Defending Community Electricity Choice

The right to form "Community Choice" districts is a matter of California law.  Yet since passage in 2002, this right has required active defense on several occasions.

The most formative battle came in 2010, when PG&E sponsored ballot measure Proposition 16.  Prop 16 would have required municipalities to have a 2/3 'supermajority' to enact a Community Choice program.  PG&E spent $48M on Prop 16, yet lost decisively thanks to a statewide campaign mounted by thousands of volunteers, advocates and organizations .

After Prop 16, the legislature passed SB 790 in 2011.  SB 790 gave rise to the Code of Conduct that now governs Investor-Owned Utilities (IOUs) communications about community choice.  The Code states that IOUs cannot:

• Use rate-payer funds to "market against" community choice.  All IOU communications must be factual and neutral.
• Use confidential customer information against CCAs.
• Offer "conditional services" or other inducements to entice municipalities to reject CCAs. 

SB 790 requires that, if IOUs wish to express an opinion about CCAs, they must do so through an "independent marketing division", using 100% shareholder funds.

In November 2015, SDG&E notified the CPUC of its intention to form such an "independent marketing division.  While the CPUC deferred action on this request, CCA fans see SDG&E's move as an indicator of its intention.  This battle lies ahead in 2016. 

San Diego Union-Tribune: 
Who should decide San Diego's energy future?

That's a key question to ponder in 2016, as SDG&E and the other Investor Owned Utilities (IOUs) gear up "independent marketing entities" to spread their opinions on Community Choice.  See the U-T's story on the issue here. (Photo by Alejandro Tamayo * U-T)

Make No Mistake.  A Strong Defense Matters.

The San Diego Energy District is a fierce and stalwart defender of the laws and regulations that underpin Community Electricity Choice.  We stand shoulder-to-shoulder with the many advocates, clean electricity professionals and community groups that monitor legislative and regulatory venues to guard against attacks. 

Statewide Engagement
SDED regularly consults with the following partners:

• The three existing CCA programs: Marin Clean Energy,  Sonoma Clean Power and Lancaster Energy Choice;
• SDED is a member of the California Alliance for Community Energy, a statewide coalition created "to defend and support Community Choice Energy programs..."
• SDED also draws on and supports several other valued Community Choice partners -- like Local Energy Aggregation Network, Center for Climate Protection, and Center for Sustainable Energy .

SDED and its partners remain vigilant against attacks because, in fact, attacks happen:

• In 2016 -- We know what's ahead. The David v Goliath fight over IOU Lobbying (above) and Exit Fees. At the least. 
  
• In 2015 -- California's landmark climate action bill SB350 did not start out supportive of Community Choice; rather, it contained several IOU-supported elements that would have severely curtailed local choice.  Like its partners statewide, SDED took action.
• In 2014 -- AB 2145 was introduced with the intention of gutting Community Choice.  Defeat of AB2145 took months of courageous effort by organizations throughout California. SDED was one of those. Read more...

Staying Vigilant
A strong and successful defense cannot give way to over-confidence or complacency.  Threats to Community Choice can show up in many places: 

• In hidden strings on otherwise welcome financial support.  We wrote about this in our July 2015 E-News.  Read more.
  
• In sneaky ways the IOUs calculate the charges imposed on CCA customers.  See our November 2015 E-News. 
  

And, of course, there is always the NEXT Legislative session...