LEAGUE OF WOMEN VOTERS BEACH CITIES

Community Choice Aggregation

January 23, 2017 – Manhattan Beach Library

Localcommunitiesjointogethertopooltheirelectricenergyuseandbundlethebuyingpowerofresidentsandbusinesses.Theyformanonprofitlocalpoweragencyrunbyrepresentativesfromtheir communities.ItslegalnameisCommunityChoiceAggregationorCCA . WecallitCommunityChoice Power.

Thelocalpoweragencysetstheratesandpurchasespowerwithmorerenewableenergythantheutilityoffers.Itcanbuildand fund local clean energy projects, add energy efficiency rebates and extend green incentives to its ratepayers.

ThelocalpoweragencyrentsthewiresfromtheelectricutilitywhodeliverstheCommunityChoice Power.”

Source:SBCP buysandbuildscleanerenergy supplies

Delivery:SCE deliversenergy,maintainslines&bills customers

Customer:You choice,cleanerenergy,localcontrolandcompetitive rates

What are the benefits of Community Choice Power?• Local,community control over electricity• Offersconsumersachoice wherenonecurrently exists• Cleaner power supply

• Cheaper electricity rates• No taxdollarsused,completelyfundedby revenue

• Reducedair pollution• Providesfunding source forenergyefficiencyandinnovativeenergyprogramslikeenergystorage

andelectricvehicle(EV)charging stations

The Single Most Powerful Tool To Reduce Greenhouse Gas EmissionsExcerptfromCityofSunnyvaleClimateAction Plan

2020 GHG Reductions (MTCO2e/yr)Optimize Vehicular Traffic

SustainableCirculation and Transporation

ImproveMobility-Land Use PlanningReduceOff-RoadEq Emissions

Reduce Landfilled WasteDecreaseWater Consumption

CommunityChoicePowerSustainableEnergy PortfolioDecrease Energy Consumption

OpenSpaceandUrban Forestry

0 100,000 200,000 300,000

SunnyvaleCAP- CCE realizesmoreG HG emissionreductionsthanallotherCAPmeasures COMBINED!

Community Choice Power’s Added Value• ExistingCommunityChoicePrograms:MarinCleanEnergyandSonomaCleanPower,• MCEandSCPhavecollectivelyputover300MWsofnewrenewablepoweronthegrid;

ofthat,nearly100 MW islocal power• NewpowerprojectsusePLAagreementsandunionlaborcreatingwell-payinglocal

careers• Localjobtrainingprogramsthatfocusonunderservedpopulations• LocalFeed-in-Tariff,NetEnergyMeteringprogramsincentivizelocal DG• Public/PrivatePartnerships:Communitysolar,commercialandresidentialbatterystorage,

homeareanetworks/demandreduction,EVchargingstations• On-billrepaymentoptionandgreenbusinessloans

Community Choice Power Programs in California• Exploring/In Process

Alameda CountyButte CountyCityofArcata/HumboldtCountyCityofDavis/Yolo CountyCityofSan DiegoCityofSunnyvale/SiliconValleyPartnershipContraCosta CountyLACounty/SouthBayCleanPowerLake CountyMendocino CountyMontereyBayCountyPower(Tri-County)NapaCounty CitiesSanBernardinoCountySanDiego CountySanLuisObispo/MorroBaySantaBarbaraCountySolano CountyVentura County

Redding

Sacramento

Eureka

San Diego

San BernardinoVentura

Los Angeles

Santa Barbara

San Luis Obispo

Monterey

San Francisco

Lancaster

• Operational MCECleanEnergyLancasterChoiceEnergySonomaClean Power

• Newly LaunchingCleanPowerSFPeninsulaClean EnergyRedwoodCoastEnergy

First 3 California Community Choice Power Programs

Launch Year Avg. Customer Rate Savings Power Options

2010 2-5% below PG&E50% Renewable100% Renewable Local Sol

2014 6-14% below PG&E33% Renewable100% Renewable

2015 3-4% below SCE35% Renewable100% Renewable

Revenue from Reliable Rate Payers Keeps Community Choice Power Programs Fiscally Fit

MCE (FY15-16) SCP (FY15-16)

Total Projected Revenue $145,933,000 $165,495,000

Expenses $141,433,000 $148,588,000

Cost of Energy $129,522,000 $130,100,000

Cost of Administration 4% 3.5%

Net Increase in Reserves $4,500,000 $16,907,000

South Bay Clean Power Mission StatementThe South Bay Clean Power program goals & objectives:• Fastest path to 100% renewable power -

goal of 10 years

• No use of Category 3 unbundled Renewable Energy Certificates (RECs)

• Distributed Energy Resources with County-wide buildout to maximize DER potential

• Local investment, local power generation, local jobs, local career opportunities

• Partnership with labor - project labor agreements, community benefit agreements, sustainable workforce agreements, job training, apprenticeship

• Focus on environmental justice in frontline communities where needs are the greatest

South Bay Clean Power Resolutions PassedTo Participate in a CCA Feasibility Study

•Hermosa Beach - September 9, 2014•Manhattan Beach - October 21, 2014• Santa Monica - January 13, 2015• Redondo Beach - January 20, 2015•Torrance - January 28, 2015•Carson - February 3, 2015• Beverly Hills - April 21, 2015• Palos Verdes Estates - April 28, 2015• Lomita - June 10, 2015•West Hollywood, August 3, 2015•Malibu, September 16, 2015• Rolling Hills Estates, September 22, 2015•Culver City, September 28, 2015

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SBCP Cities Electric Loads

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1. This study concludes that the formation of a CCA in Los Angeles County is financially feasible and would yield considerable benefits for all participating County residents and businesses.

2. These benefits could include 4.1 percent lower rates for electricity that is supplied by roughly twice the amount of renewable resources as SCE.

3. LACCE will reduce GHG emissions by as much as 500,000 tons of CO2e per year by serving only the County’s unincorporated areas.

4. At full build-out, a 2 percent rate reduction (a fraction of the total reduction possible) will add 211 jobs, generate over $24.2 million in additional GDP, and give the County and its residents greater control over their power supply and energy efficiency programs.

5. The positive impacts on the County and its inhabitants of forming LACCE are so significant that this effort should be pursued. No likely combination of sensitivities will change this recommendation.

The LACCE Feasibility Study Findings

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The LACCE Feasibility Study Findings

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88 cities in LA County 83 are SCE cities1 has a CCA• 6MunicipalUtitilyDistrictsinLACounty:LADWP,BurbankWater&Power,PasadenaWater&Power,GlendaleWater&Power,AzuzaLightandWater.LancasterChoiceEnergyisthe CCA .

• 14 SouthBayCleanPowercitiesrepresent approximately 6,400,000MWhoftotalelectricpowerload.

• CountyofLosAngeles istotal unincorporatedareas powerloadis estimatedtobeapproximately 4,300,000MWh

• TheCity of LongBeachhasapproximately 3,300,000MWhofpowerload.

Energy Industry is Evolving & Decentralizing

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Difference Between Central Generation & Distributed Generation

Project Size

Behindthe Meter

RetailDistributedGenerationServesOnsite Loads

WholesaleDistributed GenerationServesLocal Loads

CentralDistributedGenerationServesRemote Loads

5 kW

500 kW

50+ kW

Distribution Grid Transmission Grid

Distributed Generation with Microgrids for Resiliency, Homeland Security & EmergencyPreparedness

Old GridOnemainpower generatorLessefficientMore vulnerable

New GridLocal&multiplepowergeneratorsMore efficientLess vulnerable

Power generator

Power generator

Local powergenerator

Transmission Substation

Transmission Substation

Customer(Residential&Commercial)

Customer/PowerGenerator(Residential&Commercial)

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What are Distributed Energy Resources?

• “Distributed Energy Resources” (DER) = the diversity of resources “behind the meter” i.e. in homes, businesses, schools and commercial operations.• Numerous off-the-shelf technologies including:

• Solar Photovoltaic, • Energy Efficiency, • Demand Response, • Energy Storage, • Combined Heat & Power, • Electric Vehicle Managed Charging, etc.

• Physical assets supported by communications, monitoring & control technologies, with varying levels of grid and utility integration• Deployments can be single-premise or multiple buildings (microgrids)

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Distributing Local Energy Resources

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• Driven by the CPUC, the CEC, CAISO, & SCE mandates & direction

• The most direct route to jobs and a DER buildout

• The necessary pathway to 100% renewables - allows us to integrate renewables

• Best improves the reliability of our local grid

• Makes resilient microgrids possible for each of our cities

• Brings funding, pilot projects, grants and public-private partnerships to our CCA and our local communities

• Serves as the viable model for the rest of the LA County program and eligible cities.

Why Pursue a Distributed Energy Resource Model?

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Why Do We Care?Without a focus on Distributed Energy Resources you will have no widespread, full-scale buildout of new resources in your communities and you cannot achieve the job gains and economic benefits for your local communities.

DER is also our mandated energy future and the only way to integrate the necessary resources to get to 100% renewable.

Can It Be Done with a CCA?YES.

The industry now embraces DER and there are hundreds of companies currently building Distributed Energy Resources . Investor Owned Utilities are now taking their first baby-steps to procure DER, but financial conflicts of interest limit their appetite — CCAs have no such conflicts and can leverage that advantage.

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