www.sonomacountywater.org

Sonoma County CCA Feasibility Study Summary

Cordel StillmanDeputy Chief Engineer

What is Community Choice Aggregation?

• AB 117 in 2002• Counties/Cities Form Block to

Purchase Electricity Generation on Open Market

• Transmission, Distribution, and Billing Remain with Investor Owned Utility (PG&E)

• Generation Rates and Power Supply Determined Locally

• This is an opt-out program, all are included unless they specifically take action to remain with the local utility

Public PowerOh no, not more government!!

• 39 Public Power Providers in CA• 25% Receive Municipal Utilities

Power• Average Municipal Rates 20% Lower

Feasibility Study• DMC was retained by SCWA to conduct a feasibility

study for the formation of a CCA program in Sonoma County.

• The study examines the impacts on ratepayers, the environment and the local economy from providing a public alternative to PG&E for the supply of electric generation services within the County.

• Several potential scenarios were examined to understand

impacts using a range of potential energy sources and forecast assumptions.

• Objective of the study is to provide a conservative assessment

that can be used to determine if further analysis is warranted.

Steering Committee

• Veronica Ferguson – County Administrator• Kathy Millison- City Manager, Santa Rosa• Grant Davis- General Manager, SCWA• Suzanne Smith- Executive Director, RCPA/SCTA• Rod Dole- former ACTTC• Donna Dunk- ACTTC• Bill Keene- Executive Director, Open Space District• Ann Hancock- Executive Director, Climate Protection

Campaign• Dick Dowd – Private Developer• Jose Obregon- Sonoma County General Services• Suzanne Doyle – Sierra Club• County, City , and non-profit staff

Sonoma County Electric Customers and Consumption

Service Accounts Electric Consumption

2008 PG&E data show 218,000 electric service accounts and annual consumption of 2,778 million kilowatt-hours of electricity.

Projected Customer Base (2013)

Customer Classification Accounts Energy Consumption

(MWh)

Percent of Energy Consumption

Residential 142,724 950,294 48%Small Commercial 15,673 278,613 14%Medium Commercial 1,834 321,748 16%Large Commercial 277 235,607 12%Industrial 11 124,658 6%Agricultural and Pumping

2,043 44,486 2%

Street Lighting 1,695 12,925 1%     Total 164,257 1,968,331 100%     Peak Demand (MW)   365

Customers and Sales are adjusted for removal of direct access customers and assumed 20% opt-out rate.

Resource Planning Supply Scenarios

• Four representative supply scenarios were developed for analysis with

input from the project Steering Committee.

- Status Quo renewable energy content (“Scenario 1”) - Moderate renewable energy content (“Scenario 2”) - High renewable energy content with local emphasis (“Scenario 3”) - Very high renewable energy content with local emphasis and - accelerated timelines (“Scenario 4”)

• These scenarios were selected to define a range of potential outcomes

representing different supply choices that could be made during program development and operations.

• Specific goals for a Sonoma County program have not been determined yet.

Greenhouse Gas Emissions

• The CCA program could reduce GHG emissions by increasing

the use of renewable energy resources.

• Production from renewable resources would displace production from fossil-fueled generation.

• PG&E is required to supply at least 33% of its electricity from

renewable resources by 2020.

• A CCA supply portfolio comprising more than 33% renewable

energy (Scenarios 2-4) will result in reduced GHG emissions.

GHG Emissions

Economic Development• Local economic development impacts accrue from job creation and

spending for: - Labor > Installation & construction (short-term) > Operation & maintenance (long-term) > Jobs induced by generator operation - Land lease or purchase - Taxes & permitting fees - Construction materials for new renewable infrastructure

• The US Department of Energy National Renewable Energy Laboratory (NREL) has developed the Jobs & Economic Development Impact (JEDI) models - Estimates economic impacts of constructing and operating different types of electric generators - Results are focused on statewide impacts - Output must be adjusted to reflect local benefits - Best available model but results are inherently difficult to measure

Economic Development Benefits

Impact Period Scenario 1

Scenario 2

Scenario 3

Scenario 4

Jobs (FTE)

Construction 100 to 300 100 to 400 700 to 1,500

400 to 1,100

Operation 15 to 100 20 to 100 100 to 200

100 to 400

OutputConstruction $15M to

$50M$20M to $100M

$90M to $200M

$70M to $200M

Operation $4M to $20M

$10M to $20M

$20M to $50M

$30M to $80M

Notes:1. Two-year construction period.2. Operation period commences at commercial operation

date and continues for duration of project life.3. Jobs and output impacts include direct and indirect

effects.

Customer Rate Impacts• CCA rates were estimated on an annual basis over the twenty-

year study period and compared to projected PG&E rates.

• CCA rates recover all program related costs- Power purchases- Generation investment- Other operating costs (e.g., staff and overhead)- Scheduling and grid operations- Billing and data management- Financing

- Reserves

• CCA customers would also pay PG&E for delivery (T&D) and other surcharges.

• PG&E generation rates are estimated to increase by an average of 4% annually from 2011 to 2032

14

Bill Comparisons – Residential

15

Bill Comparisons - Commercial

Conclusions• A CCA program could achieve significant reductions in GHG emissions for Sonoma County.

• Development of renewable generation within the County by the CCA program would have positive economic development impacts and result in local job creation; however there are challenges to local development that may impede achievement of such benefits.

• CCA program rates are likely to be somewhat higher than with PG&E in the near to mid term but should be more stable and less sensitive to rising fossil fuel prices over time.

• Working with the Marin Energy Authority could reduce initial startup costs and ongoing operations costs, but the terms of such a relationship are not known, and there would likely be trade-offs in regards to autonomy and achievement of local priorities.

Next Steps

• Present Feasibility Study Results to City Councils (get feedback)

• Perform a poll of County residents• Set Goals for Sonoma Clean Power• Investigate partnerships with Marin

Energy Authority• Determine costs of Implementation• Report back to Board within 6 months