HomeMy WebLinkAboutOrd 2004-2968
ORDINANCE NO. 2968
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING A COMMUNITY CHOICE
AGGREGATION PROGRAM IN ACCORDANCE WITH
CALIFORNIA PUBLIC UTILITIES CODE SECTIONS 218.3,
331.1, 366, 366.2, 381.1, 394, AND 394.25, ALLOWING THE
CITY OF CHULA VISTA, ACTING AS THE MUNICIPAL
ENERGY UTILITY, TO AGGREGATE THE ELECTRICAL
LOAD OF ELECTRICITY CONSUMERS WITHIN THE CITY
WHEREAS, at Council's direction, staff began implementing the City's Energy Strategy
and Action Plan, adopted in May, 2001; and
WHEREAS, a significant component of the strategy required an analysis of the costs,
benefits and risks associated with forming and operating a Municipal Energy Utility, (MEU); and
WHEREAS, on September 24, 2002, the Governor signed into law Chapter 838 which
authorizes any California city, county, or city and county, whose governing board so elects, to
combine the electricity loads of its residents and businesses in a community-wide electricity
buyers' program known as Community Choice Aggregation; and
WHEREAS, at the May 19, 2004 MEU Workshop and Council Meeting, the City
Council listened to approximately five and one half hours of expert testimony and public input
regarding the potential development of a Chula Vista public utility; and
WHEREAS, at the June 8, 2004 workshop, the City Council directed staff to return to the
June 15, 2004 City Council meeting with an ordinance declaring the Chu1a Vista MEU
(established on June 5, 2001, by Ordinance No. 2835) a Community Choice Aggregator, and to
further consider the MEU Feasibility Study Consultants' recommendations to implement
selected MEU business models; and
WHEREAS, as a Community Choice Aggregator (CCA), the City could have a
significant additional means of increasing the scale and cost-effectiveness of conservation,
energy efficiency and renewable energy in Chula Vista.
WHEREAS, the existing energy policy and previously articulated Council support for
quality jobs and the increased use of renewable energy, energy conservation and efficiency, the
recommended and proposed CCA MEU business model provides the Council with an
opportunity to develop and incorporate economically viable and local renewable resources in the
City's energy portfolio.
WHEREAS, Community Choice Aggregation provides a means of exercising local
control over electricity rates and future increases, resources, quality of service, and designing
local energy systems to protect against future blackouts.
WHEREAS, it is important that the City of Chula Vista act expeditiously to implement a
Community Choice Aggregation regime in order to properly engage the California Public
Utilities Commission (CPUC) in rulemaking related to Community Choice Aggregation; and
Ordinance 2968
Page 2
WHEREAS, under California Law (Public Utilities Code §366.2 and other sections of
Chapter 838 of 2002, formerly AB 117), for Chula Vista to implement Community Choice
Aggregation so that it may find a new electric service provider for the residents and businesses
within its jurisdiction, the City Council must proceed via a series of ordinances. The Public
Utilities Code further provides the following:
A.
B.
C.
The California Public Utilities Commission (CPUC) must establish rules by
which any entity can seek to provide electricity aggregation service, now being
undertaken in Rulemakings 03-10-003 and 01-08-028;
All electrical corporations must cooperate with entities investigating, pursuing or
implementing Community Choice Aggregation, and provide them with billing and
electrical load data, subject to rules established by CPUC;
A Community Choice Aggregator may apply to become the administrator for
cost-effective energy efficiency and conservation programs for its retail electric
customers;
A Community Choice Aggregator must develop an implementation plan detailing
the process and consequences of aggregation, which must be adopted by the
Board of Supervisors at a duly noticed public hearing by ordinance;
Potential Community Choice Aggregation customers must be fully informed of
the program and be given ample opportunity to opt out pursuant to Section
366.2(c)(11) of the Public Utilities Code.
D.
E.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista ordains as follows:
Section 1.
COMMUNITY CHOICE AGGREGATION IMPLEMENTATION PLAN
The City shall develop a Draft Implementation for a Community Choice Aggregation
(CCA) program for Chula Vista for consideration by the City Council consistent with Section
366.2( c )(11) of the Public Utilities Code, and other sections of Chapter 838 of 2002 - formerly
AB1l7.
Section II: This ordinance shall take effect and be in full force on the thirtieth day from and
after its second reading and adoption.
Presented by
Approved as to form by
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CÀ~~..
Ann Moore
City Attorney
Ordinance 2968
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this nrd day of June, 2004, by the following vote:
AYES: Councilmembers:
NAYS: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
ATTEST:
~~~
Susan Bigelow, CMC, City lerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
Davis, Rindone, Salas and Padilla
None
None
McCann
.A~ ¡fjdl ¿
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 2968 had its first reading at a regular meeting held on the 15th day of June, 2004
and its second reading and adoption at a regular meeting of said City Council held on the 23rd
day of June, 2004.
Executed this 23rd day of June, 2004.
~~~' <1~
Susan Bigelow, CMC, City Cle¡(