MEETING DATE:
June 22, 2021
SUBJECT:
Title
COMMUNITY CHOICE AGGREGATION TECHNICAL FEASIBILITY STUDY PRESENTATION
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme (If not applicable, please state not applicable below)
Planning for the Future
Relevant Department Goal
Not Applicable
Executive Summary
On January 28, 2020 the Council authorized the City Manager to enter into a cost sharing agreement with the Cities of Vista and Escondido to fund the Community Choice Aggregation (CCA) Technical Feasibility Study. Community Choice Aggregation (CCA) is a means for local entities to access electricity from various sources, including renewables. CCA has been pursued by multiple jurisdictions within the region and across the state in order to increase the portfolio of, or altogether replace, non-renewable energy.
After the Council’s authorization, staff along with partner cities of Vista and Escondido, retained EES Consulting to conduct the Technical Feasibility Study to establish a CCA.
Discussion
To better understand the benefits and risks associated with CCA programs, the cities of Vista, San Marcos, and Escondido (VSME Partners) selected EES Consulting (EES) to prepare a Feasibility Study that assesses the technical feasibility of CCA operations as a mechanism to provide choice to customers, lower their electricity rates, and contribute toward achieving the VSME Partners’ Climate Action Plan (CAP) targets for greenhouse gas reduction.
The City of San Marcos’s target, as identified in the CAP is to achieve 95% zero carbon electricity by 2030 for a reduction of 34,336 MTCO2.
The Study evaluates the technical (economic) feasibility of a VSME Partner CCA as well as for each VSME city individually. The study does not assume that the cities will enter into joint decision-making based on the results. Each VSME City can choose to remain with bundled service through SDG&E, form its own city-only CCA, participate in the creation of a new VSME Partner CCA, or join an existing CCA.
The Study results suggest that CCA programs are technically and financially feasible for the cities whether each VSME City forms its own program or joins together to form a VSME Partner CCA. These findings are based on the mentioned governance options and under current market conditions. The economies of scale for all options are sufficient for stable CCA operation under a wide range of financial assumptions and sensitivities.
Suggested next steps include receiving the Study results through City Council action and determining whether to move forward with further evaluation of a CCA. If the policy decision is to proceed with establishing a CCA, the City would have to decide which governance option is preferred, begin pre-startup operations required to launch the CCA, and file an Implementation Plan with the California Public Utilities Commission on a timely basis.
Environmental Review
Receiving and reviewing the CCA Feasibility Study has been reviewed by the Development Services Department for compliance with CEQA. Staff recommends a finding of no physical effect and/or an exemption under CEQA, as the proposed action to receive and review the CCA feasibility is not a project within the meaning of Section 15378 of the CEQA Guidelines because there is no potential for it to result in a physical change in the environment, either directly or indirectly. The proposed action would allow the City to gain information about CCA as it relates to the local context and to make informed decisions regarding whether or not to establish or enter into a CCA. Additionally, even if engaging in and reviewing the CCA Technical Feasibility Study was considered a project subject to CEQA, it would be exempt pursuant to Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility it would have a significant effect on the environment.
Fiscal Impact
This action will have no fiscal impacts.
Attachment(s)
Community Choice Aggregation Technical Feasibility Study
Prepared by: Saima Qureshy, Principal Planner
Submitted by: Joseph Farace, Planning Division Manager
Reviewed by: Dahvia Lynch, Development Services Director
Approved by: Jack Griffin, City Manager