With the goal of using 100 percent renewable energy citywide by 2035, the City Council voted on Feb. 25 in favor of a resolution of intent for Mayor Kevin L. Faulconer to negotiate the creation of a new joint-powers entity that would take over the responsibility of purchasing power for its residents and, potentially, the San Diego region.
The move follows Faulconer’s decision in October to select Community Choice Energy (CCE) as the preferred pathway to reach the renewable energy goal in the City’s landmark Climate Action Plan. The new Joint Powers Authority (JPA) would create healthy competition to benefit San Diegans, lower energy costs by 5 percent or more for ratepayers, and allow other cities and government agencies in the region to join.
Several other cities in the region are currently exploring the feasibility of CCE and have expressed interest in joining a JPA. A regional approach would allow for greater negotiating and buying power as well as create efficiencies in operations and service.
While the resolution wasn’t required, Faulconer wanted to give the City Council an opportunity to weigh in on what would be a fundamental change to the region’s energy market.
“The best way to make us the greenest city in the nation is to give San Diegans a new choice on where they get their power,” Faulconer said. “For decades San Diegans have only had one option on where they get their electricity. “Community Choice will change that by injecting healthy competition into the marketplace, allowing customers to benefit from lower energy costs, and pick greener energy sources to power their home or business. We will offer the County and other cities the opportunity to partner with us so we can provide the same choice to customers throughout the entire region,” Faulconer said.
The creation of a regionwide CCE will be a multi-year process. After the formation of a JPA and appointment of its board of directors this year, the board would then hire an executive leadership team, including a chief executive and chief financial officer, which would guide the JPA through the CCE implementation process. The JPA would then seek approval from the California Public Utilities Commission (CPUC) with the goal of delivering power as soon as 2021.
