Staff Report. Andrea Ouse, Director of Community and Economic Development Laura Simpson, Planning & Housing Manager Michael P. Cass, Principal Planner

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1 7.a Staff Report Date: May 8, 2018 To: From: Reviewed by: Prepared by: Subject: City Council Valerie J. Barone, City Manager Andrea Ouse, Director of Community and Economic Development Laura Simpson, Planning & Housing Manager Michael P. Cass, Principal Planner Coleman Frick, Associate Planner (925) Considering enrollment in MCE s Light Green or Deep Green programs or opting-out to remain with PG&E for the City s municipal electricity accounts CEQA: Not a project under Public Resources Code Section 21065, 14 Cal Code Regs. Section 15060(c)(3), or Section Report in Brief On May 23, 2017, and June 13, 2017, the City Council took actions to approve implementation of MCE, a local, non-for profit Community Choice Energy ( CCE ) electricity provider, as Concord s default provider, with PG&E remaining as the electricity distributor. This action included passing Ordinance No. 17-8, and Resolution No requesting membership in the program and authorization execution of a Memorandum of Understanding between the City and MCE. Effective April 2018, all electricity accounts in Concord, including the City s municipal accounts, were automatically enrolled in MCE s Light Green program, which derives 50 percent of electricity generated from renewable sources. Account holders also have the option of opting-up to MCE s Deep Green program (100 percent renewable) for an additional 1 cent per kilowatt hour (kwh), or opting-out of MCE and remaining with PG&E for electricity generation. Page 1 of 16

2 City Council Agenda Report Agenda Item No. 7.a May 8, 2018 With MCE as the City s default electricity provider, the Council has a choice of enrolling some or all of the municipal accounts in MCE s Deep Green program by opting-up, or opting-out of MCE and changing all or some municipal accounts back to PG&E s electricity generation service. For municipal accounts, MCE s current Light Green rate is 3-4 percent lower than PG&E s service, and the Deep Green rate is approximately 1-2 percent higher than PG&E s rate. MCE s rates are generally adjusted once each calendar year while PG&E s rates are adjusted multiple times per year, so these rate comparisons will vary over time. This item provides an overview of the City s municipal electricity accounts, a cost comparison between opting-up all (or a portion of) accounts to Deep Green, and opting-out and returning to PG&E for electricity generation service. It also includes analysis regarding what effect various options would have on greenhouse gas emissions reduction and their impact toward implementation targets of the Citywide Climate Action Plan ( CAP ), adopted in Recommended Action Take no action and retain enrollment of all City municipal electrical accounts in MCE s Light Green program. Background Beginning in 2016, the City explored the possibility of participating in a program that would provide residents with an alternative to PG&E as the provider of electricity to their homes or businesses. Community Choice Energy ( CCE ), also known as community choice aggregation ( CCA ), is a local, not-for-profit governmental program that purchases, and in some cases generates, electrical power on behalf of its customers including residents, businesses, and governmental entities. The agency administering the CCE program may also elect to administer energy efficiency programs and other greenhouse gas emission reducing activities. The benefits of participating in a CCE program include: Providing customer choice; Expanding renewable energy portfolios; Enhancing local economic development; and Implementing the Citywide Climate Action Plan through reduction of communitywide greenhouse gas emissions resulting from electricity generation. Throughout 2016 and into the spring of 2017, the City considered multiple CCE options, including: Page 2 of 16

3 City Council Agenda Report Agenda Item No. 7.a May 8, 2018 Forming a new Joint Powers Authority (JPA), comprised of the County and interested cities within Contra Costa County to establish a Community Choice Energy Program; Partnering with other interested Contra Costa Country Jurisdictions to join East Bay Community Energy ( EBCE ) a new JPA comprised of interested cities within Alameda County; Joining MCE, the existing Community Choice JPA with a membership including jurisdictions in Napa and Sonoma County, and the Country Costa County cities of Richmond, Benicia, El Cerrito, San Pablo, Walnut Creek, and Lafayette; and Taking no action. On May 23, 2017, the City Council introduced Ordinance No approving the Marin Clean Energy Joint Powers Authority ( JPA ) and authorizing the implementation of a Community Choice Aggregation Program and adopted Resolution No , requesting membership in Marin Clean Energy, authorizing the Mayor to execute the Memorandum of Understanding with Marin Clean Energy ( MOU ), and authorizing the City Manager and/or her designated representative to execute other documents to initiate membership with Marin Clean Energy. Ordinance 17-8 was approved by the Council on June 13, With this action, Concord joined MCE along with Danville, Martinez, Moraga, Oakley, Pinole, Pittsburg, San Ramon, and unincorporated Contra Costa County. Effective April 2018,all electricity accounts in the new membership jurisdictions were automatically opted-in to MCE s Light Green program, based on their meter read date. Electricity transmission, distribution, and billing will continue to be controlled by PG&E. All account holders (who have not done so already) have the following options within 60 days from their April meter read date: Opt-out and remain with PG&E for electricity generation service; Opt-up to MCE s Deep Green program; Opt-up to MCE s Local Sol program, which is capped at 300 accounts; or Remain in MCE s Light Green program. The City has the same choices listed above for its 313 municipal electricity accounts. MCE s current Light Green (50 percent renewable) rate is 3-4 percent lower than PG&E s service (33 percent renewable), and the Deep Green (100 percent renewable) rate is approximately 1-2 percent higher than PG&E s rate for commercial (and municipal) accounts. See Commercial Rate Comparison Table in Attachment 1. The action of joining MCE provides an environmental benefit of reducing citywide and municipal greenhouse gas emissions, specifically those related to electricity generation. The Citywide CAP has an emissions reduction target of a 36 percent reduction in metric Page 3 of 16

4 City Council Agenda Report Agenda Item No. 7.a May 8, 2018 tons of CO 2 e (carbon dioxide equivalent) per person per year by 2035 below the levels included in the emissions inventory for the 2005 baseline year (see Attachment 2). The CAP does not have specific reduction targets associated with municipal emissions; however, the citywide reduction target encompasses those emissions. Analysis Effective last month, the City s municipal accounts were all automatically enrolled in MCE s Light Green program. Staff provided MCE with the City s PG&E electricity bills for the 2017 calendar year, and MCE conducted an analysis to determine how different MCE and PG&E electricity generation options would potentially impact charges and reduce emissions for the 313 municipal accounts. Based on this information, the following four options were evaluated by staff: 1. Retain the City s municipal electrical accounts in MCE s Light Green program; 2. Enrolling all municipal electrical accounts in MCE s Deep Green program; 3. Enrolling a portion of the City s municipal electrical accounts in the Deep Green program (see detailed explanation below); or 4. Opting-out all (or a portion) of the City s municipal electrical accounts and remaining with PG&E for electricity generation. These four options were evaluated in terms of cost to the City, reduction in metric tons of carbon dioxide equivalent ( MTCO 2 e ) based on the energy source from which the electricity is derived, and calculations related to how each option would make progress towards implementation the Concord s Citywide CAP targets for emissions reduction. The City s municipal usage accounted for 7,216,749 kwhs of electricity consumption and $1,386,541 in billing in calendar year Table 1 below compares these options. Page 4 of 16

5 City Council Agenda Report Agenda Item No. 7.a May 8, 2018 Table 1: Comparison of Concord Municipal Electricity Account Options Criteria Total estimated electricity emissions (MTCO2e 1 ) Reduction (%) from CAP municipal baseline emissions 2 Reduction (%) from CAP baseline municipal electricity emissions 2 MCE Light Green MCE Deep Green Partial MCE Deep Green (58% of electricity load see detailed explanation below) Estimated Annual Cost Compared to PG&E service (opting-out) $41,875 in savings $30,292 in additional costs $276 in savings PG&E NA See Attachment 3 for a detail description of the analysis and assumptions related to Table 1 above. Remain with MCE s Light Green Program Effective April 2018, all of the City s 313 municipal electrical accounts were automatically enrolled in the Light Green program, which is comprised of a minimum of 50 percent renewable energy sources and currently costs 3-4 percent less than PG&E. By remaining with this program, it is estimated the City will annually save more than $40,000 compared to PG&E. The projected emissions reduction through MCE s Light Green program is estimated to be 64 percent below the 2005 Citywide CAP baseline for municipal electricity emissions and 20 percent below baseline for overall municipal emissions. This is a substantial reduction from the 2005 baseline emissions and would continue the progress the City has made to date towards its municipal emissions reduction goals. Opting-Up to MCE s Deep Green Program Alternatively, the City has the option to opt-up to MCE s Deep Green program. The Deep Green program is comprised of 100 percent renewable energy, including 50 1 Metric tons of carbon dioxide equivalent Baseline Municipal Emissions were 8,269 MTCO2e of which 2,559 MTCO2e were from electricity. Public lighting, buildings, and facilities accounted for 42 percent of municipal emissions in 2005 based on the CAP emissions inventory. Page 5 of 16

6 City Council Agenda Report Agenda Item No. 7.a May 8, 2018 percent wind and 50 percent solar power. Opting-up all accounts to MCE s Deep Green program would cost the City an additional $0.01 per kwh, which is estimated to be $72,167 more than MCE s Light Green program over the next 12 months based on 2017 electricity usage for the City s municipal accounts. This equates to a 2.2 percent cost increase over the total electricity billing in the 2017 calendar year, and a 5.3 cost increase over MCE s Light Green program. To date 17 cities and counties 3 of the 33 located in MCE s service area have opted-up to MCE s Deep Green program, including the Contra Costa County cities of El Cerrito, Lafayette, and Richmond. Opting-up has allowed agencies to reduce emissions related to electricity generation from their own operations to zero. Opting-up has also been seen as a way for local government to lead by example and encourage businesses and residents to opt-up, reducing community-wide emissions. If all 313 municipal accounts are enrolled in the Deep Green program; municipal electricity related emissions would be eliminated entirely and overall municipal emissions are projected to be reduced 31 percent below the 2005 CAP baseline. Partial MCE Deep Green Enrollment The partial MCE Deep Green enrollment option listed in Table 1 outlines a scenario where the City could opt-up to Deep Green for a number of municipal accounts associated with facilities including the Civic Center complex, Baldwin Park Senior Center, Library, Willow Pass Center, various parks and public facilities, bike path lights, irrigation pumps, street lights and traffic signals that accounted for 58 percent of the City s municipal electricity load in The details of this analysis conducted by MCE are included as Attachment 4. The goal of this approach was to provide the Council with an alternative to full Deep Green or Light Green enrollment of municipal accounts, where there is no net financial increase, while still reducing municipal emissions to implement the CAP goals. Opting-up some of the City s electrical accounts to MCE s Deep Green program would increase the cost of municipal account billing compared to the take no action MCE Light Green option. The scenario of opting-up accounts that equate to 58 percent of the City s municipal electricity load shown in Table 1 above, would result in $41,600 in additional costs compared to MCE s Light Green program. If the City were to opt-up to Deep Green for these accounts, it is estimated that the cost would be slightly less expensive than PG&E service for electricity generation. The Council could also direct staff to opt-up fewer accounts or more accounts than the 58 percent electrical load scenario at a cost of $0.01 per kwh. 3 Account holder data is not publically available. The above list includes Deep Green opt-ups that occurred in a public forum or can be found through information that is publicly available. Page 6 of 16

7 City Council Agenda Report Agenda Item No. 7.a May 8, 2018 The projected emissions reduction through the partial Deep Green option is estimated to be 83 percent below the 2005 Citywide CAP baseline for municipal electricity emissions and 26 percent below baseline for overall municipal emissions. Alternatively, the Council could direct staff to opt-up fewer or more of the municipal accounts to Deep Green for additional savings, or addition greenhouse gas emission reductions, respectively. Opting-Out of MCE and Remaining with PG&E for Electricity Generation If the City were to opt-out of MCE entirely and go back to PG&E for electricity generation service for some or all accounts, it is estimated that the cost would be 3-4 percent higher than MCE s Light Green program. If all municipal accounts are optedout the City s municipal account billing is projected to increase by over $40,000 annually. The projected emissions reduction through opting-out and returning to PG&E for electricity generation is estimated to be 62 percent below the 2005 Citywide CAP baseline for municipal electricity emissions and 19 percent below baseline for overall municipal emissions. Primarily, these reductions are related to the reduction of energy use through energy efficiency upgrades since 2005 (e.g. installation of LED lights) and the change in PG&E energy sources over the past decade to emissions free sources (in part due to state mandates). See Attachment 3. Alternatives 1. Take no action and retain enrollment of all City municipal electrical accounts in MCE s Light Green program. 2. Direct staff to enroll all municipal electrical accounts in MCE s Deep Green program. 3. Direct staff to enroll a portion of the City s municipal electrical accounts in MCE s Deep Green program. 4. Direct staff to opt-out all (or a portion) of the City s municipal electrical accounts and remain with PG&E for electricity generation. Financial Impact The City s electricity usage billing in the 2017 calendar year totaled $1,386,541. As outlined in this report, the City electricity accounts were automatically opted-in to MCE s Light Green program in April 2018, based on the meter read date. If the Council takes no action (recommended action), the City is projected to save approximately $41,875 over the next 12 months based on 2018 rates and 2017 electricity usage of the 313 municipal accounts, compared to continued PG&E electricity generation service. The financial impact of the Alternatives listed above would vary based on which accounts are opted-out (PG&E) or opted-up (MCE s Deep Green ) and is estimated as follows over a 12 month period: Page 7 of 16

8 City Council Agenda Report Agenda Item No. 7.a May 8, Direct staff to enroll all municipal electrical accounts in MCE s Deep Green program: $72,167 in additional costs; 2. Direct staff to enroll a portion of the City s municipal electrical accounts in MCE s Deep Green program: $41,600 in additional costs for the accounts listed in Attachment 4 that equate to 58 percent of the City s 2017 municipal electricity load; and 3. Direct staff to opt-out all (or a portion) of the City s municipal electrical accounts and remain with PG&E for electricity generation: $41,875 in additional costs (all accounts). There is no cost for opting-out and remaining with PG&E until June (60 days from the meter read date when service was automatically opted-in to MCE s Light Green program), after which MCE will charge $25.00 per municipal account. Opting-up to Deep Green can be done at any time with no cost to the account holder. Environmental Determination Enrollment in MCE s Light Green or Deep Green programs or opting-out to remain with PG&E for the City s municipal electrical accounts does not constitute a project within the meaning of Public Resources Code Section 21065, 14 Cal Code Regs. Section 15060(c)(3), or Section because it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment; and involves administrative activities that will not result in direct or indirect physical changes in the environment. Public Contact The Agenda information was posted. No other outreach necessary. Attachments 1. MCE Sample Rate Comparison (commercial/municipal) Citywide CAP Emissions Reduction Target Excerpt 3. Table 1: Detailed Explanation and Assumptions 4. MCE Program Option Comparison Page 8 of 16

9 Attachment 1 Source: Page 9 of 16

10 Attachment 2 City of Concord Citywide Climate Action Plan Adopted July 23, 2013 Page 10 of 16

11 City of Concord Citywide Climate Action Plan 4 Greenhouse Gas Emissions Reduction Targets 4.1 Targets Development The CAP Implementation emissions forecasts for 2020, 2030, and 2035 will be compared with (1) BAAQMD s 2020 CEQA plan-level threshold to demonstrate the CAP s ability to meet the CEQA thresholds of significance and (2) an extrapolated CEQA per capita target for the 2030 and 2035 timeframes based on the BAAQMD CEQA Guidelines. While the BAAQMD 2020 plan-level threshold is 6.6 metric tons CO2e/person/year, it would be contrary to the purpose of this CAP to include a target that is higher than current emissions. BAAQMD s guidance in this situation was to use the baseline figure as a target for 2020, focusing on greater reductions for 2030 and 2035, as shown in Table Table 2: Citywide CAP GHG Emissions Targets Metric tons CO 2 e per year Concord citywide target: per person * 5.0 ** Citywide emissions target: total 1,078,632 1,117, ,474 * Number of people includes both residents and employees in Concord. ** The 2020 target could be as high as 6.6 metric tons CO2e per person per year based on BAAQMD guidance, but is reduced to reflect direction from BAAQMD not to exceed the baseline per capita figure of Regulatory Guidance The emissions reduction targets are aligned with the regulatory guidance applicable to the City of Concord. These include per capita emissions intensity metrics, and percent reduction metrics, as shown in Table 3. Table 3: Regulatory Guidance Regulatory Requirements Metric tons CO 2 e per person per year BAAQMD CEQA* and ** (Project-Level) BAAQMD CEQA* and ** (Plan-Level) AB32 / Executive Order S-3-05 (Trajectory to 2050) Abby Young, BAAQMD. Personal telephone communication with Dahlia Chazan, Arup. December 4, ADOPTED JULY 23, 2013 Arup North America Ltd Page 13 Page 11 of 16

12 City of Concord Citywide Climate Action Plan Regulatory Requirements SB375 (cars and light trucks only) Metric tons CO 2 e per person per year N/A 7% reduction below % reduction below 2005 *The BAAQMD released the 2020 figures as CEQA thresholds of significance on June 2, On March 5, 2012, BAAQMD received a court order finding that the thresholds constituted a project under CEQA, but not commenting on the content of the thresholds. BAAQMD is appealing but cannot enforce these thresholds until the legal case is resolved. **The 2030 and 2035 BAAQMD CEQA targets have been extrapolated from the BAAQMD 2020 target using the Executive Order S-3-05 emissions trajectory. 4.3 Forecasts Compared to Targets As shown in Figure 3, the BAU scenario with State Mandates exceeds the City s 2020 and 2030 emissions targets. The City will need to start working toward its 2035 target before 2035 because many of the implementation measures needed to achieve the 3.2 MT CO2equivalent per capita target require quite a while to take effect. The development in the Concord Reuse Project Area will address a significant portion of the required reduction for 2035 because the Area Plan includes extensive greenhouse gas reduction measures, which are readily incorporated into new construction supported by a new transportation network and other infrastructure. Figure 3: Targets and Forecasts Relating to the Concord Citywide CAP ADOPTED JULY 23, 2013 Arup North America Ltd Page 14 Page 12 of 16

13 Attachment 3 When reviewing Table 1, please note the following: Total emissions shown for PG&E s service are 962 MTCO 2 e which is substantially lower than the 2,559 MTCO 2 e that the City generated in the 2005 baseline year for the CAP emissions inventory. This reduction is a testament to the progress the City has made to date towards its municipal emissions reduction goals, and a result of a number of factors. Primarily, these reductions are related to the reduction of energy use through energy efficiency upgrades since 2005 (e.g. installation of LED lights) and the change in PG&E energy sources over the past decade to emissions free sources (in part due to state mandates). Based on the comparison between 2005 and 2017, the City has reduced municipal electricity usage by 37.2 percent over that period. There is a distinction between emissions free and renewable electricity generation. Although PG&E s electricity generation related emissions have decreased since 2005, the composition of energy sources used by PG&E includes large hydroelectric and nuclear power sources which are emissions free, but not recognized as renewable sources. MCE s Deep Green program includes 100 percent renewable generation sources located within California; 50 percent wind and 50 percent solar power. The data used to calculate information included in the table is derived from 2017 electrical account data for all municipal accounts. The analysis assumes that this usage will remain the same in the future, and as a result is a theoretical comparison. The actual rate structure of each of the 313 municipal accounts has not been analyzed. The cost comparisons are based on PG&E s current rate structure versus MCE s. As of the date of this meeting all of the City s municipal accounts are in MCE s Light Green plan which has six rate classes for municipal and commercial accounts. These rate classes range from 3-4 percent less expensive than PG&E s on average. The $41,875 estimated annual saving is based on the average of this MCE Light Green vs. PG&E cost differential over the municipal accounts as a whole. MCE s Deep Green program is 1 cent per kwh more expensive than MCE s Light Green program, or $72,167 based on 2017 usage data. Based on this, MCE s Deep Green program is estimated to be $30,292 more expensive than PG&E s electricity generation service if the City were to optout of MCE entirely. Page 13 of 16

14 Attachment 4 Date: 3/27/2018 To: City of Concord From: Justin Marquez, Alexandra McGee, and J.R. Killigrew Based on municipal usage data provided by Concord city staff for CY2017 MCE Deep Green Estimated Annual Electricity Consumption* Number of Eligible Accounts for MCE Service *Consumption based on 12 months of usage data from Item 16 report from PG&E for CY ,216, Estimated Savings with MCE Estimated PG&E Total Cost for City of Concord* $ 1,395, Estimated MCE Light Green Total Cost for City of Concord** $ 1,353, Estimated 12 Month Savings with MCE $ 41, *Estimate based on kwh and bill data provided by City of Concord and PG&E rates as of March 2018 ** Estimated savings based on 3% average commercial rate savings with MCE Light Green service versus PG&E Basic Service Breakdown by Account Type* Account** % of total kwh*** kwh Estimated MCE Deep Green Premium**** Baldwin Park Senior Center 3% 238,424 $ 2, Bike Path Lights 0% 7,310 $ Civic Center 7% 469,672 $ 4, Community Pool/Park 2% 113,675 $ 1, Irrigation Pumps 0% 24,353 $ Library 2% 123,151 $ 1, Parks***** 5% 332,817 $ 3, Streetlights 32% 2,302,586 $ 23, Traffic Signals 6% 433,729 $ 4, Page 14 of 16

15 Willow Pass Rec Center 2% 114,346 $ 1, Total 58% 4,160,062 $ 41, All Concord Municipal Accounts 100% 7,216,749 $ 72, *Accounts were selected based on estimated Deep Green Premium, totaling $41,600.62, less than the estimated savings of switching from PG&E's basic service to MCE's Light Green Service **Account type based on associated facility name in kwh and bill data provided by Concord City Staff ***Percentage of entire Concord municipal load kwh ****Premium price paid in addition to cost of Light Green service *****Parks included Baldwin, Cambridge, Concord Blvd., Highlands, Limeridge Open Space, Meadow Homes Spray, Todos Santos,Willow Pass, Willow Pass Fields 1 3, and Ygnacio Valley Parks Municipal Emissions Impact for City of Concord with Deep Green^ Light Green Emissions associated with Light Green (MTCO2e)* 933 Baseline 2005 Municipal Emissions (MTCO2e)** 8,269 Light Green Emissions Savings in Comparison to PG&E Basic Service (MTCO2e) 29 Light Green Emissions Factor % Reduction from PG&E Basic Service*** 3% Partial Deep Green Enrollment (58% Enrollment) Emissions saved with Partial Deep Green Enrollment (MTCO2e)* 538 Baseline 2005 Municipal Emissions (MTCO2e)** 8,269 Deep Green Reduction % from baseline emissions 7% Deep Green Reduction % from Municipal Electricity Use 21% Cost per metric ton reduced with Partial Deep Green Enrollment $ Full Deep Green Enrollment (100%) Emissions Saved with Full Deep Green Enrollment (MTCO2e) 933 Baseline 2005 Municipal Emissions (MTCO2e)** 8,269 Deep Green Reduction % from baseline emissions 11% Deep Green Reduction % from Municipal Electricity Use 36% Cost per metric ton reduced with Full Deep Green Enrollment $ Page 15 of 16

16 PG&E Basic Service (Opt Out) Emissions Associated with PG&E Basic Service (MTCO2e)*** 962 Baseline 2005 Municipal Emissions (MTCO2e)** 8,269 ^ Compared to PG&E Basic Service "opt out" scenario * MCE Light Green Emission Factor of 285 lbs. CO2/MWh in 2016 **Municipal GHG Emissions target from 2013 Concord Municipal Climate Action Plan ***PG&E Emission Factor of 294 lbs. CO2/MWh in 2016 Anticipated Deep Green Power Mix Power Supplier Location MW Capacity Contract Execution Year Shiloh (Wind) Solano County Rising Tree (Wind) Kern County SolarOne (Solar) Contra Costa County Cottonwood (Solar) Marin & Kings County MCE Deep Green Benefits: 1) 100% Green e certified California bundled renewable electricity: 50% solar and 50% wind 2) 50% of the Deep Green premium is invested in our Local Renewable Energy Fund, developing local solar projects with local union and 3) 2 points towards Bay Area Green Business certification 4) 6 points toward LEED Green Power purchasing credits 5) Zero Scope 2 emissions as of our customer's next billing cycle 6) Reduction in carbon intensity of energy supply supporting the State s and communities' Climate Action Plan 2020 targets 7) No contract or term requirement 8) No charge to the demand (kw) side of the bill 9) At $.01/kWh, our customers pay for what they use and pay less as they implement self generation and energy efficiency 10) No customer management required. As usage changes, the charge for Deep Green automatically adjusts on the monthly PG&E bill 11) Opportunity to participate in our complimentary marketing program: Deep Green Champions Page 16 of 16

17 City Electrical Accounts Coleman Frick, Associate Planner City Council Tuesday, May 8, 2018

18 2 MCE Background MCE is a local, not-for-profit Community Choice Energy ( CCE ) electricity provider Council approved MCE as Concord s default electricity provider on June 13, 2017 Effective April 2018 all electricity accounts including the City s municipal accounts were automatically enrolled in MCE s Light Green program

19 MCE and PG&E Rate Comparison Sample Commercial Cost Comparison MCE Light Green PG&E MCE Deep Green 3 *Example based on typical monthly commercial charges

20 4 CAP Implementation and Targets Citywide Climate Action Plan (CAP) adopted in baseline year Target of 36 percent reduction in metric tons of CO2e by 2035 Municipal emission are included

21 5 Municipal Electrical Account Option Comparison Criteria Total estimated emissions MTCO 2 e (Metric tons of CO 2 equivalent) Reduction (%) from CAP baseline municipal electricity emissions* Estimated Annual Cost Compared to MCE "Light Green" Program MCE Light Green N/A MCE Deep Green $72,167 in additional costs Partial MCE Deep Green (58% of electricity load) PG&E $41,600 in additional costs $41,875 in additional costs *2005 Baseline Municipal Emissions were 8,269 MTCO 2 e of which 2,559 MTCO 2 e were from electricity

22 6 Recommendation 1. Take no action and retain enrollment of all City municipal electrical accounts in MCE s Light Green program. Alternatives 2. Direct staff to enroll all municipal electrical accounts in MCE s Deep Green program. 3. Direct staff to enroll a portion of the City s municipal electrical accounts in MCE s Deep Green program. 4. Direct staff to opt-out all (or a portion) of the City s municipal electrical accounts and remain with PG&E for electricity generation.

23 7 Questions Coleman Frick, Associate Planner