City of San Diego

Community Choice Aggregation

Cody Hooven
Director/Chief Sustainability Officer
Sustainability Department
 Greenhouse Gas Emissions

Goals

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Goals
 Energy Source Options
Utility

ELECTRIC DELIVERY
SDG&E Utility Service
CCA

ELECTRIC DELIVERY
SDG&E Utility Service

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California CCA Activity

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 CSD CCA Would be the 3rd Largest
% of incumbent
Incumbent
CCA Load (GWh) IOU’s total
IOU
2018 load
Clean Power Authority (LA
~10,000 SCE 12%
Co.)
East Bay Community Energy
~7,000 PG&E 9%
(Alameda Co.)

City of San Diego ~6,000 SDG&E 30%

MCE (Northern CA) 5,000 PG&E 6%

San Jose 4,000 PG&E 5%

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 San Diego Goals
Rate Competitiveness and Financial Stability
 Competitive rates
 Financial operations consistent with an investment-grade entity

Achieve Climate Action Plan Goals

 Reduce GHG by 50% by 2035
 100% renewable electricity by 2035

Additional benefits
 Local economic development
 Citizen participation in decision-making
 Targeted customer service/energy efficiency/EV/solar
programs
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Major Cost Components of a CCA
Exit Fee paid to SDG&E so that CCA doesn't harm other
PCIA
SDG&E customers

GHG Cap and Trade allowances

O&M CCA Operating costs (includes start-up cost amortization)
Reserves Funds set aside for financial reserves/rate stabilization

Capacity Cost of meeting "Resource Adequacy" requirements

Other Energy Non-RPS-eligible power (e.g., hydro or "firming")

Renewable Energy from Renewable Portfolio Standard compliant

Energy resources

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Average CCA Cost And SDG&E Rates

Savings : 0.7c/kwh

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 Revenue Investment Options

From 2020 to 2035:

Total Net Income: ~$1.75 billon

Annual Average Net Income: ~$110 million

Net Income can be used

• To increase rate competitiveness
• To implement local energy programs
• To develop local renewables

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 CCA Governance
Function Under City-Only Model Under JPA Model
Overall Guidance ● Mayor ● JPA Board, made up of
● City Council Rate- representatives of member
setting board communities
● Voting structures vary
Strategic Direction ● CCA Management ● CCA Management

Execution of ● CCA Director and Staff ● CCA Director and Staff

Strategic Direction ● City Business Services ● CCA hired communications staff or
and Plan and Communications contractors
Support

Controls ● CCA Management, ● CCA Management, answering to JPA

answering to city Board
council

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 Summary of CCA Risks
Risk Magnitude Mitigation

Financial Risk to City Medium-low Minimize city exposure

Procurement-Related Risks (i.e., Enter into balanced portfolio of

Medium-low
can’t meet rate or GHG targets) power contracts
Monitor and advocate at legislature
Legislative and Regulatory Risks High
and CPUC
Establish rate-stabilization fund to
PCIA Uncertainty High
account for volatile PCIA
Monitor and advocate at legislature
PCIA Policy Uncertainty Medium
and CPUC
Availability/price of low-carbon Enter into balanced portfolio of
Medium
resources power contracts

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 Financing
Task Cost Estimate for FY20 Funding Source

Hire consultants to provide

City budget - Energy
regulatory, legal support $200,000
Fund
including CPUC PCIA Phase 2

Start-up of CCA (hiring,

contracting, equipment &
$5 to 10 million JPA loan
lease, marketing &
communications, etc.)

Working Capital at full

$30M-$120M JPA loan
launch

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 2019 2020 2021

Q1 • JPA establishment • CCA begins service to

• Begin formal meetings with potential founding • Continues to hire staff, customers phased in
members of a JPA to negotiate a structure and determine consulting by customer class
guiding principles services needed,
• Engage in CPUC PCIA Phase 2 proceeding update energy load
• Develop budget needs for FY20
forecasts, issue RFO for
Q2 energy procurement,
• City Council approves budget
develop and implement
Q3
customer engagement
• City Council acts to officially form the new JPA
program, etc.
Q4
• CCA is now stand-alone organization
• Actions include hiring CEO and CFO
• Expand CCA Implementation Plan (required filing
to CPUC) to reflect JPA structure
• Adopt CCA Ordinance and file CCA
Implementation for a Q1 2021 launch
 www.sandiego.gov/sustainability

Cody Hooven
Director/Chief Sustainability Officer
Sustainability Department