HomeMy WebLinkAboutReso 2019-115RESOLUTION NO. 2019-115
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING CONTINUATION OF THE
ELECTRICITY COMMODITY PURCHASES FROM SHELL
ENERGY AND AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH
UPDATING THE PURCHASE RATES
WHEREAS, the California Public Utilities Commission began implementation of
Assembly Bill 1890 in 1998 to make the generation of electricity more competitive in California
through the creation of “Direct Access Services;” and
WHEREAS, Direct Access allows commercial, industrial, and agricultural customers to
purchase electricity from a third-party Electric Service Provider, instead of from the local Investor-
Owned Utility; and
WHEREAS, Direct Access allows these customers to potentially negotiate better
electricity commodity rates or higher renewable energy power mixes from the open market; and
WHEREAS, the City of Chula Vista has four electricity accounts that are under Direct
Access Service with Shell Energy; and
WHEREAS, under the contract with Shell Energy, the City “locks-in” electricity
procurement rates for certain time periods through a Confirmation Letter to minimize utility cost
fluctuations; and
WHEREAS, the City’s current Confirmation Letter and associated rates are expiring; and
WHEREAS, the City is now updating its electricity procurement rates with Shell Energy
and can purchase electricity with 45% renewable content which is equal to what San Diego Gas
and Electric (SDG&E) currently provides; and
WHEREAS, this 45% renewable product from Shell Energy is projected to cost $47,933
less than the comparable product from SDG&E.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve that it:
1. Approves continuation of electricity commodity purchases from Shell Energy; and
2. Authorizes and directs the City Manager, or designee, to execute an up to 2-year
Confirmation letter with rates not to exceed $55 per Megawatt Hour, in the form
presented, with such modifications as may be approved or required by the City
Attorney, to be kept on file in the office of the City Clerk.
DocuSign Envelope ID: 88F532E3-8A90-42F4-A3E5-A61F17B1E8E9
Resolution No. 2019-115
Page No. 2
Presented by Approved as to form by
Eric C. Crockett Glen R. Googins
Director of Economic Development City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 18th day of June 2019 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2019-115 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 18th day of June 2019.
Executed this 18th day of June 2019.
Kerry K. Bigelow, MMC, City Clerk
DocuSign Envelope ID: 88F532E3-8A90-42F4-A3E5-A61F17B1E8E9