provisions regarding EBCE’s powers, governance structure, including voting allocations, its obligation to indemnify the members, and the process for withdrawing from the authority, along with other standard JPA terms. As a member of EBCE, the City will have a representative on the EBCE’s board of directors. If approved by Council, Exhibits A-C of the JPA would be updated to reference the City of Stockton. There is currently no fee associated with joining the EBCE.
Environmental
The recommendation in this report is not a project under the California Environmental Quality Act (CEQA) because it does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Sections 15378 and is, therefore, not subject to CEQA pursuant to CEQA Guidelines Section 15060.
FINANCIAL SUMMARY
There is no fiscal impact on the general fund associated with adopting an ordinance implementing a Community Choice Aggregation Program or approving a Joint Powers Authority with the EBCE Authority to provide services to the City of Stockton.
Attachment A - EBCE Letter to City 5.12.2022
Attachment B - CCA Feasibility Study
Attachment C - EBCE Joint Powers Agreement
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ebce.org
1999 Harrison Street, Suite 800
Oakland, CA 94612
510-219-2121
1-833-699-EBCE (3223)
[email protected]
May 12, 2022
Dear City Manager Black,
On behalf of East Bay Community Energy (EBCE), I am pleased to confirm our staff has completed its membership analysis for the City of Stockton. We had the pleasure of sharing the positive, preliminary findings with your staff on April 21 and thought it would be helpful to summarize our final conclusions via this correspondence.
To recap, the membership analysis involved 1) a quantitative assessment of Stockton’s citywide, electric usage data (as provided by PG&E); and 2) an evaluation of EBCE’s ability to serve electricity customers throughout the City.
In short, our goal was to answer the following question: Can EBCE include the City of Stockton within our growing service area and Joint Powers Authority (JPA), while offering the same level of service we provide current JPA member-jurisdictions and their communities? Based on our analysis, we are more than confident we can.
Moreover, based on our experience serving similarly sized cities—and operating one of California’s largest, most demographically-diverse Community Choice Aggregation (CCA) agencies—we believe an enduring partnership between Stockton and EBCE would advance our mutual, energy-related interests.
Among other things, these include access to more competitive rates and renewable energy supplies. Collectively, EBCE customers have saved about $10 million a year in rate savings, even while they have purchased more renewable energy than they would have with PG&E.
Our analysis determined Stockton’s energy consumers would have experienced similar benefits.
For example, if the City’s residents and businesses had received EBCE service throughout 2021, they would have collectively saved nearly $1.5 million on their utility bills. Meanwhile, they would have purchased at least 6% more renewable energy compared to what PG&E supplied that year. This latter figure may seem modest, but it represents approximately 80 Gigawatt-hours of clean energy—enough to sustainably power 15,700 homes for a year.
Additionally, a partnership with Stockton would help EBCE (and the State of California, more generally) accelerate efforts to electrify the building and transportation sectors. Expanding access to Direct Current Fast Charging (DCFC) hubs in Stockton and the Central Valley is critical to this endeavor, particularly given the region’s status as one of America’s most important trading hubs. I know improving local air quality in Stockton is a major area of ATTACHMENT A 1468
ebce.org
focus for the City Council, and a partnership with EBCE to deliver electric transportation solutions to residents and businesses will be a top priority.
Similar investments in local energy resilience (such as installing solar + battery storage systems at critical municipal facilities) are also among EBCE’s forward-looking strategies to help our communities mitigate and adapt to climate change. If successful, EBCE’s efforts in these areas will not only present new development opportunities; they will also enhance the quality of life by helping to reduce local air pollution and create new, green-collar jobs.
I would be remiss if I failed to convey what a pleasure it has been to work with your talented and dedicated team. As we continue to explore the possibility of Stockton’s EBCE membership, the prospect of collaborating more closely together is highly motivating.
In consideration of the above, I would like to formally invite the City of Stockton to initiate the process of joining the East Bay Community Energy Authority. We stand ready to partner with the City of Stockton to deliver cleaner, more affordable electricity to your residents and businesses. To do so, the City of Stockton City Council must pass a resolution to join the East Bay Community Energy Authority and an ordinance to implement a community choice aggregation program by joining EBCE’s Joint Power Authority. A detailed description of the membership process is included as an attachment to this letter.
Finally, I want to note that this process will carry no direct cost to the City of Stockton, through either this assessment phase or upon joining the EBCE JPA.
If you have questions or would like any additional information, please do not hesitate to contact me at your convenience.
Many thanks,
Nick Chaset
Chief Executive Officer, EBCE
Attachments (3):
1) City of Stockton Membership Analysis,
2) Joining East Bay Community Energy,
3) Intro to East Bay Community Energy: Lower Costs + Greener Electricity + Community Investments
ATTACHMENT A 1469
Feasibility Study: Community Choice Aggregation
for the City of Stockton
Prepared by:
With:
Tierra Resource Consultants, LLC
EBP-US
MRW & Associates, LLC
1736 Franklin Street, Ste 700
Oakland, CA 94612
February 2021
ATTACHMENT B 1470
This report was prepared by MRW & Associates. MRW has been working on CCA issues since they were authorized by the California State Legislature in 2002. MRW has prepared and critiqued numerous CCA feasibility plans and is providing rate forecasting and other ongoing support to CCAs throughout the state.
The following firms provided specialized expertise:
Tierra Resource Consultants prepared Chapter 7. Energy Efficiency, Demand Response, and Distributed Generation Options
EBP-US prepared Chapter 8. Macroeconomic Impacts
This Study is based on the best information available at the time of its preparation, using publicly available sources for all assumptions to provide an objective assessment regarding the prospects of CCA operation in the City. It is important to keep in mind that the findings and recommendations reflected herein are substantially influenced by current market conditions within the electric utility industry and state regulations, both of which are subject to sudden and significant changes.
ATTACHMENT B 1471
Community Choice Aggregation Feasibility Analysis City of Stockton February 2021 . MRW & Associates, LLC
Table of Contents
Executive Summary ................................................................................................................ i Main Findings ................................................................................................................................ i CCA Background ............................................................................................................................ i Stockton’s Electric Loads ................................................................................................................ii CCA Power Supply and Load Scenarios .......................................................................................... iii Financial Results ........................................................................................................................... iv Sensitivity Analysis ........................................................................................................................ v Risks and Risk Management .......................................................................................................... vi Distributed Energy Resources Potential......................................................................................... vi Macroeconomic and Job Impacts ................................................................................................. vii Governance and Implementation Options .................................................................................... vii Chapter 1. Introduction ......................................................................................................... 1 What is a CCA? ............................................................................................................................. 1 Possible Stockton CCA Objectives ................................................................................................. 1 Rate Competitiveness and Financial Stability ...................................................................................... 1 Contribute to Climate Action Plan Objectives ..................................................................................... 2 Additional Objectives ........................................................................................................................... 2 Assessing CCA Feasibility .............................................................................................................. 3 Reaching CCA Objectives ............................................................................................................... 4 Financial ............................................................................................................................................... 4 Climate Change Mitigation .................................................................................................................. 4 Renewables – what does it mean to be 100% Green? ........................................................................ 5 How are CCAs financially competitive with the utilities? ................................................................... 5 Status of CCAs in California ........................................................................................................... 6 CCA Evolution ....................................................................................................................................... 9 Chapter 2. Financial Study Methodology and Key Inputs .................................................... 12 Stockton Loads and CCA Load Forecasts ....................................................................................... 14 Forecasting ......................................................................................................................................... 17 Phasing in the CCA’s Load ............................................................................................................ 17 CCA Power Supplies ..................................................................................................................... 19 Regulatory Procurement Requirements ............................................................................................ 19 Power Supply Portfolio and Cost Assumptions ................................................................................. 21 Pro Forma Elements and CCA Costs of Service .............................................................................. 25 Pro Forma Elements ........................................................................................................................... 25 Startup Costs ...................................................................................................................................... 26 Reserves ............................................................................................................................................. 27 Administrative and General Cost Inputs............................................................................................ 27 PG&E Rate and PCIA Forecasts ..................................................................................................... 28 PG&E Generation Rates ..................................................................................................................... 28 PCIA .................................................................................................................................................... 30 PG&E Green Option Tariff .................................................................................................................. 31 ATTACHMENT B 1472
Community Choice Aggregation Feasibility Analysis City of Stockton February 2021 . MRW & Associates, LLC
Chapter 3. Cost and Benefit Analysis ................................................................................... 33 Supply Scenarios .......................................................................................................................... 33 Supply Scenario 1 ............................................................................................................................... 33 Supply Scenario 2 (High Renewable Penetration Case) .................................................................... 36 Greenhouse Gas Emissions ................................................................................................................ 37 Chapter 4. Sensitivity of Results to Key Inputs .................................................................... 39 Sensitivity Case Results ................................................................................................................ 39 Higher Renewable Power Prices Sensitivity .................................................................................. 40 Higher Wholesale Prices Sensitivity .............................................................................................. 40 Higher Exit Fee (PCIA) Sensitivity ................................................................................................. 41 Lower PG&E Portfolio Cost Sensitivity .......................................................................................... 41 High Opt-Out (Lower Participation) Sensitivity ............................................................................. 42 Sensitivity Summary .................................................................................................................... 42 Chapter 6: Risks & Mitigating Strategies .............................................................................. 44 Financial Risk to City .................................................................................................................... 44 Opt-Out Risk ................................................................................................................................ 44 Rate and PCIA Uncertainty ........................................................................................................... 45 CPUC “Financial Security Requirement” Risk ................................................................................ 45 Direct Access and Competitive Retail Services .............................................................................. 46 Energy Risk Management ............................................................................................................ 47 Legislative and Regulatory Risks ................................................................................................... 47 Chapter 7. Distributed Energy Resource Opportunities ........................................................ 49 Market Characterization .............................................................................................................. 49 Distributed Energy Resource Potential ......................................................................................... 50 Energy Efficiency ................................................................................................................................ 51 Baseline Market Profile ...................................................................................................................... 51 CCA Programs ..................................................................................................................................... 54 Energy Impact Forecast ..................................................................................................................... 59 Light Duty Electric Vehicles .......................................................................................................... 61 Baseline Market Profile ...................................................................................................................... 61 CCA Programs ..................................................................................................................................... 67 Energy Impact Forecast ..................................................................................................................... 68 Distributed Generation ................................................................................................................ 69 Baseline Market Profile ...................................................................................................................... 69 CCA Programs ..................................................................................................................................... 71 Demand Response ....................................................................................................................... 73 Baseline Market Profile ...................................................................................................................... 73 CCA Programs ..................................................................................................................................... 75 Other Opportunities .................................................................................................................... 75 Microgrids .......................................................................................................................................... 75 DER Implications for a Stockton CCA ............................................................................................ 77 Chapter 8. Macroeconomic Impacts .................................................................................... 79 Overview: How a CCA Will Affect the Local Economy.................................................................... 79 Analysis Methodology ........................................................................................................................ 81 ATTACHMENT B 1473
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Spending Impacts from CCA Administration and Operations ........................................................ 81 Calculation of CCA Start-Up and Operation Spending ...................................................................... 81 Impacts from Solar Energy Installations ....................................................................................... 84 Economic Impacts .............................................................................................................................. 84 Energy Bill Savings ....................................................................................................................... 85 Energy Consumption Projections ...................................................................................................... 85 Energy Bill Savings Due to Rate Reductions ...................................................................................... 86 Impacts from Energy Efficiency Implementation .......................................................................... 89 What kinds of Jobs will be generated directly or indirectly by the CCA? ......................................... 90 Chapter 9. Overview of Power Agency Design & Implementation Process Options .............. 92 Governance Model Options ......................................................................................................... 92 Forming a Single City Agency ............................................................................................................. 92 Forming a Joint Powers Agency ......................................................................................................... 94 Joining an Existing Joint Powers Agency ........................................................................................... 95 Financing ..................................................................................................................................... 95 Chapter 10. Start-Up Schedule and Milestones .................................................................... 97 General Implementation Schedule ............................................................................................... 97 Requirements per CPUC Resolution 4907 ................................................................................... 102 Conclusions ....................................................................................................................... 105 Appendix 1: Summary of CCA Programs ............................................................................ 106 Appendix 2: Supplemental Information ............................................................................. 112 Appendix 3: Data Sources .................................................................................................. 115 ATTACHMENT B 1474
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List of Acronyms
AB Assembly Bill
BNI Binding Notice of Intent
CAP Climate Action Plan
CAISO California Independent System Operator
CalCCA California Community Choice Association
CAM Cost Allocation Mechanism
CARB California Air Resources Board
CCA Community Choice Aggregator/Aggregation
CCEA California Choice Energy Authority
CEC California Energy Commission
COS Cost to Serve
CPA Clean Power Alliance
CPE Central Procurement Entity
CPM Capacity Procurement Mechanism
CPUC California Public Utilities Commission
CRR Congestion Revenue Right
DA Direct Access
DEG Distributed Energy Generation
DOE Department of Energy
DR Demand Response
ECN Energy Communications Network
EDI Electronic Data Interchange
EE Energy Efficiency
ELCC Effective Load-Carrying Capacity
ESP Energy Service Provider
EV Electric Vehicle
FERC Federal Energy Regulatory Commission
GHG Greenhouse Gas
GIS Geographic Information System
GTSR Green Tariff Shared Renewable
GTSR-GR Green Tariff Shared Renewable - Green Rate
GWh Gigawatt Hour
IOU Investor-Owned Utility
IRP Integrated Resource Plan
JPA Joint Powers Authority
kWh Kilowatt Hour
LMP Locational Marginal Price
LSE Load Serving Entity
MT Metric Ton
MW Megawatt
MWh Megawatt Hour
NEM Net Energy Metering
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OTC Once-Through Cooling
PA Public Advisor
PCIA Power Charge Indifference Adjustment
PG&E Pacific Gas & Electric
PPA Power Purchase Agreement
PV Photovoltaic
RA Resource Adequacy
REC Renewable Energy Credit
RFO Request for Offer
RFP Request for Proposal
RMR Reliability Must-Run
RPS Renewable Portfolio Standard
SB Senate Bill
SC Scheduling Coordinator
PG&E Southern California Edison
SJCE San Jose Clean Energy
SVCEA Silicon Valley Clean Energy Authority
TAC Transmission Access Charge
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Executive Summary
Main Findings
The general conclusions of this study are as follows:
1. The analysis performed here suggests that a Community Choice Aggregation (CCA) program is financially feasible for Stockton. That is, the CCA would likely be able to offer Stockton residents and businesses power that is priced at or a few percent lower than that offered by Pacific Gas & Electric (PG&E).
2. While feasible, CCA formation is not without risks. The CCA would be participating in a competitive power market and subject to evolving state requirements and regulation. This could combine to result in some, likely isolated, years where the CCA might not be able to beat PG&E’s rates.
3. Simply forming a CCA does not guarantee greenhouse gas (GHG) savings. Achieving GHG reductions requires the CCA to do more than just meet the state renewable requirements; it requires the CCA to either acquire energy from large hydroelectric facilities (which are carbon-free but do not qualify as “renewable” under State law) or increase the renewable content of its electricity supply beyond that required by the State.
4. A CCA would be well-positioned to provide additional energy services to its businesses and residents. Our analysis suggests there is significant untapped potential for increased energy efficiency in the City, which the CCA could help realize through new state-funded programs administered by the CCA. Additionally, the CCA would be in a position to advance Stockton’s contribution to meeting the State’s vehicle and building electrification goals.
5. A Stockton CCA can provide economic and employment benefits to the region. This would occur from lower rates, local solar or other renewable development, and the implementation of energy efficiency programs. Our analysis finds that the CCA could create and induce over 300 jobs in the Stockton area and add over $30 million to the area’s economy.
CCA Background
California Assembly Bill 117, passed in 2002, established Community Choice Aggregation in California, for the purpose of providing the opportunity for local governments or special jurisdictions to procure and provide electric power for their residents and businesses. Under existing rules administered by the California Public Utilities Commission (CPUC) an investorowned utility (IOU), such as Pacific Gas and Electric (PG&E), must use its transmission and distribution system to deliver the electricity supplied by a CCA in a non-discriminatory manner.
That is, it must provide these electricity delivery services at the same price and at the same level of reliability to customers supplied by a CCA as it does for its own full-service customers.
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CCAs are now quite common in California. There are currently 23 CCAs providing power in the State, with at least another half-dozen planning on doing so in the next two years. As shown in Figure ES-1, CCAs are expected to serve over 63 gigawatt-hours (GWhs) by the end of 2021 (25% of California’s total electricity load), with some projecting that by the mid-2020s between 50 to 80 percent of the load in the three main IOU service territories will be served by nonutility entities (CCAs and Direct Access providers).
Figure ES-1. California CCA Load Growth
*Source: Cal-CCA. Values for 2020 and 2021 are estimates.
Stockton’s Electric Loads
Table ES-1 shows that the City’s total annual electric load is about 1,980 GWh. This load is spread across almost 111,000 accounts.
Table ES-1. Potential Stockton CCA Customers and Associated Load Customers
Annual Load
(MWh)
Residential 95,910 676,464
Small Commercial 1,413 256,687
Medium Commercial 546 276,810
Large Commercial & Industrial 28 509,970
Other* 8,381 160,828
Total 106,279 1,880,759
*e.g., streetlights, traffic control, agriculture/pumping. 5,400
12,300
24,300
44,400
50,040
63,130
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
CCA Growth 2019-2021
California CCAs: Annual Load 2016 - California CCAs: Annual Load 2016 lifornia CCAs: Annual Load 2016 - 2021 (GWh)* 2021 (GWh)* CCA 2016 CCA 2017 CCA 2018 CCA 2019 CCA 2020 CCA 2021
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As shown above and in Figure ES-2 below, the residential load is only slightly higher than that of large commercial and industrial customers, with each making up about a third of the total.
This is unusual; most other CCAs have only modest large commercial and industrial loads.
Figure ES-2. Stockton Load Distribution
CCA Power Supply and Load Scenarios
Two hypothetical power supply scenarios were developed for this analysis:
Supply Scenario 1, in which the CCA is assumed to meet, but not exceed California’s Renewable Portfolio Standard (RPS) requirements and adds other non-GHG emitting resources so that the CCA’s GHG emission rate is no greater than PG&E’s.
Supply Scenario 2 assumes that the CCA goes beyond the State-mandated RPS requirements and utilizes increasingly greater amounts of renewable power. Specifically, Supply Scenario 2 assumes that the CCA will start at 50% renewable content in 2023 and achieve net 100% renewable supply by 2030.
Both scenarios assume that half of the new renewable generation projects that the CCA creates are located in the Stockton region.
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Figure ES-3. Supply Scenario Renewable Content
Financial Results
Figure ES-4 shows the forecast of average CCA costs and PG&E’s generation rates assuming CCA Supply Scenario 1. The bars in the chart show the forecasts of the major cost components of CCA operation, while the single line shows the forecast of PG&E’s generation rate. When the bars are below the black line, the CCA’s average operating costs will be below the PG&E generation rate; meaning that it can offer power to customers at a rate lower than or competitive with PG&E, be able to fund energy-related program, or both. As is clearly seen in the figure, the average cost of power provided by the CCA is consistently below the PG&E generation rate.
The bottom-most green segment represents the cost of renewable power to the CCA. The brown segment is for the costs of non-renewable, wholesale market power. This segment slowly decreases, as renewable power increases. The light blue segment is for capacity. That is, by State law the CCA must demonstrate that it has the generating capacity (in megawatts) to ensure that it can serve all its load. The gray segment is for debt service, operations, franchise fees and uncollectibles. The yellow segment is for carbon cap and trade allowances. Note that for practical purposes, the cost of carbon cap-and-trade allowances would be built into the purchase price of natural gas-fired market resources. However, because it is an important variable on its own, the costs are shown separately.
The top-most pink segment is for the Power Charge Indifference Adjustment (PCIA), a fee paid to PG&E to ensure that the operation of the CCA does not strand PG&E’s remaining bundled customers with costs associated with power purchased on behalf of customers who have shifted to the CCA.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Fraction met using renewables
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The black line represents PG&E’s average generation rate. To forecast PG&E’s generation rates, the comparison model used information regarding PG&E’s utility-owned generation, power contracts, power market costs, and by closely tracking changes in PG&E revenues and costs through its filings in several CPUC proceedings. In particular, it takes the most recent PG&E filing of generation rates and applies the known and anticipated changes to the wholesale power market prices and PG&E’s power purchase contracts.
Figure ES-4. Supply Scenario 1 Average CCA Cost Projection versus PG&E Generation Rate
Sensitivity Analysis
The results shown in the scenarios above reflect expected market conditions and outcomes with variations only in the amount and type of renewable generation. However, it is unlikely that the conditions assumed in these scenarios will occur exactly as assumed. In order to evaluate the robustness of the analysis, the key variables were identified, and analyses conducted with other assumptions for those key variables to “stress test” the assumptions. The five variables with the greatest potential impact on the overall average cost of the CCA were investigated:
(1) Higher Renewable Supply Costs
(2) Higher Wholesale Market Prices
(3) Higher PCIA
(4) Lower PG&E Rates
(5) High Opt-Out
Other than the variable being tested, all other assumptions are from Scenario 1.
0.00 2.00
4.00 6.00
8.00 10.00
12.00 14.00
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
¢/kWh
PCIA
GHG
O/M
Capacity
Other
Energy
Renewable
doesn't include funding of reserves or programs
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Table ES-3 shows the average margin between PG&E’s generation rate and the average CCA cost. (These margins do not include contributions to the CCA’s rate reserves or any programmatic funding.) As the table shows, none of the cases caused the margins to be negative (i.e., CCA average costs greater than PG&E’s rates). The case with the greatest impact on the rate margin is when PG&E’s rates are 10% lower than what is in the base forecast, which consistently reduces the margin between the CCA and PG&E by 1¢/kWh.
Table ES-3. Sensitivity Cases Implications
Margin, PG&E Rate and CCA Average Cost, ¢/kWh*
First Year
Average of 1st 5
Years
Average over
Study Period
Base 1.5 2.1 2.5
High Renewable Prices 1.4 1.9 2.3
Higher Wholesale Prices 1.2 2.0 2.6
Higher PCIA Rates 0.9 1.6 2.1
Low PG&E Generation Rates 0.5 1.0 1.5
High Opt-Out 1.5 2.0 2.5
*Margins do not include rate savings, contribution to reserves or program funding.
Risks and Risk Management
The primary risk faced by a CCA is that it cannot provide power to its residents and businesses at a competitive price. (Many of the factors that can impact the CCA’s price position are explored in the sensitivity analysis). This risk is caused not only by changes to the power market but also changing regulatory requirements that impact not only the CCA but also PG&E.
The primary way that a CCA can address these risks is to use sound power procurement and risk management practices. While complex, these practices are well known.
The risk to the City’s general fund is minimal. A stand-alone Stockton CCA would be organized as an independent enterprise, with its assets and liabilities separate from that of the City. The primary financial risk to the City itself would occur in the first few years, where it would have to provide a ~$1 million short-term loan to the CCA enterprise and provide collateral and a guarantee to the bank or other financial institution that provides the start-up capital to the CCA.
Distributed Energy Resources Potential
Distributed Energy Resources (DERs) are programs and activities that a CCA can provide besides retail electricity. These include:
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• energy efficiency
• demand response - short-term changes in customer electricity usage during the very highest demand periods
• distributed generation – small scale generation such as rooftop solar • distributed energy storage – often batteries that are combined with rooftop solar • increasing electrification of buildings and transportation There are many opportunities for DER support in Stockton. Of particular note is energy efficiency. Compared to the rest of the state, Stockton lags in investments in energy efficiency, particularly in lower-income homes. The CCA would be well-positioned to address this shortfall by providing locally targeted programs to improve the efficiency of these homes and save the residents money.
Macroeconomic and Job Impacts
Establishing a Stockton CCA can potentially result in economic and employment benefits to the City and the region by offering lower rates, directly creating jobs, and causing local renewable energy and other projects to be built. The impacts are the result of five factors:
1) CCA administration and operation spending
2) Net energy bill savings
3) Development and operation of new renewable generation 4) Energy efficiency spending
5) Resulting indirect and induced effects.
The first four effects can directly contribute to local business activity that leads to increased purchases from their suppliers of materials and services (referred to as “indirect effects”). It will also lead to re-spending of the additional worker wages on consumer purchases in the community (referred to as “induced effects”). The growth of any electricity generation or supplier purchases in adjacent areas can also have induced spillover effects as their workers spend additional money in Stockton.
Overall, our analysis suggests that the CCA program could generate over 300 jobs in the Stockton area and contribute over $30 million to the area’s economy. Most of those benefits arise indirectly from the assumed rate savings, while assumed local solar construction and energy efficiency spending can directly generate jobs.
Governance and Implementation Options
If it is to pursue CCA, Stockton will have to decide between two primary governance options for the CCA: 1) establishing a city-only CCA or 2) joining an existing Joint Powers Authority (JPA) such as East Bay Community Energy (EBCE) or 3) partnering with other nearby communities to form a new JPA.
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stakeholders and constituents and based upon the City’s own objectives. The City would be responsible for setting policy priorities in general and making specific decisions about power generation, staffing policies, local economic development activities and strategies, and the formulation of financial and debt policies. Along with greater autonomy, the City would assume all risk, liability and costs associated with operating the CCA. In this case, the likely path would be for the City to establish the CCA as an enterprise fund, and work with appropriate legal counsel to explore options for controls and structural safeguards to insulate it and minimize risk to the City’s general fund.
If the city of Stockton decides to join or form a JPA with other jurisdictions, the CCA may be able to leverage scale efficiencies that are created by pooling JPA member resources and authority. A JPA-based CCA can also reduce the risks to the City by further separating its finances from that of the City (and other members). However, the key tradeoffs to the benefits of a JPA are that decision making is allocated amongst the parties and management independence is diminished. This could result in the goals and priorities of the city of Stockton being altered or sidelined for the sake of organizational agreement and harmony.
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Chapter 1. Introduction
What is a CCA?
California Assembly Bill 117, passed in 2002, established Community Choice Aggregation in California, for the purpose of providing the opportunity for local governments or special jurisdictions to procure and provide electric power for their residents and businesses.
Under existing rules administered by the California Public Utilities Commission, an investorowned utility (IOU) must use its transmission and distribution system to deliver the electricity supplied by a CCA in a non-discriminatory manner. That is, it must provide these delivery services at the same price and at the same level of reliability to customers supplied by a CCA as it does for its own full-service customers. By state law, an IOU also must provide all metering and billing services, its customers receiving a single electric bill each month from the IOU, which would differentiate the charges for generation services provided by the CCA as well as charges for IOU delivery services. Money collected by the IOU on behalf of the CCA must be remitted in a timely fashion (e.g., within 3 business days).
As a power provider, the CCA must abide by the rules and regulations placed on it by the state and its regulating agencies, such as maintaining demonstrably reliable supplies and fully cooperating with the State’s power grid operator. However, the State has no rate-setting authority over the CCA; the CCA may set rates as it sees fit so as to best serve its constituent customers.
Per California law, when a CCA is formed all the electric customers within its boundaries will be placed, by default, onto CCA service. However, customers retain the right to return to PG&E service at will, subject to whatever administrative fees the CCA may choose to impose— typically $5 for a residential customer and $25 for a non-residential customer.
Possible Stockton CCA Objectives
The feasibility of a CCA program is a function of that program’s ability to meet the sponsoring city’s or JPA’s goals and objectives. This section lays out the typical CCA goals and objectives and how they might apply to Stockton.
Rate Competitiveness and Financial Stability
A City of Stockton CCA would expect to offer rates that are competitive with those offered by the incumbent electric utility, Pacific Gas and Electric (PG&E). If they could not, it is not reasonable to assume that a CCA would be formed. “Competitive” here means that the CCA, over the long run, could offer rates that are equal to or less than those offered by PG&E. It does not mean that in each and every year a specific rate savings is offered. In fact, some early CCAs have had to offer rates slightly higher than those offered by their host utilities during one or more of their first few years. (We note that they did not experience significant opt-outs because of this).
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In addition, the CCA would be committed to
providing equitable treatment of all classes of
customers without undue discrimination in setting
rates. At the same time, the rates would have to
generate sufficient revenue to the CCA, so all
liabilities are covered in a manner consistent with
an investment-grade entity. The CCA should not
move forward unless there is confidence that both
rate competitiveness and financial stability can be
achieved.
The CCA would also intend to offer long-term rate
stability to its customers as well as maintain its own
financial condition. This could be accomplished
through conservative phasing in of customers and
projects; establishing and maintaining appropriate
lines of credit and financial reserves; and
contracting with only experienced and financially
solid providers of goods and services.
Contribute to Climate Action Plan
Objectives
The City of Stockton adopted a Climate Action
Plan (CAP) in August 2014 that, among other
things, provides a guide to the city to address its
greenhouse gas (GHG) emissions. The City is
currently considering the adoption of a revised
CAP in the future. As discussed later, a CCA, if is
it financially able and so chooses, can contribute to the City meeting its CAP objectives.
It must be noted that California is also moving toward a similar carbon-free electricity policy.
Senate Bill 100, which was signed into law by Governor Brown on September 17, 2018, increases the renewable power content requirement of all retail power providers, including utilities and CCAs, from 50% to 60% by 2030. The bill also says, “that it is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of retail sales of electricity to California end-use customers by December 31, 2045,” and that all state agencies regulating electricity build this goal into their planning. This effectively means that the difference between the electricity carbon content of the CCA following the City’s CAP and remaining with status quo utility service may not be significant.
Additional Objectives
While maintaining rate competitiveness, financial stability, and contributing to the City’s CAP are non-negotiable objectives, a CCA can also serve as a vehicle to pursue other objectives that CCA and PG&E Rates
A CCA provides only generation
services: the actual power that
CCA customers use. The
incumbent utility, PG&E, would
still deliver the power to the home
or business, even though the CCA
is providing the power.
Therefore, the CCA customer
would still pay the PG&E
delivery rates, but instead of
paying PG&E’s generation rates,
they would pay the CCA’s
generation rates. CCA customers
also pay an additional fee so that
the remaining PG&E customers
are not harmed by the CCA (the
“PCIA” charge).
Because a customer pays the same
delivery rates no matter who
provides their power, the rate
comparisons here focus on the
CCA rate (plus the PCIA charge)
versus PG&E’s generation rate.
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benefit the City, its residents, and businesses. Examples of additional objectives could include the following:
Economic development. A CCA can potentially contribute to local economic development in two ways. First, if the CCA offers reduced electricity rates, additional dollars can flow into the local economy as households and businesses spend their incomes on items and services other than electricity. Second, the CCA can offer programs that allow households and businesses to reduce their power consumption, such as energy efficiency and distributed energy resources.
Local jobs and employment. Beyond the potential jobs that could result from the economic stimulus of possibly lower rates, the CCA can more directly incent and support local job creation. This includes employing residents in CCA administration, using local contractors for energy efficiency programs and distributed energy generation (e.g., rooftop solar installers and maintainers). The CCA can also partner with local community colleges and/or trades apprenticeship programs to support quality local job opportunities.
Prioritization of renewable power development. Beyond support of locally sited distributed energy generation (“DEG,” e.g., rooftop solar), a CCA may prioritize siting larger, grid connected DEG and utility-scale renewable project locally.
Local citizen input and participation. A primary purpose of a CCA is to better reflect its community’s interests and values than an investor-owned utility like PG&E can. This is illustrated in the CCA’s objective of supporting the City’s CAP. However, it can go beyond this; the CCA can commit to providing opportunities for citizens to provide input into its programs and policies, such as having a citizens’ advisory board or having a non-voting at-large community seat on the CCA’s board of directors.
Assessing CCA Feasibility
In order to assess whether a CCA is “feasible” in Stockton, the local objectives must be laid out and understood. Based on the specifications of the initial request for proposals and input from the City, this study:
• Quantifies the electric loads that an Stockton CCA would have to serve; • Compares the rates that could be offered by the CCA to PG&E’s rates; • Analyzes various renewable energy supply scenarios and achieving California RPS compliance;
• Determines the GHG emissions impacts of a CCA;
• Calculates the macroeconomic development and employment benefits of CCA formation;
• Evaluates the sensitivity of rates to different variables and drivers; • Analyzes the potential costs and revenues of the CCA program; • Provides a 10-year pro forma report featuring different supply scenarios, sensitivity assumptions, and customer phase-in approaches;
• Compares the benefits and risks of forming a city-only CCA or joining a neighboring CCA versus remaining on PG&E bundled service;
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• Discusses, and where possible, quantifies the risks to the City and its residents and businesses of CCA formation; and
• Discusses potential governance models for the CCA.
Reaching CCA Objectives
Financial
As noted above, a City of Stockton CCA would expect to offer rates that are competitive with those offered by PG&E. At the same time, the rates would have to generate sufficient revenue for the CCA so all liabilities are covered in a matter consistent with an investment-grade entity.
The CCA would not move forward unless there is confidence that both rate competitiveness and financial stability can be achieved.
The CCA would also intend to offer long-term rate stability to its customers as well as maintain its own financial condition. This will be accomplished through conservative phasing in of customers and projects; establishing and maintaining appropriate lines of credit and financial reserves; and contracting with only experienced and financially solid providers of goods and services.
We assume that a Stockton CCA would be a financially independent enterprise with no funds or debts comingling with the City General Fund. It will establish reserve funds commensurate with the working capital, operating reserves, and contingency requirements of the enterprise. To do so, the CCA would have to develop a rate design that recovers sufficient revenue to adequately fund these reserves in the intermediate term. As a part of the City of Stockton, the CCA will be able to utilize the expertise and systems of the City to reduce overhead costs.
Climate Change Mitigation
As noted above, the City adopted a Climate Action Plan (CAP) in 2014. According to the CAP, the mission of the plan is to create a feasible strategy to reduce community-generated GHG that is consistent with statewide GHG efforts.1
The GHG emissions goal laid out in the CAP would see the City of Stockton reduce total emissions to between 2,102,000 and 2,108,000 MT CO2e by 2020, with an estimated reduction of 565,000 to 571,000 MT CO2e.2 To achieve this reduction, a number of voluntary, performance-based, and mandatory reduction measures would be utilized. These reduction measures include programs for building energy efficiency, increasing transit and non-vehicular travel, increased renewable energy utilization, water consumption reduction, and waste reduction. The CAP was implemented in three phases: 1) development of reduction measures and plan framework (2014-2015), 2) mid-course evaluation of CAP implementation, with further reduction measures to be implemented if needed (2016-2017), and 3) continued 1 ICF, City of Stockton Climate Action Plan, August 2014. 2 Ibid.
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implementation and support of measures from Phases 1 and 2, with encouraged implementation of remaining CAP measures (2018-2019). 3
To the extent that the carbon content of the power provided by the CCA is lower than that provided by PG&E, the CCA can help the City of Stockton continue to contribute to the goals set by the CAP and any future emission objectives set forth by future CAP revisions.
Renewables – what does it mean to be 100% Green?
Most CCAs offer rate options to customers that are “100% Green;” that is, the power consumed by customers on these rates is fully provided by qualifying renewable resources. Other CCAs have a goal of being 100% Green by a certain date (e.g., the newly formed San Diego Regional Community Choice Energy Authority intends to be fully green by 2035). The ability of a CCA or a customer to rely fully on renewable power is accurate within the framework of power procurement, but not necessarily transparent to the lay audience.
When a CCA is sourced fully by renewable power, it does not mean that for each hour of the day, 100% of the power injected into the California power grid by the CCA (that is, by the renewable generators owned or under contract to the CCA) will be renewable. There will be hours of the day where the CCA’s solar resources will be generating more electricity than the CCA’s customers are consuming. This power is sold into the CAISO’s wholesale market. There will also be hours of the day when the CCA’s load is greater that their renewable resources’ output, at which point they purchase power from the CAISO wholesale market. Currently, to be 100% renewable, the CCA’s renewable resources generate as much power as the CCA’s customers consume, albeit not necessarily at the same time. This is analogous to the “net-zero” energy home, where, over the course of a year, the solar panels on the house generate in total as much (or more) power than the house uses, but with some hours having the solar panels inject power into the grid while in others it takes power from the grid.
In the longer run, in the late 2020s and beyond, the “balancing” function of the non-renewable generators in the wholesale market will likely be replaced in part with energy storage systems, such as pumped hydroelectric or batteries. At the point when fossil resources are not needed, one can say that the CCA—and the California Grid—is 100% renewable/carbon free.
How are CCAs financially competitive with the utilities? All active CCAs in California currently offer rates that are at or lower than their incumbent utility, be it PG&E, Southern California Edison (SCE) or San Diego Gas & Electric (SDG&E).
CCAs’ ability to do this, even with the exit fees (PCIA), is attributable to three factors. First, the CCAs serving coastal areas do not have to serve as much air conditioning load as their incumbent utilities as a whole. (PG&E also serves the majority of the Central Valley and other warmer areas of Northern California, while coastal CCAs do not.) Because air conditioning 3 Ibid.
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loads often occur at the times of the day with the highest priced wholesale power, they are more costly to serve.
Second, all CCAs are taking advantage of the fact that the incumbent utilities have in their portfolios some relatively expensive, generally renewable, power purchase contracts. This raises the utilities’ rates, but also begs the question of what happens when those contracts expire. Two things happen. First, the Power Change Indifference Amount (PCIA) fee is reduced because it is the mechanism to capture the above-market costs of these expensive power contracts and pass them on to customers who were on utility service when the contracts were signed. Second, at worst, the utility will be participating equally in the same wholesale power and renewable markets as the CCA.
Third, the incumbent utilities are still under the jurisdiction of the California Public Utilities Commission (CPUC). This means that each and every power purchase contract the utility enters into goes through a cumbersome vetting process and must be approved by the full CPUC.
Furthermore, the utilities must often comply with non-economic directives from the CPUC, which is why they have the expensive contracts in their portfolio in the first place. CCA procurement is not so tightly bound by the state; they can be nimbler in responding to market movement and have much greater control over their purchasing, hedging, and risk management than the incumbent utilities. It is these latter points that give the existing CCAs confidence that they will be able to compete even after the higher-priced contracts in the incumbent utilities’ portfolios expire.
Status of CCAs in California
Even though the enabling legislation was enacted in 2002, the first CCA to provide power, Marin Clean Energy (MCE), did not enroll customers until 2010. For the next five years, others investigated CCA formation, with a few early adopters stepping up in 2014 through 2016. As shown in Figure 1, once these early adopters showed that CCAs could work, the flood gates opened in 2017. By the end of 2021, CCAs are expected to serve over 63 GWhs (25% of the State), with some projecting that by the mid-2020s between 50 to 80 percent of the load in the three main IOU service territories will be served by non-utility entities (CCAs and Direct Access providers).
Figure 1. California CCA Load Growth
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* Source: Cal-CCA. Values for 2020 and 2021 are estimates.
Table 2 lists the active CCAs in California, including those that have announced intended launches in 2021, along with their location and governance structure. As the table shows, most of the current CCAs are in PG&E’s service area, but the growth in 2020 came from new CCAs in SCE’s territory. Currently, there is only one small CCA in SDG&E’s territory, Solana Energy Alliance, but two large JPAs in the San Diego region are intending to begin service in 2021.
The table also shows that the majority of CCAs are organized as joint powers authorities (JPAs). There are also many smaller cities in SCE’s area that use the “JPA Light” model, in which the CCA is technically a city enterprise that relies upon the California Choice Energy Authority (CCEA) to provide the technical operations. There are also three stand-alone city CCA enterprises, King City, San Francisco, and San Jose.
Table 2. CCAs in California
CCA IOU Type Formed Load,
GWh4
CCAs delivering power in California
Clean Power San Francisco PG&E City May 2016 3,135
East Bay Community Energy PG&E JPA Jan.2018 6,200
Marin Clean Energy PG&E JPA May 2010 5,275
Central Coast Community Energy
(formerly Monterey Bay
Community Power)
PG&E JPA March 2018 3,202
4 2019 Load (GWh) reported by CalCCA: https://cal-cca.org/cca-impact/ 5,400
12,300
24,300
44,400
50,040
63,130
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
CCA Growth 2019-2021
California CCAs: Annual Load 2016 - California CCAs: Annual Load 2016 alifornia CCAs: Annual Load 2016 - 2021 (GWh)* 2021 (GWh)* CCA 2016 CCA 2017 CCA 2018 CCA 2019 CCA 2020 CCA 2021
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CCA IOU Type Formed Load,
GWh4
Peninsula Clean Energy PG&E JPA Oct. 2016 3,600
Pioneer Community Energy PG&E JPA 2018 NA
Redwood Coast Energy Authority PG&E JPA May 2017 699
San Jose Clean Energy PG&E City Sept. 2018 3,286
Silicon Valley Clean Energy PG&E JPA April 2017 3,898
Sonoma Clean Power PG&E JPA May 2014 2,502
Valley Clean Energy Alliance PG&E JPA Dec. 2016 682
King City Community Power PG&E City July 2018 35
Clean Power Alliance SCE JPA Feb. 2018 10,295
Apple Valley Choice Energy SCE City;
CCEA April 2017 260
Lancaster Choice Energy SCE City;
CCEA May 2015 600
Pico Rivera Innovative Muni’l
Energy SCE City; CCEA Sept. 2017 220
Rancho Mirage Energy Authority SCE City;
CCEA May 2018 300
San Jacinto Power SCE City;
CCEA April 2018 170
Desert Community Energy SCE JPA April 2020 640
Western Community Energy SCE JPA April 2020 1,285
Baldwin Park SCE City;
CCEA Oct. 2020 255
Pomona SCE City;
CCEA Oct. 2020 655
Solana Energy Alliance SDG&E City June 2018 37
Planned Launch
Palmdale SCE City;
CCEA 2021 655
Hanford PG&E City;
CCEA 2021 285
Commerce SCE City;
CCEA 2021 460
Drafted ordinances for implementation as soon as 2021
San Diego Regional CCE Authority SDG&E JPA 2021 6,800
North SD County CCA SDG&E JPA 2021 2,750
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CCA IOU Type Formed Load,
GWh4
Butte County PG&E JPA 2021 1,080
Figure 2. California Active CCA Loads (Annual GWhs)
Figure 2 shows the 2019 annual loads of several active California CCAs. Three observations can be made from this figure. First, Clean Power Alliance (CPA), the CCA that serves Los Angeles and Ventura counties along with selected communities therein, is the largest CCA in California by load—nearly twice the size of the second largest CCA, East Bay Community Energy. Second, were Stockton to form its own CCA, it would be moderately sized (see green bar in Figure 2) relative to all the other CCAs, indicating that economies of scale would have been reached. Third, a Stockton CCA would be the ninth largest in the PG&E territory.
CCA Evolution
Over the first years of operation, many California CCAs have been evolving from a simple commodity procurement entity—providing power, albeit greener, at a competitive rate. After a year or two (or more), many CCAs have expanded into providing targeted and specialized 0 2,000 4,000 6,000 8,000 10,000 12,000
King City Community Power
Solana Energy Alliance
San Jacinto Power
Pico Rivera (PRIME)
Apple Valley Choice Energy
Rancho Mirage Energy Authority
Lancaster Choice Energy
Valley Clean Energy Alliance
Redwood Coast Energy Authority
Stockton
Sonoma Clean Power
Clean Power San Francisco
Central Coast Community Energy
San Jose Clean Energy
Peninsula Clean Energy
Silicon Valley Clean Energy
Marin Clean Energy
East Bay Community Energy
Clean Power Alliance
SDG&E SCE PG&E
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customer programs that while customized for their communities, are variations of services provided by their host IOU or are generally proven in the industry. Examples of this include CCAs like MCE, which has exercised its right to apply for energy efficiency program funding from the CPUC.5 To do so, it must file various plans explicitly detailing what they intend to do in the EE program along with reporting requirements and protocols to verify that the energy savings that is projected will occur. If approved, the CCA receives money that is collected in IOU rates through the Public Purpose Program (PPP) rate element. Another example of this second phase of CCA evolution is offering rooftop solar programs and feed-in-tariffs (FiTs) for local renewable generation projects that connect “in front of” the customer meter. A third example is installing additional electric vehicle (EV) charging stations and encouraging EV purchasing and leasing.
The third phase in evolution observed with California CCAs is the movement into innovative and less common power-related programs and services. These are programs that are not common in California or elsewhere and may be more in the “demonstration” part of the program/technology lifecycle. Examples of these programs include Sonoma Clean Power’s efforts to electrify the areas that were destroyed in wildfires (i.e., work with PG&E to perhaps not provide gas service to these areas) or the microgrid programs being pursued by Redwood Coast Energy Authority and Monterey Bay Community Power (now known as Central Coast Community Energy).
Table 3, below, shows a range of the programs being pursued by some California CCAs.
These non-commodity program offerings are becoming the focus of CCAs in the state. At the Business of Local Energy Symposium, a large CCA-oriented conference held in June 2019 in Irvine, CA, the speakers, panels, and presentations overwhelmingly focused on innovation that CCAs can do and are doing.6 None addressed power procurement or cost competitiveness. 5 Note that customers taking commodity service from a CCA are still eligible to participate in EE programs administered by their host IOU, regardless of whether or not the CCA is administering their own PPP-funded EE programs or not.
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Table 3. Sample California CCA Program Offerings7
7 https://cal-cca.org/cca-programs/
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Chapter 2. Financial Study Methodology and Key
Inputs
This chapter summarizes the key inputs and methodologies used to evaluate the costeffectiveness and cost-competitiveness of a Stockton CCA relative to PG&E under different scenarios. It considers the regulatory requirements that a Stockton CCA would need to meet (e.g., compliance with renewable portfolio standard (RPS) requirements), the resources that the City has available or could obtain to meet these requirements, and the PG&E rates against which the CCA would compete. It also describes the pro forma analysis methodology that is used to evaluate the financial feasibility of the CCA.
The load and rate forecasts go out 10 years— from 2023, the earliest a CCA could be formed, through 2032. While all forecasting contains uncertainty, the years beyond 2030 are particularly uncertain and should be seen as broadly indicative and not predictive.
Understanding the interrelationships of all the tasks and using consistent and coherent assumptions throughout are critical to developing a meaningful analysis. Figure 3 shows the analysis elements (blue boxes) and major assumptions (red ovals) and how they relate to each other. As the figure illustrates, there are numerous interrelationships between the tasks. For example, the load forecast is a function of not only the load analysis, but also of projections of economic activity in the City.
An important point is highlighted in this figure: it is critical that wholesale power market assumptions are consistent between the CCA and PG&E. While there are reasons that one might have lower or higher costs than the other for a particular product (e.g., CCAs can use tax-free debt to finance generation projects while PG&E cannot), both will participate in the wider Western U.S. gas and power markets and therefore will be subject to the same underlying market forces. Applying different power cost assumptions to the CCA than to PG&E, such as simply escalating PG&E rates while deriving the CCA rates using a bottom-up approach, would produce erroneous results.
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Figure 3. Task Map
Economic & Jobs
Analysis
Load
Analysis
Customer &
Load Forecast
CCA Rates &
Bills
Pro Forma
Analysis
Supply Costs
& Options
Energy Efficiency
Analysis
PG&E Rates &
Bills
PG&E Load
Data
Wholesale
Assumptions
CCA
Assumptions
PG&E
Assumptions
CCA Competitiveness County & Regional Economic Benefits County Econ.
Assumptions
GHG
Analysis
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Stockton Loads and CCA Load Forecasts
A fundamental operational role of a CCA is to forecast customer electricity needs in the short, medium, and long terms. Power procurement and day-to-day decision-making rely heavily on short-term forecasts of consumer demand for power, while procurement planning requires forecasts of longer-term loads. Procurement must also account for the risks associated with demand forecasting and develop appropriate risk mitigation strategies. Though it is not possible for any entity to predict with absolute certainty future energy demand; logical, data-driven, industry-standard methodologies for load forecasting will be used to provide the foundation of future procurement.
Because a Stockton CCA is still hypothetical and has yet to serve any customers, the CCA’s estimated load to be served is based on historical consumption data from PG&E. Of course, if the CCA moves forward the load forecast will be continually updated and refined to reflect ongoing economic development in the City and changes in load from energy efficiency and distributed generation.
As shown in Table 4, the City’s total annual electric load in 2019 is about 2,000 GWh. This load is spread across over 111,000 accounts. As shown in both the table and in Figure 4, residential loads are only slightly higher than those of large commercial and industrial customers, with each making up about a third of the total. This is unusual; most other CCAs have only modest large commercial and industrial loads.
Table 4. Potential Stockton CCA Customers and Associated Load for 2019 Customers
Annual Load
(MWh)
Residential 95,910 676,464
Small Commercial 1,413 256,687
Medium Commercial 546 276,810
Large Commercial & Industrial 28 509,970
Other* 8,381 160,828
Total 106,279 1,880,759
*e.g., streetlights, traffic control, agriculture/pumping.
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Figure 4. Stockton Load Distribution 2019
Figure 5, below shows the potential monthly load for the Stockton CCA. The highest load months are in the summer, while the lowest are in April and the winter. Also note that the highest month is about 57% higher than the lowest month. This is attributable to Stockton’s inland climate where hot summers lead to more air conditioning use and the differential between the highest and lowest months is more pronounced.8 This means Stockton will need to acquire additional “resource adequacy” capacity to cover their summer peaking loads.
To be able to project the cost of buying power for the CCA, one must not only know how much must be purchased, but when. This is accomplished using load profiles: the breakdown of each rate classes’ total load into hourly consumption values. PG&E provided the monthly usage by rate class and an hourly load profile.
Based on these data, Figure 6 below illustrates the 24-hour load curve averaged across all days in August and the day with the highest load, August 15th. The peak hour was 7 pm on August 15 th with a load of 476 MWh. This is the maximum capacity needed for the CCA and is the basis for the CCA’s resource adequacy requirement in August. Compare this to the peak on an average August day where the peak hour was 6 pm and the peak load was 385 MWh. The significant difference between the two maximum loads highlights the load volatility in Stockton.
8 The ratio of the usage in the highest-load month to the lowest-load month for Stockton is 1.6; for the City of Riverside, a municipal utility, the ratio of the highest-load month to the lowest-load month is 1.7. (City of Riverside Public Utilities, 2018 Integrated Resource Plan, September 26, 2018. page 2-2.) ATTACHMENT B 1499
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Figure 5. Stockton CCA Load (Monthly, 2019)
Figure 6. Stockton CCA Load Shape (August 2019)
0 50,000
100,000
150,000
200,000
250,000
MWh
Other*
Large C & I
Small & Med
Com'l
Residential
0 100
200
300
400
500
600
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Load (MWh)
Hour
Peak
Day
Average Day
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Forecasting
The CCA’s base load forecast through 2032 reflects the annual average growth rate from the California Energy Commission’s most recent electricity demand forecast for PG&E’s planning area. This growth rate incorporates load reductions from expected behind the meter distributed generation (e.g., rooftop solar), energy efficiency programs as well as the new load added from EVs. EVs and energy efficiency technologies are discussed more in Chapter 7.
As Figure 7 shows, the CCA’s load is forecast to have a slight decline that grows over time. The net growth rate from 2023 to 2032 is negative 1.2% per year.
Figure 7. CCA Load Annual Forecast
Phasing in the CCA’s Load
Because our pro forma analysis is on an annual basis, all the scenarios assumed a simple onetime phase in of all accounts starting on January 1, 2023. In practice, a CCA would likely choose to phase in its loads, or at least begin service at a strategic point in the year. There are three reasons to phase-in the CCA’s load. First, there are significant logistical back-office activities that must occur: loads must be forecast on a daily basis for scheduling into the CAISO; daily meter data must be exchanged between PG&E and the CCA; the CCA must calculate its customers’ bills based on PG&E data and return the billing amounts to PG&E for presentation. While the providers of these services are becoming more familiar with the various protocols, it is simpler to begin serving only a small number of customers—often the municipal and government accounts—so as to work out the metaphorical kinks on less sensitive accounts before rolling out to the general public.
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
MWh
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Second, CCAs phase in their load for economic reasons. For example, as shown in Figure 8, due to PG&E’s rate design, CCA revenues for the larger commercial classes in PG&E’s territory are much higher in the summer months than in the winter or spring. Thus, if the CCA is properly hedged, it can be advantageous to phase in the commercial loads in the summer to take advantage of the higher margins.
Figure 8. PG&E Monthly Average Generation Rates Projected (2021)9 Third, since the CCA’s rates will, at least initially, be tied to PG&E’s, it is better to phase in new customers a month or two after PG&E’s rates are set. For example, PG&E implements major rate changes, including the PCIA, at the beginning of the calendar year. What exactly those January 1 rates will be is not fully known until late December. Thus, if the CCA was launching on January 1, too, it would have to estimate what PG&E’s rates would be months in advance in order to go through its own rate-setting process. These guesses could very well be wrong and require an adjustment within the first months of service, a logistical and customerrelations gaffe better avoided. 9 These projected rates are based on the PG&E rates effective on January 1, 2021. 0 2
4 6
8 10
12 14
16 c/kWh
Residential
Commercial
Industrial
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CCA Power Supplies
The cost to provide power is by far the largest expenditure a CCA makes. A CCA the size of Stockton should expect to spend approximately $100 million per year for wholesale power. The Stockton CCA power supply plan will be guided by legislative requirements, regulatory mandates, and CCA policies, as well as future market dynamics.
Regulatory Procurement Requirements
California places a number of important power-procurement requirements on all “load serving entities” (LSEs) in California (e.g., utilities like PG&E and CCAs). These requirements apply to all LSEs and thus can limit the options that a CCA can pursue to lower costs or implement lower-GHG emitting power portfolios.
Renewable Power. One of these requirements is the renewable portfolio standard (RPS). This requirement has been in place since 2002 with passage of Senate Bill (SB) 1078, which set a requirement that 20% of retail electricity sales be served by renewable resources by 2017. Since then, the RPS requirement has been accelerated and expanded by subsequent legislation, most recently by SB 100 passed in 2018. SB 100 requires all LSEs to procure 50% of their power from renewable resources by 2026 and 60% by 2030.10 SB 100 also sets a state-wide policy goal of having 100% of the electric power met by renewable or carbon-free resources (e.g., large hydroelectric dams) by 2045.
This means that PG&E is subject to the same renewable resource mandates under SB 100 as a Stockton CCA will be. Unless the Stockton CCA makes an explicit decision to exceed the state requirements, it would be offering no incremental renewable “benefits” to the City. This is why many existing CCAs’ goals are often to accelerate the implementation of green power above and beyond the state’s mandates and goals.
Energy Storage. Assembly Bill (AB) 251 requires LSEs to procure energy storage capacity.
The storage mandate was implemented by the California Public Utility Commission (CPUC) through a requirement that CCAs procure energy storage equal to one percent of their forecasted 2020 peak load. CCAs must demonstrate progress towards meeting this target in biennial advice letter filings and must have the energy storage capacity in place by 2024. Some energy storage technologies, especially lithium-ion batteries, have fallen steeply in cost in recent years, though they are still relatively expensive compared to supply resources and demand response.11 Battery costs are expected to continue to fall, suggesting there is a benefit to deferring procurement until required by the mandate.
Resource Adequacy. Since 2006, all LSEs, including CCAs, that are participants in the CAISO balancing area and under the jurisdiction of the CPUC are responsible for complying with 10 In practice, the utility code establishes multi-year compliance periods ending in 2020, 2024, 2027 and 2030, with the average renewable energy supply as a percentage of retail sales for each compliance period required to be 33%, 44% 52% and 60%, respectively.
11 Demand response are programs that incent customers to reduce their usage during hours of high grid load.
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Resource Adequacy (RA) obligations required under Assembly Bill 380 (codified as Section 380 of the Public Utilities Code and implemented by CPUC rulemaking). There are three components to the RA compliance program:
1) System capacity requirements to meet expected peak loads in the entire CAISO balancing area;
2) Local capacity requirements to meet contingency needs in locally constrained areas; and 3) Flexible capacity requirements to meet the largest continuous three-hour ramp in each month.
Specifically, to meet the System RA requirement, load serving entities must contract for 115% of their projected monthly peak demand as determined by the CPUC in consultation with the California Energy Commission (CEC) load forecasts. The peak demand forecasts are based on a 1-in-2 (average) weather year. Year-ahead filings must show that the LSE has contracted for 90% of the projected System RA requirement in summer months (May-September). The forecasts must be updated on a month-ahead basis and show that 100% of the requirement has been contracted.
The Local RA requirement must be met by LSEs with customers in 10 local reliability areas identified by the CAISO. The Local RA requirement is based on the CAISO’s assessment of the generation needed in the local area. Beginning with the 2020 compliance year,12 the Local RA requirements are set three years ahead and updated each year.13 On June 11, 2020, the CPUC adopted a framework (D. 20-06-002) that designated a central buyer for the procurement of multi-year Local RA in the PG&E and SCE distribution areas, beginning in 2021. Currently, both PG&E and SCE serve as central procurement entities for their distribution service areas and have begun procuring Local RA for the 2023 compliance year. Therefore, PG&E would act as the Local RA procurer for any future CCA that served Stockton.
The CAISO also determines the required Flexible RA needs operating criteria. Currently there are three flexible capacity categories with varying must-offer obligations, energy limits and number of starts, with associated requirements for how much of each category may be used to meet the LSE’s obligation. LSEs must demonstrate the purchase of 90% of their flexible RA requirement in their annual RA filing, and 100% of the requirement in their monthly RA filings.14
12 The “compliance year” is the year in which the RA resources are used to meet the LSE’s RA requirements for that year. For example, an LSE must demonstrate in 2019 that it has adequate RA capacity under contract for the 2020 RA compliance year.
13 Note that Local RA capacity is a substitute for System RA capacity. However, the converse is not always true, meaning that System RA capacity might not help an LSE meet its Local RA requirements. 14 Flexible RA can substitute for System RA and possibly for Local RA but the converse is not always true:
System and Local RA resources might not help an LSE meet its Flexible RA obligations.
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There is a bilateral market for RA capacity, with standardized products for each type of RA capacity.
Integrated Resource Planning (IRP). In addition to its role as the authority for implementing the state’s RA program, the CPUC also has an active rulemaking to “Develop an Electricity Integrated Resource Planning Framework and to Coordinate and Refine Long-Term Procurement Planning Requirements” (R. 16-02-007). This program requires each California LSE to file a procurement plan that demonstrates that it is contributing its pro rata share to meeting the State’s GHG reduction goals while maintaining sufficient generating and storage capacity to maintain a reliable power grid.
On November 11, 2019, the CPUC issue a decision (D.19-11-016) that addressed the potential for system resource adequacy shortages in PG&E’s area due to the impending retirement of 3,750 MW of once-through cooled (OTC) generation by December 31, 2020 as well as the risk of additional non-OTC retirements. The decision recommended that the State Water Resources Control Board extend OTC compliance deadlines for the impacted power plants and required additional procurement of 3,300 MW of system-level RA capacity by all LSEs serving load within the CAISO balancing area. Because this analysis assumes that the Stockton CCA begins service in 2023, it will not need to take any special action to comply with these directives.
Power Supply Portfolio and Cost Assumptions
Operating within the regulatory framework described above, MRW has developed sample electric supply portfolios for use in evaluating the economics of CCA formation in Stockton.
These sample portfolios are a proxy for a working portfolio that would be developed using a more rigorous assessment of costs and risk attributes developed as part of an implementation plan and ultimately through direct engagement with market participants via a request for proposals process. With RPS requirements increasing to 60% of load during the period of analysis, renewable resource assumptions are the primary driver of portfolio costs. After accounting for the hourly CCA load shape and the generation profile of resources in the renewable energy portfolio, the residual net short is assumed to be met with market purchases at hourly market prices forecast by S&P Global. Likewise, resource adequacy requirements are estimated based on peak loads and after accounting for net qualifying capacity from renewable resources. The remaining capacity need is assumed to be purchased at a forecasted market price as described below.
Renewable
The cost of renewable energy from solar photovoltaic (PV) facilities has steadily fallen since the establishment of the California RPS mandate in 2002. Looking forward, solar PV prices are expected to continue to decline, although perhaps at a slower rate as the technology matures and if import tariffs continue to be applied. At the same time, the incremental value of solar energy is decreasing as more and more solar resources are added to the electrical system, leading at times to conditions where solar energy must be curtailed to avoid overgeneration. Thus, there are advantages to a diversified supply portfolio including wind, geothermal and biomass, as well as energy storage.
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Figure 9 below shows the assumed mix of renewable resources in Supply Scenario 1: meeting but not exceeding the State’s renewable portfolio requirement, e.g., 50% in 2026, with incremental hydroelectric power so that the CCA has the same net GHG output as PG&E. In the first few years, the RPS requirement will be met using contracts for unspecified in-state renewable generation, with some generation from power purchase agreements (PPAs) with existing solar resources. Over time, the reliance on unspecified in-state renewables decreases and is replaced with PPAs with specific wind resources as well as PPAs with solar bundled with storage facilities. This reflects a reasonable balance of renewable resources: wind and solar are generally complementary in California—that is, when solar output is high, wind output is low.
Figure 9. Renewable Power Generation by Source
(Supply Scenario 1)
Assumed renewable power prices are shown in Figure 10. The 2023 prices are consistent with current reported renewable contract prices from other load-serving entities, including California CCAs and municipal utilities.15
With the rate of utility-scale solar PV cost declines flattening in recent years, we assume a slight increase in solar PV costs over the forecast period. Based on data provided by Lawrence Berkeley Laboratory, solar combined with battery storage is assumed to be available at a $5/MWh premium relative to solar-only projects and to follow the same trends as utility-scale solar. For local solar and solar plus storage, we assume projects are likely to be commercial scale (i.e., large rooftop), so we relied on NREL’s U.S. Solar Photovoltaic System Cost 15 https://emp.lbl.gov/sites/default/files/2020_utility-scale_solar_data_update.pdf 0 200,000
400,000
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2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
MWh/year
Solar + Storage RECs
Solar
Wind
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Benchmark and Cost-Reduction Roadmap for Residential Solar Photovoltaics Report for Commercial PV, which show declines from 2020 costs through 2030.16 For wind prices we relied on the DOE’s Wind Vision report to establish a forecasted price for 2020 through 2040 and continued the price trend for subsequent years.17 “Index+” refers to the cost of a Bundled Renewable Energy Credit (“Bucket 1” REC) whose associated energy is priced at the CAISO hourly market price. The REC value is assumed to be $15/MWh, remaining level in nominal dollars.
Alternative renewable costs are explored in the sensitivity scenarios.
Figure 10. Projected Average Renewable Power Costs
Wholesale Power Costs
The residual net load after accounting for renewable energy supplies is assumed to be supplied from wholesale market purchases, either from the day-ahead market operated by the CAISO or through bilateral contracts with similar market pricing. To forecast market prices, we used S&P Global Market Intelligence’s 2020 3rd Quarter Forecast for CAISO NP15 Hourly Energy Prices.
S&P Global provides 20-year forward-looking wholesale electricity and capacity price projections based on forward market prices and fundamentals-based modeling relying on data 16 https://www.energy.gov/eere/solar/sunshot-2030
17 https://www.energy.gov/sites/prod/files/WindVision_Report_final.pdf, Figure 3-12.
0.00 10.00
20.00 30.00
40.00 50.00
60.00 70.00
80.00 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 S/MWh/Year
Local solar+Stor
Local solar
Wind PPA
Solar+Stor PPA
Solar PPA
Index +
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from regulatory filings, planning guidelines, coal plant retirements, firm construction plans, and additions of renewable energy.
Figure 11shows the average hourly price comparison of the 10-year price forecast. In real terms, there is little difference in the peak energy prices among years. However, as increased renewables are built over the 10-year periods, the mid-day prices during high solar hours are anticipated to get more depressed. In California, electricity prices are often set by gas-fired resources operating on the margin. However, as increasing supplies of renewable energy are added to the system, there are periods where prices are being set by zero or even negative marginal cost resources. As a result, market prices have been trending downward, especially during seasons and periods of the day when loads are low and solar output is high. The modeling provided by S&P shows a continuation of the trend, with prices falling during the middle of the day and increasing in the morning and evening when gas-fired resources are needed to meet peak loads outside of the solar supply period. Figure 11 presents the average hourly shape of forecasted NP15 CASIO market prices over a 10-year period. Price data for individual months or days demonstrate even greater variation across the hours of a day.
Figure 11. Assumed Market Prices (2023-2032)
Capacity Costs
As noted above, CCAs are also responsible for complying with Resource Adequacy (RA) obligations. These products are typically contracted on a short-term basis (e.g., year-ahead).
There has historically been an excess supply of both system and flexible capacity in the market, leading to depressed prices for these products. This changed dramatically in 2019, when RA prices doubled. MRW predicts that the system RA price will continue to fluctuate between $6.00/MWh to $9.00/MWh, but that the flexible RA price will remain stable. 0 10
20 30
40 50
60 70
80 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 $/MWh
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Traditionally, CCAs have also bought local RA, but as of 2023, CCAs in PG&E’s territory will no longer be responsible for acquiring local RA. PG&E will purchase and allocate local RA to CCAs. The specifics of this new process are still being worked out in regulatory filings and future analysis will be needed to see how this new model will affect costs.
Pro Forma Elements and CCA Costs of Service
This section outlines the main elements of the pro forma analysis, the assumptions underlying the elements and the output results. The analysis also includes a comparison between the generation-related costs that would be paid by Stockton CCA customers and the generationrelated costs that would be paid by PG&E bundled service customers. Costs paid by CCA customers include all CCA-related costs (i.e., supply portfolio costs and administrative and general costs) and exit fee payments that CCA customers will be required to make to PG&E.
Pro Forma Elements
Figure 12 provides a schematic of the pro forma analysis, outlining the input elements of the analysis and the output results.
As discussed in previous sections, supply portfolio costs are informed and affected by CCA loads, by the requirements the CCA will need to meet (or will choose to meet) such as with respect to renewable procurement, and by CCA participation levels. Administrative and general costs are discussed further below.
Figure 12. Pro forma Analysis
Inputs: selection of cities, scenarios, and sensitivity cases Load
Forecast
Market Power
Price Forecast
Supply Costs
Forecast
Adm. Costs
Forecast
Exit fees
Forecast
Local
renewable
cost
forecast
Generation Rates paid by Stockton CCA Customers
(also accounts for debt interest)
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Startup Costs
Startup costs are the costs the Stockton CCA will incur before operations begin. Table 5 shows the estimated CCA startup costs. They are based on the experience of existing CCAs as well as from other CCA technical and feasibility assessments. The sub-total amount ($1.35 million) reflects the basic startup costs that would be common for all new CCAs. The $25 million working capital amount is 90 days of cash flow for the CCA. This could be either a load or a line of credit of a combination of thew two. If Stockton were to move forward, these values would be refined based on more detailed projections.
Table 5. Estimated Start-Up Costs
Item Cost One-time or
Ongoing
Professional Services/Consulting $150,000 Ongoing
Staffing $200,000 Ongoing
G&A costs $25,000 Ongoing
PG&E Fees $10,000 One-time
CAISO deposit $500,000 One-time
Marketing strategy and brand development $25,000 Ongoing Website 1.0/2.0 $20,000 Ongoing
PR/Advertising Campaign -- print, social, paid and
earned media $25,000 Ongoing
Materials for tabling and events $10,000 Ongoing
Customer Notifications $90,000 One-time
Community Sponsorships, etc. $5,000 Ongoing
General Counsel Services $100,000 Ongoing
Legal review of power supply and other vendor
contracts
$75,000 Ongoing
Cal-CCA Membership $50,000 Ongoing
Regulatory Monitoring and Reporting $50,000 Ongoing
Participation in Regulatory Proceedings/
Compliance Matters $15,000 Ongoing
Sub-Total $1,350,000
Working Capital ~$25,000,000
One-time;
maximum line of
credit amount
Total $26.4 million
Assessment of CCA viability and CCA customer rates vs. PG&E customer rates (also accounts for reserve fund contributions)
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Typically, the city forming a CCA would directly pay for the initial start-up costs, such as the technical study. Once the CCA is formed by City Council action, the CCA would issue an RFP for banking services. These would set up a short-term loan or line of credit to pay back the city its CCA expenditures and fund ongoing start-up costs until the CCA is operational. At that point, the short-term loans could be rolled into a longer-term loan that would also include working capital.
Working capital reflects the fact that a business will have bills to pay prior to receiving payment from its customers. This amount would cover the timing lag between when invoices for power purchases (and other account payables) must be remitted and when income is received from the customers. Per industry standard, total working capital is set to equal three months of CCA revenue, or approximately $25 million when the Stockton CCA is fully operational (i.e., serving all potential customers.)18 Initially, the working capital is provided by a bank on credit to the CCA. Typical power purchase contracts require payment for the prior month’s purchases by the 20th of the current month. Customers’ payments are typically received 60 to 90 days from when the power is delivered.
These startup costs are assumed to be financed over 5 years at 5% interest.19 Historically, CCAs have paid down their start-up loans much more quickly.
Reserves
CCAs to date have all committed to setting aside revenues into a reserve fund to account for times in the short-term when its costs may not allow it charge rates that are competitive to PG&E. For this study, we assume that the CCA will endeavor to set aside revenues until a reserve fund reaches an amount equal to 50% of its annual revenue (e.g., 50% of $140 million = a reserve fund goal of $70 million). After the reserve target is met, it is held at the target level or drawn upon so that the desired CCA rate is achieved. If the reserve is drawn upon, the rate reserve is replenished in the next year in which headroom is available.
Administrative and General Cost Inputs
Administrative and general costs cover the everyday operations of the CCA, including costs for billing, data management, customer service, employee salaries, contractor payments, and fees paid to PG&E. Table 6, below summarizes the assumed ongoing administrative and general costs. These costs are assumed to trend with inflation.
Table 6. Ongoing Administrative and General Costs
18 CCAs frequently “phase-in” their service, initially offering service to a smaller subset of customers and then expanding service to the remaining customers over the following months or years. 19 5% is currently equal to the prime rate plus 175 basis points.
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2022 2023 2024 2025
PG&E Fees, $/cust./month $0.35 $0.36 $0.37 $0.38
Data Management $/cust./mo. $1.00 $1.00
Administration – Labor20 $200,000 $700,000 $1,500,000 $1,500,000 Administration- Non-Labor $25,000 $250,000 $150,000 $150,000 Professional Services $150,000 $650,000 $550,000 $560,000 Data Management Fees $0 $110,000 $110,000 $110,000
PG&E Metering and Billing Fees $0 $450,000 $460,000 $470,000 Total $380,000 $2,200,000 $2,800,000 $2,700,000
PG&E Rate and PCIA Forecasts
PG&E Generation Rates
Forecasts of PG&E’s generation rates and exit fees are necessary to compare the projected rates that customers would pay as Stockton CCA customers to the projected rates and fees they would pay as bundled PG&E customers.
To ensure a consistent and reliable financial analysis, a 10-year bottoms-up forecast of PG&E rates was developed using market prices that are consistent with those used in the forecast of the Stockton CCA’s supply costs. The forecasted costs include the cost of PG&E’s existing resource portfolio, adding in market purchases only when necessary to meet projected demand.
To develop this forecast, the key cost drivers of each of PG&E’s generation rate components were examined, separately evaluating costs for renewable and non-renewable energy purchases, for PG&E-owned generation facilities, and for capacity purchases. The study assumed that nearterm changes to PG&E’s generation portfolio would be driven primarily by modest increases in underlying gas market prices. In 2028-2030, consistent with the Stockton CCA forecast, PG&E must pay higher prices for incremental capacity and resource adequacy, reflecting the tightening of the capacity market at that time.
The forecast further assumes that PG&E is compliant with the renewable and carbon-free requirements ordered in Senate Bill 100: a minimum of 60% renewable content in 2030 and a trajectory that would, when extrapolated, result in carbon-free power in 2045. In fact, given the current PG&E renewable portfolio and the loss of load from the Stockton CCA, PG&E would need minimal if any new renewables to meet the 2030 goal.
The forecast for PG&E’s generation resources are based on publicly available data and forecasts. We relied on the market price forecast produced by S&P Global to estimate the cost of market purchases. However, since PG&E protects data that would reveal its detailed net short 20 See page 60 for staffing estimate details.
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position, we were unable to perform the hourly analysis completed for Stockton and instead relied on average market prices to develop estimates of the cost of PG&E market purchases.
Over the 10-year period, the study forecasts that PG&E’s generation rates will escalate by an average of 3% per year. This forecast is show in Figure 13, below.
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Figure 13. Forecast PG&E Average Generation Rates
PCIA
The Power Charge Indifference Adjustment (PCIA) is a fee charged by PG&E intended to prevent customers that remain with PG&E bundled service from paying for energy generation procured on behalf of customers that have since switched to CCA service. More specifically, it pays for the above-market costs of PG&E generation resources that were acquired, or which PG&E committed to acquire, prior to the customer’s departure to CCA. The total cost of these resources is compared to a market-based price benchmark to calculate the “stranded costs” associated with these resources, and CCA customers are charged what is determined to be their fair share of the stranded costs through the PCIA. Bundled customers also pay the PCIA, which is embedded into their commodity portion of their total rate.
The PCIA is not paid directly by the CCA, but by the individual customers taking CCA service.
Thus, it does not appear explicitly on the CCA’s books, however it must be accounted for in any CCA cost analysis. While both CCA customers and customers that choose to remain in PG&E bundled service pay this fee, it appears as a separate line item for CCA customers and is embedded in the energy generation costs of PG&E bundled customers.
To forecast the PCIA, this study used the formula and approach dictated by the Alternative Proposed Decision of Assigned Commissioner Carla Peterman in Commission Rulemaking 17- 06-026, which was approved by the Commission on October 11, 2018. In addition, the market 0 2
4 6
8 10
12 14
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ave. Generation rate, c/kWh
Residential
Small Com'l (A-1)
Medium Com'l (A-10)
Large Com'l (E-19-S)
Industrial (E-20-P)
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price and PG&E portfolio assumptions used in the PCIA calculations are consistent with those used to forecast PG&E’s generation rates.
This study forecasts the PCIA charge by directly modeling expected changes to PCIA-eligible resources and to the market-based price benchmark. Based on our modelling, we expect the PCIA to remain between 2¢ and 3¢ per kWh between 2021 and 2025. After 2025, the PCIA is modeled to decrease markedly to just below 2¢ per kWh through 2032. The decline is mainly caused by the expiration of many of the costlier renewable power contracts entered into by PG&E, which decreases the total stranded costs. MRW’s forecast of the PCIA charge through 2032 is shown in Figure 14.
Figure 14. Forecast Average PCIA
PG&E Green Option Tariff
CCA’s frequently offer their customers the option to have 100% of their power met using renewable resources, albeit at a higher rate. A Stockton CCA could offer such a rate option.
However, Stockton customers currently have something akin to this option via PG&E’s Green Tariff Shared Renewable (GTSR) Program. The program was established in 2016 under Senate Bill 43, and pursuant to CPUC Decisions 15-01-051 and 16-05-006, to extend access to renewable energy to ratepayers that are currently unable to install onsite generation.21 PG&E’s green tariff, known as Schedule E-GT, offers homes and businesses the option to purchase 50% or 100% of their energy use from renewable resources. The program provides those with homes or apartments or businesses that cannot directly utilize renewable resources such as rooftop solar the opportunity to meet their electricity requirements through renewable energy and support the growth of renewable energy resources.
21 California Public Utilities Commission, Decision 15-01-051, p.3
0.00 0.50
1.00 1.50
2.00 2.50
3.00 3.50
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 c/kWh
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A customer must positively elect to be on the GTSR (i.e., it is “opt-in.”). Once enrolled, there is no minimum length of time that a customer must take service under this Schedule, nor is there any termination fee for departing the program. Customers are eligible to remain on the Green Rate Program for up to 20 years from the date they first began service.
A generating facility eligible to provide power to GTSR customers must be (a) solar; (b) new; (c) between 500 kW and 20 MW; and (d) located in PG&E’s service territory. Renewable Energy Credits (REC) generated by facilities under the GTSR program cannot be used by PG&E for RPS compliance.
The GTSR-Green Rate (GTSR-GR) consists of (a) a credit equal to the average generation rate of the customer’s otherwise applicable tariff; (b) an adjustment charge to reflect the difference between the time of delivery profile the GTSR solar facility and the customer’s class consumption profile; (c) a charge for the renewable power, the PCIA, and the Competition Transition Charge (CTC); (d) a CAISO grid charge; (e) a charge for Resource Adequacy (RA); and a program administration charge. Ignoring the PCIA and CTC, the average cost to a GTSR customer is about 1.1¢/kWh higher than the PG&E otherwise applicable generation rate. The program is open for enrollment until subscriptions reach 272 MW.
A Stockton CCA has the flexibility to offer rates corresponding to 100% green power, or any green power content greater than the state’s minimum. While MRW believes that a Stockton CCA could likely do so at a competitive price, this option was not explicitly investigated here.
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Chapter 3. Cost and Benefit Analysis
Costs and benefits are evaluated by comparing total average cost to serve the CCA customer (cents per kWh or dollar per MWh) (including PCIA) to PG&E generation rates. The pro forma results for the first 10 years of the Stockton CCA are summarized in this chapter.
Supply Scenario 1 assumes that the Stockton CCA simply complies with the State’s requirements concerning renewable power. It starts in 2023 with 38% of its power being met using renewable resources and escalates this faction to 64% by 2032. Large hydropower is assumed to be used for most of the non-renewable output (priced as a modest premium above system power) so that the CCA’s net GHG emissions is no greater than PG&E’s. The remaining fraction of the CCA’s power needs are assumed to be met using system power from the CAISO.
Supply Scenario 2 assumes that the CCA goes beyond the State-mandated RPS requirements and utilizes increasingly greater amounts of renewable power. Specifically, Supply Scenario 2 assumes that the CCA will start at 50% renewable content in 2023 and achieve net 100% renewable power by 2030.
Figure 15. CCA Scenario Renewable Power Content
Supply Scenarios
Supply Scenario 1
Figure 16 shows the Supply Scenario 1 forecast of average CCA costs and PG&E’s generation rates, assuming that all customers are served. The bars in the chart show the forecasts of the major cost components of CCA operation, while the single line shows the forecast of PG&E’s generation rate. When the bars are below the line, the CCA’s average operating costs will be below the PG&E generation rate; meaning that it can offer power to customers at a rate lower than or competitive with PG&E.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Fraction met using renewables
Scenario 1: SB 100
Scenario 2: Accelerated RPS
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The bottom-most green segment represents the cost of renewable power to the CCA. The renewable power costs ramp up with increasing renewable content, as required by SB 100.
The brown segment is for the costs of non-renewable, wholesale market power. This segment slowly decreases, as renewable power increases.
The light blue segment is for capacity. That is, the CCA must demonstrate that it has the generating capacity (in megawatts) to ensure that it can serve all its load, even if the “intermittent” renewable resources are not generating at their optimal rate (e.g., solar on rainy days). The more intermittent renewables—solar and wind—that are added to the CCA’s generating mix, the more back-up capacity is needed to ensure reliability.
The gray segment is for debt service, operations, franchise fees and uncollectibles. The loans associated with the start-up costs are paid down. Once that debt is retired, the operations costs decrease markedly. Franchise fees are those collected by the PG&E and paid to the City for the right to operate the electric monopoly franchise in the city. It is paid as a percent of each customer’s total bill and is automatically built into PG&E’s rates. So that cities remain financially whole when customers’ power is provided by a CCA, PG&E charges CCA customers a “franchise fee surcharge.”22 Lastly, as with any business, a certain fraction of the CCA’s bills will not be paid and are treated as “uncollectible.” The yellow segment is for carbon cap and trade allowances. Note that for practical purposes, the carbon cap-and-trade allowances would be built into the purchase prices of natural gas-fired market resources. However, because it is an important variable on its own, the costs are shown separately.
The top-most pink segment is for the Power Charge Indifference Adjustment (PCIA), a fee paid to PG&E to ensure that the operation of the CCA does not strand PG&E’s remaining bundled customers with costs associated with power purchased on behalf of customers who have shifted to the CCA.
The black line represents PG&E’s average generation rate. To forecast PG&E’s generation rates, the comparison model used information regarding PG&E’s utility-owned generation, power contracts, power market costs, and by closely tracking changes in PG&E revenues and costs through its filings in several CPUC proceedings. In particular, it takes the most recent PG&E filing of generation rates and applies the known and anticipated changes to the wholesale power market prices and PG&E’s power purchase contracts. 22 See PG&E Tariff Schedule FFS.
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Figure 16. Supply Scenario 1 Average CCA Cost Projection As shown in Figure 16, the costs of CCA operation in Supply Scenario 1 are consistently below that of the PG&E rate. This difference between the top of the CCA cost columns and the PG&E rate line represents the operating “margin.” the CCA may do a combination of one or more of three things with this margin:
• The CCA can keep its rates as the cost of operations and allow the margin to flow fully to customers through lower electric rates. (i.e., if the margin is 0.5¢/kWh, then the CCA could offer rates that are 0.5¢/kWh less than PG&E while still covering all its costs). • The CCA can change customers the same rate as PG&E to retain the margin and build up cash reserves for a rainy day.
• The CCA can eventually use the margin to fund other energy-related services, such as providing incentives for customers to purchase an EV, install energy-efficient home upgrades, install solar PV, etc.
In practice, CCAs use the margin for all three purposes: they set a rate that is marginally lower than PG&E’s and then use the remaining margin for cash reserves or programs.
In 2023, this “margin” between CCA average cost and PG&E rate is about 1.5¢/kwh, increasing to about 3.1¢/kwh in 2032. Note that this does not mean that the CCA can or will fully pass on this margin as rate savings to its customers. There are other uses that the CCA leadership may choose to use this margin for, most notably the generation of a rate reserve fund. As discussed elsewhere, other CCAs have chosen to use their margins for more generous solar PV programs, incremental energy efficiency, EV charging, or other programs that benefit the community.
0.00 2.00
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12.00 14.00
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
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PCIA
GHG
O/M
Capacity
Other
Energy
Renewable
IOU
doesn't include the reserve fund or other programs
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For the CCA, GHG savings is achieved when the average GHG emissions from the set of generation resources used by the CCA is less than the average GHG emissions from PG&E.
Unless the CCA procured GHG-free power above and beyond California’s renewable requirement, PG&E’s average GHG emission will be less than the CCAs. This result is caused by PG&E not only meeting the state-requirement minimum renewable content, but also using other non-renewable but still GHG-free power sources: large hydroelectric dams and nuclear power from the Palo Verde Nuclear Power Plant, of which PG&E is a partial owner. The GHGemitting portfolios for Power Supply Scenario 1 and PG&E are shown in Table 7.
Table 7. 2023 CCA (Supply Scenario 1) and 2018 PG&E Power Content CCA
Scenario 1 PG&E
Renewable 38% 39%
Hydro 31% 13%
Nuclear 34%
GHG-Free 69% 86%
Gas 15%
System 31% 0%
TOTAL 100% 100%
Supply Scenario 2 (High Renewable Penetration Case)
Figure 17 shows the Supply Scenario 2 projections of average CCA costs and PG&E’s generation rates assuming that the CCA serves all customers. As with Figure 16, the bars in the chart show the forecasts of the major cost components of CCA operation, while the single line shows the forecast of PG&E’s generation rate.23 When the bars are below the line, the CCA’s average operating costs will be below the PG&E generation rate; meaning that it can offer power to customers at a rate lower than or competitive with PG&E. 23 The PG&E generation rates in these comparisons are still the default PG&E generation rates, NOT the PG&E Green Tariff. We keep this comparison because a customer would default back to PG&E’s standard generation rate no matter the renewable content of the CCA.
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Figure 17. Supply Scenario 2 Average CCA Cost Projection Note that even though by 2032 the CCA will be providing 100% net green power, it will still be incurring some costs for “brown” system power. This is because, as described in the Renewables – what does it mean to be 100% Green? section earlier, even when the CCA generates the same number of renewable kilowatt-hours as its customers consume, the timing of the renewable generation and consumption do not align. Therefore, there will be hours where the CCA is effectively selling its excess green generation when it is generating more renewable power than its customers are consuming and purchasing system power when customer consumption exceeds the CCA’s renewable generation. When the CCA is selling its excess green energy, those sales revenues are credited against the renewable costs in the green segments of the cost columns in Figure 17, while the costs of system power are shown explicitly as the brown “Other Energy” column segments in Figure 17.
Greenhouse Gas Emissions
As shown in Table 10, Supply Scenario 2 uses more renewables than Scenario 1 and it has a greater percent of GHG-Free resources. However, its percentage of GHG-free resources is still less than PG&E. This is because Scenario 2 relies less on non-RPS compliant GHG resources like large hydro power and nuclear. Scenario 2’s reliance on renewables will increase until it reaches 100% renewable in 2030. This is far sooner than the SB 100 mandate (100% carbonfree by 2045) which dictates Scenario 1’s and PG&E’s procurement.
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Capacity
Other
Energy
Renewable
IOU
doesn't include the reserve fund or other programs
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Table 8. 2023 CCA and 2018 PG&E Power Content
CCA
Scenario 1
CCA
Scenario 2 PG&E
Renewable 38% 50% 39%
Hydro 31% 25% 13%
Nuclear 34%
GHG-Free 69% 75% 86%
Gas 15%
System 31% 25% 0%
TOTAL 100% 100% 100%
Because Supply Scenario 2 increases its renewable percentage so quickly it has greatly reduced emissions as compared to Scenario 1 as shown in Figure 20.
Figure 18. Scenario Carbon Emissions Rates
0.00 0.01
0.02 0.03
0.04 0.05
0.06 0.07
0.08 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
tonne/MWh
Scenario 1: SB 100
Scenario 2: Accelerated RPS
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Chapter 4. Sensitivity of Results to Key Inputs
The results shown in the scenarios above reflect expected market conditions and outcomes with variations only in the amount and type of renewable generation. However, it is unlikely that the conditions assumed in these scenarios will occur exactly as assumed. In order to evaluate the robustness of the analysis, the key variables were identified, and analyses conducted with other assumptions for those key variables to “stress test” the assumptions. The five variables with the greatest potential impact on the overall average cost of the CCA were investigated:
(1) Higher Renewable Supply Costs
(2) Higher Wholesale Market Prices
(3) Higher PCIA
(4) Lower PG&E Rates
(5) High Opt-Out
Other than the variable being tested, all other assumptions are from Scenario 1. The specific assumptions on the sensitivity scenarios are shown in Table 9.
Table 9. Sensitivity Case Definitions
Sensitivity Case Definition
Base Supply Scenario 1
Higher renewable costs Renewable costs 25% higher than Base Higher gas and power prices Power Prices 33% higher than Base Higher PCIA PCIA 33% higher than calculated in Base
Lower PG&E Rate PG&E rates 10% lower than in Base
Higher Opt-Out 30% Opt-out
Sensitivity Case Results
Figure 19 summarizes the margins resulting from the modeling of the sensitivity cases. The figure shows the margin in cents per kilowatt-hour between the PG&E rate and the cost to average cost for the CCA to serve its load, including the PCIA. (Each case is discussed in detail below). When the bar is positive, then the CCA’s cost of service is less than PG&E’s generation rates, which means the CCA can offer a rate discount. Consistent with the rest of the analysis, the margins are the smallest during the first years of operation.
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Figure 19. Sensitivity Results
Higher Renewable Power Prices Sensitivity
This sensitivity case evaluates the impact of higher renewable power prices on the CCA’s financial viability. Average renewable power prices in this scenario are 25% higher than in the base case scenario through 2032. These higher prices affect both the CCA and PG&E, but they have a greater effect on the CCA because PG&E has significant amounts of renewable resources under long-term contract. The impact of this sensitivity case was a reduction of the 2023-2032 average rate differential by ~0.2¢/kWh relative to the base case.
Table 10. Higher Renewable Power Prices Sensitivity Results, 2023-2032 Margin, PG&E Rate and CCA Average Cost, ¢/kWh
First Year
Average of 1st 5
Years
Average over
Study Period
Base 1.5 2.1 2.5
High Renewable Prices 1.4 1.9 2.3
Percent Difference -4.5% -5.9% -7.2%
Higher Wholesale Prices Sensitivity
Wholesale Market prices increases affect power supply costs for both a Stockton CCA and PG&E; however, the higher renewable capacity in CCA’s resource mix makes it less sensitive than PG&E. The net effect of higher prices is therefore to decrease CCA rates relative to PG&E rates (i.e., increase the average rate differential). Under the sensitivity conditions considered, the 2023-2032 average rate differential increases relative to the base case by .06¢/kWh.
0.00 0.50
1.00 1.50
2.00 2.50
3.00 2023 2023-2027 2023-2032
¢/kWh
Base High Renewable Prices Higher Wholesale Prices
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Table 11. Higher Wholesale Prices Sensitivity Results, 2023-2032 Margin, PG&E Rate and CCA Average Cost, ¢/kWh
First Year Average of 1st 5
Years
Average over
Study Period
Base 1.5 2.1 2.5
Higher Wholesale Prices 1.2 2.0 2.6
Percent Difference -18% -2.9% 2.6%
Higher Exit Fee (PCIA) Sensitivity
PG&E’s PCIA exit fees are subject to considerable uncertainty. Under the current methodology, PCIA rates can swing dramatically from one year to the next, and this methodology is currently under review and may be adjusted in the coming years. MRW evaluated a stress case increased PCIA rates where they are 33% higher than the base. The impact of this sensitivity case was a reduction of the 2023-2032 average rate differential by 0.42¢/kWh relative to the base case.
Table 12. Higher PCIA Exit Fee Sensitivity Results, 2023-2032 Margin, PG&E Rate and CCA Average Cost, ¢/kWh
First Year Average of 1st 5
Years
Average over
Study Period
Base 1.5 2.1 2.5
Higher PCIA Prices 1.0 1.6 2.1
Percent Difference -35% -22% -17%
Lower PG&E Portfolio Cost Sensitivity
While changes to wholesale prices and renewable power prices affect both the CCA and PG&E, dampening the impact on the CCA’s cost competitiveness, reductions to the costs to operate and maintain PG&E’s nuclear and hydroelectric facilities would provide cost savings to PG&E that would not be offset by cost savings to the CCA. MRW considered a case in which PG&E’s overall generation rates are 10% below the base case, driven by reductions to PG&E’s nuclear and hydroelectric portfolio costs. Under such a scenario, the 2023-2032 average rate differential would be reduced by 1.05¢/kWh relative to the base case scenario.
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Table 13. Lower PG&E Rates Sensitivity Results, 2023-2032 Margin, PG&E Rate and CCA Average Cost, ¢/kWh
First Year
Average of 1st
5 Years
Average over
Study Period
Base 1.5 2.1 2.5
Low PG&E Rates 0.5 1.1 1.5
Percent Difference -67% -49% -42%
High Opt-Out (Lower Participation) Sensitivity
This sensitivity case evaluates the impact of higher opt-out or lower participation on the CCA program. If fewer customers join, CCA rates will generally be higher because the annual CCA costs are invariant to the amount of CCA load. In the High Opt-Out sensitivity, we assume that the Opt-Out percentage is 30% instead of 5%. The impact of this sensitivity case was a reduction of the 2023-2032 average rate differential by 0.06¢/kWh relative to the base case.
Table 14. High Opt-Out Sensitivity Results, 2023-2032
Margin, PG&E Rate and CCA Average Cost, ¢/kWh
First Year Average of 1st
5 Years
Average over
Study Period
Base 1.5 2.1 2.5
High Opt-Out 1.45 2.03 2.45
Percent Difference -4.2% -3.1% -2.6%
Sensitivity Summary
Figure 20 shows the difference between the PG&E customer rates and the Stockton CCA customer rates (including exit fees) in the base case, and in each of the sensitivity scenarios, for each year from 2023 to 2032. As Figure 20 illustrates, CCA customer rates are lower than PG&E customer rates in each of the individual sensitivity cases in each year. The Low PG&E portfolio costs has the smallest margin.
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Figure 20. Difference Between PG&E Customer Rates and CCA Customer Rates Under Each Sensitivity Case, 2023-2032
0.00 0.50
1.00 1.50
2.00 2.50
3.00 3.50
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
¢/kWh
Higher Wholesale
Prices
Base
High Opt-Out
High Renewable
Prices
Higher PCIA
Prices
Low PG&E
portfolio costs
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Chapter 6: Risks & Mitigating Strategies
As discussed so far, there are clear benefits to CCA formation, but there are also risks. This chapter lists many of the larger risks that a Stockton CCA would face—and in fact all CCAs must deal with—along with summaries of how the CCA can address the risk. If Stockton were to pursue CCA formation, it should create a risk management plan that would flesh out more specific risk policies and proceedings.
Financial Risk to City
A single-city CCA is assumed to be formed as a financially independent enterprise, with no dollars flowing into or out of the City’s general fund. As such, the general fund cannot be drawn upon by the CCA’s creditors, nor can CCA dollars flow into the general fund.
In the event that Stockton joined a JPA-governed CCA, the formation documents for the CCA define the rights and responsibilities of each member of the CCA. Similarly, the JPA’s books are completely separate from any of their member cities’, and thus isolates the city from any CCA liabilities.
Nonetheless, starting up a CCA often requires a credit-worthy entity to backstop its initial financing. Some, such as CleanPowerSF, use the balance sheet from its existing power enterprise to backstop initial financing. Others have relied upon their host city or county as a backstop to initial financing. For example, MCE’s initial bank loans for working capital were guaranteed by Marin County and the Town of Fairfax. After approximately six years, the CCA had demonstrated its creditworthiness and the guarantees were lifted. Still, the JPA cannot place any financial obligations or risks onto any of its members without that member’s approval.
Opt-Out Risk
Customers may choose to opt-out of a CCA service before or during their transfer to CCA, or in fact at any time. (Reduced CCA participation due to high rates is addressed in Section B, below). The opt-out risk comes at two district time periods. The first is the initial roll-out of the CCA program. The most recent CCA launches have experienced only very modest opt-outs:
around two to three percent of the eligible customers have elected not to take service from their CCA. If there are negative communications to Stockton citizens and businesses during the initial roll out (e.g., bad press of some sort), then the opt-out rate could increase. Second, customers could choose to leave CCA service after the initial opt-out period. The most likely driver of this opt-out risk is expanding Direct Access eligibility, which is addressed in more detail below.
Mitigation: The experience of the prior CCAs suggests that opt-outs at the beginning of service tend to be in a relatively narrow range, allowing for some predictability in initial opt-outs. In addition, prudent power procurement strategies will allow for a reasonable uncertainty in load, especially uncertainty associated with DA expansion, without having to either dump power at a loss or purchase excessive amounts at high spot market prices. CCAs also can charge an “exit ATTACHMENT B 1528
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fee” akin to the PCIA to customers who have left CCA service after power contracts have been signed to serve their load, but to date none have been imposed.
Rate and PCIA Uncertainty
A primary goal is to offer power to Stockton residents and businesses at a competitive price relative to PG&E. In this circumstance, competitiveness is tied to the rate offered by PG&E. A number of factors can cause Stockton CCA’s net power costs to exceed PG&E’s costs. Stockton CCA will have in place risk management plans and options to both mitigate these risks by lowering rates passed on to customers back down to a competitive rate as well as to address unexpected risks.
Changes to PG&E Generation Rates: There could be circumstances that result in PG&E’s generation’ rates to being less than Stockton CCAs. Assuming that PG&E’s rates are based on its cost of service, Stockton CCA obviously has little or no ability to influence the rates that PG&E offers.
Mitigation: While Stockton CCA has little ability to affect PG&E’s generation rates, it can take proactive steps to mitigate the impact of reductions in PG&E’s generation rate. These steps are discussed below.
Changes to PG&E’s PCIA Rate: Assembly Bill 117, which established the Community Choice Aggregation program in California, included a provision that states that the customers that remain with the utility should be “indifferent” to the departure of customers from utility service to CCA service. This has been broadly interpreted by the CPUC to mean that the departure of customers to CCA service cannot cause the rates of the remaining utility “bundled” customers to go up. To maintain bundled customer rates, the CPUC has instituted an exit fee, known as the “Power Charge Indifference Amount” or “PCIA” that is charged to all CCA customers. The PCIA is intended to ensure that generation costs incurred by PG&E before a customer transitions to CCA service are not shifted to remaining PG&E bundled service customers.
Thus, for a Stockton CCA customer to realize an economic benefit (i.e., pay the same or less for electricity), the sum of the Stockton CCA charges plus the PCIA must be lower than PG&E’s generation rate.
Mitigation: The PCIA is established at the CPUC. To ensure that this charge is properly calculated and that it is correctly allocated to Stockton CCA customers, it will be necessary for the Stockton CCA to monitor and possibly actively participate in the regulatory proceedings in which the CPUC sets the PCIA.
CPUC “Financial Security Requirement” Risk
Pursuant to CPUC Decision 05-12-041, a new CCA must include in its registration packet evidence of insurance or bond that will cover costs as potential re-entry fees, specifically, the cost to PG&E if the CCA were to suddenly fail and be forced to return all its customers back to PG&E bundled service. Currently, a bond amount for CCAs is set at $147,000.
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This CCA bond amount covers PG&E’s administrative cost to reintegrate a failed ESP’s customers back into bundled service, plus any positive difference between market-based costs for PG&E to serve the unexpected load and PG&E’s retail generation rates. Since the CCA bonding requirement has been in place, retail rates have always exceeded wholesale market prices, and thus CCAs’ bond requirement have been simply equal to the modest administrative cost.
Mitigation: During normal conditions, the CCA Bond amount will not be a concern. However, during a wholesale market price spike, the bond amount could potentially increase to millions of dollars. But the high bond amount would likely be only short term, until more stable market conditions prevailed. Also, it is important to note that high power prices (that would cause a high bond requirement) would also depress PG&E’s PCIA and would also raise PG&E’s rates, which would in turn likely provide the CCA sufficient headroom to handle the higher bonding requirement and keep its customers’ overall costs competitive with what they would have paid had they remained with PG&E.
Direct Access and Competitive Retail Services
The most likely driver of opt-out risk is expanding Direct Access eligibility. As noted earlier, about 15% of the load in PG&E’s territory is served through Direct Access, with an additional 3% likely to occur in 2020 due to the limited expansion of the DA cap from SB 237. In addition to modestly expanding the availability of DA service, SB 237 also directed the CPUC to report to the Legislature by June 1 of 2020, a deadline that the Commission has missed on how to open DA completely for all non-residential customers. The CPUC’s report on how to fully open DA service was delayed due to the outbreak of COVID-19, and preliminary Staff Report was eventually issued in September 2020. The Staff Report recommended that ESP’s demonstrate obligation compliance by submitting robust IRPs and meeting their procurement, RA, and RPS requirements before further DA is opened. If legislation directs further reopening of nonresidential DA, then a re-opening schedule of increments of 10 percent of eligible nonresidential load per year should be used under the condition that each expansion meets IRP, RA, and RSP requirements and allows LSEs to fully comply with RA requirements. A fully opened DA market would allow any commercial or industrial customer to switch its provider to a thirdparty, potentially reducing a Stockton CCA’s revenue and creating a mismatch between its wholesale power portfolio and the CCA’s load.
Additional expansions are possible, if not likely. If they come to pass, CCAs will have to compete with the DA providers on price and/or other services.
Mitigation: As stated earlier, CCAs’ history suggests that opt-outs at the beginning of service tend to be minor. Prudent power procurement strategies will allow for a reasonable uncertainty in load, including potential DA expansion, without having to dump power or purchase power at high spot prices. CCAs also can charge an “exit fee” akin to the PCIA to customers who have left CCA service after power contracts have been signed to serve their load, but to date none have been imposed.
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Energy Risk Management
A Load Serving Entity (LSE) that is formed as a Community Choice Aggregator (CCA) faces financial risk of procuring energy, capacity, Renewable Energy Credits (RECs) and carbon-free energy (if needed) at a cost that exceeds the revenue that it receives from its retail customers.
The other risks that are faced by the CCA roll up into the overarching risk of buying products and operating the CCA at a cost that exceeds revenue.
To mitigate risk, the CCA must establish a sound risk management program that forms the structure for measuring, monitoring, and managing risk. This section describes the elements that comprise risk, components, and functions of a Risk Management Program, and approaches that can be used to manage risk. CCA Risk Management plans can be found on their respective websites.24
Legislative and Regulatory Risks
As noted above, the CCA must meet various procurement requirements established by the State and implemented by the CPUC or other agencies. Regulatory risk, which changes the rules under which CCAs operate, affects the CCA’s ability to maintain stable procurement activities, manage costs to its customers, and compete with the local incumbent utility and direct access providers.
Regulation of the electric utility sector that affects CCAs at the federal level is provided by the Federal Energy Regulatory Commission (FERC) which regulates the CAISO and at the state level by the California Public Utilities Commission (CPUC) which implements legislation passed by the California State Legislature and signed into law by the governor. Although CCAs are not directly regulated by the CPUC but rather their own local governing bodies, the CPUC is tasked with implementing details of legislation signed into law.
Risk to CCAs is in changes in the regulatory environment that affects the CCAs ability to attract, compete for, and retain customers, the products that it has already procured, and procurement practices going forward. Major issues that are currently evolving include:
• Direct Access
• Resource Adequacy25
• Power Charge Indifference Adjustment
• Renewable Energy Purchase Requirement
24 E.g., San Jose Clean Energy: http://www.sanjoseca.gov/DocumentCenter/View/77619; Silicon Valley Clean Power: https://www.svcleanenergy.org/wp-content/uploads/2019/03/2019-Risk-Management-Policy-F.pdf. 25 For example, on September 12, 2019, the CPUC issued a proposed decision requiring electric system reliability procurement for 2021-2023 in the Integrated Resource Planning proceeding, Rulemaking 16-02-007.
That proposed decision directs Southern California Edison to procure 1,745 MW of Resource Adequacy with a start date ranging between August 1, 2021 and August 1, 2023. Although the decision is not final, if it holds, and Southern California Edison moves forward, it most likely will be long Resource Adequacy and will need to re-sell it or have it allocated to Load Serving Entities.
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• Power Content Label Reporting
• Central Procurement Entity
• Energy Provider of Last Resort (POLR)
These include procuring sufficient resource adequacy capacity of the proper type and meeting RPS requirements that are evolving.26 Additional rules and requirements might be established.
These could affect the economic performance of the CCA.
There are potential risks associated with legislative proceedings that affect the Power Charge Indifference Adjustment (PCIA), which is a fee ($/kWh) charged by IOUs to cover the generation costs incurred before a customer changed to a new service provider, such as a CCA.
The fee fluctuates per year based on the difference between an IOU’s actual generation cost and the current market value of its generation portfolio. The PCIA charge also varies per customer based on the date or “vintage” they enrolled with an alternative provider. CCAs are concerned with changes in the PCIA since significant increases in the PCIA can affect the rate competitiveness of CCAs with IOUs.
Legislation that affects RA creates risks for CCAs since all CCAs, like IOUs and Energy Service Providers (ESPs), have RA obligations. These obligations require LSEs to procure a specific amount of capacity so that this capacity is available to the California Independent System Operator (CAISO) in order to ensure electric service reliability. Drastic changes in RA requirements, particularly increases in obligation, would concern any LSE, especially since recently there was a decrease in available resource adequacy capacity in 2019.
Due to the rise in wildfire risks over the past several years, CCAs are following legislation that addresses wildfire mitigation and public safety power shutoffs (PSPS). Some CCAs are focused on insulating their customers from potential wildfire risks and subsequent power shutoffs.
Mitigation: Regulatory and legislative risk can only be managed though close monitoring of the relevant proceedings at the CPUC and legislation in Sacramento and intervening where needed to advocate for the CCA. If Stockton pursues CCA, it should consider teaming with other CCA, such as through the Cal-CCA trade organization on regulatory and legislative monitoring. 26 Rules to establish RPS requirements under the new 50% RPS mandate established by SB 100 are currently being debated at the CPUC.
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Chapter 7. Distributed Energy Resource Opportunities
This chapter looks at distributed energy resource (DER) opportunities27 for a potential CCA in Stockton and what benefits and costs may be associated with certain DER opportunities. This topic will be discussed in two sections:
• Market Characterization provides a brief overview of fuel use in Stockton and some of the implications related to electrification.
• Distributed Energy Resource Potential discusses various considerations for DER that may be impacted by a CCA, including:
o Energy Efficiency, including potential MWh impact forecasts through 2032; o Light Duty Electric Vehicles, including potential MWh impact o Distributed Generation, including a discussion on San Joaquin Valley (SJV) participation in solar funding programs and what priorities might be for a CCA; o Demand Response, including annual load shapes in Stockton and what priorities might be for a CCA;
o Other Opportunities, focusing on microgrid attributes.
Market Characterization
Table 15 provides an estimate of energy use and costs based on annual consumption data for recent years indicating that, on average, Stockton residents spend approximately $1.3 billion on various types of energy, most of which are not developed locally but are produced elsewhere and transported into the county through various means (e.g., pipes, wires, etc.).
Table 15. Estimated Stockton Energy Costs
Fuel
Units
Consumed Total Fuel Cost
Carbon
Emissions,
MTCO2e
Electricity28 (kWhs) 1,626,935,866 $341,656,532 426,257 Natural Gas (Therms) 108,937,871 $184,105,002 637,287
Gasoline (Gallons) 145,740,000 $581,502,600 1,431,167
Diesel (Gallons) 52,920,000 $207,446,400 592,175
Total Annual $1,314,710,534 3,086,885
The changing landscape of DERs will impact where this energy is generated and how efficiently it is used. These changes present a new set of economic opportunities at the community level, as 27 DERs are defined here are energy efficiency, demand response, and distributed generation, distributed energy storage and increasing electrification of buildings and transportation. 28 PG&E emissions rate (electric): 0.524 lbs CO2 per kWh at https://www.pge.com/includes/docs/pdfs/about/environment/calculator/assumptions.pdf ATTACHMENT B 1533
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reduced spending on energy imported into the county converts to local wealth in the form of increased jobs, additional expendable income, and the value of locally-owned assets. Consider, for example:
• For most constituents, opportunities for widespread and significant reductions in annual fuel expenses will increase, freeing up expendable income, much of which will be spent locally and this will have broad impacts. For example, at the municipal level, this will result in increased local sales tax revenue. Conversely, increasing adoption of solar will reduce gridpurchased electricity and raise the value of properties, but may have a negative impact on revenues for cities that levy utility use taxes or benefit from franchise fees associated with energy sales from electric utilities. The conversion of transportation fuel from petroleum to electricity will benefit constituents by significantly reducing fuel costs for light vehicles but this transition might negatively impact funds received by a community from taxes on gasoline and diesel products. Alternatively, this fuel conversion will increase electricity usage and offers the potential to mitigate the reduction in electric utility use taxes and franchise fees resulting from the adoption of distributed generation. • Opportunities for increased wealth will develop as annual energy expenses are converted into locally owned assets. For example, solar systems or energy efficiency improvements will increase the value associated with housing and commercial buildings stocks. These same DER installations are subject to local code compliance and may trigger a reassessment of property values, thereby resulting in higher property tax revenues. Thus, the current annual expense for electricity that represents an outflow of community monies converts to an asset, benefiting constituents through increased property value, which provides new property tax revenue to the municipality.
• Developing locally owned assets will increase local jobs. For example, the cost to produce fuels (e.g. gasoline, electricity, natural gas, etc.) elsewhere that are imported into a community from distant refineries or electricity generating plants will be displaced by an increase in local labor and material needed to build out DER assets. This presents new wealth opportunities for constituents, and also benefits municipalities through increased income taxes and increased sales tax based on wages spent locally. • The potential for any emerging markets for carbon should be considered. Electricity is on a path to lower carbon production as renewable sources increasingly power individual homes, commercial buildings, and the broader utility distribution grid. The path to de-carbonize fossil fuels is less defined and will require market interventions. Stockton produces roughly
2.7 million metrics tons of carbon dioxide (mTCO2) annually through the use of fossil fuels and this can be reduced with the support of DER programs that drive the electrification of buildings and transportation
Distributed Energy Resource Potential
The following sections discuss DER opportunities relevant to CCA constituents. For the Energy Efficiency and Light Duty Electric Vehicles sections, we provide a baseline market profile and a summary of CCA programs that are currently open or recently closed, and a forecast of energy ATTACHMENT B 1534
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(MWh) impacts. For Distributed Generation (i.e., solar photovoltaic) and Demand Response, we do not provide an assessment of energy impacts but do provide a baseline market profile and a summary of CCA program that are in operation.
The operational CCA programs listed are constrained to programs where the CCA is either fully funding the program or where the CCA is provided supplemental funding for programs being implemented through other program administrators, such as regional energy networks. It should be noted that CCAs frequently promote programs being offered by other administrators without offering additional funding assistance and we have excluded references to these co-marketing efforts.
Energy Efficiency
Baseline Market Profile
Much of the funding for programs that promote the installation of DERs associated with electricity use in buildings, including energy efficiency, comes from public purpose funds (PPFs) collected as a non-bypassable charge on customer electricity bills at an average rate of $0.00998/kWh. Based on Stockton’s consumption in 2019 as presented in Table 15, this equates to a collection from Stockton ratepayers of about $16 million for that year. Annually, the CPUC reports to the State legislature on how PPFs are allocated to cover program costs and the CPUC report for 201929 indicated that funds collected from Stockton would be allocated to various DSM program categories as shown in Table 16. Importantly, this is not a statement about how much of the funds paid in PPF is actually remitted to Stockton through participation in DER programs, it is simply an estimate of how collected funds would be apportioned according to how PG&E allocates funds across broad DER program categories. .
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Table 16. Estimated Program Allocation of Stockton Public Purpose Finds Program Allocation
Estimated
($000)
Energy Efficiency 32% $5,168
Demand Response 11% $1,819
California Solar Initiative 1% $211
Self-Generation Incentive Program 10% $1,591
Electric Program Investment Charge 15% $2,389
California Alternative Rates for Energy 9% $1,535
Energy Savings Assistance 21% $3,442
Other PPP Programs 1% $90
Total 100% $16,245
PPP dollars used for energy efficiency can fund many different types of programs across all customer segments. These segments can be categorized as 1) statewide programs which serve the customers of all of California’s three investor-owned utilities, and 2) locally focused programs. Locally focused programs tend to target local constituents based on unique needs and include local government partnerships (LGPs), CCA administered programs, and regional energy networks (RENs). Table 17 compares per capita funding for counties with locally focused programs in 201830 including Marin County that has LGP, CCA, and REN programs, San Francisco that has LGP and REN programs, and counties such as Fresno and San Joaquin County that have only LGP programs.
Table 17. Examples of 2018 Local Program
Budgets by County ($ per Capita)
Locally Focused
Program Fresno
San
Francisco
San
Joaquin Marin
LGP $2.9 $4.4 $0.7 $3.3
REN $2.2 $2.2
CCA Pending $1.1
Total Funding $2.9 $6.65 $0.7 $6.6
30 PG&E 2018 Annual Budget Advice Letter
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The design and funding of LGP programs was revised in 2019 and these programs are largely being defunded beginning in 2020. Table 18 is a budget history for San Joaquin County’s LGP program funding, the Northern San Joaquin Valley Energy Watch program, from 2017 through 2019 and also the 2020 funding request of $0. Stockton benefits from the Northern San Joaquin Valley Energy Watch program because it is designed to address issues that are specific to San Joaquin County. Because there are no CCA and REN programs in the area, and the LGP is defunded, as of 2021 there will be no locally focused programs funded through PPFs collected from city (or county) constituents. This does not mean that EE programs will not be available to Stockton residents and businesses. Residents and businesses will still have access to all statewide programs being offered by PG&E and these programs cover the majority of EE, and other DER, opportunities across all market sectors. CCAs can still help PG&E drive participation in their programs, however the CCA staff tasked with this support would be funded through CCA operating income, or other sources, not through PPFs already being paid by city constituents.
Table 18. PG&E Local Government Program Budget History ($millions) Service Area 2017
Adopted
2018
Adopted
2019
Request
2020
Request
Northern San Joaquin Valley Energy
Watch $3.7 $1.5 $0.9 $0
PG&E Total Energy Watch budget $44.2 $44.8 $31.0 $16.0
Northern San Joaquin Valley Energy
Watch as % of PG&E LGP Budget 8% 3% 3% 0%
In terms of savings achieved through energy efficiency programs, Table 19 shows average incremental MWh savings for 2016 through 2019 based on our review of the California Energy Data and Reporting System (CEDARS) database for the PG&E service territory, San Joaquin County, and in the City of Stockton. The table simply shows where savings are being achieved at the sector level and is intended only to compare San Joaquin County and the City to PG&E overall, not if the level of savings (i.e., MWh) are proportionately correct based on local usage patterns and populations. On average, Stockton customers saved about 5,572 MWh energy each year through participation in PG&E EE programs. Of note is that Stockton had a higher percent of savings in the residential sector than in the commercial31 sector when 31 We define the commercial sectors as the commercial, industrial, and agricultural markets.
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compared to PG&E, which indicates that the markets for delivering EE savings (i.e., contractors, equipment venders, organizations that promote EE, etc.) are active in the city.
Table 19. Average Annual EE Savings by Sector
Sector MWh % MWh
PG&E SJ CO. Stockton PG&E SJ Co. Stockton
Residential 49,905 2,330 1,489 9.6% 19.8% 26.7%
Commercial 471,378 9,448 4,083 90.4% 80.2% 73.3%
Total 521,283 11,778 5,572 100.0% 100.0% 100.0%
Table 20 shows the average distribution of savings by measure category from 2016 through 2019 from CEDARS. High residential sector HVAC EE savings indicate a strong market for delivering successful air conditioning projects.
Table 20. Average Distribution of EE Savings by Measure Category Measure Category Residential Commercial
PG&E SJ Co. Stockton PG&E SJ Co. Stockton
Lighting 14.9% 7.3% 8.5% 22.1% 60.1% 67.8%
HVAC 21.0% 48.5% 56.7% 9.0% 9.6% 9.6%
Process 0.0% 0.0% 0.0% 11.7% 13.9% 8.3%
Refrigeration 8.0% 1.2% 1.6% 3.7% 6.5% 11.2%
Whole Building Retrofit 4.8% 15.8% 15.4% 1.6% 6.7% 2.6% Other 51.2% 27.3% 17.8% 51.8% 3.2% 0.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
CCA Programs
California’s CCAs offer several programs designed to increase the efficiency of fuel use, including programs intended to save fuel by switching from natural gas to electric appliances.
Table 21 lists EE programs currently being funded, either wholly or in part, by active CCAs.
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purpose funds collected from ratepayers and administered by MCE, while other programs are funded through other sources, such as CCA operating income or grants, or partially funded through other program administrators, such as RENs where the CCA provides supplemental funding. By and large these programs focus on the residential market and any of these programs are applicable to the Stockton market.
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Table 21. CCA EE Programs Currently Active
CCA Program Market Description
Program Type
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
Sonoma Clean Energy
Advanced
Energy Build
New
Construction
Enhancement of CAHP, $7,500 for Advanced Energy Home,
$12,500 for All Electric Home
Gridsaavy- Heat Pump
Water Heater Rebate
Residential and
Nonresidential
In partnership with BAYREN, SCP is offering its customers a $1,700-$2,000 rebate for replacing their existing water heater with a heat pump water heater
Induction
Cooking
Residential Small, portable induction cooktop units to borrow and try out at home
Lead Locally Other Select 16 local homes to receive free energy & money saving technology upgrades. Upgrades are valued at $5,000 or more East Bay
Com.
Energy
Community Innovation Grant
Other EBCE offers up to $160,000 in funding to non-profit and community organizations "for projects designed to deliver energy-related social and environmental benefits to residents of Alameda county."
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CCA Program Market Description
Program Type
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
Marin Clean Energy
MCE Healthy Homes Program
Residential Provides upgrades to improve the health, safety, and efficiency of Marin County homes (up to $5,000 in incentives) and multifamily properties (up to $2,250 in incentives per unit in addition to the Low Income Family and Tenants (LIFT) Program rebates)
Home Energy Savings Program
Residential Provides qualifying homeowners with free energy savings gift- box (includes a smart thermostat, kitchen faucet aerator, & other energy savings items), and a free virtual home energy assessment with a trained energy advisor
Heat Pump Water Heater Rebates
New
Construction
MCE, in partnership with Bay Area Regional Energy Network (BAYREN), is offering cash incentives to qualified contractors and installers on the purchase & installation of heat pump water heaters
Silicon Valley Clean Energy
Building
Electrification Technical Assistance
Non- Residential Free technical assistance for design of new buildings and upgrades Reach Code Development
Codes and
Standards
Develops reach codes that help encourage the construction of sustainable buildings and homes
Community
Engagement Grants
Other Awarded $75,000 in grant funding to six local nonprofits to reach underrepresented members of our community
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CCA Program Market Description
Program Type
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
Peninsula Clean Energy
Reach Codes
Codes and
Standards
Provides extensive technical assistance plus a $10,000 incentive to each city that brings reach codes to their councils Heat Pump Water Heater Program
Residential Peninsula Clean Energy is partnering with the Bay Area wide BAYREN Home+ program to offer additional rebates for installing Heat Pump Water Heaters for San Mateo County residents
Community Pilot Awards
Other PCE has awarded grants of up to $75,000 each for six innovative local pilot projects that reduce greenhouse gas emissions and deliver benefits to the communities of San Mateo County.
Lancaster Choice
Energy
Energy Advisor Program
Residential Free survey to highlight ways to use less energy around the house, including special financing programs for energy saving appliances and equipment.
Small Com DI
Program
Other Free energy saving products and free installation, such as lighting and refrigeration upgrades
Central Coast
Community Energy Reach Code Incentive Program Codes and Standards Onetime incentive payment of $15,000 to 3CE member jurisdictions to offset staff costs associated with the adoption of a reach code ordinance Multi-Unit Electrification Grants Residential Supports housing developers with incentives to choose all- electric residential building designs.
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Energy Impact Forecast
Our forecast for energy efficiency potential for the City is based on the CPUC’s California 2019 Energy Efficiency Potential and Goals Study.
32 This study establishes EE goals for
California’s four investor-owned utilities and provides detailed forecasts of EE potential, including various scenarios.
33 Our forecast methodology involves accessing EE potential data for PG&E’s service territory and using population ratios to define the potential in San Joaquin County and the City of Stockton. These data were analyzed to define a baseline savings forecast assuming only PG&E EE programs are active in the City, shown as the blue columns in Figure 21.
Once we defined baseline savings that will occur through PG&E programs, we estimated the incremental annual savings that could be achieved through CCA administered EE programs, as shown in the grey columns in Figure 21 and further detailed in Table 22 showing baseline savings, the total savings under our CCA program funding scenario and the incremental CCA program savings over a 10-year forecast horizon. To estimate these incremental savings, we reviewed actual EE savings data recorded in the CEDARs for program years 2016 through 2019 to assess what market sectors are most active in the county and city, and what type of measures are actually being installed. As discussed at Table 19 and Table 20, this analysis indicates that the city has been successful at achieving EE savings in the residential and commercial sectors, also discussed in greater detail in Appendix 2: Supplemental Information. The city has recorded no savings in the agricultural or industrial sectors. In addition, Appendix 2 also shows that the city has been successful at leveraging PG&E programs to install HVAC projects in the residential sector.
The incremental EE savings forecast for a Stockton CCA is based on a review of the performance of Marin Clean Energy (MCE) programs over time to estimate the savings achievable in Stockton through a comparable level of per capita CCA program funding. We chose MCE as our CCA prototype EE program administrator based on the longevity of their operation, experience as program administrators, and success at innovation. As discussed in our review of past savings performance, we expect that the most successful EE programs operated by a CCA would focus on the residential market with an emphasis on HVAC system upgrades.
32 These can be viewed online at Cubeplan (analytica.com) Final 2019 Potential and Goals Study 33 This online tool lets you explore the forecasted results California Investor Owned Utility (IOU) Rebate Programs. This forecast was generated by the 2019 Energy Efficiency Potential and Goals Study funded by the California Public Utilities Commission (CPUC). Accessed September 2020 at https://acp2.analytica.com/acpbeta/shared/#dash/fca42209-b98d-4e83-852f-3d075f99ce9b ATTACHMENT B 1543
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Table 22. Local Program Budgets for Various PGE Counties Year MWh
Baseline CCA
Scenario
Incremental
CCA
2023 7,730 8,607 877
2024 7,850 8,741 890
2025 8,101 9,020 919
2026 8,363 9,311 949
2027 8,492 9,455 963
2028 8,737 9,728 991
2029 9,110 10,143 1,033
2030 9,183 10,224 1,042
2031 9,110 10,143 1,033
2032 9,771 10,769 998
Figure 21. Annual Incremental EE MWh
Using these savings assumptions, Table 23 shows the annual program budget for a funding scenario similar to MCE, as discussed above, and the resulting economic benefits. The total program budget shown in Table 23 represent the total annual EE program costs to be funded through a CCA, including program administration costs (about 36% of budget) and programs incentives that would be paid to ratepayers or businesses installing the EE projects (about 64% of budget). The economic value in Table 23 represents our estimate of the value derived from these EE programs, including the total value of material installed, an estimate of what material would be produced locally, and the value of the local installation labor spent on these projects. 0 2,000
4,000
6,000
8,000
10,000
12,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
MWh
MWh Baeline MWh Incremetnal CCA
Baseline Savings
EE from CCA
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This is not intended to define the full economic benefit of EE but did serve as inputs into the broader economic impacts modelling appearing elsewhere in this report.
Table 23. Program Budgets and Economic Value
Year
Costs Economic Value
Total
Programs
Program
Admin
Program
Incentive
Total
Material
Locally
Produced
Material
Local
Installation
Labor
2023 $1,448,213 $512,914 $935,299 $1,870,597 $18,706 $2,338,247 2024 $1,499,321 $525,737 $973,583 $1,947,167 $19,472 $2,433,958 2025 $1,568,728 $538,881 $1,029,848 $2,059,695 $20,597 $2,574,619 2026 $1,641,992 $552,353 $1,089,639 $2,179,279 $21,793 $2,724,099 2027 $1,700,250 $566,162 $1,134,089 $2,268,178 $22,682 $2,835,222 2028 $1,776,400 $580,316 $1,196,085 $2,392,169 $23,922 $2,990,212 2029 $1,873,105 $594,823 $1,278,282 $2,556,564 $25,566 $3,195,704 2030 $1,930,357 $609,694 $1,320,663 $2,641,326 $26,413 $3,301,658 2031 $1,967,931 $624,936 $1,342,995 $2,685,990 $26,860 $3,357,487 2032 $1,970,505 $640,560 $1,329,945 $2,659,889 $26,599 $3,324,862 Light Duty Electric Vehicles
Baseline Market Profile
As presented in Table 15, gasoline and diesel vehicle fuels account for roughly 61% of our estimate of annual energy costs in Stockton. Most of these vehicles will have electric options in the coming years, however passenger cars and light-duty trucks account for the majority of fuel use and these vehicles will likely be the first markets where electric vehicle adoption occurs at scale. Our forecast of energy impacts and CCA programs focuses on the light duty vehicle market. We reviewed data from various sources, defined in Appendix 3: Data Sources, and Table 24 presents our estimate of fleet characteristics for these vehicles in San Joaquin County, indicating approximately 532,000 vehicles operating in 2019, the vast majority of which were gasoline fueled. Based on a ratio of the population of Stockton and San Joaquin County, we estimate that about 41% of these vehicles are located in the city.
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Table 24. San Joaquin County Fleet and Vehicle Characteristics Type Passenger
Cars
LightDuty
Trucks
Fleet Size 358,461 173,574
Fleet Distribution 67.4% 32.6%
Gas % 98.8% 99.8%
Diesel 1.2% 0.2%
MPG Gasoline 23 22
MPG Diesel 26 24
Mile/kWh Electric 4.0 2.8
kWh/Mile 0.3 0.4
kWh/gal 5.9 7.8
VMT 11,244 11,346
Annual Fuel Use (GGE) 480 524
kWh / Vehicle 2,811 4,085
mTCO2 vehicle / Year 5.0 5.5
Retirement VMT 120,000 120,000
Economically Useful Life (Years) 10.7 10.6
We also reviewed the 2018 California Vehicle Surveys, an analysis completed by the CEC to gain insights into vehicle types and driving patterns34. Table 25 provides additional detail on the passenger car market, including an analysis of fuel savings potential for low-income constituents, defined as households at or below 200% of the federal poverty level (FPL) and households above that threshold. This analysis indicated that converting the average lowincome household fleet of 1.8 cars to electric cars would save about $2,072 in fuel costs if charged at the average charging cost of $0.315 per kWh versus a fuel savings of $2,876 annually if these same constituents had access to off-peak charging on PG&E’s EV-A rate of $0.129 per kWh. We did not analyze the additional maintenance savings realized from EV ownership.
34 California Vehicle Survey
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Table 25. Estimated Annual Fuel Use and Costs Savings
Income Cohort
San Joaquin County California
Below
200% FPL
Above
200% FPL
SJ Co.
Avg.
Below
200% FPL
Above
200% FPL
State
Avg.
Miles per year
driven 9,544 11,838 11,244 10,281 9,760 9,810
Miles per gallon 18.7 25.0 24.1 25.9 29.2 28.9
Estimated
vehicles per
household
1.81 1.94 1.92 1.68 1.96 1.93
Estimated
Gallons per year
fuel
926 920 921 667 657 657
Est kWh 4,325 5,741 5,537 4,316 4,793 4,741
Est gasoline cost $3,434 $3,414 $3,416 $2,475 $2,437 $2,437 Est kWh cost -
Ave Statewide $1,363 $1,809 $1,745 $1,360 $1,510 $1,494 Est kWh cost -
PG&E Ave Off
Peak
$558 $741 $714 $557 $618 $612
Savings at Ave
Charging $/kWh $2,072 $1,605 $1,671 $1,115 $927 $943
Savings at PG&E
EV-A Off Peak $2,876 $2,674 $2,701 $1,918 $1,819 $1,825 Access to charging for low-income customers, including access to low-cost charging such as the PG&E EV-A off peak rate discussed at Table 24, is likely a barrier to EV adoption because many low-income customers reside in multifamily dwellings where access to charging is limited. This is due in part because of various market barriers in the multifamily sector ATTACHMENT B 1547
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consistent with those defined in the MultiCharge San Diego pilot project funded through the CEC35, including:
• Outreach to building owners, property managers, and electric vehicle drivers showed that recruiting eligible buildings is difficult for a variety of reasons. Specifically, the lack of awareness and demand for electric vehicles, installation costs, and the disruption to parking operations were the main challenges faced in recruiting buildings. • The cost of purchasing and installing electric vehicle service equipment (EVSE), the disruption to parking operations, and the lack of demand for EVs are the largest barriers preventing wider adoption of EVSE at multiple dwelling units (MDUs). At present there are very few numbers of EVs on the road and a disproportionately small share on the road that are owned by low-income MDU residents.
As discussed in the MultiCharge program report, “installing EVSE into existing MDUs can be challenging, and many site assessments performed concluded that it would either be cost prohibitive or technically unfeasible to install EVSE. Issues with capacity in the electrical panel and distances between utility meters, parking spaces and electrical panels, can be very expensive to upgrade in order install EVSE. As a result, numerous MDUs interested in EVSE dropped out after the site assessment and the estimate of installation costs was quantified. Also, the disruption to parking operations caused by EVSE presents a challenge in existing MDUs.
Moving or assigning parking spots can be very disruptive to the leasing contracts that stipulate and assign private or shared public parking spaces.”
In addition to access to on-site charging, it appears that access to public charging may also be limited for low-income multifamily residents. Because EV adoption to date has been targeted at higher income customers, it is possible that most public charging station are located in more affluent areas that have fewer low-income multifamily dwellings. While we did not identify specific research supporting this assumption, Figure 2236 shows the location of publicly available public EV charging stations and Figure 23. SB 535 Disadvantaged Community Map37 shows disadvantaged community areas (in red) in Stockton, as defined by SB 535, which appears to show a lack of public EV charging infrastructure. 35 MultiCharge San Diego. Prepared by ChargePoint for the California Energy Commission. February 2016, CEC-ARV-12-024
36 From Stockton, California EV Charging Stations | PlugShare accessed November 2020 37 At SB 535 Disadvantaged Communities | OEHHA (ca.gov) accessed November 2020 ATTACHMENT B 1548
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Figure 22. Public Charging Station Locations in Stockton Figure 23. SB 535 Disadvantaged Community Map
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The California Energy Commission has partnered with the Department of Motor Vehicles (DMV) to track the sales and population of light duty zero emission vehicles (ZEVs) in California.38 Based on these data,
Figure 24 shows an estimate of light duty vehicle populations in San Joaquin County, indicating that current EV saturation is approximately 0.9%.
Figure 24. Vehicle Population in San Joaquin County
EV adoption will be driven by many factors, including California’s goals of adopting 1.5 million light duty ZEVs in California by 2025 under Executive Order B-16-2012 and the adoption of 5 million light duty ZEVs in California by 2030 under Executive Order B-48-18 detailed in the CEC’s 2019 Integrated Energy Policy Report.39 Figure 25 provides our forecast of the adoption rate for light duty electric vehicles in Stockton necessary to meet the Governor’s overall EV adoption target for California by 2030, as defined in these executive orders.
Figure 25. Light Duty Vehicle Baseline Adoption
38 At https://www.energy.ca.gov/data-reports/energy-insights/zero-emission-vehicle-and-charger-statistics accessed October 2020
39 2019 Integrated Energy Policy Report
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CCA Programs
Most of California’s CCA’s are active in promoting EV solutions and Table 26 lists current programs funded through California’s CCAs. While all of these programs are applicable to a Stockton CCA, the Priority Zone Direct Current Fast Charging (DCFC) Incentives program offered by Silicon Valley Clean Energy should be reviewed based on the limitations and barriers to EV charging for low-income multifamily residents previously discussed.
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Table 26. CCA EV Programs Currently Active
CCA Program Market Description Program Type Incentives Financing Tech. Assist.
Info. & Ed.
Sonoma Clean Energy
GridSavvyEV Charger
Rebate
Residential A customer pays up front 50% of the cost of an EV vehicle charger, and once it is installed and
activated, SCP reimburses the customer for the
charges (installation charges not included)
Silicon Valley Clean Energy
FutureFit
Assist- EV
Charging
Residential Silicon Valley Clean Energy is providing
qualifying customers with free assistance to
install EV charging on the customer’s premises
Priority
Zone DC
Fast
Charging
(DCFC)
Incentives
Multifamily /
NonResidential Deployed near-certain clusters of multi-unit dwelling developments as a way to provide
more access to charging for residents
Peninsula Clean Energy
Used EV
Rebate
Program
Residential Provides qualifying customers with free
assistance to install EV charging.
New EV
Rebate
Program
Residential Peninsula Clean Energy will offer a customer a $700 rebate for new plug-in hybrid electric
vehicles or a $1,000 rebate for new all-battery
electric vehicles.
Lancaster Choice Energy
Ready,
Set,
Charge
Residential $250,000 in vouchers to eligible LCE customers to be used towards the purchase or lease of a
qualifying Electric Vehicle or Plug-in Hybrid
Vehicle.
Central Coast Com.Energy
Zero
Emission
School Bus
Program
Commercial Partnership between Central Coast Community
Energy and Monterey Bay Air Resources District,
to fund 100% of the cost to replace 6 traditional
school buses with electric buses
Energy Impact Forecast
Based on the fleet and vehicle characteristics defined in Table 24, Figure 26 provides our forecast of the MWh sales resulting from the EV adoption. A CCA scenario forecast for EV adoption was not run as there is general uncertainty about how such programs actually drive additional sales versus the role of the programs serving broader goals, such as addressing potential equity goals related to access to EV charging infrastructure.
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Figure 26. Annual EV MWh
Distributed Generation
Baseline Market Profile
This report’s review of the potential for distributed generation was limited to reviewing certain performance metrics related to San Joaquin County and identifying CCA programs related to distributed solar generation. Community or utility scale solar potential was not reviewed for this report. In general, Stockton and San Joaquin County have high solar insolation40 and it is unlikely there is a technical limit on the generating capacity that can be installed relative to city and county needs.
This report evaluated the California Solar Initiative (CSI) program impact in Madera, Merced, Fresno, and San Joaquin counties by using the CSI Working Dataset41 to get a general overview of the program’s installed generation capacity. This report also referred to the SOMAH (Solar on Multifamily Affordable Housing) dataset to see how CSI incentives have fared in this particular market within the four counties. CSI’s SOMAH program offers up to $100 million yearly in financial incentives to install PV systems in multifamily affordable housing communities. The CSI working data set revealed that San Joaquin produced the least amount of nameplate watts per capita out of the four counties, and the second least watts per person in the SOMAH dataset. Table 27 provides the cumulative nameplate watts per capita installed, indicating that, overall, participation in San Joaquin in each program has lagged behind the comparison counties.
40 A measure of the solar energy that is incident on a specified area over a set period of time. 41 At CaliforniaDGStats accessed October 2020
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
MWh
Annual EV MWh
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Table 27. Comparison of Installed Solar Capacity by County County Nameplate Watts per Capita
SOMAH CSI
Fresno 4 181.7
Madera 5.5 106.7
Merced 0.9 60.9
San Joaquin 2 50.8
An emerging regulatory issue is the misalignment of solar production with customer time of use demand. This report reviewed full year 2019 PG&E daily consumption history for Stockton customers and Figure 27 shows consumption data for PG&E rates during a 2019 weekday in August and also data from CAISO on solar production for that same day which shows the misalignment between solar output and residential demand. Driven by the need for air conditioning, residential demand peaks late in the day and into the evening as solar output drops, while small and medium commercial demand aligns well with the solar generation profile. In general, the misalignment of solar energy production with residential usage is discouraging CCA programs that incentivize residential solar installations that do not include the ability to manage evening peak loads. Instead, programs are incentivizing solar projects that must include storage batteries or thermostat controls to help manage evening residential peak loads.
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Figure 27. Summer Load Shape Comparisons
CCA Programs
Several California CCAs provide programs supporting customer installation of solar generation systems as summarized in Table 28, which focus on either solar that is combined with battery storage or providing incentives for installation on properties supporting incomequalified residents, including funding for direct installation. Any of these programs would be appropriate for application through a Stockton CCA.
0%
2%
4%
6%
8%
10%
12%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 % of Demand Profile
Hour
Residential Solar Production Small/Med Com
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Table 28. CCA DG Programs Currently Active
CCA Program Market Description
Program Type Incentives Financing Tech. Assist.
WE&TDirect Install
Marin
Clean
Energy
MCE's Solar
Rebate
Residential MCE has allocated
$535,000 in rebates to
income qualified MCE
customers and property
owners who install solar
Silicon
Valley
Clean
Energy
Lights on
Silicon Valley
Residential Develops a network of
customer-sited solar and
storage systems
Battery
Storage
Assistant
Residential and
Non-residential
Helps install battery
storage, solar, and/or
other clean power
technologies for homes
and businesses
Peninsula
Clean
Energy
Power On
Peninsula
Residential Up to $1,250 rebate on a
solar and battery backup system
Central Coast
Community Energy
Project
Sunshine:
Affordable
Housing Solar
Program
Residential Provides funding for 20
income-qualified
homeowners to receive
no-cost solar. Connects
people to clean energy
jobs by incorporating
workforce development
into each project.
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Demand Response
Baseline Market Profile
Demand response includes programs and strategies that reduce load during critical times, such as during grid reliability events or during peak price events when the cost of procuring and using electricity is high. Increasingly, IOU programs are focusing on the residential market because in many jurisdictions this is the primary source of demand during critical hours. This is illustrated in Figure 28, which shows average seasonal load shapes in 2019 by sector, including a large spike in residential demand during the summer, driven primarily by residential air conditioning load.
Figure 28. Average MW per Hour Seasonal Analysis by Market Sector Figure 29 shows the average 2019 seasonal load profile for the residential sector in Stockton, further illustrating the issue of high residential demand late during the day in the summer, including peak use late in the day as residents return home late in the day and turn on air conditioners and other appliances. Seasonal variation in residential daily demand profiles contrast with seasonal load profiles for the commercial sector, which are relatively constant as shown in Figure 30.
0.0 50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 Fall Spring Summer Winter
Average MW per Hour
Residential Large C&I Small-Med C&I Total
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Figure 29. 2019 Average Residential Daily Load Profile Weighted by Season Figure 30. 2019 Average Small-Medium Commercial Daily Load Profile Weighted by Season
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
1:00 AM2:00 AM3:00 AM4:00 AM5:00 AM6:00 AM7:00 AM8:00 AM9:00 AM 10:00 AM11:00 AM
12:00 PM
1:00 PM2:00 PM3:00 PM4:00 PM5:00 PM6:00 PM7:00 PM8:00 PM9:00 PM 10:00 PM11:00 PM
12:00 AM
% Average Daily Load Profile
Summer Fall Winter Spring
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
1:00 AM2:00 AM3:00 AM4:00 AM5:00 AM6:00 AM7:00 AM8:00 AM9:00 AM 10:00 AM11:00 AM
12:00 PM
1:00 PM2:00 PM3:00 PM4:00 PM5:00 PM6:00 PM7:00 PM8:00 PM9:00 PM 10:00 PM11:00 PM
12:00 AM
% Average Daily Load Profile
Summer Fall Winter Spring
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CCA Programs
We did not identify any CCA programs currently in operation that specifically address grid resiliency and reliability issues, or CCA power procurement strategies driven by residential peak demand. The programs in operation, as shown in Table 29, are intended to provide battery systems that manage the discrepancy between solar production and residential energy use, as also discussed at Table 28, or are programs that are intended to provide backup for critical equipment, such as the Power On Peninsula program that provides free backup portable batteries for medical needs.
Table 29. CCA DR Programs Currently Active
CCA Program Market Description Program Type Incentives Financing Tech. Assist.Direct Install
Silicon
Valley
Clean
Energy
Lights on
Silicon
Valley
Residential Develops a network of customer-sited
solar and storage systems
Battery
Storage
Assistant
Residential
and Nonresidential
Helps install battery storage, solar,
and/or other clean power technologies
for homes and businesses
Peninsula
Clean
Energy
Power On
Peninsula -
Medical
Device
Residential Free portable backup batteries for
medical needs
Power On
Peninsula
Residential Up to $1,250 rebate on a solar and
battery back-up system
Other Opportunities
Microgrids
Microgrids are local energy grids that can connect a set of buildings to power using distributed energy resources. They are known as an alternative to the traditional, larger utility driven power-grid because they produce and distribute power locally and can be relied upon when the larger grid fails. They can operate both alongside and independently from the central power grid. In a time when utility prices and demand are increasing, and power outages are commonly occurring, microgrids are becoming increasingly popular. In addition to their reliability, microgrids can also reduce energy costs. Although microgrids are still considered to be a newer ATTACHMENT B 1559
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technology, there are several successful microgrids providing power to facilities and communities across California.42
Figure 31 provides an illustrative example showing how a microgrid might apply to public facilities in downtown Stockton. This report did not assess the viability of such an installation but note that a microgrid is likely viable within a Stockton CCA service territory and may be a reasonable topic for further research. As of the development of this report, there are no CCA programs specifically designed to advance microgrid installations.
Figure 31. Example of Stockton Microgrid Area
42 At https://gridintegration.lbl.gov/ accessed October 2020 ATTACHMENT B 1560
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DER Implications for a Stockton CCA
CCA’s are serving as viable platforms to help drive the adoption of DERs. These programs are focused explicitly on the communities that the CCAs serve, and while the benefits can be significant, they require funding and organizational commitments to implement.
Our analysis of public purpose funds (PPFs) indicates that San Joaquin County and the city have lower per capita funding for locally focused programs than do other jurisdiction, such as the counties of Marin and San Francisco. Locally focused programs include local government partnerships (LGPs), CCA administered programs, and regional energy networks (RENs) that are designed to aggressively serve local needs. We estimate that in 2021 Marin and San Francisco counties will have approximately $6.60 in per capita in funding for locally focused programs, while San Joaquin County and the city will have no funding for these programs. This funding disparity is further compounded by the fact that residents in San Joaquin County use more energy per capita, and pay higher per capita PPFs, because SJV is a hot climate and energy used for air conditioning is higher than in Marin or San Francisco.
CCAs can help partially address this funding disparity by becoming program administrators that can access PPF’s to implement EE programs.
This does not mean that EE, and other DER programs, will not be available to Stockton residents and businesses. They will still have access to all programs offered by PG&E across their service territory and these programs cover the majority of DER opportunities across all market sectors. CCAs can still help PG&E drive participation in their programs, however the CCA staff tasked with this support would be funded through CCA operating income, or other sources, not through PPFs already being paid by city constituents. Beyond PPFs, other funds are available from the California Energy Commission and California Air Resources Board in the form on grants or low interest loans. CCAs can serve an important role in organizing strategies and accessing these funds on an ongoing basis, such as leveraging the city’s recent success accessing Transformative Climate Communities funds.
Our review finds that there is significant potential for DERs in Stockton that could in part be met through a CCA. For example, the adoption of electric vehicles will increase in the coming years, but barriers to installing EV charging systems at multifamily dwellings will likely have a disproportionate impact on low-income residents, of which a large percentage live in multifamily units. There are numerous existing and emerging technology and programmatic solutions to this barrier and a CCA could be an effective implementation platform for these solutions.
The adoption of distributed solar systems in San Joaquin county appear to lag behind other counites in the region, and several California CCAs have implemented programs that support solar projects that include battery storage systems. Solar projects that include battery systems help customers manage their energy costs, while also offering a utility an opportunity to better management the cost of electricity procured during summer peak periods. These programs could be replicated by a Stockton CCA.
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A Stockton CCA need not self-fund DER program, nor bear the full burden of program administration. Over the past several decades local programs have emerged that use funds collected through electricity bills to pay for energy efficiency and other types of DER investments. These programs address a community’s unique needs and have been managed by Local Government Partnerships, Regional Energy Networks (RENs) as well as CCAs. As of 2021, none of these local programs have operated in Stockton or San Joaquin County.
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Chapter 8. Macroeconomic Impacts
This chapter describes how the establishment and operation of a CCA will affect the economy of Stockton over the period from 2023 to 2032. The chapter describes how each of the components of the proposed Stockton CCA will impact the community:
• Start-up and operation of the CCA;
• Bill savings resulting from reduced rates;
• Locally developed solar generation;
• Energy Efficiency targeted to lower income residents and small businesses Each of these activities will produce multiple impacts with respect to jobs and income within the community. When communities purchase goods or services, such as electricity supply, from outside their region, the dollars flowing out are referred to as leakage. Up to this point, a significant portion of the dollars used to purchase electric service leak out of the City of Stockton and San Joaquin County. The CCA will reduce some leakage through purchases of goods and services that originate within the county. The operation of the CCA itself will create some jobs with income that can be spent locally. Most of the electric supply will still originate outside the area in the form of power purchase agreements made by the CCA but those purchases will produce lower electric rates, creating surplus dollars that can be spent within the Stockton economy. An increasing percentage of electric supply will consist of locally constructed and operated solar generation. This new generation will produce jobs and generate income that can be spent within the Stockton economy. Solar development will also increase the reliability and resilience of the local electric infrastructure, producing additional customer savings that are not addressed in this analysis. Much of the increased energy efficiency will be delivered by local contractors and their workers, producing additional energy savings for residents and businesses, and increasing affordability and business competitiveness Overview: How a CCA Will Affect the Local Economy
Types of Impacts. In general, effects occur via three mechanisms:
Direct CCA Administration and Operation Spending, Installation of Solar Generation, and Energy Efficiency Spending. For the CCA, this includes Start-Up and continuing operations, spending for staffing, supporting office equipment, and professional-technical services and I/Tdatabase services. Start-up operations is a short-term effect, while continuing operations is a long-term effect.
Energy Efficiency spending includes the costs of any local manufacturing/ assembly, costs of transporting equipment, warehousing, installation, supervision, and quality controls.
Solar generation installed within the city and the surrounding San Joaquin County will involve the cost of the solar generation equipment, its installation and maintenance, and operational integration within the electric grid serving Stockton.
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The direct spending will also result in the creation of jobs within Stockton and the surrounding area.
CCA spending will include a small number of jobs for start-up and additional long-term jobs for operations of the CCA. With the exception of data management, these jobs will be local and include office and administrative support, sales, business and financial operations, and management.
Solar generation jobs will be created for the construction of new solar generation within the city and/or surrounding area. These jobs will include a variety of construction jobs created during several periods over the next 10 years. Additionally, jobs will be created pertaining to the operations and maintenance of the solar installations, as well as the integration of the generation into the area electric grid.
Energy Efficiency work will focus on lower income homes and small businesses. This will include several job functions, including the transport of materials, (primarily heating, ventilation, and air conditioning (HVAC) equipment) to warehouses and job sites, contractor installation of efficient HVAC systems, home weatherization, supervision and quality control, and potential local fabrication.
Direct Effects on Energy Bill Savings. Cost savings provide local households with additional money to spend on local consumer goods and services. They provide local commercial and industrial energy customers with a reduction in their “cost of doing business,” which makes them competitive when serving wider markets. These savings enable commercial and industrial customers to grow further and increase employment. Municipal energy customers can provide more local services with the money saved on energy bills. These impacts will continue to grow over the long-term. Additional savings from energy efficiency sponsored by the CCA will further increase these effects.
Indirect and Induced Economic Impacts. The abovementioned economic effects will directly grow local economic activity, leading to further purchases from local suppliers of materials and services (referred to as “indirect effects”). The economic effects will also lead to re-spending of the additional worker wages on consumer purchases within the community (referred to as “induced effects”).
Direct, indirect, and induced effects occur over time. There is also a spatial component to these effects because the economy of Stockton can indirectly benefit from spillover impacts on supplier activities in surrounding parts of San Joaquin County and other adjacent counties. All of these various impact elements are covered in this report.
The Stockton CCA analysis also anticipates that additional benefits from energy efficiency will be provided to lower income residential customers and small businesses. Energy efficiency services will augment the direct, indirect, and induced effects described above through additional investment in the City of Stockton and the surrounding San Joaquin County. For example, additional jobs and associated income will result from direct installation of energy efficiency measures. Additionally, getting the materials and services to local residents will also ATTACHMENT B 1564
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require transport services to local warehouse and storage, the operation of warehouses, and further transport to job sites.
Analysis Methodology
In the following sections, we explain how the direct spending effect on Stockton is calculated on the basis of the expected CCA budget, and how the direct energy cost savings for Stockton customers are calculated on the basis of the expected change in energy rates and customer energy use, as well as additional energy efficiency services. The underlying factors that are the basis for these calculations are derived from energy scenarios and financial analyses in prior chapters.
To calculate the indirect and induced economic consequences, a multi-regional input-output (IO) economic model was used to represent the economy of Stockton and its interactions with the rest of San Joaquin County and other adjacent counties. An I-O model is an accounting system that shows how each type of industry/organization buys and sells products and services from other industries. It also shows the extent to which the inter-industry purchases and sales occur within the study area or occur as flows of money to and from industries located outside of the study area. This kind of accounting system makes it possible to calculate the expected indirect and induced economic effects that occur as a consequence of direct changes in spending and income among local industries. The economic modeling process also included estimates of how rate changes would affect the economic competitiveness and growth of local industries, as well as increased energy efficiency investments.
Spending Impacts from CCA Administration and Operations The setup and operation of a CCA comes at a cost, which is reflected in the rate impact calculations. However, this money is spent on employing local workers and purchases of materials and support services, some of which are also locally located. The spending therefore creates jobs and income in the local economy. This section explains the spending impact.
Calculation of CCA Start-Up and Operation Spending.
The estimated cost of a CCA start-up is $8.1 million (not including working capital), which will be spent within Stockton over the period of 2021-2022. That money will go to administrative services, computer and office equipment, and staff salaries. The tasks will include the setup and provision of customer enrollment or opt-out, financial accounting, and billing systems. These activities will generate income for local area workers and businesses, as well as suppliers located elsewhere in surrounding county areas. Table 30 shows start-up spending impacts.
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Table 30. Impacts of CCA Start-up
Over the long-term, there will be continued CCA operation with a staff assumed to be approximately 19 employees plus contractors, with an annual operating budget averaging $3.4 million/year. That budget will grow by an estimated 2.3% annual inflation over time, from $4.1 million in 2021 to $6.6 million by 2032. Table 31 shows a breakdown of the average yearly expenditures including administration, office operations, and purchases of professional services and data management from contractors. These activities will generate additional income within the economy of Stockton and surrounding areas. There are other costs associated with energy purchases in later years, including the payoff of start-up loans and PG&E exit fees that will affect CCA operating costs and energy rates, but these costs will not directly affect the local economy. Data management services are expected to be performed entirely outside the city and county and are not included in the impacts.
Table 31. Expected Breakdown of 2021-2032 Annual Average CCA Operation Spending Average Annual Operations Expenditures 2021-2032
Category Annual Averages
Administration - Labor $1.7
Administration – Non Labor $1.1
Professional Services $0.6
Data Management Contractor $2.7
Average Total Annual Expenditures $6.1*
Impact Measure Direct City Total Direct City TotalCity Total City Total Jobs 15 23
Wages Paid (2019$) $1.2 million $1.5 million
Gross Regional Product (2019$) $1.3 million $1.7 million Business Output (Revenue) (2019$) $1.8 million $2.9 million ATTACHMENT B 1566
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Economic Impact of CCA Operational Spending. The $6.1 million of average yearly CCA spending (from Table 31) will go into the pockets of workers, suppliers, and contractors, with some but not all being located in Stockton. These money flows are illustrated in the graphic below.
To calculate the economic impact of these money flows for Stockton, we utilized the IMPLAN input-output economic model. The model calculated the portion of direct CCA spending that will represent income to local workers and revenue for local product and service suppliers. This represents the “direct effect.” Specifically, the $18.4 million of the 2023-2032 CCA operations labor budget (from Table 31) was presumed to go to jobs located in Stockton. Regarding other CCA spending, it was also assumed that most of the professional service and supplier spending, but only a small share of the data management spending, will generate income in Stockton.
The economic model calculated how direct purchases of supplies and staff salaries will recirculate in the economy, leading to further “indirect” (supplier) impacts and “induced” (worker wage re-spending) impacts. The total of direct, indirect, and induced impacts is shown in the “City Total” column of Table 32. The results indicated a total impact on annual worker income in the city ($5.2 million/year) that is larger than the direct worker income impact ($3.3 million per year). The model results also show that the CCA budget spending will ultimately lead to a total average impact of $8.3 million per year of business revenue in Stockton.
Note that in Table 32, “output” represents total business sales (revenues) occurring in the study area. “GRP” is gross regional product, which is the portion of output that represents income to workers and net income to businesses. “Wages” represent the portion of GRP going to pay workers, suppliers and contractors, located in Stockton and surrounding counties. A small part of the spending may go to local manufacturers for equipment such as sheet metal fabrication for Heating, Ventilation, and Air Conditioning (HVAC) equipment installed by program contractors.
Share going to
the Stockton
Economy
Figure 32. CCA Spending Impact Flow
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Table 32. Impacts of CCA Operations Spending
Impacts from Solar Energy Installations
While most of the CCA’s renewable energy capacity will be provided through power purchase agreements (PPAs) the CCA plan includes the development of solar generation within the city and county. This involves construction, management, and maintenance, all throughout the feasibility study period. Figure 33 shows the incremental increases in solar capacity, starting with 2021, through the study period 2021-2032. Solar capacity will increase from 1 MW to 130 MW.
Figure 33. Solar Capacity Additions 2021- 2032 (MW)
Economic Impacts
Economic impacts from locally constructed solar are estimated to stem primarily from construction labor (100% in county). There are additional construction impacts from periodic construction spending, engineering services, O&M labor, and O&M parts and materials spending. The primary occupations in which jobs will be generated are concentrated in architecture and engineering, construction, legal services (for permitting and regulatory work), Impact Measure Direct City Total Direct City TotalCity Total City Total Jobs 16 29
Wages Paid (2019$) $2.2 million $2.8 million
Gross Regional Product (2019$) $2.3 million $3.0 million Business Output (Revenue) (2019$) $3.3 million $5.2 million -
20 40
60 80
100
120
140
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Incremental Solar Capacity
2021-2032 (MW)
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and building services (cleaning/maintaining solar equipment). Table 33 shows the economic impact contributions of the projected solar generation to the CCA’s overall impact.
Table 33. Impact from Solar Construction
Impact Measure Direct County Total
Jobs 45 70
Wages Paid (2019$) $3.3 million $4.4 million
Gross Regional Product (2019$) $4.4 million $6.4 million Business Output (Revenue) (2019$) $7.4 million $10.8 million Energy Bill Savings
Energy Consumption Projections
Stockton electricity customers will achieve savings in four ways. The first of these is in the form of bill savings due to reduced energy rates. Absent active energy efficiency initiatives, we do not project any significant decreases in energy consumption over between2023-2032. This relatively flat consumption pattern has been typical for California as a whole and is not expected to change in the near future. Thus, electric bill savings will result primarily from the reduced rates offered by the CCA.
Figure 34 shows expected energy consumption across all customer classes. The breakdown of electricity consumption is shown alongside the Figure 34.
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Figure 34. Energy Consumption Projection (MWh) by Class
Energy Bill Savings Due to Rate Reductions
To calculate the value of anticipated energy bill savings, we utilized information from prior chapters that calculate the expected rate reduction by rate class, and then multiplied it by the expected energy load occurring in each rate class. The expected savings in energy costs will be distributed across different rate classes and will affect the economy in different ways that are explained in the discussion of economic implications.
Calculation of Energy Bill Savings. Figure 35 shows the expected average rate reduction by rate class. These rate reductions are not guaranteed but use one-half of the expected annual margins.
The total expected energy bill savings for Stockton electricity customers is the product of the expected rate reduction multiplied by the expected level of consumption. For instance, the expected average rate savings in 2026 is roughly $12/MWh (Figure 35) and the expected consumption in that year is roughly 2.5 million MWh (Figure 34). Hence the total expected cost savings for that year is $12/MWh x 2.5 million MWh = $30 million.
Figure 35 shows the breakdown of cost savings by customer rate class for an average year. It shows that of the roughly $25.2 million in bill savings for an average year, 33% of the savings will be for residential customers, 24% will be for small commercial customers, 31% will be for Percentage of 2023 load by rate class
Residential 30%
Small commercial 24%
Medium/Large commercial 31%
Small industrial 13%
Large Industrial (yes, zero) 0%
Ag & Pumping 2%
Lighting 1%
Total 100%
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medium/large commercial customers and 13% will be for small industrial customers. Street lighting and agriculture customers account for the remainder.
Figure 35. Average Rate Reduction (dollars per MWh) by year and rate class The cost savings will vary over time. Figure 36 shows that the savings increases from roughly $10 million per year in 2023 to over $26 million per year by 2030. There is a dip in 2026-2027 due to debt payments on startup costs. The average energy bill savings for the 10-year period is actually $25.2 million per year for all customer segments combined.
Figure 36. Annual Energy Bill Savings for Stockton from reduced rates ($ millions) -$18.00
-$16.00
-$14.00
-$12.00
-$10.00
-$8.00
-$6.00
-$4.00
-$2.00
$0.00
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Residential
Sm Commercial
Medium large commercial
Large Industrial
Ag & Pumping
Lighting
$0
$5
$10
$15
$20
$25
$30
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
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Economic Impact of Energy Bill Savings. The expected energy bill savings will enable both additional consumer spending and business productivity benefits in the local economy. In the economic model, cost savings generate the following impacts:
• Energy bill cost savings for residential energy customers becomes added disposable income for Stockton residents, potentially generating additional local consumer spending.
• Energy bill cost savings for small-medium commercial energy customers represent added business income and increased business productivity. Commercial businesses typically pass on added net income in the form of lower prices for customers (thus increasing disposable household income) as well as added investment in expansion to create more jobs. Either way, the cost savings can increase the money available to be respent in the community. • Savings for industrial customers enables that sector of the economy to be more costcompetitive in serving broader markets beyond the local community. However, Stockton does not have large industrial activity so the competitiveness effect will be muted.
These money flows are captured by the economic model and are illustrated in the Figure 37 below. Some but not all of the money will flow to Stockton businesses. That direct effect, in turn, will lead to further “indirect” effects on sales for local product/ service suppliers as well as “induced” effects of worker wage re-spending.
Share going to
the Stockton
Economy
Figure 37. Bill Savings Impact Flow
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Total impacts on the growth of Stockton’s economy are shown in Table 34 below. Actual impacts will vary by year, reflecting differences in consumption as shown earlier in Figure 34.
Table 34. Impact of Energy Bill Savings, Annual Average: 2023-2032 Impacts from Energy Efficiency Implementation
This study anticipates new energy efficiency implementation, primarily in residences of lowincome customers and small businesses. This spending is in addition to energy efficiency provided through utility programs, state-funded programs, and other sources. The energy efficiency programs are projected to primarily improve/replace Heating, Ventilation, and Air Conditioning (HVAC) equipment, and add programmable thermostats for lower income residential customers. As with spending on CCA operations, energy efficiency spending impacts the Stockton economy and the surrounding San Joaquin area. This includes wages to pay workers, suppliers, and contractors located in Stockton and surrounding counties. A small part of the spending may go to local manufacturers of equipment such as sheet metal fabrication for equipment installed by program contractors. With a focus on HVAC equipment, which is manufactured outside the region, there will also be spending on transport, warehousing and distribution to contractors.
Table 35 below shows the average annual economic impact contributions of the projected energy efficiency measures to the CCA’s overall impact.
Impact Measure City TotalCity Total City Total
Jobs 235
Wages Paid (2019$) $9.3 million
Gross Regional Product (2019$) $13.0 million
Business Output (Revenue) (2019$) $21.2 million
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Table 35. Average Annual Energy Efficiency Impacts
What kinds of Jobs will be generated directly or indirectly by the CCA? The overall economic impact of the CCA represents the combined effect of CCA operational spending, energy cost savings, and their additional indirect and induced economic impacts. The energy efficiency and energy bill savings due to rate decreases will be the main sources of impact on the local economy, though the CCA operational spending will also contribute to local economic activity. Figure 38 shows the distribution of jobs tied to CCA activities. The figure shows the vast majority of jobs will be associated with the bill savings provided by the CCA.
Figure 38. Distribution of jobs by CCA Activity
Impact Measure Direct County Total
Jobs 34 44
Wages Paid (2019$) $3.3 million $3.8 million
Gross Regional Product (2019$) $4.3 million $5.1 million Business Output (Revenue) (2019$) $7.8 million $9.2 million CCA Start-up
6%
CCA Operations
7%
EE Implementation
11%
Bill Savings
59%
Solar Generation
17%
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Job Impacts by Industry Sector. The economic impact of CCA operations and associated energy bill and other savings will be distributed widely across all sectors of the Stockton economy. Figure 39 shows the potential distribution of jobs by industry associated with the creation and operation of the CCA. The figure shows that administration services, health care, and professional services are the sectors that will be impacted the most by the CCA in terms of jobs.
Figure 39. Job Distribution by Industry Type and Number Wholesale
Trade, 9
Arts &
Entertainment,
7 Other, 11
Admin Services,
68 Health Care, 57
Professional
Food & Services, 50
Accommodations,
39 Retail Trade, 39
Other Commercial
Services, 33
Small
Manufacturing, 31
Finance &
Insurance, 22
Real Estate, 17
Transport &
Warehousing,
11 Educational
Services, 9
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Chapter 9. Overview of Power Agency Design &
Implementation Process Options
Governance Model Options
In addition to selecting an operating structure, the City will decide between three primary governance options for the CCA:
1. Where the City is the sole government agency responsible for the CCA’s creation and operation,
2. Participation with other agencies in a Joint Powers Agency (JPA), where multiple agencies share oversight responsibilities for the new agency; or
3. Joining an existing CCA JPA.
Forming a Single City Agency
In a sole jurisdiction approach, the City maintains full flexibility—and responsibility—for developing policies and procedures. This means that they can be tailored to and responsive to the City’s stakeholders and constituents only and based upon their own objectives. The City would be responsible for setting policy priorities in general and making specific decisions about power generation, staffing policies, local economic development activities and strategies, the formulation of financial and debt policies, and the development of EE, demand response, electric vehicle (EV), and distributed generation programs. Along with greater autonomy, the City would assume all risk, liability, and costs associated with operating the CCA. In this case, the likely path would be for the City to establish the CCA as an enterprise fund, and work with appropriate legal counsel to explore options for controls and structural safeguards to insulate it and minimize risk to the City’s general fund.
The City would need to establish the CCA as an enterprise. Enterprises are commonly used for public utilities such as electric, water and wastewater, or other city functions where a public service is operated and provided in a manner similar to a business enterprise, where fees and charges are collected for services provided, and accounting and budgeting are separate from a city’s general fund. Setting the CCA up as an enterprise provides a structure where the revenues and expenditures are separated into different funds, budgeted for on their own, and reported on their own financial statements. In an enterprise, financial transactions are reported like business activity accounting; revenues are recognized when earned and expenses are recognized when incurred. Establishing an enterprise fund provides management and CCA customers with more visibility and accountability, and the ability to more easily separate and measure performance, analyze the impact of management decisions, determine the cost of providing electric service, and use this information to develop cost-of-service electric rates. Enterprise accounting will allow the City to demonstrate to customers, the public and other stakeholders, that the cost of power is being recovered through its rates, and not being subsidized or comingled with other City funds or functions.
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Within the City-Only option, the Stockton CCA would determine if it is to be a fully in-house operation with existing or added City Staff, or if the City would outsource some of all of the activities, with the City only administering contracts and managing vendors. Examples of some of the categories of operating activities that would need to be performed in-house or outsourced:
• Power procurement, scheduling
• Finance, budgeting, and accounting
• Coordinating with PG&E on billing
• Customer service
• Communications, outreach, and public relations
• Specific programs such as demand response, EE, EV, or rooftop solar PV • Regulatory monitoring and compliance, CPUC filings, etc.
The likely best short-term option would be to outsource the highly technical functions, and maintain some of the management, planning, and other public-facing functions like communications in-house. The range of options depends upon the degree of operating control the City wishes to maintain, the costs associated with maintaining those functions, and the degree of risk it is willing to accept on its own, or delegate to (and pay) third-party providers to assume.
No matter the amount of outsourcing, a CCA of Stockton’s size would eventually (i.e., within the first three years) require a core staff of experienced professionals for CCA-specific operations. This would include:
• Executive Director
• Finance Director
• Data/IT manager
• Power resources/procurement director
• Customer relations/outreach director
• Account service manager
• General Counsel
• Regulatory affairs director
If the Stockton CCA were to pursue additional services, such as their own energy efficiency, rooftop solar, or other customer-facing program, more managers would be needed.
Additionally, many of these would be supported by 1 or 2 support analyst professionals, some of whom could be shared with other Stockton departments.
All larger CCA have dedicated staffs of 15 – 40 employees. The closest analog to Stockton is San Jose Clean Energy (SJCE). SJCE is the only larger city with an enterprise CCA. Its planning documents show an eventual staff of 20.
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Forming a Joint Powers Agency
The second option would be the formation of a JPA, where the JPA is an independent agency that operates on behalf of the public agencies which are party to its creation. In this approach, the City effectively shares responsibility with the other agencies participating in the JPA. The divisions of these responsibilities and the sharing of decision-making authority would be determined at the time the JPA is created. Other critical ‘ground rules’ would also need to be negotiated and memorialized, such as financial and possibly staffing commitments of each participating agency, and the composition of the board and voting procedures.
Sections 6500 to 6536 of the California Government Code constitute the enabling legislation for Joint Powers Authorities, and the Public Utilities Code allows a CCA program to be carried out under a joint powers agreement between entities that each have the capacity to implement a CCA program individually. A JPA may be formed when it is to the advantage of two or more public entities with common powers to combine resources, or when local public entities wish to pool with other public entities to save costs and/or gain economies. It can also be employed to provide the JPA with powers and authority that participating entities might not have on their own. A JPA is a legal and separate public entity with the ability to enter contracts, issue debt, and provide public services, among other things, and like the City, it would have broad powers related to the operation and management of the CCA, and the study, promotion, development, and conduct of electricity-related projects and programs.
The JPA structure may reduce the risks of implementing a CCA program to the City by immunizing the financial assets of the City and the other participating agencies, and distributing the risks and costs associated with the CCA among the participating entities. It could also provide the benefits of scale and economy for certain aspects of CCA operation, such as power procurement or back office billing and accounting functions.
A CCA operated under a JPA could benefit from increased negotiating and buying power for power purchases, access to better financing terms for borrowing, and operating efficiencies gained by combining back-office functions such as billing and accounting. These benefits would accrue to customers through better pricing for power and debt, and ultimately more competitive electric rates. A larger JPA could also wield more political influence, which could be beneficial when participating in CPUC or other regional or state regulatory, legislative, or policy making activities.
Key tradeoffs to the benefits of a JPA are that decision making is allocated amongst the parties and management independence is diminished. Objectives of participating agencies will likely differ, and reduced autonomy can manifest when setting priorities for local generation, economic development activities, and the importance of support programs. When the JPA is formed, a Board must be appointed to set policy and make decisions. The makeup of this board is subject to negotiation among the participating entities but would likely be made up of elected officials from each participating agency. The process of determining the makeup of the board and each respective members’ voting weight can be based on several factors, such as the percentage of customers or load or relative financial contribution, but in any case, decision ATTACHMENT B 1578
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making is certainly more complicated. The number of stakeholder interests and priorities are multiplied, and in many cases, reaching consensus on key decisions is more complex and timeconsuming than if only one agency were involved.
A quantitative analysis of whether a JPA would benefit or reduce the financial prospects of the CCA, based upon the addition of specific agencies and their associated energy load, is beyond the scope of this report. Additional analysis would be necessary to determine if adding the load of other agencies to the load served by the Stockton CCA would create different demand patterns and peaks, or compound existing peaks, either of which might adversely impact Stockton CCA customers, or the customers of the other prospective JPA members.
A standard JPA would be possible for the City, but it would require joining with at least one other jurisdiction. This could include one or more of the neighboring cities who have already formed a CCA or are also considering CCA. If this option is to be pursued, discussions with potential partners would need to begin.
Joining an Existing Joint Powers Agency
If the City joins an existing CCA JPA, the start-up activities are simpler as the organization is already operating. However, the overall governance structure and policies would have to be established prior to joining an existing CCA program and could limit the ability of Stockton to influence CCA program actions or reflect Stockton’s particular priorities. The existing JPA may also require the City to make a payment towards the initial start-up and operating costs of that CCA program. CCAs in close geographic proximity to the city of Stockton include East Bay Community Energy, Marin County Energy, Sonoma Clean Power, and Pioneer Community Energy. It may be possible for Stockton to join one of these CCAs, but no formal outreach or request has been made at this time.
Financing
The CCA will need to evaluate the financing options available and the relative costs and benefits of each in consideration of the CCA’s risk tolerance. Financing options include:
Direct Loan from City (startup): The City could loan funds from the General Fund for all or a portion of the start-up needs. The City would be secured by the CCA revenues once launched.
The City would likely assess a risk-appropriate rate for such a loan which is likely higher than the City earns for funds otherwise invested. This rate is estimated to be 4.0 percent to 6.0 percent per annum.
Collateral Arrangement from City (startup and ongoing): As an alternative to a direct loan from the City, the City could establish an escrow account to backstop a lender’s exposure to the CCA. The City would agree to deposit funds in an interest-bearing escrow account which the lender could tap should the CCA revenues be insufficient to pay the lender directly.
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via a letter of credit, loan guarantee, or other promissory. The financial institution would not call upon the City unless the CCA was unable to make payment.
Loan from a Financial Institution without Support (startup and ongoing): At least one CCA, Silicon Valley Clean Energy Authority (SVCEA), was able to use this option to fund ongoing working capital. After members provided a total of $2.7 million in start-up funds, SVCEA has obtained a $20 million line of credit without collateral.
Vendor Funding (ongoing): The City can pursue arrangements with its power suppliers to eliminate or reduce the need for or size of funding for the start-up and operations. This could come in many forms such as a “lockbox” approach with a power provider. That is, the revenues that PG&E would collect on the CCA’s behalf would first go into a secured “lockbox” account, from which the power suppliers would be directly paid.
Short-term commercial paper (ongoing): Short-term commercial paper (less than nine months maturity typically) is usually not backed by any form of collateral and as such is a form of unsecured debt—however only large entities with high-quality debt ratings will find issuers without having a much higher cost for the debt issue. The CCA is a new entity and does not have an established credit history or recognized debt rating and as such access to this instrument would be difficult without the backing of the City’s General Fund.
Letters of credit (ongoing): These typically would be letters of credit required by the power producers/marketers, with the required level of extreme specificity and additional complexity and rigidity associated with these instruments. Typically, a letter of credit is issued by the entity’s existing Banker; as a new entity the CCA would need to explore this option with their potential Banker(s), and/or have the letter backed by the City’s General Fund.
The City of San Jose’s CCA (SJCE) is similar in size to a Stockton CCA. SJCE’s initial capital requirement will be provided from the City budget and via conventional financing methods (e.g., bank loans or lines of credit). Subsumed in the initial capital requirement is SJCE's initial start-up funding (up to $7.5 million), plus capitalized interest and fees on startup funding, which will be provided by the City of San Jose through the issuance of Commercial Paper and will be repaid by from the working capital financing. For the working capital financing, SJCE will make repayments (including any interest, as applicable) over an assumed 5-year term. SJCE will recover the principal and interest costs associated with the initial funding via retail generation rates charged by SJCE to its customers. It is anticipated that the initial working capital financing will be fully recovered through such customer generation rates within the first several years of operations.
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Chapter 10. Start-Up Schedule and Milestones
This section discusses phase-in options for the Stockton CCA, presents a general overview of the main implementation requirements for establishing a CCA and discusses the main parties with which the CCA interacts, set up requirements, and CCA structure.
General Implementation Schedule
An implementation timeline for a CCA startup in 2022 is shown in Table 36. The overall schedule is driven by CPUC requirements, which are shown in the second column.43 While there are a number of CPUC requirements for a new CCA, the factors driving the launch of the CCA are: submitting an implementation plan for CPUC approval one year prior to launch; meeting the RA requirement filing requirements throughout the year prior to launch; and meeting the customer notification requirements 90 days before launch. The detailed CPUC process is also discussed in the following section.
Through both legislation and regulation, PG&E is required to work cooperatively with a CCA during the exploration, implementation, and operation of the CCA. During the operation of the CCA, PG&E will provide electricity meter data to the CCA, bill customers, and remit customer payments back to the CCA. PG&E is also required to include customer notices with the utility billing statements on a cost basis for the CCA. Some CCAs in CA did not use utility billing statement inserts opting instead to use direct-mail notices providing requisite information about enrollment and opt-out.
43 Per CPUC Resolution 4907.
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Table 36. Implementation Schedule, Hypothetical CCA Launch in June 2023 Time PER CPUC Requirements COORDINATION WITH PG&E Internal CCAMid- year 2021
City Commit to CCA formation via Ordinance
Sept- Nov Draft Implementation Plan Establish City Enterprise/JPA/governance model Dec File Implementation Plan with CPUC
Hire CEO, Procurement Manager,
Finance Manager, Operations Manager
Jan22
CPUC notifies PG&E CPUC confirms it has the Implementation Plan CCA begins meetings with PG&E to confirm its operations will conform with PG&E's tariffs Issue RFPs for:
• Initial power provider • Scheduling coordinator (if
separate)
• EDI/ data management • Communications • Banking/finance services • Working capital loan Feb22
CCA provides draft customer notices
to CPUC public advisor Within 15 Days, CPUC PA finalizes notice and returns to CCA CCA submit registration packet to CPUC (signed service agreement with
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Time PER CPUC Requirements COORDINATION WITH PG&E Internal CCA PG&E, Bond amount currently
$147,000)
Mar-22
CPUC informs CCA regarding any Exit
Fees If the registration packet is complete, the CPUC confirms Registration as a CCA.
Evaluate Responses to RFPs
Apr-22 April 1: CCA submits year ahead RA forecast Negotiate with selected firms Jun-22 Have key contracts in place Jul-22 Begin public roll out
Aug-22 CCA submits its updated year ahead RA forecast
CCA Service Agreement
EDI Agreements Electronic Funds Transfer agreements
Set rate policies; Net Energy Metering (NEM)
Sep-22 CCA demonstrates RA compliance Issue Binding Notice of Intent Oct-22
October 15: CCAs submit their
January load migration forecast for the Resource Adequacy program.
EDI Testing
Mar-23 Send out 1st opt out notice Lock in power prices
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Time PER CPUC Requirements COORDINATION WITH PG&E Internal CCA Apr-23 Send out 2nd opt out notice Dec 1: Receive Customers Mass enrollment information from PG&E Set rates/ NEM compensation May-23 Utility shall transfer all applicable accounts to the new supplier June 1,
2032 Begin Phase 1 service
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Although not listed on the table, the CCA must also interact with the CAISO. The CAISO is an independent, non-profit organization which coordinates, controls, and monitors the state’s transmission, generation, and electric energy markets. The CAISO operates the CA wholesale power system which balances the need for higher transmission reliability with the need for lower costs. To become a CAISO market participant, a CCA must:
• Assign a certified Scheduling Coordinator (SC)44 to manage bids in the CAISO ancillary service and energy markets. The SC must both be specially trained in CAISO procedures and must have access to a secure communications link to the CAISO system through either the Internet or through the Energy Communications Network (ECN). • Develop and implement processes and systems to support resource interconnection • Utilize appropriate metering and telemetry where required45 • Participate in CAISO energy markets and related market products46
The CCA’s contracted power provider and/or SC would be responsible for addressing these requirements.
As described below, there are three main requirements associated with setting up a CCA: 1) participating in the CCA Open Season, 2) providing certain customer notifications, and 3) undergoing electronic communications compliance testing.
The CCA Open Season47 is a specific calendar period within which a CCA can voluntarily notify PG&E of the planned implementation date of its program. This notification limits the CCA’s exposure to additional stranded cost charges or exit fees. During Open Season, a CCA may submit a Binding Notice of Intent (BNI) informing PG&E of the number of customers by class and date that the CCA will serve, including arrangements for phased service. PG&E utilizes the BNI to modify power procurement forecasts to reflect loss of the CCA load. While Open Season participation is optional, it is an important tool for a CCA to limit customer cost exposure. Open Season occurs annually from January 1 through February 15 or as late as March 1 when the California Energy Commission (CEC) LSE Load Forecasts are due on or after May
1. Pursuant to CPUC Section 366.2(c)(3), a CCA must inform potential customers at least twice within two months (60 days) prior to the customers’ designated date of CCA enrollment as follows:
44 CAISO Scheduling Coordinators:
http://www.caiso.com/participate/Pages/SchedulingCoordinator/Default.aspx 45 Metering and telemetry ensure operational accuracy:
http://www.caiso.com/market/Pages/MeteringTelemetry/Default.aspx 46 CAISO market processes and products: http://www.caiso.com/market/Pages/MarketProcesses.aspx 47 PG&E Rule 27.2 Community Choice Aggregation Open Season:
http://regarchive.PG&E.com/tm2/pdf/ELEC_ELEC-RULES_ERULE_27_2.pdf ATTACHMENT B 1585
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• The customer is to be automatically enrolled in the CCA; • The customer has the right to opt out of the CCA without penalty; and • The terms and conditions of the services offered.
A similar notification must be made twice within two billing cycles subsequent to a customers’ enrollment in the CCA. The CCA must pay PG&E for providing these notices or can opt for direct mail notification.
Prior to launch, the electronic communications between the CCA and PG&E must be tested and verified. Communications with PG&E will be vital to ensuring successful CCA transactions related to electric meter reading and billing. PG&E uses the Electronic Data Interchange (EDI) standard to facilitate the electronic communications and data exchange with CCAs. As part of the process of working with PG&E to establish the CCA, PG&E will conduct EDI testing to ensure that operational data exchange is functioning prior to the CCA commencing service.
Requirements per CPUC Resolution 4907
As noted above, the CPUC must review certain actions of newly forming CCAs. CPUC Resolution E-4907 establishes the schedule for its process of review to coordinate the timeline of the mandatory forecast filings of the Commission’s Resource Adequacy program to ensure that newly launched and expanding CCAs comply with Resource Adequacy requirements, as established by Section 380, before they serve customers. Table 37 outlines the implementation schedule based on CPUC Resolution 4907.
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Table 37. CCA Implementation Schedule Per CPUC Resolution 4907 Date Action
Day 1, Year 1
(On or before January 1 Year
1)
(1) The prospective or expanding CCA submits its
Implementation Plan to Energy Division and serves it on selected docket service lists
Day 1 – 10, Year 1 (1) The CPUC notifies the Utility servicing the customers that are proposed for aggregation that an implementation plan initiating their CCA program has been filed.
Day 1 – 60, Year 1 (1) The CCA provides a draft customer notice to CPUC’s Public advisor.
(2) Within 15 days of receipt of the draft notice, the Public Advisor shall finalize that notice and send it to the CCA.
DAY 1 – 90, Year 1 (1) The CPUC sends a letter confirming that it has received the Implementation Plan and certifying that the CCA has satisfied the requirements of Section 366.2(c) (3).
(2) The CPUC provides the CCA with its findings regarding any cost recovery that must be paid by customers of the CCA in order to prevent cost shifting. (P.U. Code Section 366.2 (c) (7).)
(3) The CCA and the Utility should Meet-and-Confer
regarding the CCA’s ability to conform its operations to the Utility’s tariff requirements.
DAY 1 – 90, Year 1 (1) The CCA submits its registration packet to the CPUC, including:
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Date Action
a. Signed service agreement with the utility,
b. CCA interim bond of $100,000 or as determined in R.03- 10-003
Day 90 – 120, Year 1 (1) If the registration packet is complete, the CPUC confirms Registration as a CCA.
April, Year 1 (1) The CCA submits its year ahead Resource Adequacy forecast (P.U. Code Section 380)
August, Year 1 (1) The CCA submits its updated year-ahead RA forecast October Year 1 (75 days
before service commences)
(1) CCAs submit their Monthly load migration forecast for the Resource Adequacy program, filed about 75 days prior to the compliance month.
Within 60 days of the CCA’s
Commencement of Customer
Automatic Enrollment
(1) The CCA shall send its first opt-out notice.
Within 30 days of the CCA’s
Commencement of Customer
Automatic Enrollment
(1) The CCA shall send a second opt-out notice.
(2) Once notified of a CCA program, the Utility shall transfer all applicable accounts to the new supplier
January 1, Year 2 (1) CCA begins service.
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Conclusions
Overall, a CCA in Stockton appears feasible. Given current and expected market and regulatory conditions, a CCA should be able to offer its residents and business electric rates that are less than that available from PG&E.
Sensitivity analyses suggest that these results are relatively robust. None of the sensitivity cases explored resulted in the CCA not being able to offer rates that are competitive with PG&E.
Nonetheless, the margins are tighter in the first few years.
A Stockton CCA would also be well-positioned to help facilitate the installation of greater amounts renewable generation in the County. Because the CCA would have a much greater interest in developing local solar than PG&E, it is much more likely that such development would actually occur with a CCA than without it.
The CCA can also reduce the amount greenhouse gases emitted by the County, but only under certain circumstances. Because PG&E’s supply portfolio has significant carbon-free generation (large hydroelectric and nuclear generators), the CCA must contract for significant amounts of carbon-fee power above and beyond the required qualifying renewables in order to actually reduce the County’s electric carbon footprint. Therefore, if carbon reductions are a high priority for the CCEA, a concerted effort to contract with hydroelectric or other carbon-free generators would be needed.
A CCA can also offer positive economic development and employment benefits to Stockton. At the peak, the CCE could create approximately 300 new jobs in the Stockton area.
Stockton’s three options for CCA are forming a City-only enterprise, joining with an existing CCA, of forming a new JPA with neighboring jurisdictions. The primary benefits of forming a Stockton-only CCA are more local control over procurement practices and budgets, being able to offer services that are better tailored to Stockton, and faster implementation. The primary benefits of forming or joining a JPA are the reduced risk and in the case of an existing CCA, the security of joining with an already-operating entity and reduced administrative burden on City Staff, both in CCA formation and in ongoing management
Although this study suggests CCA program options could produce both environmental and economic benefits for Stockton, continuing service with PG&E remains an option for not only a community but also for any individual or business whose community has selected CCA service.
PG&E is an experienced power provider and is regulated by the state. Furthermore, remaining with PG&E takes no city action.
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Appendix 1: Summary of CCA Programs
Table 38. CCA Programs Currently Active
CCA Program Market Description
Program Type
Link
Program Status
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
Sonoma Clean Energy
Advanced Energy Build
New Construction Enhancement of CAHP, $7,500 for Advanced Energy Home, $12,500 for All Electric Home, 20% above T24 Advanced Energy Build Open Gridsavvy- Heat Pump Water Heater Rebate
Res and Non-Res
In partnership with Bay Area Regional Energy Network (BAYREN), SCP is offering its customers a $1,700-$2,000 rebate for replacing their existing water heater with a heat pump water heater Heat Pump Water Heater Rebate Open
GridSavvy- EV Charger Rebate
EV chargers
Pay 50% of the cost of an EV vehicle charger, and once it is installed and activated SCP reimburses the customer for the charges (installation charges not included) SCP Electric Vehicle Charging Equipment Open
Induction Cooking Res Small, portable induction cooktop units to borrow and try out at home Induction Cooktop Check Out Closed Lead Locally Other 16 local homes to receive free energy & money saving technology upgrades. Upgrades are valued at $5,000 or more Lead Locally Program Open
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CCA Program Market Description
Program Type
Link
Program Status
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
Marin Clean Energy
MCE Healthy Homes Program
Res
Provides upgrades to improve the health, safety, and efficiency of Marin homes (up to $5,000 in incentives) and multifamily properties (up to $2,250 in incentives per unit in addition to the Low-Income Family and Tenants Program rebates) MCE Healthy Homes Open
Home Energy Savings Program
Res
Provides qualifying homeowners with free energy savings gift-box (includes a smart thermostat, kitchen faucet aerator, & other energy savings items), and a free virtual home energy assessment with a trained energy advisor
Energy Savings for Your Contra Costa, Marin, Napa, or Solano Home (mcecleanenergy.org) Open
Heat Pump Water Heater Rebates
New Construction
MCE, in partnership with Bay Area Regional Energy Network (BAYREN), is offering cash incentives to qualified contractors and installers on the purchase & installation of heat pump water heaters MCE Heater Pump Water Heater Rebate
MCE's Solar Rebate
Solar
MCE has allocated $535,000 in rebates to income qualified MCE customers and property owners who install solar MCE solar Rebates Open
Silicon Valley
Clean Energy
Lights on Silicon Valley
Res Develops a network of customer-sited solar and storage systems Lights On Silicon Valley - SVCE (svcleanenergy.org) Open Battery Storage Assistant
Res and Non-Res
Helps install battery storage, solar, and/or other clean power technologies for homes and businesses Battery Assistant (svcleanenergy.org) Open
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CCA Program Market Description
Program Type
Link
Program Status
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
Priority Zone DC Fast Charging Incentive
Multifamily & Non-Res
Deployed near-certain clusters of multi-unit dwelling developments as a way to provide more access to charging for residents DC Fast Charging - SVCE (svcleanenergy.org) Open
FutureFit Assist- EV Charging
EV
Silicon Valley Clean Energy is providing qualifying customers with free assistance to install EV charging on the customer’s premises
FutureFit Assist - EV Charging - SVCE (svcleanenergy.org) Open
Building Electrification Tech.Asst
Non-Res Free technical assistance for design of new buildings and upgrades Building Electrification Technical Assistance - SVCE (svcleanenergy.org) Open
REACH Code Develop’t
Codes and Standards
Develops reach codes that help encourage the construction of sustainable buildings and homes Reach Codes - SVCE (svcleanenergy.org) Open
Innovation Onramp
Other
Working with local partners, such as research institutions and startup incubators who are deeply embedded in the innovation ecosystem of Silicon Valley Innovation - SVCE (svcleanenergy.org) Open
Comm’ty Engage=ment Grants
Other
Awarded $75,000 in grant funding to six local nonprofits to reach underrepresented members of our community Programs - SVCE (svcleanenergy.org) Open
Penins
ula
Clean
Used EV Rebate Program
EV
Provides qualifying customers with free assistance to install EV charging. Used EV Incentives | Peninsula Clean Energy Open
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CCA Program Market Description
Program Type
Link
Program Status
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
New EV Rebate Program
EV
Peninsula Clean Energy will offer a $700 rebate for new plug-in hybrid electric vehicles or a $1,000 rebate for new allbattery electric vehicles. New EV | Peninsula Clean
Energy Open
REACH codes
Codes and Standards
Provides extensive technical assistance plus a $10,000 incentive to each city that brings reach codes to their councils Reach Codes | Peninsula Clean Energy Open
Power On Peninsula - Medical Device
Res. Free portable backup batteries for medical needs Open Power On Peninsula Res. Up to $1,250 rebate on a solar and battery back-up system Power On Peninsula: Homeowner (peninsulacleanenergy.com) Open
Heat Pump Water Heater Program
Res.
Peninsula Clean Energy is partnering with the Bay Area wide BAYREN Home+ program to offer additional rebates for installing Heat Pump Water Heaters for San Mateo County residents
Heat pump water heater (HPWH) | Peninsula Clean Energy
Open
Community Pilot Awards
Other
PCE has awarded grants of up to $75,000 for innovative local pilot projects that reduce GHG emissions and deliver benefits to San Mateo County. Community Pilot Awards Open
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CCA Program Market Description
Program Type
Link
Program Status
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
Lancaster Choice Energy
Energy Advisor Program
Res.
Free survey to highlight ways to use less energy around the house, including special financing programs for energy saving appliances and equipment. Energy Advisor Program - Lancaster Choice Energy Open Grocery Workers Appreciation Program
Other
Provided eligible grocery workers who are LCE customers with a one-time credit (valued up to $50) toward their current LCE charges on their next electric bill during the hot summer months of COIVD-19.
Grocery Workers Appreciation Program - Lancaster Choice Energy Closed
Ready, Set Charge
EV
$250,000 in vouchers to eligible LCE customers to be used towards the purchase or lease of a qualifying Electric Vehicle or Plug-in Hybrid Vehicle. Programs & Rebates - Lancaster Choice Energy Open
Small Com DI Program
Other
Free energy saving products and free installation, such as lighting and refrigeration upgrades.
Small Commercial Direct
Install Program - Lancaster Choice Energy
Open
Central Coast Community
Energy (formerly
Monterey Bay Community Project Sushine: Affordabl e Housing Solar Res Provides funding for 20 income-qualified homeowners to receive no-cost solar. Connects people to clean energy jobs by incorporating workforce development into each project. Project Sunshine - 3CE (3cenergy.org) Open REACH Code Incentive Program Codes and Standards Onetime incentive payment of $15,000 to member jurisdictions to offset staff costs associated with the adoption of a reach code ordinance Reach Code Incentive Program - 3CE (3cenergy.org) Open
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CCA Program Market Description
Program Type
Link
Program Status
Incentives
Financing
Tech. Assist.
Info. & Ed.
WE&T
Direct Install
MultiUnit Electrification Grant Program
Res
Supports housing developers with incentives to choose all-electric residential building designs.
Multi-Unit Dwelling Electrification Grant Program - 3CE (3cenergy.org) Open
Ag Electrification Grant Program
Non-Res
Providing incentives to the Agricultural sector for the purpose of fuel switching heavy duty equipment and farm tools from fossil fuels to cleaner all-electric alternatives
Ag Electrification Grant
Program - 3CE (3cenergy.org)
Closed
Zero Emission School Bus Program
EV
Partnership with Monterey Bay Air Resources District to fund 100% of the cost to replace 6 traditional school buses with electric buses
Zero Emission School Bus
Program - 3CE (3cenergy.org)
Open
UPS Program for Critical Infrastructure
Other
Central Coast Community Energy allocated $25 million to create the Uninterruptible Power Supply Fund to accelerate the adoption of reliable backup power for eligible public and private entities operating critical facilities.
Uninterruptible Power Supply Fund Program - 3CE (3cenergy.org) Open
East Bay
Community
Energy
Community Innovation Grant
Other
Offers up to $160,000 in funding to nonprofit and community organizations "for projects designed to deliver energy-related social and environmental benefits to residents of Alameda county. Community Innovation Grant Open
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Appendix 2: Supplemental Information
Table A-1. Select County Metrics
Region County
Average
of CES
3.0 Score
% CARE
Eligibility
% of
Electricity
as NonRes %
Multifamily
Estimated Per
Capita Public
Purpose Funds
Paid
Central
Valley
San
Joaquin 41.2 40.1% 66% 12% $93
Madera 35.1 45.4% 72% 5% $106
Fresno 43.0 46.3% 62% 15% $72
Merced 44.8 47.2% 81% 8% $143
Mid
Coast
Contra
Costa 19.8 23.3% 70% 17% $86
Monterey 20.4 35.4% 73% 18% $53
Santa
Cruz 14.2 29.1% 54% 13% $55
San
Francisco 17.6 23.2% 74% 47% $81
Alameda 23.0 25.7% 72% 27% $63
San
Mateo 16.2 18.1% 64% 27% $70
Marin 8.8 18.9% 51% 20% $46
Central
Coast
Santa
Barbara 15.4 35.7% 72% 20% $77
San Luis
Obispo 12.0 29.4% 62% 10% $79
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Table A-2. San Joaquin County Fuel Use
Fuel Units Unit
Cost
Units
Consumed
Total Fuel Cost
Electricity kWh $0.21 5,583,337,799 $1,172,500,938
Natural
Gas
Therm $1.69 259,375,883 $438,345,242
Gasoline Gallons $3.99 347,000,000 $1,384,530,000
Diesel Gallons $3.92 126,000,000 $493,920,000
Total Annual $3,489,296,180
Table A-3. Distribution of Electricity Savings by Sector for Program Years 2016-2019 Sector
PG&E San Joaquin County Stockton
MWh
SJ
Co.MW
h
% of
PG&E
Savings
% of
Consumption MWh
% of
PG&E
Savings
% of
Consumption
Residential 49,904 2,329 4.7% 6.8% 1,489 3.0% 2.3%
Commercial 471,377 9,448 2.0% 7.4% 4,082 0.9% 2.0%
Total 521,285 11,778 2.3% 7.2% 5,572 1.1% 2.1%
Table A-4. Distribution of Electricity Savings by Sector for Program Year 2019 Details Sector PGE SJV Stockton
kWh kWh
%
PG&E kWh
%
PG&E
Residential 35,761,411 522,333 1.46% 317,744 0.89%
Commercial 77,511,661 3,943,449 5.09% 2,419,873 3.12%
Agricultural 12,550,342 1,301,922 10.37% 0 0.00%
Public 35,787,111 950,178 2.66% 391,523 1.09%
Industrial 5,202,788 746,149 14.34% 0 0.00%
Total 166,813,314 7,464,031 5.09% 3,129,140 3.12%
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Table A-5. Distribution of Savings by Measure Type, Program Years 2016 - 2019 Measure
Category
Residential Commercial
PG&E SJ Co. Stockton PG&E SJ Co. Stockton
Lighting 14.9% 7.3% 8.5% 22.1% 60.1% 67.8%
HVAC 21.0% 48.5% 56.7% 9.0% 9.6% 9.6%
Process 0.0% 0.0% 0.0% 11.7% 13.9% 8.3%
Refrigeration 8.0% 1.2% 1.6% 3.7% 6.5% 11.2%
Whole
Building
4.8% 15.8% 15.4% 1.6% 6.7% 2.6%
Other 51.2% 27.3% 17.8% 51.8% 3.2% 0.6%
Total 100% 100% 100% 100% 100% 100%
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Appendix 3: Data Sources
Data Set Name Contents Owner LinkAmerican
Communities Survey (ACS)
US Census Bureau
https://data.census.go
v/cedsci/
California Vehicle Survey (CVS)
"The California Vehicle Survey provides information on shifting transportation choice trends by capturing consumer preferences of various vehicle attributes. The California Energy Commission uses the survey to forecast transportation fuel needs in the state and to provide insights on key topics that inform transportation policy." CEC
https://www.energy.c
a.gov/assessments/vehiclesurvey/
CalEnviroScreen 3.0 (CES)
CalEnviroScreen identifies California communities by census tract that are disproportionately burdened by, and vulnerable to, multiple sources of pollution.
OEHHA https://oehha.ca.gov/c alenviroscreen
CPUC Income
Qualified Assistance Programs
CPUC https://www.cpuc.ca.g ov/iqap/
CARE Population Data CPUC
https://www.cpuc.ca.g
ov/general.aspx?id=12154
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Data Set Name Contents Owner LinkCalifornia Energy
Consumption Database
Offers data on electricity usage by county. Can specify data by sector (residential, non-residential, or total) CEC Electricity
Consumption by County (ca.gov)
California
Electric and Gas Utility Cost Report (AB 67)
Written report on the costs of programs and activities conducted by the four major electric and gas companies regulated by the CPUC.
CPUC California Electric & Gas Utility Cost Report
California Motor Vehicle Fuel Types
DMV
https://www.dmv.ca.g
ov/portal/dmvresearchreports/researchstudies-reports/ California DMV
Estimated Fee Paid Vehicle Registrations by County
DMV
https://www.dmv.ca.g
ov/portal/dmvresearchreports/researchstudies-reports/ California Electricity Data
California Energy data includes data on the following: electricity generation and production, generation reports, renewable energy maps, supply & demand outlook planning, consumption databases, infrastructure and transmission planning data, maps, reliability resources, California electric utilities CEC Energy Almanac (ca.gov)
CA Solar
Statistics
NEM Solar PV, California Solar Initiative, Low-Income Solar PV, Rule 21, SOMAH CPUC CA Solar Statistics
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Data Set Name Contents Owner Link
Energy Maps of California
"The California Energy Commission develops and maintains maps and geospatial information on California’s energy infrastructure and related activities. This public information is accessible through the cloud-based ArcGIS Hub, ArcGIS Online, PDF Maps, and interactive web maps." CEC CEC data & Reports
CARB Online Fleet Database
This tool provides access to on-road vehicle population estimates for California at the Census Block Group level. The estimates are generated based on vehicle registration data from California Department of Motor Vehicles.
CARB CARB Online Fleet Database
Residential
Energy Consumption Survey (RECS)
Includes various tables and datasets for the following categories: housing characteristics, consumption & expenditures, microdata, methodology EIA Residential Energy Consumption Survey
Residential Appliance Saturation Survey (RASS)
The California Residential Appliance Saturation Study (RASS) is a comprehensive look at residential energy use. The California Energy Commission (CEC) manages the study, which is based on the California Home Energy Survey. The survey collects information from residents about appliances, heating and cooling equipment, electric vehicles, and energy.
CEC Residential Appliance Saturation Study
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Data Set Name Contents Owner Link
Commercial Buildings Energy Consumption Survey (CBECS)
The Commercial Buildings Energy Consumption Survey (CBECS) is a national sample survey that collects information on the stock of U.S. commercial buildings, including their energyrelated building characteristics and energy usage data (consumption and expenditures). Commercial buildings include all buildings in which at least half of the floorspace is used for a purpose that is not residential, industrial, or agricultural. By this definition, CBECS includes building types that might not traditionally be considered commercial, such as schools, hospitals, correctional institutions, and buildings used for religious worship, in addition to traditional commercial buildings such as stores, restaurants, warehouses, and office buildings EIA
Commercial Buildings
Energy Consumption Survey
Commercial EndUse Survey (CEUS)
The California Commercial End-Use Survey (CEUS) is a comprehensive study of commercial sector energy use. The California Energy Commission uses the survey to collect commercial sector energy consumption and end-use profiles.
CEC California Commercial End-Use Survey
Carbon Dioxide
Emissions Coefficients
EIA CO2 Emissions Coefficients by Fuel
California Energy
Data and Reporting
CPUC CEDARS Home
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Data Set Name Contents Owner LinkSystem
(CEDARS)
Annual Database
Revenue Vehicle Inventory
Contains information on revenue vehicles by mode and type of service (TOS) on agency property at the end of each fiscal year. NTD 2017 Annual Database
Revenue Vehicle Inventory
State by State
Fuel Taxes
Info on federal and state-level taxes on gasoline, diesel, and misc. fuels EIA State by State Fuel Taxes
CA EV and
Charger by County
Live data on California's vehicle population, new electric vehicle sales, electric vehicle chargers, and hydrogen stations. Organizes data by county.
CEC Vehicle Population in California
CARB database applications CARB
California Air
Resources Board Resource Directory
PVRAM - PG&E DER grid conditions
PG&E
https://www.pge.com/
en_US/for-ourbusinesspartners/distributionresourceplanning/distributionresource-planningdataportal.page?ctx=largebusiness PG&E PSPS info PG&E
Learn about Public
Safety Power Shutoffs (PSPS) (pge.com)
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Data Set Name Contents Owner Link
PG&E PSPS maps PG&E
https://www.pge.com/
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ATTACHMENT B
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October 2019 121 MRW & Associates, LLC
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ATTACHMENT B
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East Bay Community Energy Authority
- Joint Powers Agreement –
Effective December 1, 2016
As amended by Resolution No. 2018-23 dated June 20, 2018 Among The Following Parties:
County of Alameda
City of Albany
City of Berkeley
City of Dublin
City of Emeryville
City of Fremont
City of Hayward
City of Livermore
City of Newark
City of Oakland
City of Piedmont
City of Pleasanton
City of San Leandro
City of Tracy
City of Union City
ATTACHMENT C 1606
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EAST BAY COMMUNITY ENERGY AUTHORITY
JOINT POWERS AGREEMENT
This Joint Powers Agreement (“Agreement”), effective as of December 1, 2016, is made and entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) of the California Government Code relating to the joint exercise of powers among the parties set forth in Exhibit A (“Parties”). The term “Parties” shall also include an incorporated municipality or county added to this Agreement in accordance with Section 3.1.
RECITALS
1. The Parties are either incorporated municipalities or counties sharing various powers under California law, including but not limited to the power to purchase, supply, and aggregate electricity for themselves and their inhabitants.
2. In 2006, the State Legislature adopted AB 32, the Global Warming Solutions Act, which mandates a reduction in greenhouse gas emissions in 2020 to 1990 levels. The California Air Resources Board is promulgating regulations to implement AB 32 which will require local government to develop programs to reduce greenhouse gas emissions.
3. The purposes for the Initial Participants (as such term is defined in Section 1.1.16 below) entering into this Agreement include securing electrical energy supply for customers in participating jurisdictions, addressing climate change by reducing energy related greenhouse gas emissions, promoting electrical rate price stability, and fostering local economic benefits such as jobs creation, community energy programs and local power development. It is the intent of this Agreement to promote the development and use of a wide range of renewable energy sources and energy efficiency programs, including but not limited to State, regional and local solar and wind energy production.
4. The Parties desire to establish a separate public agency, known as the East Bay Community Energy Authority (“Authority”), under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) (“Act”) in order to collectively study, promote, develop, conduct, operate, and manage energy programs.
5. The Initial Participants have each adopted an ordinance electing to implement through the Authority a Community Choice Aggregation program pursuant to California Public Utilities Code Section 366.2 (“CCA Program”). The first priority of the Authority will be the consideration of those actions necessary to implement the CCA Program.
6. By establishing the Authority, the Parties seek to:
(a) Provide electricity rates that are lower or competitive with those offered by PG&E for similar products;
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(b) Offer differentiated energy options (e.g. 33% or 50% qualified renewable) for default service, and a 100% renewable content option in which customers may “opt-up” and voluntarily participate;
(c) Develop an electric supply portfolio with a lower greenhouse gas (GHG) intensity than PG&E, and one that supports the achievement of the parties’ greenhouse gas reduction goals and the comparable goals of all participating jurisdictions; (d) Establish an energy portfolio that prioritizes the use and development of local renewable resources and minimizes the use of unbundled renewable energy credits; (e) Promote an energy portfolio that incorporates energy efficiency and demand response programs and has aggressive reduced consumption goals;
(f) Demonstrate quantifiable economic benefits to the region (e.g. union and prevailing wage jobs, local workforce development, new energy programs, and increased local energy investments);
(g) Recognize the value of workers in existing jobs that support the energy infrastructure of Alameda County and Northern California. The Authority, as a leader in the shift to a clean energy, commits to ensuring it will take steps to minimize any adverse impacts to these workers to ensure a “just transition” to the new clean energy economy;
(h) Deliver clean energy programs and projects using a stable, skilled workforce through such mechanisms as project labor agreements, or other workforce programs that are cost effective, designed to avoid work stoppages, and ensure quality; (i) Promote personal and community ownership of renewable resources, spurring equitable economic development and increased resilience, especially in low income communities;
(j) Provide and manage lower cost energy supplies in a manner that provides cost savings to low-income households and promotes public health in areas impacted by energy production; and
(k) Create an administering agency that is financially sustainable, responsive to regional priorities, well managed, and a leader in fair and equitable treatment of employees through adopting appropriate best practices employment policies, including, but not limited to, promoting efficient consideration of petitions to unionize, and providing appropriate wages and benefits.
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AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows:
ARTICLE 1
CONTRACT DOCUMENTS
1.1 Definitions. Capitalized terms used in the Agreement shall have the meanings specified below, unless the context requires otherwise.
1.1.1 “AB 117” means Assembly Bill 117 (Stat. 2002, ch. 838, codified at Public Utilities Code Section 366.2), which created CCA.
1.1.2 “Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.)
1.1.3 “Agreement” means this Joint Powers Agreement.
1.1.4 “Annual Energy Use” has the meaning given in Section 1.1.23.
1.1.5 “Authority” means the East Bay Community Energy Authority established pursuant to this Joint Powers Agreement.
1.1.6 “Authority Document(s)” means document(s) duly adopted by the Board by resolution or motion implementing the powers, functions and activities of the Authority, including but not limited to the Operating Rules and Regulations, the annual budget, and plans and policies.
1.1.7 “Board” means the Board of Directors of the Authority.
1.1.8 “Community Choice Aggregation” or “CCA” means an electric service option available to cities and counties pursuant to Public Utilities Code Section 366.2.
1.1.9 “CCA Program” means the Authority’s program relating to CCA that is principally described in Sections 2.4 and 5.1.
1.1.10 “Days” shall mean calendar days unless otherwise specified by this Agreement.
1.1.11 “Director” means a member of the Board of Directors representing a Party, including an alternate Director.
1.1.12 “Effective Date” means the date on which this Agreement shall become effective and the East Bay Community Energy Authority shall exist as a separate public agency, as further described in Section 2.1.
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1.1.13 “Ex Officio Board Member” means a non-voting member of the Board of Directors as described in Section 4.2.2. The Ex Officio Board Member may not serve on the Executive Committee of the Board or participate in closed session meetings of the Board.
1.1.14 “Implementation Plan” means the plan generally described in Section
5.1.2 of this Agreement that is required under Public Utilities Code Section 366.2 to be filed with the California Public Utilities Commission for the purpose of describing a proposed CCA Program.
1.1.15 “Initial Costs” means all costs incurred by the Authority relating to the establishment and initial operation of the Authority, such as the hiring of a Chief Executive Officer and any administrative staff, any required accounting, administrative, technical and legal services in support of the Authority’s initial formation activities or in support of the negotiation, preparation and approval of power purchase agreements. The Board shall determine the termination date for Initial Costs.
1.1.16 “Initial Participants” means, for the purpose of this Agreement the County of Alameda, the Cities of Albany, Berkeley, Emeryville, Oakland, Piedmont, San Leandro, Hayward, Union City, Fremont, Dublin, and Livermore.
1.1.17 “Operating Rules and Regulations” means the rules, regulations, policies, bylaws and procedures governing the operation of the Authority.
1.1.18 “Parties” means, collectively, the signatories to this Agreement that have satisfied the conditions in Sections 2.2 or 3.1 such that it is considered a member of the Authority.
1.1.19 “Party” means, singularly, a signatory to this Agreement that has satisfied the conditions in Sections 2.2 or 3.1 such that it is considered a member of the Authority.
1.1.20 “Percentage Vote” means a vote taken by the Board pursuant to Section
4.12.1 that is based on each Party having one equal vote.
1.1.21 “Total Annual Energy” has the meaning given in Section 1.1.23.
1.1.22 “Voting Shares Vote” means a vote taken by the Board pursuant to Section 4.12.2 that is based on the voting shares of each Party described in Section 1.1.23 and set forth in Exhibit C to this Agreement. A Voting Shares vote cannot take place on a matter unless the matter first receives an affirmative or tie Percentage Vote in the manner required by Section
4.12.1 and three or more Directors immediately thereafter request such vote.
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1.1.23 “Voting Shares Formula” means the weight applied to a Voting Shares Vote and is determined by the following formula:
(Annual Energy Use/Total Annual Energy) multiplied by 100, where (a) “Annual Energy Use” means (i) with respect to the first two years following the Effective Date, the annual electricity usage, expressed in kilowatt hours (“kWh”), within the Party’s respective jurisdiction and (ii) with respect to the period after the second anniversary of the Effective Date, the annual electricity usage, expressed in kWh, of accounts within a Party’s respective jurisdiction that are served by the Authority and (b) “Total Annual Energy” means the sum of all Parties’ Annual Energy Use.
The initial values for Annual Energy use are designated in Exhibit B and the initial voting shares are designated in Exhibit C. Both Exhibits B and C shall be adjusted annually as soon as reasonably practicable after January 1, but no later than March 1 of each year subject to the approval of the Board.
1.2 Documents Included. This Agreement consists of this document and the following exhibits, all of which are hereby incorporated into this Agreement.
Exhibit A: List of the Parties
Exhibit B: Annual Energy Use
Exhibit C: Voting Shares
1.3 Revision of Exhibits. The Parties agree that Exhibits A, B and C to this Agreement describe certain administrative matters that may be revised upon the approval of the Board, without such revision constituting an amendment to this Agreement, as described in Section 8.4. The Authority shall provide written notice to the Parties of the revision of any such exhibit.
ARTICLE 2
FORMATION OF EAST BAY COMMUNITY ENERGY AUTHORITY
2.1 Effective Date and Term. This Agreement shall become effective and East Bay Community Energy Authority shall exist as a separate public agency on December 1, 2016, provided that this Agreement is executed on or prior to such date by at least three Initial Participants after the adoption of the ordinances required by Public Utilities Code Section 366.2(c)(12). The Authority shall provide notice to the Parties of the Effective Date. The Authority shall continue to exist, and this Agreement shall be effective, until this Agreement is terminated in accordance with Section 7.3, subject to the rights of the Parties to withdraw from the Authority.
2.2 Initial Participants. Until December 31, 2016, all other Initial Participants may become a Party by executing this Agreement and delivering an executed copy of this Agreement and a copy of the adopted ordinance required by Public Utilities Code Section 366.2(c)(12) to the Authority. Additional conditions, described in Section 3.1, may apply (i) to either an ATTACHMENT C 1611
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incorporated municipality or county desiring to become a Party that is not an Initial Participant and (ii) to Initial Participants that have not executed and delivered this Agreement within the time period described above.
2.3 Formation. There is formed as of the Effective Date a public agency named the East Bay Community Energy Authority. Pursuant to Sections 6506 and 6507 of the Act, the Authority is a public agency separate from the Parties. The debts, liabilities or obligations of the Authority shall not be debts, liabilities or obligations of the individual Parties unless the governing board of a Party agrees in writing to assume any of the debts, liabilities or obligations of the Authority. A Party who has not agreed to assume an Authority debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Parties agree to assume the debt, liability or obligation of the Authority. Notwithstanding Section 8.4 of this Agreement, this Section 2.3 may not be amended unless such amendment is approved by the governing boards of all Parties.
2.4 Purpose. The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to each Party and any other powers granted to the Authority under state law to participate as a group in the CCA Program pursuant to Public Utilities Code Section 366.2(c)(12); to study, promote, develop, conduct, operate, and manage energy and energy-related climate change programs; and, to exercise all other powers necessary and incidental to accomplishing this purpose.
2.5 Powers. The Authority shall have all powers common to the Parties and such additional powers accorded to it by law. The Authority is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following:
2.5.1 to make and enter into contracts, including those relating to the purchase or sale of electrical energy or attributes thereof;
2.5.2 to employ agents and employees, including but not limited to a Chief Executive Officer and General Counsel;
2.5.3 to acquire, contract, manage, maintain, and operate any buildings, works or improvements, including electric generating facilities;
2.5.4 to acquire property by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property;
2.5.5 to lease any property;
2.5.6 to sue and be sued in its own name;
2.5.7 to incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers such as Government Code Section 53850 et seq. and authority under the Act;
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2.5.8 to form subsidiary or independent corporations or entities, if appropriate, to carry out energy supply and energy conservation programs at the lowest possible cost consistent with the Authority’s CCA Program implementation plan, risk management policies, or to take advantage of legislative or regulatory changes;
2.5.9 to issue revenue bonds and other forms of indebtedness;
2.5.10 to apply for, accept, and receive all licenses, permits, grants, loans or other assistance from any federal, state or local public agency;
2.5.11 to submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;
2.5.12 to adopt rules, regulations, policies, bylaws and procedures governing the operation of the Authority (“Operating Rules and Regulations”);
2.5.13 to make and enter into service, energy and any other agreements necessary to plan, implement, operate and administer the CCA Program and other energy programs, including the acquisition of electric power supply and the provision of retail and regulatory support services; and
2.5.14 to negotiate project labor agreements, community benefits agreements and collective bargaining agreements with the local building trades council and other interested parties.
2.6 Limitation on Powers. As required by Government Code Section 6509, the power of the Authority is subject to the restrictions upon the manner of exercising power possessed by the City of Emeryville and any other restrictions on exercising the powers of the Authority that may be adopted by the Board.
2.7 Compliance with Local Zoning and Building Laws. Notwithstanding any other provisions of this Agreement or state law, any facilities, buildings or structures located, constructed or caused to be constructed by the Authority within the territory of the Authority shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities, buildings or structures are constructed and comply with the California Environmental Quality Act (“CEQA”).
2.8 Compliance with the Brown Act. The Authority and its officers and employees shall comply with the provisions of the Ralph M. Brown Act, Government Code Section 54950 et seq.
2.9 Compliance with the Political Reform Act and Government Code Section 1090. The Authority and its officers and employees shall comply with the Political Reform Act (Government Code Section 81000 et seq.) and Government Code Section 1090 et seq, and shall adopt a Conflict of Interest Code pursuant to Government Code Section 87300. The Board of ATTACHMENT C 1613
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Directors may adopt additional conflict of interest regulations in the Operating Rules and Regulations.
ARTICLE 3
AUTHORITY PARTICIPATION
3.1 Addition of Parties. Subject to Section 2.2, relating to certain rights of Initial Participants, other incorporated municipalities and counties may become Parties upon (a) the adoption of a resolution by the governing body of such incorporated municipality or county requesting that the incorporated municipality or county, as the case may be, become a member of the Authority, (b) the adoption by an affirmative vote of a majority of all Directors of the entire Board satisfying the requirements described in Section 4.12, of a resolution authorizing membership of the additional incorporated municipality or county, specifying the membership payment, if any, to be made by the additional incorporated municipality or county to reflect its pro rata share of organizational, planning and other pre-existing expenditures, and describing additional conditions, if any, associated with membership, (c) the adoption of an ordinance required by Public Utilities Code Section 366.2(c)(12) and execution of this Agreement and other necessary program agreements by the incorporated municipality or county, (d) payment of the membership fee, if any, and (e) satisfaction of any conditions established by the Board.
3.2 Continuing Participation. The Parties acknowledge that membership in the Authority may change by the addition and/or withdrawal or termination of Parties. The Parties agree to participate with such other Parties as may later be added, as described in Section 3.1.
The Parties also agree that the withdrawal or termination of a Party shall not affect this Agreement or the remaining Parties’ continuing obligations under this Agreement.
ARTICLE 4
GOVERNANCE AND INTERNAL ORGANIZATION
4.1 Board of Directors. The governing body of the Authority shall be a Board of Directors (“Board”) consisting of one director for each Party appointed in accordance with Section 4.2.
4.2 Appointment of Directors. The Directors shall be appointed as follows:
4.2.1 The governing body of each Party shall appoint and designate in writing one regular Director who shall be authorized to act for and on behalf of the Party on matters within the powers of the Authority. The governing body of each Party also shall appoint and designate in writing one alternate Director who may vote on matters when the regular Director is absent from a Board meeting. The person appointed and designated as the regular Director shall be a member of the governing body of the Party at the time of appointment but may continue to serve as a Director following his/her term as a member of the Party’s governing body until a new Director is appointed pursuant to the timing in Section 4.3. The person appointed and designated as the alternate Director shall also be a member of the governing body of a Party and the alternate may continue to serve ATTACHMENT C 1614
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as an alternate following his/her term as a member of a Party’s governing body until a new alternate is appointed pursuant to the timing in Section
4.3. 4.2.2 The Board shall also include one non-voting ex officio member as defined in Section 1.1.13 (“Ex Officio Board Member”). The Chair of the Community Advisory Committee, as described in Section 4.9 below, shall serve as the Ex Officio Board Member. The Vice Chair of the Community Advisory Committee shall serve as an alternate Ex Officio Board Member when the regular Ex Officio Board Member is absent from a Board meeting.
4.2.3 The Operating Rules and Regulations, to be developed and approved by the Board in accordance with Section 2.5.12 may include rules regarding Directors, such as meeting attendance requirements. No Party shall be deprived of its right to seat a Director on the Board.
4.3 Term of Office. Each regular and alternate Director shall serve at the pleasure of the governing body of the Party that the Director represents and may be removed as Director by such governing body at the time. If at any time a vacancy occurs on the Board because a Director is no longer a member of a Party’s governing body, the Party shall appoint a replacement to fill the position of the previous Director in accordance with the provisions of Section 4.2.1 within ninety (90) days of the date that such Director is no longer a member of a Party’s governing body or for any other reason that such position becomes vacant.
4.4 Quorum. A majority of the Directors of the entire Board shall constitute a quorum, except that less than a quorum may adjourn a meeting from time to time in accordance with law.
4.5 Powers and Function of the Board. The Board shall conduct or authorize to be conducted all business and activities of the Authority, consistent with this Agreement, the Authority Documents, the Operating Rules and Regulations, and applicable law. Board approval shall be required for any of the following actions, which are defined as “Essential Functions”:
4.5.1 The issuance of bonds or any other financing even if program revenues are expected to pay for such financing.
4.5.2 The hiring of a Chief Executive Officer and General Counsel.
4.5.3 The appointment or removal of an officer.
4.5.4 The adoption of the Annual Budget.
4.5.5 The adoption of an ordinance.
4.5.6 The initiation of resolution of claims and litigation where the Authority will be the defendant, plaintiff, petitioner, respondent, cross complainant or cross petitioner, or intervenor; provided, however, that the Chief ATTACHMENT C 1615
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Executive Officer or General Counsel, on behalf of the Authority, may intervene in, become party to, or file comments with respect to any proceeding pending at the California Public Utilities Commission, the Federal Energy Regulatory Commission, or any other administrative agency, without approval of the Board. The Board shall adopt Operating Rules and Regulations governing the Chief Executive Officer and General Counsel’s exercise of authority under this Section 4.5.6.
4.5.7 The setting of rates for power sold by the Authority and the setting of charges for any other category of service provided by the Authority.
4.5.8 Termination of the CCA Program.
4.6 Executive Committee. The Board shall establish an Executive Committee consisting of a smaller number of Directors. The Board may delegate to the Executive Committee such authority as the Board might otherwise exercise, subject to limitations placed on the Board’s authority to delegate certain Essential Functions, as described in Section 4.5 and the Operating Rules and Regulations. The Board may not delegate to the Executive Committee or any other committee its authority under Section 2.5.12 to adopt and amend the Operating Rules and Regulations or its Essential Functions listed in Section 4.5. After the Executive Committee meets or otherwise takes action, it shall, as soon as practicable, make a report of its activities at a meeting of the Board.
4.7 Director Compensation. Directors shall receive a stipend of $100 per meeting, as adjusted to account for inflation, as provided for in the Authority’s Operating Rules and Regulations.
4.8 Commissions, Boards and Committees. The Board may establish any advisory commissions, boards and committees as the Board deems appropriate to assist the Board in carrying out its functions and implementing the CCA Program, other energy programs and the provisions of this Agreement. The Board may establish rules, regulations, policies, bylaws or procedures to govern any such commissions, boards, or committees and shall determine whether members shall be compensated or entitled to reimbursement for expenses.
4.9 Community Advisory Committee. The Board shall establish a Community Advisory Committee consisting of nine members and three alternates, none of whom may be voting members of the Board. One alternate from the pool of three alternates may take the place of a Community Advisory Member when a Community Advisory Committee member cannot attend a meeting. The Community Advisory Committee member that is unable to attend a meeting must notify the alternates of their inability to attend and obtain confirmation that one of the Alternates can attend the Community Advisory Committee meeting in that member’s place.
The function of the Community Advisory Committee shall be to advise the Board of Directors on all subjects related to the operation of the CCA Program as set forth in a work plan adopted by the Board of Directors from time to time, with the exception of personnel and litigation decisions. The Community Advisory Committee is advisory only, and shall not have decision making authority, or receive any delegation of authority from the Board of Directors. The Board shall publicize the opportunity to serve on the Community Advisory Committee and shall ATTACHMENT C 1616
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appoint members of the Community Advisory Committee and Alternates from those individuals expressing interest in serving, and who represent a diverse cross-section of interests, skill sets and geographic regions. Members of the Community Advisory Committee shall serve staggered four-years terms (the first term of three of the members shall be two years, and four years thereafter), which may be renewed. A member or Alternate of the Community Advisory Committee may be removed by the Board of Directors by majority vote. The Board of Directors shall determine whether the Community Advisory Committee members will receive a stipend or be entitled to reimbursement of expenses.
4.10 Chief Executive Officer. The Board of Directors shall appoint a Chief Executive Officer for the Authority, who shall be responsible for the day-to-day operation and management of the Authority and the CCA Program. The Chief Executive Officer may exercise all powers of the Authority, including the power to hire, discipline and terminate employees as well as the power to approve any agreement, if the expenditure is authorized in the Authority’s approved budget, except the powers specifically set forth in Section 4.5 or those powers which by law must be exercised by the Board of Directors. The Board of Directors shall provide procedures and guidelines for the Chief Executive Officer exercising the powers of the Authority in the Operating Rules and Regulations.
4.11 General Counsel. The Board of Directors shall appoint a General Counsel for the Authority, who shall be responsible for providing legal advice to the Board of Directors and overseeing all legal work for the Authority.
4.12 Board Voting.
4.12.1 Percentage Vote. Except when a supermajority vote is expressly required by this Agreement or the Operating Rules and Regulations, action of the Board on all matters shall require an affirmative vote of a majority of all Directors on the entire Board (a “Percentage Vote” as defined in Section
1.1.20). A supermajority vote is required by this Agreement for the matters addressed by Section 8.4. When a supermajority vote is required by this Agreement or the Operating Rules and Regulations, action of the Board shall require an affirmative Percentage Vote of the specified supermajority of all Directors on the entire Board. No action can be taken by the Board without an affirmative Percentage Vote. Notwithstanding the foregoing, in the event of a tie in the Percentage Vote, an action may be approved by an affirmative “Voting Shares Vote,” as defined in Section
1.1.22, if three or more Directors immediately request such vote.
4.12.2 Voting Shares Vote. In addition to and immediately after an affirmative percentage vote, three or more Directors may request that, a vote of the voting shares shall be held (a “Voting Shares Vote” as defined in Section
1.1.22). To approve an action by a Voting Shares Vote, the corresponding voting shares (as defined in Section 1.1.23 and Exhibit C) of all Directors voting in the affirmative shall exceed 50% of the voting share of all Directors on the entire Board, or such other higher voting shares percentage expressly required by this Agreement or the Operating Rules ATTACHMENT C 1617
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and Regulations. In the event that any one Director has a voting share that equals or exceeds that which is necessary to disapprove the matter being voted on by the Board, at least one other Director shall be required to vote in the negative in order to disapprove such matter. When a voting shares vote is held, action by the Board requires both an affirmative Percentage Vote and an affirmative Voting Shares Vote. Notwithstanding the foregoing, in the event of a tie in the Percentage Vote, an action may be approved on an affirmative Voting Shares Vote. When a supermajority vote is required by this Agreement or the Operating Rules and Regulations, the supermajority vote is subject to the Voting Share Vote provisions of this Section 4.12.2, and the specified supermajority of all Voting Shares is required for approval of the action, if the provision of this Section 4.12.2 are triggered.
4.13 Meetings and Special Meetings of the Board. The Board shall hold at least four regular meetings per year, but the Board may provide for the holding of regular meetings at more frequent intervals. The date, hour and place of each regular meeting shall be fixed by resolution or ordinance of the Board. Regular meetings may be adjourned to another meeting time. Special and Emergency meetings of the Board may be called in accordance with the provisions of California Government Code Section 54956 and 54956.5. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law.
4.14 Officers.
4.14.1 Chair and Vice Chair. Prior to the end of the fiscal year, the Directors shall elect, from among themselves, a Chair, who shall be the presiding officer of all Board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The newly elected Chair and Vice Chair shall commence serving in those capacities on July 1, except that no separate election shall be required for Fiscal Year 2018-2019 and the Chair and Vice Chair elected in 2018 shall continue to serve until the end of the 2018-2019 Fiscal Year. The Chair and Vice Chair shall hold office for one year and serve no more than two consecutive terms, however, the total number of terms a Director may serve as Chair or Vice Chair is not limited. The office of either the Chair or Vice Chair shall be declared vacant and the Board shall make a new selection if: (a) the person serving dies, resigns, or ceases to be a member of the governing body of a Party that person represents, except if the person is continuing to serve on the Board after that person no longer serves on the governing body in conformance with section 4.2.1; (b) the Party that the person represents removes the person as its representative on the Board, or (c) the Party that the person represents withdraws from the Authority pursuant to the provisions of this Agreement.
4.14.2 Secretary. The Board shall appoint a Secretary, who need not be a member of the Board, who shall be responsible for keeping the minutes of all meetings of the Board and all other official records of the Authority.
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4.14.3 Treasurer and Auditor. The Board shall appoint a qualified person to act as the Treasurer and a qualified person to act as the Auditor, neither of whom needs to be a member of the Board. The same person may not simultaneously hold both the office of Treasurer and the office of the Auditor of the Authority. Unless otherwise exempted from such requirement, the Authority shall cause an independent audit to be made annually by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. The Treasurer shall act as the depositary of the Authority and have custody of all the money of the Authority, from whatever source, and as such, shall have all of the duties and responsibilities specified in Section 6505.5 of the Act. The Board may require the Treasurer and/or Auditor to file with the Authority an official bond in an amount to be fixed by the Board, and if so requested, the Authority shall pay the cost of premiums associated with the bond.
The Treasurer shall report directly to the Board and shall comply with the requirements of treasurers of incorporated municipalities. The Board may transfer the responsibilities of Treasurer to any person or entity as the law may provide at the time.
4.15 Administrative Services Provider. The Board may appoint one or more administrative services providers to serve as the Authority’s agent for planning, implementing, operating and administering the CCA Program, and any other program approved by the Board, in accordance with the provisions of an Administrative Services Agreement. The appointed administrative services provider may be one of the Parties. The Administrative Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the CCA Program and other approved programs.
The Administrative Services Agreement shall set forth the term of the Agreement and the circumstances under which the Administrative Services Agreement may be terminated by the Authority. This section shall not in any way be construed to limit the discretion of the Authority to hire its own employees to administer the CCA Program or any other program.
4.16 Operational Audit. The Authority shall commission an independent agent to conduct and deliver at a public meeting of the Board an evaluation of the performance of the CCA Program relative to goals for renewable energy and carbon reductions. The Authority shall approve a budget for such evaluation and shall hire a firm or individual that has no other direct or indirect business relationship with the Authority. The evaluation shall be conducted at least once every two years.
ARTICLE 5
IMPLEMENTATION ACTION AND AUTHORITY DOCUMENTS
5.1 Implementation of the CCA Program.
5.1.1 Enabling Ordinance. Prior to the execution of this Agreement, each Party shall adopt an ordinance in accordance with Public Utilities Code ATTACHMENT C 1619
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Section 366.2(c)(12) for the purpose of specifying that the Party intends to implement a CCA Program by and through its participation in the Authority.
5.1.2 Implementation Plan. The Authority shall cause to be prepared an Implementation Plan meeting the requirements of Public Utilities Code Section 366.2 and any applicable Public Utilities Commission regulations as soon after the Effective Date as reasonably practicable. The Implementation Plan shall not be filed with the Public Utilities Commission until it is approved by the Board in the manner provided by Section 4.12.
5.1.3 Termination of CCA Program. Nothing contained in this Article or this Agreement shall be construed to limit the discretion of the Authority to terminate the implementation or operation of the CCA Program at any time in accordance with any applicable requirements of state law.
5.2 Other Authority Documents. The Parties acknowledge and agree that the operations of the Authority will be implemented through various documents duly adopted by the Board through Board resolution or minute action, including but not necessarily limited to the Operating Rules and Regulations, the annual budget, and specified plans and policies defined as the Authority Documents by this Agreement. The Parties agree to abide by and comply with the terms and conditions of all such Authority Documents that may be adopted by the Board, subject to the Parties’ right to withdraw from the Authority as described in Article 7.
5.3 Integrated Resource Plan. The Authority shall cause to be prepared an Integrated Resource Plan in accordance with CPUC regulations that will ensure the long-term development and administration of a variety of energy programs that promote local renewable resources, conservation, demand response, and energy efficiency, while maintaining compliance with the State Renewable Portfolio standard and customer rate competitiveness. The Authority shall prioritize the development of energy projects in Alameda and adjacent counties. Principal aspects of its planned operations shall be in a Business Plan as outlined in Section 5.4 of this Agreement.
5.4 Business Plan. The Authority shall cause to be prepared a Business Plan, which will include a roadmap for the development, procurement, and integration of local renewable energy resources as outlined in Section 5.3 of this Agreement. The Business Plan shall include a description of how the CCA Program will contribute to fostering local economic benefits, such as job creation and community energy programs. The Business Plan shall identify opportunities for local power development and how the CCA Program can achieve the goals outlined in Recitals 3 and 6 of this Agreement. The Business Plan shall include specific language detailing employment and labor standards that relate to the execution of the CCA Program as referenced in this Agreement. The Business Plan shall identify clear and transparent marketing practices to be followed by the CCA Program, including the identification of the sources of its electricity and explanation of the various types of electricity procured by the Authority. The Business Plan shall cover the first five (5) years of the operation of the CCA Program. Progress on the implementation of the Business Plan shall be subject to annual public review.
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5.5 Labor Organization Neutrality. The Authority shall remain neutral in the event its employees, and the employees of its subcontractors, if any, wish to unionize.
5.6 Renewable Portfolio Standards. The Authority shall provide its customers renewable energy primarily from Category 1 eligible renewable resources, as defined under the California RPS and consistent with the goals of the CCA Program. The Authority shall not procure energy from Category 3 eligible renewable resources (unbundled Renewable Energy Credits or RECs) exceeding 50% of the State law requirements, to achieve its renewable portfolio goals. However, for Category 3 RECs associated with generation facilities located within its service jurisdiction, the limitation set forth in the preceding sentence shall not apply.
ARTICLE 6
FINANCIAL PROVISIONS
6.1 Fiscal Year. The Authority’s fiscal year shall be 12 months commencing July 1 and ending June 30. The fiscal year may be changed by Board resolution.
6.2 Depository.
6.2.1 All funds of the Authority shall be held in separate accounts in the name of the Authority and not commingled with funds of any Party or any other person or entity.
6.2.2 All funds of the Authority shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of the Authority shall be open to inspection by the Parties at all reasonable times.
6.2.3 All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its Operating Rules and Regulations. The Treasurer shall draw checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board.
6.3 Budget and Recovery Costs.
6.3.1 Budget. The initial budget shall be approved by the Board. The Board may revise the budget from time to time through an Authority Document as may be reasonably necessary to address contingencies and unexpected expenses. All subsequent budgets of the Authority shall be prepared and approved by the Board in accordance with the Operating Rules and Regulations.
6.3.2 Funding of Initial Costs. The County shall fund the Initial Costs of establishing and implementing the CCA Program. In the event that the CCA Program becomes operational, these Initial Costs paid by the County and any specified interest shall be included in the customer charges for ATTACHMENT C 1621
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electric services to the extent permitted by law, and the County shall be reimbursed from the payment of such charges by customers of the Authority. The Authority may establish a reasonable time period over which such costs are recovered. In the event that the CCA Program does not become operational, the County shall not be entitled to any reimbursement of the Initial Costs.
6.3.4 Additional Contributions and Advances. Pursuant to Government Code Section 6504, the Parties may in their sole discretion make financial contributions, loans or advances to the Authority for the purposes of the Authority set forth in this Agreement. The repayment of such contributions, loans or advances will be on the written terms agreed to by the Party making the contribution, loan or advance and the Authority.
ARTICLE 7
WITHDRAWAL AND TERMINATION
7.1 Withdrawal.
7.1.1 General Right to Withdraw. A Party may withdraw its membership in the Authority, effective as of the beginning of the Authority’s fiscal year, by giving no less than 180 days advance written notice of its election to do so, which notice shall be given to the Authority and each Party.
Withdrawal of a Party shall require an affirmative vote of the Party’s governing board.
7.1.2 Withdrawal Following Amendment. Notwithstanding Section 7.1.1, a Party may withdraw its membership in the Authority following an amendment to this Agreement provided that the requirements of this Section 7.1.2 are strictly followed. A Party shall be deemed to have withdrawn its membership in the Authority effective 180 days after the Board approves an amendment to this Agreement if the Director representing such Party has provided notice to the other Directors immediately preceding the Board’s vote of the Party’s intention to withdraw its membership in the Authority should the amendment be approved by the Board.
7.1.3 The Right to Withdraw Prior to Program Launch. After receiving bids from power suppliers for the CCA Program, the Authority must provide to the Parties a report from the electrical utility consultant retained by the Authority comparing the Authority’s total estimated electrical rates, the estimated greenhouse gas emissions rate and the amount of estimated renewable energy to be used with that of the incumbent utility. Within 30 days after receiving this report, through its City Manager or a person expressly authorized by the Party, any Party may immediately withdraw its membership in the Authority by providing written notice of withdrawal to the Authority if the report determines that any one of the following ATTACHMENT C 1622
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conditions exists: (1) the Authority is unable to provide total electrical rates, as part of its baseline offering to customers, that are equal to or lower than the incumbent utility, (2) the Authority is unable to provide electricity in a manner that has a lower greenhouse gas emissions rate than the incumbent utility, or (3) the Authority will use less qualified renewable energy than the incumbent utility. Any Party who withdraws from the Authority pursuant to this Section 7.1.3 shall not be entitled to any refund of the Initial Costs it has paid to the Authority prior to the date of withdrawal unless the Authority is later terminated pursuant to Section
7.3. In such event, any Initial Costs not expended by the Authority shall be returned to all Parties, including any Party that has withdrawn pursuant to this section, in proportion to the contribution that each made.
Notwithstanding anything to the contrary in this Agreement, any Party who withdraws pursuant to this section shall not be responsible for any liabilities or obligations of the Authority after the date of withdrawal, including without limitation any liability arising from power purchase agreements entered into by the Authority.
7.2 Continuing Liability After Withdrawal; Further Assurances; Refund. A Party that withdraws its membership in the Authority under either Section 7.1.1 or 7.1.2 shall be responsible for paying its fair share of costs incurred by the Authority resulting from the Party’s withdrawal, including costs from the resale of power contracts by the Authority to serve the Party’s load and any similar costs directly attributable to the Party’s withdrawal, such costs being limited to those contracts executed while the withdrawing Party was a member, and administrative costs associated thereto. The Parties agree that such costs shall not constitute a debt of the withdrawing Party, accruing interest, or having a maturity date. The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority, to cover the Party’s costs described above. Any amount of the Party’s funds held by the Authority for the benefit of the Party that are not required to pay the Party’s costs described above shall be returned to the Party.
The withdrawing party and the Authority shall execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Party from membership in the Authority. A withdrawing party has the right to continue to participate in Board discussions and decisions affecting customers of the CCA Program that reside or do business within the jurisdiction of the Party until the withdrawal’s effective date.
7.3 Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its membership in the Authority, and thus terminate this Agreement with respect to such withdrawing Party, as described in Section 7.1.
7.4 Disposition of Property upon Termination of Authority. Upon termination of this Agreement as to all Parties, any surplus money or assets in possession of the Authority for use under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this Agreement and under any Authority Documents, shall be returned to the then-existing Parties in proportion to the contributions made by each.
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ARTICLE 8
MISCELLANEOUS PROVISIONS
8.1 Dispute Resolution. The Parties and the Authority shall make reasonable efforts to settle all disputes arising out of or in connection with this Agreement. Before exercising any remedy provided by law, a Party or the Parties and the Authority shall engage in nonbinding mediation in the manner agreed upon by the Party or Parties and the Authority. The Parties agree that each Party may specifically enforce this section 8.1. In the event that nonbinding mediation is not initiated or does not result in the settlement of a dispute within 120 days after the demand for mediation is made, any Party and the Authority may pursue any remedies provided by law.
8.2 Liability of Directors, Officers, and Employees. The Directors, officers, and employees of the Authority shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No current or former Director, officer, or employee will be responsible for any act or omission by another Director, officer, or employee. The Authority shall defend, indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions in the scope of their employment or duties in the manner provided by Government Code Section 995 et seq. Nothing in this section shall be construed to limit the defenses available under the law, to the Parties, the Authority, or its Directors, officers, or employees.
8.3 Indemnification of Parties. The Authority shall acquire such insurance coverage as the Board deems necessary to protect the interests of the Authority, the Parties and the public.
Such insurance coverage shall name the Parties and their respective Board or Council members, officers, agents and employees as additional insureds. The Authority shall defend, indemnify and hold harmless the Parties and each of their respective Board or Council members, officers, agents and employees, from any and all claims, losses, damages, costs, injuries and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of the Authority under this Agreement.
8.4 Amendment of this Agreement. This Agreement may be amended in writing by a two-thirds affirmative vote of the entire Board satisfying the requirements described in Section
4.12. Except that, any amendment to the voting provisions in Section 4.12 may only be made by a three-quarters affirmative vote of the entire Board. The Authority shall provide written notice to the Parties at least 30 days in advance of any proposed amendment being considered by the Board. If the proposed amendment is adopted by the Board, the Authority shall provide prompt written notice to all Parties of the effective date of such amendment along with a copy of the amendment.
8.5 Assignment. Except as otherwise expressly provided in this Agreement, the rights and duties of the Parties may not be assigned or delegated without the advance written consent of all of the other Parties, and any attempt to assign or delegate such rights or duties in contravention of this Section 8.5 shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties. This Section 8.5 does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing of that Party’s contributions to the Authority, or the disposition of ATTACHMENT C 1624
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proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties of the Authority or the Parties under this Agreement.
8.6 Severability. If one or more clauses, sentences, paragraphs or provisions of this Agreement shall be held to be unlawful, invalid or unenforceable, it is hereby agreed by the Parties, that the remainder of the Agreement shall not be affected thereby. Such clauses, sentences, paragraphs or provision shall be deemed reformed so as to be lawful, valid and enforced to the maximum extent possible.
8.7 Further Assurances. Each Party agrees to execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, to effectuate the purposes and intent of this Agreement.
8.8 Execution by Counterparts. This Agreement may be executed in any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument.
Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages.
8.9 Parties to be Served Notice. Any notice authorized or required to be given pursuant to this Agreement shall be validly given if served in writing either personally, by deposit in the United States mail, first class postage prepaid with return receipt requested, or by a recognized courier service. Notices given (a) personally or by courier service shall be conclusively deemed received at the time of delivery and receipt and (b) by mail shall be conclusively deemed given 72 hours after the deposit thereof (excluding Saturdays, Sundays and holidays) if the sender receives the return receipt. All notices shall be addressed to the office of the clerk or secretary of the Authority or Party, as the case may be, or such other person designated in writing by the Authority or Party. In addition, a duplicate copy of all notices provided pursuant to this section shall be provided to the Director and alternate Director for each Party. Notices given to one Party shall be copied to all other Parties. Notices given to the Authority shall be copied to all Parties. All notices required hereunder shall be delivered to:
The County of Alameda
Director, Community Development Agency
224 West Winton Ave.
Hayward, CA 94612
With a copy to:
Office of the County Counsel
1221 Oak Street, Suite 450
Oakland, CA 94612
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if to [PARTY No. ____]
Office of the City Clerk
__________________________
__________________________
Office of the City Manager/Administrator
__________________________
__________________________
Office of the City Attorney
__________________________
__________________________
if to [PARTY No._____ ]
Office of the City Clerk
__________________________
__________________________
Office of the City Manager/Administrator
__________________________
__________________________
Office of the City Attorney
__________________________
__________________________
ARTICLE 9
SIGNATURE
IN WITNESS WHEREOF, the Parties hereto have executed this Joint Powers Agreement establishing the East Bay Community Energy Authority.
By:
Name:
Title:
Date:
Party:
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Exhibit A