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HomeMy WebLinkAboutStaff Report 4.B 12/15/2014 Attachment 7 Attachment 7 Sonoma ea n Power Local. Renewable. Ours. Sonoma Clean Power Frequently Asked Questions What is Sonoma Clean Power? Sonoma Clean Power (SCP) is the new, locally-run electricity provider in Sonoma County. We provide you with the option of using cleaner power at a competitive price from sources like solar, wind, geothermal and hydropower. SCP is a not-for-profit agency, independently run by Sonoma County and the participating cities of Sonoma, Santa Rosa, Cotati, Windsor, Sebastopol, and Cloverdale if the city votes to participate. Does SCP replace PG&E? Sonoma Clean Power supplies cleaner power to homes and businesses. PG&E continues to do the billing, turns on and off power when you move, maintains the power lines and handles all emergencies. How It Works I'll* , . „A:7 ,,_____, 14 ._...„, ,i._ ..:4.41 bii_. I twle w Al • SOP source delivery customer SCP PG&E YOU buys and builds dehivers energy, choice, cleaner cleaner energy repairs lines energy, local supplies control and competitive rates SonomaCleanPower.+ rg s � P How will Sonoma Clean Power benefit us? Choice and competition. In the past, there was only one electricity provider. SCP offers you a choice of providers and creates a competitive marketplace that encourages energy innovation. More renewables. SCP's mix of renewable energy sources for the default CleanStart service is 11/2 times that of PG&E's. The optional EverGreen service is 100% renewable - the first service of its kind in California! Local control. In the past, electric rates were set without any input from Sonoma County customers. SCP gives us local control. New markets for renewable energy. In the past, there was no easy way to sell renewable energy into the grid. SCP will create that market, starting with a feed-in tariff. Local reinvestment. In the past, $180 million left Sonoma County each year to pay for electric generation. Over time, SCP will buy increasing amounts of power from local sources, helping support jobs. We've already got a great start with a 10MW purchase of clean geothermal power from the Geysers. Local energy efficiency programs. Today, about$12 million is collected from Sonoma County every year to use for energy efficiency programs, but we've had very little say about what programs are implemented—or where in the state those funds are spent. SCP can apply to use some of that money to develop new programs and incentives better targeted to our needs. What does it cost? Sonoma Clean Power has negotiated competitively priced contracts so that our current rates are lower than PG&E's current rates. Depending on your charges for power distribution from PG&E, you will see a 4%to 5% reduction on your total electric bill. Detailed price information for each rate is available at SonomaCleanPower.org. Will billing change? You will continue to get just one bill from PG&E. A few lines on the bill change since the charges for power generation will go to Sonoma Clean Power instead of PG&E. 7 - 2 srp When can I participate? All electric customers in Cloverdale will be eligible for service starting in June 2015. You will be notified at least 60 days before service begins, and will receive a comparison of rates. Why does Sonoma Clean Power become the default provider? Historically, PG&E has been the default power provider to customers in Northern California and customers were automatically opted in to PG&E because there was no alternative service to choose from. Now there is a choice. Because of the environmental and financial benefits offered by Community Choice programs such as Sonoma Clean Power, our state legislators passed California's Community Choice Aggregation law in 2002, making these local programs the default service, resulting in competition and better options for customers. Can I Opt Out? Yes. If you don't want to participate in Sonoma Clean Power, you can opt out of the program and continue to receive power from PG&E. To opt out, be sure you have received an enrollment letter in the mail. If you haven't yet received an enrollment notice, then we are not allowed to process an opt out request from you. Can I return to SCP after I opt out? Customers who opt out of SCP before or within the first 60 days after the start of service with SCP can return to SCP at any time. Customers who opt out after the first 60 days of service with SCP will be prohibited by PG&E from returning to SCP for one year. Can I enroll early? Customers signing up for EverGreen, SCP's 100% local renewable option, can sign up early on the website at SonomaCleanPower.org or by calling toll free at 1 (855) 202-2139. This service 7 - 3 , . s � P requires a 12 month commitment, and is priced to reflect the actual cost of 100% local renewable power, meaning that it is about 20% higher in cost than the CleanStart option. Will I still receive CARE or Medical Baseline help with my bills? Yes, if you currently receive CARE or Medical Baseline rates, you will continue to receive these with SCP. You do not need to reapply. When there's a power outage, will PG&E fix our lines? Absolutely. PG&E will continue to provide the same level of service to Sonoma Clean Power customers as they provide to their other customers. What is PG&E's view of Sonoma Clean Power? PG&E supports your power to choose a provider, and provides a full comparison of pricing to verify SCP's lower rates. Visit PGE.com and search on "community choice." Why was Sonoma Clean Power formed? Sonoma Clean Power was formed in response to our community's desire for local control of our electricity. Local residents and businesses wanted lower rates and more renewable power. Why haven't we been able to do this before? In 2002, Assembly Bill 117 was enacted to allow cities and counties to purchase power on behalf of their residents and businesses as a way of promoting competition in power generation to accelerate the development of local renewable power generation. In 2010, the Sonoma County Water Agency began exploring the formation of a community power program, and formed a Steering Committee in early 2011, composed of city council members, city managers, businesses, activists and others. Two years of research resulted in the publication of a study showing that a community power program was feasible. -i 7 - 4 Have other places done this before? Yes. The County of Marin has a successful program, and the City of Richmond in Contra Costa County recently joined it. Illinois, Ohio, Massachusetts, New Jersey and Rhode Island also have community power programs, and many California cities and counties are forming or studying the option of a community choice program. Is Sonoma Clean Power really cleaner than PG&E? SCP's power has a higher renewable content than PG&E's and 30% lower greenhouse gas emissions. CleanStart is 70% carbon free—33%from sources considered renewable under California's regulations, like wind, solar and geothermal, and 37% from large hydropower facilities. The remaining power comes from "systems power," which is mostly natural gas. EverGreen is 100% local renewable power, starting with geothermal power. The product isn't for everyone because it carries a cost premium of about 20% and a 12 month commitment. But for those who want to help pioneer a clean energy economy, you can start service early- even before you receive an enrollment notice. What is the story on Renewable Energy Credits or "RECs"? We're using 3% of so-called "unbundled renewable energy credits" or RECs. "RECs" are a way of paying a remote renewable energy producer to support renewable power, and are allowed for use in California as a way of using more renewable energy. However, RECs are not effective at supporting our local economy and probably have a limited benefit for supporting the construction of new renewable resources. For these reasons, Sonoma Clean Power does not count RECs as having any benefit for the climate, and they are not included in our greenhouse gas calculations. We are also investing in local resources, and have a great start buying locally with a 10 MW long-term contract for local geothermal power from the Geysers facility and building 30 MW of new solar power in California. 7 - 5 . .. sP . Since we share the "grid," how do I know my electrons are cleaner? It turns out all electricity is clean. It's the generating sources that can pollute. Whether electricity was made from natural gas or solar, by the time the power is in your wires, it is all exactly the same. There is no need (or way) to track which electricity you use. Instead, we track which generators put power into the grid for you, because that is where the impacts are. When we contract for power from the Geysers, for example, they turn on a geothermal unit and it operates on our behalf. If, instead, we contracted for power from a fossil fuel plant, then that plant would increase its output - and its emissions - to account for our needs. With Sonoma Clean Power, we get to choose how our power is created, and some sources, like the Geysers, are much cleaner than others. Electric Power Sonoma Clean Power Generation Mix' CleanStart EverGreen FEEEZMIll Percent of Tatal Retail Sales(kWh) Renewable 22% 33% 100% •Biomass&Biowaste 4% 9% 0% •Geothermal 5% 15% 100% •Eligible hydroelectric 2% 0% 0% •Solar electric 5% 0% 0% •Wind 6% 9% 0% Coal 0% 0% 0% Large hydroelectric 10% 37% 0% Natural Gas 28% 0% 0% Nuclear . _ 22% 0% 0% Other 0% 0% 0% - Unspecified Sources 18% 30% 0% i of Power TOTAL 100% 100% 100% " PG&E's generation data represents 2013 and is provided in the "Annual Report to the California Energy Commission: Power Source Disclosure Program".SCP's generation data is forecast for 2014. 0 7 - 6 . • syg ENROLLING If you live or work in a participating area, you don't need to do anything to become a Sonoma Clean Power customer. At least two months before you are eligible for service, you will begin receiving notices with rate information and a comparison of your options. If you want to opt out, the notices describe how to do that, too. You will get a total of four notices. Are there penalties for switching back to PG&E? We waive the fee for opting out if you do it in the first 60 days after service starts. After that, we charge $5 for switching to PG&E for residential customers and $25 for all other customers. GOVERNANCE Sonoma Clean Power is public agency run by a CEO and a small staff that will gradually grow to about 15 people in three years. It is governed by the Board of Directors of the Sonoma Clean Power Authority, a joint powers authority of the County and the cities that have voted to join. The Board is advised by a public Ratepayer Advisory Committee and a Business Operations Committee. Won't this create another expensive government bureaucracy? Nope. Sonoma Clean Power is different. We are entirely self-funded by revenues we receive from customers. None of our expenses are paid by taxes, and our revenues cannot be diverted to pay for non-SCP uses. We have a minimal staff and our benefit costs are low. We keep our prices competitive by negotiating for all of our customers as a group and by the fact that we don't have to charge extra to generate a profit. 7 - 7