HomeMy WebLinkAbout2021-06-03; Encina Wastewater Authority Board of Directors' Decision on Renewable Energy (Districts - All); Gomez, PazTo the members of the:
TY COUNCIL
Datelo CA L CC L
CM _L A .;L_DCM {3)L
Council Memorandum
June 3, 2021
To: Honora.ble Mayor Hall and Members of the City Council
From: Paz Gomez, Deputy City Manager, Public Works
Via: Geoff Patnoe, Assistant City Manager@
{city of
Carlsbad
Memo ID #2021113
Re: Encina Wastewater Authority Board of Directors' Decision on Renewable Energy
(Districts -All)
This memorandum provides information regarding the Encina Wastewater Authority (EWA)
Board of Directors' recent decision on the Clean Energy Alliance (CEA) Green Impact 100%
renewable energy product.
Background
On April 13, 2021, the City Council, Carlsbad Public Financing Authority Board and Carlsbad
Municipal Water District (CMWD) Board adopted resolutions selecting the CEA's Clean Impact
Plus power supply product for the City of Carlsbad, Carlsbad Public Financing Authority and
CMWD electric service accounts (Attachment A). This product is 50% renewable energy and 75%
carbon-free. The CEA is helping its member communities lead the way in reducing greenhouse
gas emissions and meeting their Climate Action Plan goals.
The City Council vote included all wastewater facilities that are owned and operated by the city
and did not include those facilities that the city owns partially or in whole but operated and
maintained by EWA for which the San Diego Gas and Electric (SDG&E) bills are sent to EWA and
which EWA refers to as "remote facilities."
The remote facilities that were not included in the April 13, 2021, decision are:
• The Encina Water Pollution Control Facility, referred to as the EWA treatment plant, is
owned and operated by the six member agencies of the EWA Joint Powers Authority
(JPA):
o City of Carlsbad
o City of Vista
o Buena Sanitation District (Buena)
o Vallecitos Municipal Water District
o Leucadia Wastewater District
o City of Encinitas
EWA bills the member agencies for all capital and operating costs, including utilities,
associated with the treatment facility based on each agency's percentage of flow. The six
member agencies pay all costs for this facility, which are passed through to their
Public Works Branch
Utilities Department
5950 El Camino Real I Carlsbad, CA 92008 I 760-438-2722 t
Council Memo-EWA Board of Directors' Decision on Renewable Energy (Districts -All)
June 3, 2021
Page 2
respective wastewater customers in the rates that the member agencies' councils or
boards establish. For the City of Carlsbad, the flow is estimated to be over 24%.
• The Cities of Carlsbad and Vista and Buena share ownership of two remote facilities: Agua
Hedionda and Buena Vista lift stations. The Cities of Carlsbad and Vista and Buena have
an agreement with EWA to operate these two lift stations and pay for all capital and
operating costs for these two lift stations, which are passed through to their customers as
a portion of their Council and Board-approved wastewater rates.
• The Carlsbad Water Recycling Facility, or CWRF, is a remote facility owned by the city.
The city has an agreement with EWA to operate this facility and pay for all capital and
operating costs for the recycling facility, which are passed through to the recycled water
customers in the recycled water rates.
All other city wastewater facilities, including nine additional lift stations, miles of wastewater
collection system piping throughout the service area and over 3,000 manholes are owned and
operated by the Utilities Department. These costs are also part of wastewater customer rates for
wastewater service. SDG&E bills come directly to the city and are on the Clean Impact Plus power
supply product approved by the City Council on April 13, 2021.
Discussion
On May 11, 2021, the EWA Board of Directors' Policy and Finance Committee meeting included a
discussion on the CEA product that would be chosen for these four remote facilities. The
members of the committee voted unanimously to recommend to the EWA Board of Directors to
move all four facilities to the Green Impact 100% renewable energy product. ·
On May 26, 2021, the EWA Board of Directors received the Policy and Finance Committee's
recommendation and were asked to vote on each facility separately (Attachment B). After a
motion by EWA Board Member, Joe Mosca, a representative of the City of Encinitas, and a
second by EWA Board Member, Cori Schumacher, to move all facilities to the Green Impact 100%
renewable energy product, the EWA Board of Directors voted using a weighted vote with results
of 52.15% yes and 47.85% no. Therefore, all EWA-operated facilities will be moved to the Green
Impact 100% renewable energy product.
The city's share of the annual energy cost increase at the EWA treatment facility for the Green
Impact 100% renewable energy product is expected to be approximately $4,804-. The city's
annual increase for the CWRF is expected to be approximately $2,417. The city's share of the
increase for the two lift stations that are jointly owned by the Cities of Carlsbad and Vista and
Buena (Agua Hedionda and Buena Vista lift stations) is expected to be approximately $2,264. The
city's share of the total annual energy cost increase for the four remote facilities is expected to
be approximately $9,485.
Council Memo-EWA Board of Directors' Decision on Renewable Energy (Districts-All)
June 3, 2021
Page 3
Next Steps
Energy supply at the EWA treatment facility, CWRF and the two lift stations that are jointly
owned by the Cities of Carlsbad and Vista and Buena will be moved by the CEA to Green Impact
100% renewable energy product. SDG&E will continue to send bills for these facilities to EWA for
payment.
Attachments: A. April 13, 2021, Staff Report on CEA product selection
B. May 26, 2021, EWA Board of Directors' Report on CEA tariff selection
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Laura Rocha, Deputy City Manager, Administrative Services
Vicki Quiram, Utilities Director
Jason Haber, Intergovernmental Affairs Director
Ryan Green, Finance Director
Robby Contreras, Assistant City Attorney
Dave Padilla, Engineering Manager
Meeting Date:
To:
From:
'Staff Contact:
Subject:
Districts:
April 13, 2021
Mayor/Chair/President and City Council/Board/Board
Scott Chadwick, City Manager/Executive Director/Executive Manager
Jason Haber, Intergovernmental Affairs Director
jason.haber@carlsbadca.gov, 760-434-2958
Clean Energy Alliance Product Selection for City of Carlsbad, Carlsbad
Public Financing Authority and Carlsbad Municipal Water District Electric
Service Accounts
All
Recommended Action
Attachment A
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 Use11 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 Action11 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 Carbon-free 2021 estimated annualized
power content power content cost (savings) or increase
compared to SDG&E rates
CEA opt out 39% 39% $0 (SDG&E service)
Clean Impact Plus 50% 75% ($25,000) (default product)
Clean Impact 50% 50% ($37,500) (opt-down product)
Green Impact 100% 100% $56,250 (opt-up product)
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 ELECTR,IC 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 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
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 provi,de 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:
NAYS:
ABSENT:
April 13, 2021
Hall, Blackburn, Acosta, Bhat-Patel.
None.
Schumacher.
MATT HALL, Mayor
~~~~VvlA·Yz;tJf¥r
BARBARA ENGLESON, City Clerk
(SEAL}
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 -----~C'""le ___ a ___ n_lm___._p ___ a_ct_P_l_u ___ s ____ _
as the power supply product offering to power its electric service accounts within the
City of Carlsbad.
3. That the Executive Director or a deslgnee 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:
NAYS:
ABSENT:
April 13, 2021
Hall, Blackburn, Acosta, Bhat-Patel.
None.
Schumacher.
MATT HALL, Chair
~~.,h 1tctr~1-fuf'
BARBARA ENGLESON, Secretary
{SEAL)
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% Renewabfo 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 ----~C_le~a~n_l_m~p_a~c~t_P~lu~s ____ _
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:
NAYS:
ABSENT:
April 13, 2021
Hall, Blackburn, Acosta, Bhat-Patel.
None.
Schumacher.
MA TT HALL, President
~v,:mftJY
BARBARA ENGLESON, Secretary
(SEAL)
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
Exhibit 4
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, 20191 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.
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 Carlsb.ad.
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:
NAYS:
ABSENT:
April 13, 2021
Blackburn, Acosta, Bhat-Patel, Schumacher.
Hall.
None.
MATT HALL, Mayor
Jv.v~:I)ey¼tt 0Q if
BARBARA ENGLESON, City Clerk
(SEAL)
Item #9 Page 13 of 13
CEA Product Selection for Cit~ Public
Financing Authority & CMWD
Electric Service Accounts
Jason Haber, Intergovernmental Affairs Director
April 13, 2021
{city of
Carlsbad
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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 fj?cal year 2021-22 budget.
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Recommendation
Adopt resolutions selecting the Clean Energy
Alliance power supply product for:
• City of Carlsbad
• Carlsbad Public Financing Authority
• Carlsbad Municipal Water District
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. I
Item
Date
To
From
Issue
14
May 26, 2021
ENCi NA WASTEWATER AUTHORITY
BOARD OF DIRECTORS
Honorable Chair and Board of Directors ..&. • I ,j .L
Michael Steinlicht, General Manager 1Y\,cAQ s~
CLEAN ENERGY ALLIANCE TARIFF SELECTION
STAFF RECOMMENDS THE BOARD OF DIRECTORS:
ATTACHMENT B
1. Select desired energy tariff for the Encina Water pollution Control Facility (EWPCF).
2. Select desired energy tariff for the Agua Hedondia Pump Station (AHPS).
3. Select desired energy tariff for the Buena Vista Pump Station (BVPS).
4. Select desired energy tariff for the Carlsbad Water Recycling Facility (CWRF).
5. Discuss and take other action as appropriate.
BACKGROUND
The Clean Energy Alliance began providing electricity supply services to customers within the City of
Carlsbad on May 1, 2021. Customers will be automatically enrolled in the CEA unless they opt out and
choose to remain SDG&E customers. Staff has been working closely with CEA to understand the tariff
options and the impact to the EWA budget should the EWPCF and Remote Facilities move onto the CEA
system. At this time, staff is requesting the Board of Directors provide guidance on the stated
recommendations.
FIVE-YEAR STRATEGIC BUSINESS PLAN REFERENCE
Strategic Initiative No. 6 -Continue fiscal responsibility and revenue generation.
DISCUSSION
The Clean Energy Alliance is the new Community Choice Aggregation energy provider to the cities of Del
Mar, Solana Beach and Carlsbad. Encina operates the EWPCF and the Remote Facilities and currently
contracts with SDG&E for electricity service. The CEA was established to provide an alternative power
supply option to customers with the intention of offering electricity that was generated in a more
environmentally sustainable manner.
CEA has a governing board comprised of elected officials from each of the three member agencies.
Recently CEA adopted rates and tariff options that were available to each city. These rates were set at
sufficient levels to produce revenue to fund power supply, debt payments, administrative costs and
provide for a 5% operating reserve. The rate schedules mirror the SDG&E rate schedules to allow for better
14-1 Ref: Admin. 21-14568
May 26, 2021
Encina Wastewater Authority (EWA) Board of Directors
Clean Energy Alliance Tariff Selection
customer understanding and comparison. CEA's goal was to provide a 2% generation cost savings when ·
compared to SDG&E . Each of the member agencies of CEA was required to select a "base rate11 for which
all customers would default to upon the transition to CEA provided service. For Carlsbad customers, of
which EWA and the Remote Facilities are, the default rate is the "Clean 7511 rate listed below. This tariff
was selected by the Carlsbad City Counsel. Because the Carlsbad City Counsel elected to default to this
rate tariff, it allows customers to select one of three different rate tariffs. The options for power supply
tariffs are as follows:
• Clean Impact -Minimum 50% renewable increasing to 100% renewable by 2035
• Clean 75 -50% renewable with 75% generation being carbon free
• Green lmpact-100% renewable power supply
Should EWA elect to source electricity from CEA tha.n each of the facilities will need to be on one of the
three tariffs. To better understand the fiscal impact of these tariff options, Staff analyzed how much of a
change in cost each facility would experience for each rate option. Values in the tables below represent
savings or additional costs (negative#) relative to the current SDG&E tariff for each facility.
Recommendation No. 1: EWPCF
The EWPCF currently generates approximately 85% of its power demands from renewable biogas
generated from the digestion of biosolids. The remaining 15% of the energy demands at the EWPCF are
met through the SDG&E meter. The cost impact associated with the four options for power supply are
summarized in the table below.
Facility Owner Opt out of Clean Impact Clean 75 Green
CEA Impact
EWPCF EWAJPA $0 $2,054.17 -$782.13 -$19,218.10
Members
Recommendation No. 2: AHPS
The AHPS is a jointly owned facility between the City of Carlsbad and the City of Vista. This facility is
operated by EWA under an agreement with both Cities. Vista is the majority owner with 69.1% ownership
and Carlsbad has 30.9% ownership. The cost impact associated with the four options for power supply are
summarized in the table below.
Facility Owner Opt out of Clean Impact Clean 75 Green
CEA Impact
AHPS Vista/Carlsbad $0 $1,885.97 $942.67 -$5,188.76
Recommendation No. 3: BVPS
The BVPS is a jointly owned facility between the City of Carlsbad and the City of Vista. This facility is
operated by EWA under an agreement with both Cities. Vista is the majority owner with 89.6% ownership
and Carlsbad has 10.4% ownership. The cost impact associated with the four options for power supply are
summarized in the table below.
Facility Owner Opt out of Clean Impact Clean 75 Green
CEA Impact
BVPS Vista/Carlsbad $0 $4,204.63 $2,796.15 -$6,358.95
14-2 Ref: Admin. 21-14568
May 26, 2021
Encina Wastewater Authority (EWA) Board of Directors
Clean Energy Alliance Tariff Selection
Recommendation No. 4: CWRF
The CWRF is operated by EWA under an agreement with the City of Carlsbad. This facility processes
secondary effluent from EWPCF to provide recycled water for the Carlsbad Municipal Water District
recycled water distribution system. The cost impact associated with the four options for power supply are
summarized in the table below.
Facility Owner Opt out of Clean Impact Clean 75 Green
CEA Impact
CWRF Carlsbad $0 $845.85 $410.87 -$2,416.51
These estimates will change from one year to the next and should be used for comparison purposes to
determine which tariff should be selected for each facility at this time. Once each facility elects to join
CEA, it will not be possible to switch back to SDG&E for power supply services for a period of one year.
FISCAL IMPACT
Sufficient funds are available in the proposed FY 2022 budget to accommodate these recommendations.
MEMBER AGENCY MANAGERS
The Member Agency Managers were briefed on this action at their May 4th meeting.
POLICY AND FINANCE COMMITTEE ACTION
Staff presented the recommendations and options to the Policy and Finance Committee in their regular
meeting on May 11, 2021. The Committee expressed their support for contracting with CEA for electricity
supply services and unanimously recommended that EWA contract with CEA at the 100% renewable
"Green Impact" tariff.
THEREFORE, STAFF RECOMMENDS THE BOARD OF DIRECTORS:
1. Select desired energy tariff for the Encina Water pollution Control Facility (EWPCF).
2. Select desired energy tariff for the Agua Hedondia Pump Station (AHPS).
3. Select desired energy tariff for the Buena Vista Pump Station (BVPS).
4. Select desired energy tariff for the Carlsbad Water Recycling Facility (CWRF).
5. Discuss and take other action as appropriate.
Attachment 1: Presentation
Prepared by: Scott McClelland, Assistant General Manager
Approved by: Michael Steinlicht, General Manager
14-3 Ref: Admin. 21-14568 -
ATTACHMENT 1
PRESENTATION
14-4
May 26, 2021
1
2
3
C\t~Sl~I lQJ AUTHORITY
Clean Energy Alliance
Tariff Selection
FIVE-YEAR STRATEGIC BUSINESS PLAI✓ REFEREl✓CE
Strotegi,: lr1itiotive f,Jo.6: "ContinuP r,.-,,al responsibtl1t}1 and
revenue generation."
RECOMMENDATION
1. Select desired energy tariff for the Encina Water pollution Control Facility (EWPCF).
Select desired energy tariff for the Agua Hedondia Pump Station (AHPS)
3. Select desired energy tariff for the Buena Vista Pump Station (BVPS).
Select desned energy tariff for the Carlsbad Water Rec ye.ling Facility (CWRF).
5. Discuss and toke other action as app1opriate
14-5
4
5
6
Commurnty Choice Aggregation (CCA)
• CCAs have existed for the last 10 years m CA
• S,;,rl'e 11 rnill,.:,r, cu<,torner;, ~00 cit,,c<,
• 6,c,o:,+ M~g3r,•att:. Gre.-n Pol":<·r Prncl•1t:d
• CCA's put control of power proc.urement 1n hands of local entities
• Replace SDG&E as the middleman m pO\ver rrocur0mcnt
• SDG&E continues to distribute power to customers and bills customers
I
CEA RATE BAG.GROUND
• JPA for rned by C1t1es of Cnlsbad, Solana Beach, Del lv1ar
• CEA Adopted Rates (Murch :::-021)
• Set at levels sufficient lo produce revenue to fund power supply, debt
payments, and administrative costs and 5% ope,atmg reserve
• Rate schedules rn1nor SDG&E for ease 1n customt>r understanding c1nd
comparison
• Same time of use per rods
• JPA Goal to provide;,% generation costs savings Lompared to SDG&E
• Once a tariff is selected customer may not change selection for a penod of one
year.
Power Supply Tariffs
• Opt out of CEA (stay with SDGE',E)
• Clean Impact -minimum 5d',{, rene,1,,able increasing to 10ot:-O by 2035
• Clean 75-501¼, renewable/75% c.:irbon free
• Green lmpact-100% Renevvabk power supply
14-6
7
8
9
Power Supply Tariffs
• Opt out of CEA (stay with SDG&E)
• Clean Impact-minimum 50% renewable increasing to 100°/t, by 2035
• Clean 75-50% renevi.1able/75% carbon free
• Green lmpact-100% Renewable power supply
Clean Energy Alliance Tariff Selection -EWPCF
Elldo1WPCfJl•c...,,.. ... ,-s..,,,.,...II' CEA~Ru ,,.,,,bltEA•ivt•ni<lwct
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POA&fl'5 10.00 '7M7"" 1000 ,,.mt.. ,....,., no>,a,u3,,..,,..,,_>:1
11<..,,'I' sn.A>Jl• mlllJJ> rn,>->47l rn.u,,n UD.'""' IJSJ.61t" n o
T,,ul UD>.!lt-J411D].~"9S< l"'71'U7 nofi,s:p.,i;1 .. ~.11J151n,>h,na...-
EM»oWKFIIICompo"""'SunvNf)' CEA71~C.,t,onF,.,Ell<'!l'tPnidU<l ~:.:::::.::"'·"":...,.,_ -.. -........
0Wgt SPG,1,E CEA 5DCiU CEA 5DGU U.0 S-
G<nUl\<lo n:,.u'-<,, n5.)-• n1ws. ..._>17:J> ou.,g:t.llg u~oa1-ao 1>•>.ueu11
"°"'&ITT I<>,«> fUU.OO '""" 19,mi1 fno Uo>,llgU) uor.l'fu) 0,,t.<'1' -179,lbJJI J7!1,lhJJI fn.:t.J.11J f7!,,U,,7] lgSJ,'3,A IJSJ.4J,U <UIO
Teto! 11<1:t,fflJl,U<>J.6,.,,_iJ llOl>i;U, U°',]9'.,5"',>~IJ>!i111,1li;'-1,,.7"
£.a.ci,w,Wl'CJ'ftilCompolU<>!!Summory cu,_R.,.,wabl<En~'Vl'n>d""-
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l'QAl,fl'S ••-.-,,..,..., , .. .,. •~'3. 1000 ,..,:,,Boiu1uo>,89L:1J
0.1<,,y .-,,.11.J;i> os.1>1J> 11s.ua.n 17).»4-n ,,n,lt-a 1,n,11" 1000
fotol UO>,lJ9}111"4.,,.77• 110'1'5U7 11,.,Ul.>.\l>.1'4.11)1-Jlll, .. l.050'1
RECOMMENDATION
1. Select desired energy tariff for the Encina Water pollution Control Facility (EWPCF).
Select desired energy tariff for the Agua Hedondia Pump Sta lion (AHPS).
3. Select desired energy tanff for the Buena Vista Pump Station (BVPS).
4. Select desired energy tariff for the Carlsbad Water Recycling Facility (CWRF).
5. Discuss and take other action as appropriate.
14-7
10
11
12
Recommendation No. 1-EWPCF Tariff
( u',I u,mpa11,.,,.., .. ,., 1•·Lil11'◄' 1u 0.r .,·,.-.l ,,,i,., m ~Herl .1·. ,,I !-.1.11, I, '"·' 1, ~-.,1,.,, us, st•loje< I
to,li,,n,Ji,,.,nrJ,,,n,p;u,•-(,n•.d,.,nolm,pl\',>'il'C1IJlll'.'('Ott"ILll•·•,,1•.'11HJ'
Recommendation No. 2 -AH PS Tariff
(n•,1,,,,11[1d11.t•w.;n•:1,·l1II\·, 1,, .. [,.·.t;r r.11,,.,,,,:11,-,1.,•,pt/.\,.,,t, ·••.·1,f·.,1, .ot• •• ,,l,1'·<1
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Recommendation No. 3 -BVPS Tariff
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14-8
13
14
14-9