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HomeMy WebLinkAbout2022-05-26; Clean Energy Alliance JPA; ; Consider Approval of Letter Regarding AB 2838 Taking Position of Oppose Unless Amended Related to Program Closure Costs of San Diego Gas & Electric's Green Tariff Share~ CLEAN ENERGY ALLIANCE DATE: TO: FROM: ITEMG: Staff Report May 26, 2022 Clean Energy Alliance Board of Directors Barbara Boswell, Chief Executive Officer Consider Approval of Letter Regarding AB 2838 Taking Position of Oppose Unless Amended Related to Program Closure Costs of San Diego Gas & Electric's Green Tariff Shared Renewables (TSR) Known as EcoChoice RECOMMENDATION Approve Letter Regarding AB 2838 taking position of oppose unless amended related to program closure costs of San Diego Gas & Electric Green Tariff Shared Renewables (GTSR) program, known as EcoChoice. BACKGROUND AND DISCUSSION At its meeting April 21, 2022, the Clean Energy Alliance (CEA) Board heard a report from Special Counsel Tosdal regarding Assembly Bill 2838, which would allow San Diego Gas & Electric (SDG&E) to unfairly charge CEA customers for costs related to SDG&E shutting down their 100% renewable program, EcoChoice. The Board directed st aff to prepare an oppose unless amended position letter to be distributed to the three assembly members that represent CEA's member cities. FISCAL IMPACT There is no fiscal impact related to this action. ATTACHMENTS l etter Regarding AB 2838 Taking Position of Oppose ~ CLEAN ENERGY ALLIANCE Assemblymember Marie Waldron, District 75 Assemblymember Tasha Boerner Horvath, District 76 Assemblymember Christopher Ward, District 78 Re: Assembly Bill 2838 Oppose Unless Amended Dear Assemblymembers Waldron, Horvath, and Ward: Clean Energy Alliance (CEA) is the new community choice energy program currently serving the cities of Carlsbad, Del Mar and Solana Beach and soon to be serving Escondido and San Marcos, with energy from a minimum 50% renewable sources. CEA opposes Assembly Bill (AB) 2838 unless amended. The bill would permit Investor-Owned Utilities (IOUs) to charge non-participating ratepayers for program closure costs related to the Green Tariff Shared Renewables (GTSR) program. Existing law authorized under AB 43 (Wolk) in 2013 requires investor-owned utilities to administer an optional GTSR program to enable ratepayers to participate directly in offsite electrical generation facilities that use eligible renewable energy resources. The law requires the CPUC to ensure that charges and credits ensure nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers. AB 2838 would change the law and permit the California Public Utilities Commission (CPUC) to charge non-participating customers, including CEA customers, for the costs of the program, turning the ratepayer indifference principle on its head. San Diego Gas & Electric (SDG&E) is running a $2 million deficit and is currently the only utility seeking to eliminate its GTSR program. lfthe law is changed and the CPUC permits SDG&E to wind down its program, San Diego ratepayers wi ll pay the cost of participating customers even though they never benefited from the GTSR program. Requiring non-patticipating ratepayers to pay the cost of SDG&E's GTSR program is unfair and inequitable to San Diego ratepayers. SDG&E's rates have increased 48% since 2013 and ai·e among the hjghest in the country. The additional burden of GTSR costs should not be carried by non-participating ratepayers who did not choose to participate in the higher-cost program. A more equitable approach that should be taken into consideration by the Legislature and the CPUC is to charge JOU shareholders for the cost of any failed GTSR program costs. Shareholders stand to benefit from the success of experimental programs like GTSR and should also absorb the risk when they fail. Shareholders are also more financially capable of shouldering excess costs associated with the GTSR program. Furthermore, AB 2838 is unnecessary because the CPUC is already planning to address program closure in an upcoming proceeding. SDG&E submitted Advice Letter 3920-E on December 17, 2021, requesting permission from the CPUC to shut down its GTSR program, called EcoChoice. The CPUC denied the request in a letter dated April 19, 2022, explaining that SDG&E fai led to submit a plan, timeline or any details related to the wind down and closure ofEcoChoice. Instead, the CPUC directed SDG&E to submit 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2808 thecleanenergyalliance.org a mitigation strategy and suspension plan in an upcoming application due June I, 2022, where these issues will be taken up. All three utilities have been ordered by the CPUC to submit applications for review of their GTSR programs on the same date. Issues related to GTSR program closures can be addressed in these applications under existing law. Passage of AB 2838 would only disrupt and interfere with the CPUC's process and resolution of these issues. Respectfully, Barbara Boswell Chief Executive Officer cc: Kristi Becker, Clean Energy Alliance Board Chair, City of Solana Beach Council Member Dave Druker, Clean Energy Alliance Board Vice Chair, City of Del Mar Council Member Teresa Acosta, Clean Energy Alliance Board Member, City of Carlsbad Council Member Tina Inscoe, Clean Energy Alliance Board Member, City of Escondido Council Member Ed Musgrove, Clean Energy Alliance Board Member, City of San Marcos Council Member 2 ~ CLEAN ENERGY ALLIANCE June 3, 2022 Senator Patricia Bates, 36"' District Senator Brian Jones, 38"' District Senate President Pro Tempore, Toni G. Atkins, 39t1, District Distributed via Email Re: Assembly Bill 2838 Oppose Unless Amended Dear Senate President Pro Tempore Atkins, Senator Bates & Senator Jones: Clean Energy All iance (CEA) is the new community choice energy program currently serving the cities of Carlsbad, Del Mar and Solana Beach and soon to be serving Escondido and San Marcos, with energy from a minimum 50% renewable sources. CEA opposes Assembly Bill (AB) 2838 unless amended. The bill would permit Investor-Owned Utilities (JOUs) to charge non-participating ratepayers for program closure costs related to the Green Tariff Shared Renewables (GTSR) program. Existing law authorized under AB 43 (Wolk) in 20 13 requires investor-owned utilities to administer an optional GTSR program to enable ratepayers to participate directly in offsite electrical generation facilities that use eligible renewable energy resources. The law requires the CPUC to ensure that charges and credits ensure nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers. AB 2838 would change the law and permit the California Public Utilities Commission (CPUC) to charge non-participating customers, including CEA customers, for the costs of the program, turning the ratepayer indifference principle on its head. San Diego Gas & Electric (SDG&E) is running a $2 million deficit and is currently the only utility seeking to eliminate its GTSR program. ff the law is changed and the CPUC permits SDG&E to wind down its program, San D iego ratepayers will pay the cost of participating customers even though they never benefited from the GTSR program. Requiring non-participating ratepayers to pay the cost of SDG&E's GTSR program is unfai r and inequitable to San Diego ratepayers. SDG&E's rates have increased 48% since 2013 and are among the highest in the country. The additional burden of GTSR costs should not be carried by non-participating ratepayers who did not choose to pa1ticipate in the higher-cost program. A more equitable approach that should be taken into consideration by the Legislature and the CPUC is to charge IOU shareholders for the cost of any fai led GTSR program costs. Shareholders stand to benefit from the success of experimental programs like GTSR and should also absorb the risk when they fail. Shareholders are also more fin ancially capable of shouldering excess costs associated with the GTSR program. Furthermore, AB 2838 is unnecessary because the CPUC is already planning to address program closure 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2808 thecleanenergyalliance.org in an upcoming proceeding. SDG&E submitted Advice Letter 3920-E on December 17, 202 1, requesting permission from the CPUC to shut down its GTSR program, called EcoChoice. The CPUC denied the request in a letter dated April 19, 2022, explaining that SDG&E failed to submit a plan, timeline or any details related to the wind down and closure ofEcoChoice. Instead, the CPUC directed SDG&E to submit a mitigation strategy and suspension plan in an upcoming application due June I, 2022, where these issues will be taken up. All three utilities have been ordered by the CPUC to submit applications for review of their GTSR programs on the same date. Issues related to GTSR program closures can be addressed in these applications under existing law. Passage of AB 2838 would only disrupt and interfere with the CPUC's process and resolution of these issues. Respectfully, Barbara Boswell Chief Executive Officer 2 Clean Energy Alliance ceo@thecleanenergyalliance.org cc: Kip Lipper, Chief Policy Advisor on Energy & Environment, Senate President Pro Tempore Atkins Kerry Yoshida, Minority Consultant, California State Senate Nidia Bautista, Committee Consultant Kristi Becke r, Clean Energy Alliance Board Chair, City of Solana Beach Council Member Dave Druke r, Clean Energy Alliance Board Vice Chair, City of Del Mar Council Member Teresa Acosta, Clean Energy Alliance Board Member, City of Carlsbad Council Member Tina Inscoe, Clean Energy Alliance Board Member, City of Escondido Council Member Ed Musgrove, Clea n Energy Alliance Board Member, City of San Marcos Council Member