HomeMy WebLinkAbout2021-04-13; City Council; ; Clean Energy Alliance Product Selection for City of Carlsbad, Carlsbad Public Financing Authority and Carlsbad Municipal Water District Electric Service AccountsMeeting Date: April 13, 2021
To: Mayor/Chair/President and City Council/Board/Board
From: Scott Chadwick, City Manager/Executive Director/Executive Manager
Staff Contact: Jason Haber, Intergovernmental Affairs Director
jason.haber@carlsbadca.gov, 760-434-2958
Subject: Clean Energy Alliance Product Selection for City of Carlsbad, Carlsbad
Public Financing Authority and Carlsbad Municipal Water District Electric
Service Accounts
Districts: All
Recommended Action
Adopt resolutions selecting the Clean Energy Alliance power supply product for City of Carlsbad,
Carlsbad Public Financing Authority and Carlsbad Municipal Water District electric service
accounts, selected from the following options:
1)Clean Impact - 50% of power supply from renewable energy sources
2)Clean Impact Plus - 50% renewable and 75% carbon-free energy sources
3)Green Impact - 100% of power supply from renewable energy sources
Executive Summary
At its meeting on March 9, 2021, the City Council reviewed the initial rates and power supply
product offerings established by the Clean Energy Alliance and adopted Resolution No. 2021-
053 (Exhibit 4), establishing the Clean Impact 75 – now known as “Clean Impact Plus” – as the
default power supply product for all customer accounts, municipal, commercial, industrial and
residential, within the City of Carlsbad.
As electric service customers within the Clean Energy Alliance service area, the City of Carlsbad,
Carlsbad Public Financing Authority and Carlsbad Municipal Water District can choose to power
their facilities and services from the alliance’s Clean Impact, Clean Impact Plus or Green Impact
power supply products, or may opt out of Clean Energy Alliance service and continue receiving
power from SDG&E.
April 13, 2021 Item #9 Page 1 of 13
The Clean Energy Alliance’s community choice aggregation program launches May 1, 2021.
Unless the city, authority and district choose an alternative product option, or choose to opt
out of Clean Energy Alliance service, all city, authority and district accounts will be
automatically enrolled to receive power from the default Clean Impact Plus product as of that
date.
Discussion
Background
The City Council approved the joint powers agreement creating the Clean Energy Alliance on
Oct. 8, 2019. The alliance is a new regional community choice aggregation program that
enables the city and its partners to purchase power from alternative suppliers while continuing
to receive that power through SDG&E’s existing distribution network. Community choice
aggregation provides for more local control over electricity sources and the potential to choose
greener power sources and lower electricity prices. The alliance’s member agencies are the
cities of Carlsbad, Solana Beach and Del Mar. Clean Energy Alliance service is scheduled to
launch in May-June 2021.
The City Council appointed Council Member Bhat-Patel as the primary board representative on
the Clean Energy Alliance Board of Directors and Council Member Acosta as the alternate.
Clean Energy Alliance power supply product options
The power supply product options being offered by the Clean Energy Alliance are:
Clean Impact - 50% renewable energy
The Clean Impact product offering, with a minimum 50% of its energy coming from
renewable sources, is the option with the minimum amount of renewable energy that
an individual Clean Energy Alliance customer may select. This product is offered at a
0.9% discount compared to SDG&E’s 2021 rates.
Clean Impact Plus - 50% renewable energy and 75% carbon-free energy
The City Council decided to establish the Clean Impact Plus product as the citywide
default power supply mix of 50% renewable and 75% carbon-free energy for all
customer accounts within the City of Carlsbad. The higher carbon-free energy content
costs $.001 per kilowatt hour more than the cost of the Clean Impact product, which
results in the Clean Impact Plus product being offered at a 0.6% discount compared to
SDG&E’s rates.
Green Impact - 100% renewable energy product
This 100% renewable energy product is available as an alternative power supply offering
for Clean energy Alliance customers. The Green Impact product costs $.0075 per kWh
more than the Clean Impact product and $.0065 per kWh more than the Clean Impact
Plus because of the additional expense of procuring the power supply with more
renewable energy. The rate premium for choosing 100% renewable energy is 1.5%
above SDG&E’s 2021 rates.
City of Carlsbad electric service accounts
Clean Energy Alliance records indicate that 403 electric service accounts are billed to the City of
Carlsbad under 15 rate schedules to power various city facilities and services, the Crossings Golf
April 13, 2021 Item #9 Page 2 of 13
Course, which is controlled by the Carlsbad Public Financing Authority, and Carlsbad Municipal
Water District facilities.
The actual rates paid on each account vary as a result of “Time of Use” pricing, variances
between summer and winter pricing, and being subject to peak demand charges. Because of
the substantial administrative effort required to fully analyze all 403 city accounts individually,
the Clean Energy Alliance provided bill comparisons for the following city, authority and district
facilities as examples of the cost impacts of receiving service under the various alliance energy
product options:
•Faraday Center
•The Crossings at Carlsbad Golf Course
•Maerkle Reservoir
•Carlsbad Municipal Water District offices
This bill analysis for these city accounts found that the estimated costs for the various product options match the cost projections provided previously.
Options
1. Opt out of Clean Energy Alliance service – The city and district may opt out of receiving
Clean Energy Alliance service and continue purchasing electrical power from SDG&E. For
2021, this option would result in city, authority and district facilities being served by an
approximately 39% renewable product. By selecting this option, the city and district
would forego any potential cost savings or cost increases associated with the alliance’s
power supply products.
2.Clean Impact Plus default product selection (or take no action) – Selecting the Clean
Impact Plus product is effectively the “Take No Action” option because Clean Impact
Plus is the citywide default Clean Energy Alliance product and state law provides that all
customers within a jurisdiction served by a community choice aggregation program are
automatically enrolled to be served at launch by the program’s default product. Unless
the city, authority and district choose an alternative power supply product, or choose to
opt-out of Clean Energy Alliance service, all city and district accounts will be
automatically enrolled to receive the Clean Impact Plus default product at launch.
For 2021, this option will result in city, authority and district facilities being served by a
50% renewable and 75% carbon-free product (i.e., a 36% total emissions reduction) and
an estimated cost savings of $25,000 as compared to opting out of Clean Energy Alliance
service and continuing to purchase electrical power from SDG&E.
3.Clean Impact product selection (opt down) – The city, authority and district may choose
to opt down from the alliance’s default product to the Clean Impact 50% renewable
product. This would result in estimated 2021 annual cost savings of $37,500 compared
to SDG&E rates and an 11% reduction in emissions from electricity usage.
4.Green Impact product selection (opt up) – The city, authority and district may choose to
opt up to the Green Impact 100% renewable product. This would result in an estimated
2021 annual cost increase of $56,250 and a 61% reduction in emissions from city,
April 13, 2021 Item #9 Page 3 of 13
authority and district facilities’ electricity usage, as compared to continuing with SDG&E
service.
Unless the city, authority and district choose an alternative Clean Energy Alliance product, or
choose to opt-out of Clean Energy Alliance service, all city and district accounts will be
automatically enrolled to receive the Clean Impact Plus product at launch. The following chart
provides a comparison of the options described above based on 2020 energy usage among city,
authority and district accounts:
Renewable energy
power content
Carbon-free
power content
2021 estimated annualized
cost (savings) or increase
compared to SDG&E rates
CEA opt out
(SDG&E service) 39% 39% $0
Clean Impact Plus
(default product) 50% 75% ($25,000)
Clean Impact
(opt-down product) 50% 50% ($37,500)
Green Impact
(opt-up product) 100% 100% $56,250
Fiscal Analysis
The City Council, authority board and district board may choose from the following Clean
Energy Alliance power supply product options, or may choose to opt out of receiving power
from the alliance:
•Clean Impact - 50% of power supply from renewable energy sources
•Clean Impact Plus - 50% renewable and 75% carbon-free energy sources (Clean Impact
rate + $.001/kWh)
•Green Impact - 100% renewable (Clean Impact rate + $.0075/kWh)
Any cost savings or cost increases associated with the selection of a preferred power supply
product will accrue to the particular funds that pay the operating costs of the various facilities
and services controlled by the city, authority and district. These primarily include the General
Fund, Golf Course Fund, Water Operations Fund and Recycled Water Fund. Staff will factor the
cost implications of the City Council, Carlsbad Public Financing Authority Board and Carlsbad
Municipal Water District Board direction into building the fiscal year 2021-22 budget.
Next Steps
The Clean Energy Alliance is proceeding with the implementation of its community choice
aggregation program and is on track to begin serving customers in May and June 2021. Staff will
deliver a copy of the adopted resolution to inform the Clean Energy Alliance of the city’s
April 13, 2021 Item #9 Page 4 of 13
decisions on the preferred approach to providing electrical service to 403 electrical service
accounts billed to the city.
Environmental Evaluation (CEQA)
This action does not constitute a “project” within the meaning of the California Environmental
Quality Act under California Public Resources Code Section 21065 in that it has no potential to
cause either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment, so it does not require environmental review.
Public Notification
Public notice of this item was posted in keeping with the state’s Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1.City Council resolution
2. Carlsbad Public Financing Authority Board resolution
3. Carlsbad Municipal Water District Board resolution
4.City Council Resolution No. 2021-053
April 13, 2021 Item #9 Page 5 of 13
RESOLUTION NO. 2021-084
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, SELECTING THE CLEAN ENERGY ALLIANCE POWER SUPPLY
PRODUCT FOR CITY OF CARLSBAD ELECTRIC SERVICE ACCOUNTS
WHEREAS, Community Choice Aggregation is a mechanism that allows local governments to
purchase and supply electrical power to customers within their jurisdictions as an alternative to the
service provided by an investor-owned utility; and
WHEREAS, on October 8, 2019, the Carlsbad City Council adopted Resolution No. 2019-197
approving and authorizing the execution of the Joint Exercise of Powers Agreement creating the Clean
Energy Alliance, a Community Choice Aggregation Joint Powers Authority; and
WHEREAS, on October 15, 2019, the Carlsbad City Council approved Ordinance No. CS-362
authorizing the implementation of a Community Choice Aggregation program in Carlsbad; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement states
that the Alliance's power supply base product will be greater than or equal to 50% qualified
renewable resources; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement also
states that the Clean Energy Alliance Board of Directors shall establish product options with higher
renewable and/or GHG-free content that each Alliance member may select; and
WHEREAS, on March 4, 2021, the Clean Energy Alliance Board of Directors adopted Clean
Energy Alliance Resolution No. 2021-007, establishing initial Clean Energy Alliance rates and power
supply product offerings to include:
•Clean Impact — Minimum 50% Renewable Energy Product,
▪Clean Impact Plus — 50% Renewable and 75% Carbon-Free Energy Product, and
II Green Impact — 100% Renewable Energy Product; and
WHEREAS, on March 9, 2021, the Carlsbad City Council adopted Resolution No. 2021-053
establishing the Clean Impact 75 (now "Clean Impact Plus") as the default power supply product for all
customer accounts (municipal, commercial, industrial and residential) within the City of Carlsbad.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
April 13, 2021 Item #9 Page 6 of 13
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2.That the City of Carlsbad, as an electric service customer within the Clean Energy
Alliance service area, selects Clean Impact Plus
as the power supply product offering to power its electric service accounts within the
City of Carlsbad.
3.That the City Manager or a designee shall provide a copy of this Resolution to the Clean
Energy Alliance.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of
Carlsbad, the Board of Directors of the Carlsbad Municipal Water District and the Board of Directors of
the Carlsbad Public Financing Authority on the 13th day of April, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel.
NAYS: None.
ABSENT: Schumacher.
MATT HALL, Mayor
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BARBARA ENGLESON, City Clerk
(SEAL)
April 13, 2021 Item #9 Page 7 of 13
RESOLUTION NO. 84
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD PUBLIC
FINANCING AUTHORITY SELECTING THE CLEAN ENERGY ALLIANCE POWER
SUPPLY PRODUCT FOR CARLSBAD PUBLIC FINANCING AUTHORITY ELECTRIC
SERVICE ACCOUNTS
WHEREAS, Community Choice Aggregation is a mechanism that allows local governments to
purchase and supply electrical power to customers within their jurisdictions as an alternative to the
service provided by an investor-owned utility; and
WHEREAS, on October 8, 2019, the Carlsbad City Council adopted Resolution No. 2019-197
approving and authorizing the execution of the Joint Exercise of Powers Agreement creating the Clean
Energy Alliance, a Community Choice Aggregation Joint Powers Authority; and
WHEREAS, on October 15, 2019, the Carlsbad City Council approved Ordinance No. CS-362
authorizing the implementation of a Community Choice Aggregation program in Carlsbad; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement states
that the Alliance's power supply base product will be greater than or equal to 50% qualified
renewable resources; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement also
states that the Clean Energy Alliance Board of Directors shall establish product options with higher
renewable and/or GHG-free content that each Alliance member may select; and
WHEREAS, on March 4, 2021, the Clean Energy Alliance Board of Directors adopted Clean
Energy Alliance Resolution No. 2021-007, establishing initial Clean Energy Alliance rates and power
supply product offerings to include:
•Clean Impact — Minimum 50% Renewable Energy Product,
•Clean Impact Plus — 50% Renewable and 75% Carbon-Free Energy Product, and
•Green Impact — 100% Renewable Energy Product; and
WHEREAS, on March 9, 2021, the Carlsbad City Council adopted Resolution No. 2021-053
establishing the Clean Impact 75 (now "Clean Impact Plus") as the default power supply product for all
customer accounts (municipal, commercial, industrial and residential) within the City of Carlsbad.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Public Financing
Authority as follows:
1. That the above recitations are true and correct.
April 13, 2021 Item #9 Page 8 of 13
2.That the Carlsbad Public Financing Authority, as an electric service customer within the
Clean Energy Alliance service area, selects Clean Impact Plus
as the power supply product offering to power its electric service accounts within the
City of Carlsbad.
3.That the Executive Director or a designee shall provide a copy of this Resolution to the
Clean Energy Alliance.
PASSED, APPROVED AND ADOPTED at a Special Joint Meeting of the Board of Directors of the
Carlsbad Public Financing Authority, City Council of the City of Carlsbad and the Board of Directors of
the Carlsbad Municipal Water District on the 13th day of April, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel.
NAYS: None.
ABSENT: Schumacher.
MATT HALL, Chair
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BARBARA ENGLESON, Secretary
(SEAL)
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April 13, 2021 Item #9 Page 9 of 13
RESOLUTION NO. 1650
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT SELECTING THE CLEAN ENERGY ALLIANCE
POWER SUPPLY PRODUCT FOR CARLSBAD MUNICIPAL WATER DISTRICT
ELECTRIC SERVICE ACCOUNTS
WHEREAS, Community Choice Aggregation is a mechanism that allows local governments to
purchase and supply electrical power to customers within their jurisdictions as an alternative to the
service provided by an investor-owned utility; and
WHEREAS, on October 8, 2019, the Carlsbad City Council adopted Resolution No. 2019-197
approving and authorizing the execution of the Joint Exercise of Powers Agreement creating the Clean
Energy Alliance, a Community Choice Aggregation Joint Powers Authority; and
WHEREAS, on October 15, 2019, the Carlsbad City Council approved Ordinance No. CS-362
authorizing the implementation of a Community Choice Aggregation program in Carlsbad; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement states
that the Alliance's power supply base product will be greater than or equal to 50% qualified
renewable resources; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement also
states that the Clean Energy Alliance Board of Directors shall establish product options with higher
renewable and/or GHG-free content that each Alliance member may select; and
WHEREAS, on March 4, 2021, the Clean Energy Alliance Board of Directors adopted Clean
Energy Alliance Resolution No. 2021-007, establishing initial Clean Energy Alliance rates and power
supply product offerings to include:
•Clean Impact — Minimum 50% Renewable Energy Product,
•Clean Impact Plus —50% Renewable and 75% Carbon-Free Energy Product, and
•Green Impact — 100% Renewable Energy Product; and
WHEREAS, on March 9, 2021, the Carlsbad City Council adopted Resolution No. 2021-053
establishing the Clean Impact 75 (now "Clean Impact Plus") as the default power supply product for all
customer accounts (municipal, commercial, industrial and residential) within the City of Carlsbad.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water
District as follows:
1. That the above recitations are true and correct.
April 13, 2021 Item #9 Page 10 of 13
2.That the Carlsbad Municipal Water District, as an electric service customer within the
Clean Energy Alliance service area, selects Clean Impact Plus
as the power supply product offering to power their electric service accounts within the
City of Carlsbad.
3.That the Executive Manager or a designee shall provide a copy of this Resolution to the
Clean Energy Alliance.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District, the City Council of the City of Carlsbad and the Board of Directors of
the Carlsbad Public Financing Authority on the 13th day of April, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel.
NAYS: None.
ABSENT: Schumacher.
MATT HALL, President
BARBARA ENGLESON, Secretary
(SEAL)
April 13, 2021 Item #9 Page 11 of 13
RESOLUTION NO. 2021-053
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE CLEAN ENERGY ALLIANCE'S DEFAULT
POWER SUPPLY PRODUCT FOR ALL CUSTOMER ACCOUNTS (MUNICIPAL,
COMMERCIAL, INDUSTRIAL AND RESIDENTIAL) WITHIN THE CITY OF
CARLSBAD
WHEREAS, Community Choice Aggregation is a mechanism that allows local governments to
purchase and supply electrical power to customers within their jurisdictions as an alternative to the
service provided by an investor-owned utility; and
WHEREAS, on October 8, 2019, the Carlsbad City Council adopted Resolution No. 2019-197
approving and authorizing the execution of the Joint Exercise of Powers Agreement creating the Clean
Energy Alliance, a Community Choice Aggregation Joint Powers Authority; and
WHEREAS, on October 15, 2019, the Carlsbad City Council approved Ordinance No. CS-362
authorizing the implementation of a Community Choice Aggregation program in Carlsbad; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement states
that the Alliance's power supply base product will be greater than or equal to 50% qualified
renewable resources; and
WHEREAS, Section 6.5 of the Clean Energy Alliance Joint Exercise of Powers Agreement also
states that the Clean Energy Alliance Board of Directors shall establish product options with higher
renewable and/or GHG-free content that each Alliance member may select; and
WHEREAS, on March 4, 2021, the Clean Energy Alliance Board of Directors adopted Clean
Energy Alliance Resolution No. 2021-007, establishing initial Clean Energy Alliance rates and power
supply product offerings to include:
Clean Impact — Minimum 50% Renewable Energy Product,
Clean Impact 75 — 50% Renewable and 75% Carbon-Free Energy Product, and
Green Impact — 100% Renewable Energy Product.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
Exhibit 4
April 13, 2021 Item #9 Page 12 of 13
2.That the City of Carlsbad, as a member of the Clean Energy Alliance Joint Powers
Authority, selects Clean Impact 75 as the default power supply product offering for all
customer accounts, including municipal, commercial, industrial and residential, within
the City of Carlsbad.
3.That the City Manager or his designee shall provide a copy of this Resolution to the Clean
Energy Alliance.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 9th day of March, 2021, by the following vote, to wit:
AYES: Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: Hall.
ABSENT: None.
MATT HALL, Mayor
t7/-
BARBARA ENGLESON, City Clerk
(SEAL)
April 13, 2021 Item #9 Page 13 of 13
Jason Haber, Intergovernmental Affairs Director
April 13, 2021
CEA Product Selection for City, Public
Financing Authority & CMWD
Electric Service Accounts
Recommendation
Adopt resolutions selecting the Clean Energy
Alliance power supply product for:
•City of Carlsbad
•Carlsbad Public Financing Authority
•Carlsbad Municipal Water District
Background
•Oct.8, 2019 -City Council approved a joint
powers agreement creating the Clean Energy
Alliance
•Regional Community Choice Energy Program
•Carlsbad / Del Mar / Solana Beach
Background
•March 9, 2021 –City Council established Clean
Impact Plus as the default power supply for all
customer accounts within the City of Carlsbad
•Municipal
•Commercial
•Industrial
•Residential
•CEA program launches May 1 / June 1, 2021
Sample Bill Analysis
•CEA prepared comparative bill analysis:
•City Hall•Faraday Center•Crossings Golf Course•Maerkle Reservoir•Police & Fire Headquarters•Alga Norte Community Park•CMWD Facilities
•Cost comparison by product for accounts, considering tariff rates, consumption patterns, and demand charges
Power Supply Product Options
Renewable energy
power content
Carbon-free
power content
2021 estimated annualized
cost (savings) or increase
compared to SDG&E rates
CEA opt out
(SDG&E service)39%39%$0
Clean Impact Plus
(default product)50%75%($25,000)
Clean Impact
(opt-down product)50%50%($37,500)
Green Impact
(opt-up product)100%100%$56,250
Fiscal Analysis
•Cost savings or increases will accrue to funds that pay the operating costs of facilities and services controlled by the city, authority and district
•Primarily the General Fund, Golf Course Fund, Water Operations Fund and Recycled Water Fund
•Staff will factor cost implications of the City Council, Carlsbad Public Financing Authority Board and Carlsbad Municipal Water District Board direction into the fiscal year 2021-22 budget.
Recommendation
Adopt resolutions selecting the Clean Energy
Alliance power supply product for:
•City of Carlsbad
•Carlsbad Public Financing Authority
•Carlsbad Municipal Water District
Recommendation
•The City Council, authority board and district board may choose from the following Clean Energy Alliance power supply product options, or may choose to opt out of receiving power from the alliance:
–Clean Impact -50% of power supply from renewable energy sources
–Clean Impact Plus -50% renewable and 75% carbon-free energy sources
–Green Impact -100% renewable