Report to Mayor and City Council
Tuesday, April 18, 2017
Consent
SUBJECT:
Title
UPDATE ON COMMUNITY CHOICE AGGREGATION OPTIONS
Body
I. SUMMARY
On Thursday, April 13, 2017, the Budget and Capital Improvement Project Ad-Hoc Council Subcommittee comprised of Mayor Pro Tem Lula-Davis Holmes and Councilmember Cedric Hicks meet to discuss Community Choice Aggregation options. The Committee members listened to presentations from Gary Gero representing Los Angeles Community Choice Energy (LACCE) (Exhibit No. 1) and from Joe Galliani representing South Bay Clean Power (SBCP) (Exhibit No. 2).
Community Choice Aggregation (CCA) is an energy supply model that works in partnership with the region's existing utility company, and allows local governments to pool (or aggregate) their electrical loads in order to purchase wholesale power on behalf of their residents, businesses, and city electricity accounts. Existing CCAs in other parts of California provide higher levels of renewable energy to their customers and offer lower prices than the Investor Owned Utilities (IOU) that previously served them. If a CCA program is implemented, the City would be in a position to gain local control of electricity prices and energy sources, create local economic benefits, and accelerate the transition to cleaner power (solar, wind, geothermal).
II. RECOMMENDATION
Recommendation
RECEIVE and FILE.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
After the state's energy crisis in 2001, the California Legislature passed Assembly Bill 117 in 2002 and Senate Bill 790 in 2011. The passage of these bills allowed for local governments to purchase and sell electricity to their communities through Community Choice Aggregation (CCA). CCAs create a functional partnership between the municipality and the existing utility company, allowing local communities to take control of the decision making associated with the sources of the electrical ...
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