Oceanside City Council to Explore Community Energy of Choice
OCEANSIDE, CA – The Oceanside City Council workshop on Wednesday will discuss building community energy of choice with other interested towns in North County.
A report provided by Cari Dale, the director of water services for the City of Oceanside, recommends that city council ask staff to explore the implementation of Community Choice Energy (CCE) by creating a working group of interested cities in northern San Diego County, including Vista. , Escondido and San Marcos.
Community Choice Aggregation (CCE) is an alternative to traditional investor-owned utilities (IOU) that provide electricity to customers in a service area such as San Diego Gas & Electric (SDGE). Under state law, CCEs can be formed by local communities to aggregate their purchasing power for electricity to provide a competitive choice of clean energy sources, support the local economy, and to meet local development priorities. Unlike IOUs, CCEs function as public entities that aim to improve the transparency of decision-making in energy sources and to stimulate market competition for renewable energies at competitive prices.
The City of Oceanside has already explored CCEs with other local towns. In 2018, the City partnered with the cities of Carlsbad, Encinitas and Del Mar to conduct a feasibility study for a CCE program. In May 2019, the city council held a workshop to discuss the results of the study. At that time, the study’s consultant (EES Consulting Inc.) concluded that the City could achieve economies of scale, a cleaner energy mix and around 2% savings on the electricity bill of clients in relation to SDGE by forming a CCE with partner cities. According to this study, the estimated start-up costs for Oceanside were $ 8.7 million, whether the city started its own CCE business or through a JPA.
During the workshop, staff received instructions from Council to explore potential partnerships with the towns of Vista and Escondido. Since then, the towns of Vista, San Marcos and Escondido have conducted CCE feasibility studies. Oceanside staff monitored these efforts and engaged in information sharing and progress meetings with staff in these cities regarding the results of their feasibility study. Staff also followed the efforts of other San Diego County agencies to complete the start-up of two CCEs and assessed the pros and cons of joining each.
In early 2021, City staff commissioned their former consultant (EES Consulting Inc.) to update the 2019 feasibility study financial analysis as part of a corporate CCE scenario. Updates have been required due to the changing regulatory environment and the power supply market since 2019. Staff received the updated analysis for this scenario in July 2021. The update assesses the financial feasibility of Oceanside’s launch of its own CCE business and includes a qualitative assessment of other CCEs. option.
Since 2021, the cities of Carlsbad, Encinitas and Del Mar have each become members of an operational CCE. Encinitas joined the cities of San Diego, Chula Vista, La Mesa and Imperial Beach to form San Diego Community Power (SDCP), a JPA that began CCE operations in the spring of 2021. San Diego County also chose to join SDCP on August 31. , 2021. The cities of Carlsbad and Del Mar have partnered with the city of Solana Beach to form a new JPA, Clean Energy Alliance (CEA), which was also launched in 2021. In August 2021, city staff requested information from these two operational CCEs. analyze the benefits and risks of membership.
In May 2021, the 78 Highway Corridor cities of Vista, San Marcos and Escondido completed their own CCE feasibility study. Vista Town Council received and filed the technical feasibility study on June 1 and advised staff to explore governance options. The municipal council of the city of Escondido received and tabled the study on June 16 without specific direction to the staff. The City of San Marcos Climate Action Plan Working Group is reviewing the feasibility study.
In August 2021, staff reassessed the CCE options available to the City and concluded that the CCE benefit of a higher renewable energy mix significantly supports progress towards meeting the Plan target. City’s climate action (CAP) of 75% renewable energy supply by 2030, which, in turn, meets the state’s Renewable Energy Portfolio (RPS) standard of 60 percent renewable energy supply on the same date.
Throughout 2021, staff studied several CCE scenarios for Oceanside. These options include a new CCE program with interested cities along the Highway 78 corridor, creating an Oceanside Corporate CCE, joining one of the region’s operational CCEs, or not continuing the CCE. Based on the information available, staff recommend forming a working group with Vista, San Marcos, and Escondido to further explore CCE implementation in northern San Diego County.
If Oceanside chose to join a new JPA with the Highway 78 corridor, the City would have to conduct further analysis to determine how the economy of a new CCE would be affected. Establishing a new CCE partnership with these cities will require the drafting of a joint jurisdiction agreement, the adoption of constitutive documents, and that each city council appoints a representative as the director of the board of directors of the city. APP. In this scenario, work would likely be completed in 2022 with a target launch in 2024 at the earliest. Staff also engaged with the Town of Santee due to their interest in potentially joining a new JPA CCE with North County agencies.
The workshop will take place in the boardroom on September 29 at 2 p.m. Get full details of the mayor’s and council workshop agenda.
During a municipal council workshop on Wednesday, September 29, the #Oceanside City Council will discuss forming a working group of interested towns in North County SD to explore the implementation of Community Choice Energy. Details: https://t.co/lji6TlxXLE#CCE #Clean energy pic.twitter.com/IIywfbMWU6
– City of Oceanside (@CityofOceanside) September 27, 2021