CleanPowerSF Economic Development for our Communities

Transcription

1 SF Environment Commission CleanPowerSF Economic Development for our Communities Presented By Al Weinrub Local Clean Energy Alliance

2 Topics What is Community Choice Energy? Community Choice Energy in San Francisco: CleanPowerSF Conclusion

3 WHAT IS COMMUNITY CHOICE ENERGY?

4 Community Choice Energy Provided for by AB 117, passed in 2002 Community pools its ratepayer base to procure electric power (Community Choice Aggregation-CCA) PG&E delivers power, does billing, maintains service Investor-Owned Utility (PG&E) Community Choice Public Power (LADWP, SMUD, etc.) PG&E Procures Power Gov t. Procures Power Gov t. Procures Power PG&E Owns/Maintains Transmission Lines PG&E Owns/Maintains Transmission Lines Gov t. Owns/Maintains Transmission Lines PG&E Provides Customer Service PG&E Provides Customer Service Gov t. Provides Customer Service

5 CA Community Choice Initiatives These California communities are developing or considering Community Choice programs: Marin County (Marin Clean Energy) San Francisco (CleanPowerSF) Sonoma County (Sonoma Clean Energy) East Bay: Berkeley, Oakland, Richmond San Luis Obispo San Diego Monterrey/Santa Cruz Counties Yolo County

6 CA Community Choice Initiatives These California communities are developing or considering Community Choice programs: Marin County (Marin Clean Energy) San Francisco (CleanPowerSF) Sonoma County (Sonoma Clean Energy) East Bay: Berkeley, Oakland, Richmond San Luis Obispo San Diego Monterrey/Santa Cruz Counties Yolo County

7 COMMUNITY CHOICE ENERGY IN SAN FRANCISCO: CLEANPOWERSF

8 CleanPowerSF Program set by 2007 CleanPowerSF Ordinance: Build in-city energy resources Minimum of 210 MW of in-city energy efficiency and new generation resources within the first three years Target of 51% renewables within the first five years Use municipal revenue bond (H bond) authority to finance energy development

9 Community Advocates Community Choice Structure Public Board Community Choice Administrative Authority Customers (Ratepayers) Developers and Electricity Providers Investor- Owned Utility (PG&E)

10 Community Advocates CleanPower SF Structure LAFCo SF Board of Supervisors SF Public Utilities Commission (SFPUC) Developers and Electricity Providers Investor- Owned Utility (PG&E) Customers (Ratepayers)

11 Two Power Procurement Options SF Public Utilities Commission (SFPUC Purchase on market Electric Service Providers Developers Remote renewables Build assets based on energy development plan Property Owners Customers Local renewables + energy demand reduction

12 Procurement Options Compared Market purchase: Unstable electricity market, price volatility, risky Difficult to compete with PG&E prices No local greenhouse gas reductions Local build-out: Local assets: price stability Optimize system to compete with PG&E Economic development Clean energy jobs Local greenhouse gas reductions

13 Two Procurement Tracks Market purchase track startup program Contract with Shell North America to purchase 30 MW (6% of load) to start up CleanPowerSF program Plan is to launch with premium-priced 100% renewable electricity offering for 75,000 residential customers Local build-out track core program Community advocates fought for 12 months in 2011 to re-establish this track As result, SFPUC spending $400,000 for Local Power Inc. to create local development plan SFPUC on record to implement build-out when plan finished

14 CleanPower SF Procurement Tracks Market purchase track startup program Contract with Shell North America to purchase 30 MW (6% of load) to start up CleanPowerSF program Plan is to launch with premium-priced 100% renewable electricity offering for 75,000 residential customers Local build-out track core program Community advocates fought for 12 months in 2011 to re-establish this track As result, SFPUC spending $400,000 for Local Power Inc. to create local development plan SFPUC on record to implement build-out when plan finished

15 Local Build-out: Optimized to Beat PG&E Prices Leverage low cost of energy efficiency ¼ to ½ the cost of renewables generation Shape the load to lower required capacity Match generating resources to demand system balancing Use future lower-cost generating assets to offset startup pricing

16 Local Build-out: Jobs Potential of CleanPowerSF Estimated Jobs per year to build 210 MW in-city resources within first three years* Direct Jobs (range: midpoint) Direct + Indirect + Induced Jobs (range: midpoint) New Local Generation : : 1219 (103 MW) Energy Efficiency : : 3138 (107 MW) CleanPowerSF Total : : 4357 * Estimates made by Local Clean Energy Alliance:

17 Current State of Program Work on Local build-out development plan begun in November 2011, to take 10 months SFPUC negotiated and forwarded market purchase contract with Shell to Board of Supervisors in December 2011 Shell contract in committee hearings Mayor and some supervisors calling launch plan and Shell contract financially risky Community advocates calling for modification of launch plan

18 What s the Problem? Market purchase track and Local build-out track are not integrated Cart is before the horse: market purchase not informed by build-out development plan Launch plan will undermine Local build-out CleanPowerSF to be offered to 230,000 residential customers; 70% will opt out due to high price Almost ½ of all SF residential customers will be lost Program will be perceived as elite green program rather than a viable, popular alternative to PG&E

19 What s the Solution? We Need an Integrated Program Robust local build-out must be essential part of CleanPowerSF, both energy efficiency and new renewable generation Must re-shape the CleanPowerSF launch plan to strengthen the local build-out program: Minimize opt-outs and negative perceptions Use the CleanPowerSF build-out work to guarantee a popular, competitive alternative to PG&E.

20 What s the Solution? We Need an Integrated Program Robust local build-out must be essential part of CleanPowerSF: both energy efficiency and new renewable generation Must re-shape the CleanPowerSF launch plan to strengthen the local build-out program: Minimize opt-outs and negative perceptions Use the CleanPowerSF build-out work to guarantee a popular, competitive alternative to PG&E.

21 CONCLUSION: CLEANPOWER SF SHOULD BE ENGINE FOR ECCONOMIC AND SOCIAL DEVELOPMENT

22 CleanPowerSF Program Goals: Community Benefits Can help communities mitigate and adapt to impacts of climate change, build resiliency Can be engine for economic revitalization of San Francisco communities and job growth Can be source of community wealth: equitable development, democratic control, healthy community

23 CleanPowerSF Community Advocate Organizations Sierra Club Local Clean Energy Alliance Brightline Defense Project SF Green Party Global Exchange Laborer s Local 261 San Francisco Green Party Bay Localize Greenlining Institute Luminalt Harvey Milk Democratic Club District 3 Democratic Club PODER Greenpeace Anders & Anders Foundatio The Center for Progressive Action Greenaction for Health & Environmental Justice Our City The San Francisco Bay View Newspaper

24 Thank You