Jason Haber
INTERGOVERNMENTAL AFFAIRS DIRECTOR
CITY OF CARLSBAD
Energy is a vital commodity essential for our well-being and productivity, yet historically, we as local communities have not had much say in where that energy comes from or how clean the source is. So now, in a bold move to give our community greater control over our energy mix and the ability to generate power locally, the cities of Carlsbad, Del Mar and Solana Beach have formed the Clean Energy Alliance, a partnership that will give the three cities a role in procuring, pricing and even producing energy
This new approach is called Community Choice Energy, which was enabled by California legislation in 2002. Community Choice Energy is designed to give communities clean, renewable energy choices at competitive rates, while creating innovative programs that benefit their residents, environment and local economy.
Our new Clean Energy Alliance projects that ratepayers will save about 2% of their energy bill by getting their electricity through the alliance versus San Diego Gas & Electric. This may not be a large amount for residents, but it can be a sizable savings for businesses.
The electricity will still come from the local utility over the state’s power grid, but savings can be realized in several ways. For example, as a public agency through a joint powers authority, the Clean Energy Alliance can borrow money to procure future energy at a lower rate than SDG&E can. And the alliance does not have to pay shareholders a share of the profits, but can invest in programs and new energy generation projects that target our local community and boost our local economy.
Today there are 19 such Community Choice Energy entities operating in the State of California, and our newly formed Clean Energy Alliance is the newest. Each of the three cities in the Clean Energy Alliance – Carlsbad, Del Mar and Solana Beach – will have a say in our mix of energy sources, with an emphasis on a cleaner energy supply that reduces greenhouse gas emissions. Community Choice Energy programs have increased the share of electricity generated through renewable sources statewide.
Another feature of Community Choice Energy is increased transparency in the decision-making process, giving residents a clearer view of how their energy supply is sourced and how rates are set. With greater control over their energy mix and the ability to generate power locally, Community Choice Energy programs can create local jobs and keep revenues closer to home. In addition, the Clean Energy Alliance board of directors is made up of our local leadership. Carlsbad Council Member Cori Schumacher serves as board chair, Del Mar Mayor Ellie Haviland as vice chair and Solana Beach Council Member Kristi Becker serves as the third board member.
Our new alliance is also open to growing and is looking to add new members, such as neighboring cities or the county. Other cities in the State Route 78 Corridor are conducting feasibility studies on Community Choice Energy, which is an essential first step in the process.
When the program launches everyone in the service area will be enrolled automatically, and customers will be able to opt out and stay with SDG&E, which will continue to deliver power, maintain the grid, bill customers, and provide other services.
As the program generates discretionary funds above operating costs the cities can develop projects that generate electricity from renewable sources, such as solar, wind and even hydro power. The Clean Energy Alliance will also be able to offer incentives to customers to install clean energy systems like solar panels and battery storage, or to make electric vehicle purchases.
The Clean Energy Alliance has taken the necessary steps to make Community Choice Energy a reality in our region, including developing a feasibility study, adopting a conflict of interest code, appointing an interim CEO and general counsel, and filing an Implementation Plan and Statement of Intent with the state Public Utilities Commission.
This new model is designed to serve the community directly by taking control over a most important resource: energy. The Clean Energy Alliance looks forward to making great strides in 2020 with the goal of giving you a cleaner and more competitively priced choice of energy in 2021.
Learn more at www.thecleanenergyalliance.org