HomeMy WebLinkAboutReso 2021-109RESOLUTION NO. 2021-109
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONFIRMATION
AGREEMENT WITH SHELL ENERGY EXTENDING THE
TERM OF THE ENERGY SERVICE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA AND SHELL ENERGY
THROUGH JUNE 30, 2024
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 via an Energy Service Agreement between the City and Shell
Energy; and
WHEREAS, under the Energy Service Agreement the City “locks-in” electricity
procurement rates for certain time periods through subsequent Confirmation Agreements to
minimize utility cost fluctuations; and
WHEREAS, the City’s current Confirmation Agreement and associated rates are expiring;
and
WHEREAS, the City is now updating its electricity procurement rates with Shell Energy
and can purchase electricity with 100% renewable content which is equal to the renewable energy
content San Diego Community Power will provide for all other City accounts at full rollout; and
WHEREAS, the City can secure a $70.26 per megawatt hour rate for a three-year term
under the proposed Confirmation Agreement via Shell Energy’s Retail Delivered 100%
Renewable Power product; and
WHEREAS, this 100% renewable product from Shell Energy is projected to cost
approximately $70,000 less than the base product from San Diego Gas and Electric; and
WHEREAS, this approximate $70,000 in annual savings with Shell Energy can completely
offset the estimated $61,000 per year price difference from San Diego Gas and Electric’s base rate
to San Diego Community Power’s 100% renewable energy product at all remaining City accounts.
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Resolution No. 2021-109
Page No. 2
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve that
it approves the Confirmation Agreement between the City of Chula Vista and Shell Energy, in the
form presented, with such modifications as may be approved or required by the City Attorney, a
copy of which shall be kept on file in the Office of the City Clerk, and directs the City Manager or
designee to executed the same.
Presented by Approved as to form by
Eric C. Crockett Glen R. Googins
Deputy City Manager/Director of Economic City Attorney
Development
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15th day of June 2021 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: McCann
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. 2021-109 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 15th day of June 2021.
Executed this 15th day of June 2021.
Kerry K. Bigelow, MMC, City Clerk
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