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Delayed Choice
Don Mosier | Rimini Road

In December, the California Public Utility Commission (CPUC) issued Draft Resolution E-4907 that would impose a 1 to 2-year delay in starting new Community Choice Energy (CCE) programs like the one the City of Del Mar is actively investigating. Del Mar was one of many cities that immediately sent a letter of opposition to the CPUC, and the vote originally scheduled for the January 11th meeting was delayed until February 8th. It has been reported by the Clean Power Exchange that some progress has been made on resolving the core issues that led the investor-owned utilities to draft the resolution.

The proposed solution addresses the “Resource Adequacy” costs of new CCEs, which is the underlying topic of CPUC Draft Resolution E-4907. Resource Adequacy refers to a CPUC requirement that all load-serving entities (including CCEs) demonstrate that they have procured no less than 115% of their peak loads in order to ensure that enough power is available even if unusually high energy usage events occur. This Resource Adequacy plan is based on the prior year’s energy load, but a newly launched CCE does not have that data.

The utilities have argued that they pay to generate the energy load data and to meet the 115% target, and that the new CCE should delay launching until they have collected their own data. The compromise under discussion would be to set up an interim process that would assign actual investor-owned Utility Resource Adequacy costs for the partial year in which a CCE launches, and then immediately transitioning to a CCE self-provision from that point forward. This would allow CCEs to continue forming on their regular schedule while ensuring there isn’t a cost shift or a state of non-compliance with the Resource Adequacy requirement.
Mayor Dwight Worden plans to attend the CPUC meeting on February 8th to support Del Mar’s position that the original wording of E-4907 is unfair to cities working to establish CCEs. Hopefully a compromise wording that eliminates the waiting period for new CCEs will be on the table by then.

 

 

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