September 2015:  First San Diego CCA Assessment finally released

Great News: Five Percent Savings and All Costs Repaid Year One
San Diego ratepayers could see "at least a five percent savings" on their bills under a Community Choice program.  Such a program would also be able to "repay all startup costs within the first year of operation".  

These are among the conclusions of a Study completed September 25 and announced by the Protect Our Communities Foundation.  Download the POC Study here.

The study was conducted by Community Choice Partners Inc. The following key points were presented by Bill Powers to the City's Sustainable Energy Advisory Board (SEAB) October 8.  Key assumptions used by the consultants:

• CCA service would be provided initially to 45% of residential and medium-size commercial customers, as well as 100% of all other commercial customers. 
• The supply portfolio was assumed to be 33% renewables with no "unbundled RECs". 
• $3 million was assumed for allocation to potential CCA programs, to potentially include feed-in tariffs, energy efficiency and/or demand response. 

Under these assumptions, the primary findings were:

• Savings "on the order" of 5% in energy costs were possible and evaluated in the Study. 
• The program would be able to repay 100% of its start-up costs in the first year of operation,
• At the end of the first year AND after paying off all costs, the program would retain an adequate reserve to continue sound and prudent operation. 

From SDED's standpoint, this is all good news.  Under the assumptions made, San Diego ratepayers would get 33% renewable electricity and still save money.  The program can pay back 100% of its debt and still have a cushion for future operations.  All good.

However, we're not done yet.  POC funded the study, designed the scope and managed the consultant.  In 2015, the City committed to a follow-on study, underway now.  Among other things, the City's study will use updated demand data.  It will also drill down into several key issues identified in the POC Study:

• The impacts of size -- At the start, San Diego's CCA would be about as big as MCE and SCP combined. At full implementation, the San Diego CCA would comprise 50% of SDGE's load.
• The calculation of exit fees -- A big variable in the economic feasibility of any CCA lies with the "Power Charge Indifference Adjustment".  The POC Study raised questions about the PCIA.  These and other questions will likely be pursued in the upcoming City's CCA Study. 

These issues and other guidance from the City's Sustainable Energy Advisory Board (SEAB) will get a deeper-dive in the next Study.   Watch this space.