LAKEPORT, Calif. – On Tuesday the Board of Supervisors approved the first reading of an ordinance to begin a community choice aggregation program, which seeks to increase the use of renewable energy in the county while lowering rates for residents and businesses.
The ordinance, which will return for a final reading next month, is meant to set up the program, with a proposed contract with the firm California Clean Power Corp. – a turnkey company that offers financing, support and ongoing management – still to be approved.
The board held an initial discussion of the program last week, during which it heard a presentation from California Clean Power's Chief Executive Officer Peter Rumble, who returned this week to answer questions.
The proposal Rumble's firm has put forward would reduce power rates by 2 percent for customers in the unincorporated county, for an anticipated annual savings to county residents of $750,000.
The county also would receive $2 million annually in revenue from the program, which would increase the county's mix of renewable energy to 33 percent and allow it to choose the source of its power.
Board Chair Anthony Farrington said he has received a lot of positive feedback regarding the program.
On Tuesday, board members also had before them a memo from California Clean Power that answered additional questions from the county and community members.
Among the questions the firm answered was one relating to low income rate assistance programs, which, according to the proposed agreement between the firm and the county, would require that “customers shall be offered electric rate schedules consistent with the electric rate schedules offered by PG&E.”
The memo said PG&E “CARE” program customers who are in the new county program would receive another 2-percent discount on top of what they currently get.
Farrington touted the program as a new source of public benefit money that offers the county the chance to purchase its own current solar array – the largest municipal solar array in the Western United States – and eventually to develop its own power facility.
He said representatives from the community choice aggregation programs in Marin and Sonoma counties contacted the county of Lake to encourage it to follow their models.
Farrington said a firm that states it also is a turnkey company like Rumble's, Community Choice Partners of San Francisco, has contacted the county to put forward its services.
County Administrative Officer Matt Perry said if the board approved the ordinance to implement the program, it would not bind the county to go with California Clean Power. He said county staff is continuing to investigate the program and the company.
Farrington said he wanted to know about Community Choice Partners and what they offer. Perry said it didn't appear the company offered financing, unlike Rumble's firm.
Of California Clean Power, Rumble explained, “We are self-financed, so there are no financing costs to the jurisdiction.” His company covers all financial and market risks, and guarantee benefits to the county through a contract.
During the discussion he explained that the community choice program was created by the state during the energy crisis 15 years ago in an effort to protect communities.
“It was intended to introduce both competition and control to the local market,” Rumble said.
Lower Lake resident Victoria Brandon asked the board to look at the alternatives closely, encouraging them to talk to Marin County. She worried that the board was making a decision based on a feasibility study created by California Clean Power.
Farrington said the county has looked at the model used by Marin and Sonoma. He said the county was not interested in a joint power authority model that would require financing and bringing on additional staff.
He said the program, as it's proposed for Lake County, would be streamlined, offer savings and bring in money that could be invested in the lake, which overall he believed offered a better option with a greater benefit.
In response to questions about how much is paid in Lake County for power generation, California Clean Power representative Shehzad Wadalawala explained that currently the county uses 400,000 megawatt hours annually, for a total of about $40 million in power costs.
Farrington noted during the meeting that the board is still considering California Clean Power's proposal. “There's no cloak and dagger mission here to circumvent any public process.”
If someone else who can provide the same exact services comes forward, Farrington said the county would be required to consider them.
Supervisor Jim Steele, who had written a letter to the editor criticizing the board for moving too fast on the proposal without enough community input, said that his concern about feedback from residents had been dealt with in the course of the meeting as well as through contacts with constituents since last week.
He was impressed with the ability to make inroads into power costs, which he said would be good for the county.
Steele wanted the contract with a provider to go through a thorough staff analysis to determine which company is the best and whether they have risk protection. He said there doesn't seem to be much of a track record with California Clean Power, but he was OK with going forward with the ordinance.
Farrington, who will be away for a geothermal conference next week, asked the board to continue the second reading to Tuesday, June 16.
That will allow staff to answer other questions and do further analysis, and look into the alternate company's proposal.
Unless another provider can offer the services, the proposed agreement would be brought back concurrently with the second reading of the ordinance, Farrington said. “Nobody's going to be in the dark.”
The board voted unanimously to advance the ordinance to a second reading timed for 9:15 a.m. June 16.
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Supervisors hold first vote on creating community choice aggregation program
- Elizabeth Larson
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