TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Carrie Tai, AICP, Community Development Director
Dana Murray, Environmental Sustainability Manager
SUBJECT: Title
Update on Upcoming Clean Power Alliance (CPA) Default Rate Change to 100% Green Power and Associated Outreach Schedule (Community Development Director Tai).
RECEIVE AND FILE
Line
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Recommended Action
RECOMMENDATION:
City Council receive and file an update on the upcoming Clean Power Alliance (CPA) Default Rate Change to 100% Green Power and associated outreach schedule.
Body
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action.
BACKGROUND:
Community choice energy (CCE) programs enable local government control over energy procurement to purchase electricity from renewable sources (solar, wind, hydroelectric, etc.), set competitive rates, and collect revenue. This enables governments to meet and advance their climate action goals. CPA is a nonprofit CCE program established in 2017 consisting of 32 public agencies in Los Angeles and Ventura counties (Attachment). The City joined in December 2017. CPA procures and sells clean power to customers at competitive rates, while Southern California Edison (SCE) is responsible for delivery, billing, and resolving any service issues.
CPA offers a choice of three Energy Tiers, representing the percentage of clean and renewable energy: Lean (40%); Clean Power (50%); and Green Power (100%). The agency chooses a Default Tier (starting point) for customers, but customers may take an Opt Action to select a different level or opt out and return to receiving both electricity and service delivery from SCE. In February 2018, City Council selected the 50% Clean Power Default Tier. In May 2019, City Council voted to move all municipal facilities to 100% Green Power. In November 2020, the City Council voted to move the City’s Default Tier to 100% Green Power, to take effect in October 2021. The City Council requested that staff and CPA coordinate enhanced outreach to inform customers about Opt Actions during the period before the switch.
At the August 24, 2021, meeting, City Council requested background and an update of the outreach efforts leading up to the switch to 100% Green Power.
DISCUSSION:
The 100% Green Power transition will take effect beginning in October 2021, and coincide with each individual customer’s first meter-read date. According to CPA, transitioning from 50% Clean Power to 100% Green Power would result in an approximate 2.5-3% increase on an average residential or small business electricity bill.
CPA has created a bill comparison calculator on their website, <https://bill-compare.communityenergysolutions.com/ui/?ccaid=1&custid=1>. This calculator allows customers to obtain an estimate of their bill at the various CPA levels as well as current SCE rates by entering their amount of monthly energy usage. The calculator automatically adjusts for seasonal variation in rates, so customers can understand the energy rates for different seasons.
At any time, customers may choose to move to one of CPA’s other levels (and associated rates) with an Opt Action by notifying CPA through a phone call (1-888-585-3788), by email customerservice@cleanpoweralliance.org <mailto:customerservice@cleanpoweralliance.org> or by visiting CPA’s website, <https://cleanpoweralliance.org/rate-options/>. They may also opt out completely of CPA service in the same manner.
Customers who have already taken an Opt Action before October’s change in the Default Tier will remain on their previously-selected Opt Action. For example, if a customer elected to opt down to 40% Lean Power, the City’s switch to a 100% Default Tier will not affect that customer’s previous action.
Some residents with limited incomes may be enrolled in financial assistance programs, such as the California Alternate Rates for Energy (CARE) that provides income-qualified customers a discount of approximately 30% on their monthly electric bill. Per CPA policy, customers on these assistance programs will receive the 100% Green product but be exempt from the associated rate increase.
PUBLIC OUTREACH:
Since the November 2020 City Council meeting, staff has followed City Council direction to work with CPA to conduct public outreach. CPA and City staff have developed the attached schedule (Attachment) to announce the upcoming transition to 100% Green Power. Outreach information pertains to how customers may choose one of CPA’s rate options (or opt out), how the use of renewable energy aligns with the City’s sustainability goals, and how to understand the utility bills.
Mailed notices: CPA will be notifying customers subject to a Default Tier change through two mailed customer notices (Attachment). The information will also be shared through City water bill inserts beginning in September, which is sent to all City water service customers. The timing has been dependent on CPA providing the insert material.
Publications: Starting in August, the City is publishing informational ads in the local newspapers (Attachment) for five weeks leading up to the 100% Green Power switch (which begins on October 9). Additionally, staff is including information in e-newsletters such as the Older Adults Program newsletter and the Community Development Quarterly Update (Attachment). The City is also preparing a press release.
Website: Staff has updated the City’s website with information about the upcoming transition to 100% Green Power. The information includes CPA’s customer service information and information regarding financial assistance to qualified customers. All outreach information will be posted to the website as well. <https://www.manhattanbeach.gov/cleanpoweralliance>
Social Media: The City has commenced regular posts on social media (Facebook, Instagram, and Twitter) informing the public about the upcoming switch to 100% Green Power, and will continue posts for the next two months (Attachment). This information includes the link to CPA’s website.
Presentations and Events: Staff and CPA have met with older adults in the community to share information. Staff led a presentation and discussion with the Senior Advisory Committee (SAC) in June 2021, and presented to the City’s Older Adults Program (OAP) through the Dine N’ Discover monthly luncheon in August 2021 (Attachment). In September, staff will be partnering with the OAP to walk seniors through their energy options during a tech/iPhone Training class with Dayle Eisenhauer (SAC member).
Staff has shared information on CPA and renewable energy choices during multiple Climate Ready MB public workshops from February to June 2021 (Attachment).
In October, staff will host a booth at the Hometown Fair to provide information about CPA options and the transition to 100% Green Power. The City plans to have a computer/iPad on hand to help the public navigate their energy choices.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. CPA Member Agency Participation and Default
2. CPA Member Agency Default Choices
3. CPA Outreach Timeline
4. Outreach Examples