HomeMy WebLinkAbout2019/09/10 Item 12 - Presentation
Chula Vista Community 9/10/19City Council Joint Powers AuthorityChoice Aggregation
Background City Council on 8/13Governance options presented to •Council on 7/23Feasibility Study presented to City •BudgetFeasibility Study funded in FY2019 •Action Planrecommendations
and 2017 Climate in Climate Change Working Group Goal for 100% clean energy included •
Goals benefitsMinimize risks while providing local Increase local control by 2035100% renewable electricity emissions Reduce greenhouse gas Plan goalsAchieve Climate Action lower than
those of SDG&EOffer electricity rates comparable to or
Governance and programing Increased economies of scale •Launch by 2021•Decreases risk to General Fund•JPA Benefits Imperial Beach•Encinitas•San Diego•La Mesa•(JPA) with:Regional CCA
Joint Powers Authority
JPA Agreement procurement will receive priority weighting ocal power L-Local Power Development renewable energy portfolio by 2035, or soonerachieve a 100% –Environmental Goals No action
can be taken solely by weighted vote.•equal vote; It takes 2/3rds vote to overturn an action taken by •at 49% The City of San Diego agreed to cap its weighted vote •vote after an equal
vote; Three directors are needed to call for a weighted •Weighted Voting
JPA Agreement consideration of petitions to unionize”. Amended language in Recital 6 (O) to include “efficient •benefits that are listed in recital 6 (h). Added prevailing wage jobs,
to the quantifiable economic •economic, environmental and social equity.”development and policies and programs centered on prioritization of local renewable power and workforce and
focused investment in communities of concern, Added language to state that the JPA will “pursue purposeful •–Labor Coalition/Community Concerns programsbased energy/sustainability -support
of communityprograms will serve all SDRCCEA customers and also allow Language added to clarify that –Customer Programs
Risk for any proposed energy generation projectfollow local zoning and building codes JPA must making-by provisions favoring “Equal Vote” decisioninfluence on the Board limitedCity of
San Diego recommendations and community input, with professional to made in publicrequires major decisions JPA governance structure entityoperated as a separate legal JPA to be formed
and Mitigation
Risk ratepayer revenuesmitigate liability by looking first to departure, but JPA obligated to responsible for direct costs of their Withdrawing members may be Risk Management SubcommitteeMandatory
formation of a Finance and requirementAnnual independent audit required from member citiesNo capital contributions can be of San Diegofront costs to be funded by City -Upinclude:fiscal
Special Mitigation
Risks of Delay Less possible partners–Political regulatory spaceNot as engaged in –Regulatory Users pay higher rates–Economic More carbon emissions–Environmental
Next Steps Submit SDRCCEA Implementation Plan to the CPUC for certificationJan. 1, 2020)December 20 (prior to Adopt Implementation Plan and select banking partner –Third Board Meeting
Decemberbank partner finalists Second Board Meeting; Board to review initial draft of Implementation Plan and NovemberSelect power service vendor(s) and review credit and banking proposals
NovemberOrientation and initial direction for Implementation Plan–First JPA Board meeting OctoberBoard membersDeadline for jurisdictions to pass CCA ordinance and JPA resolution; Appoint
JPA October 1services (City of San Diego)Issue Request For Proposals for credit and banking services and wholesale power September -MidACTION ITEMDATE