HomeMy WebLinkAbout2001-10-23 - AGENDA REPORTS - COMMUNITY ENERGY CMTE (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: - Tam Mans
DATE: October 23, 2001
SUBJECT: PROGRESS REPORT ON COMMUNITY ENERGY ADVISORY
COMMITTEE ACTIVITIES AND RECOMMENDATIONS
DEPARTMENT: Field Services
RECOMMENDED ACTION
Receive report of the Community Energy Advisory Committee, extend the Committee timeline
to January 8, 2002, and conduct a Study Session on options pertaining to energy on
December 4, 2001. Given the need for simple majority vote for quorum and voting needs,
appoint Brad Packer as full member of the Community Energy Advisory Committee rather than
an alternate.
BACKGROUND
This item is on the agenda as a status report to the City Council on the activities and findings
of the Community Energy Advisory Committee to date. The Committee, consisting of the
members on the attached roster, began its formal work on July 18, 2001. It was tasked with
providing short, mid, and long term options to address the then current and projected impacts
of the California energy crisis. The Committee was requested to review the following options:
• Remain with the current energy provider.
• Purchase energy from an alternative provider.
• Participate in a joint powers of the cooperative agreement.
• Aggregate for the City and/or community needs.
• Evaluate the feasibility of municipalization.
• Other alternative approaches the Energy Advisor and/or Committee recommends as
warranting review.
The Energy Committee's stated goal was to develop alternatives that would provide lower rates
and enhanced energy reliability to the Santa Clarita Valley. In order to reach this goal, the
Committee considered extensive research, conducted multiple educational meetings, surveyed
various municipalities to determine their course of action, researched and tracked energy
legislation throughout the summer, and with City Council concurrence, retained an energy
advisor to assist in developing a recommended strategy.
Additionally, they took action to recommend to the City Council the adoption of a
Municipalization Resolution, designed to keep many options open to the City should
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� Agenda item:
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PROGRESS REPORT ON COMMUNITY ENERGY ADVISORY COMMITTEE
ACTIVITIES AND RECOMMENDATIONS
October 23, 2001 — Page 2
Santa Clarita wish to pursue municipalization in the future. Furthermore, the Committee
conducted an energy survey, which was administered to the community to determine interest,
knowledge, and needs pertaining to energy. The results of the survey are attached.
At the juncture, the Committee has completed its review of a variety of options. However, while
the energy market place is beginning to stabilize, many of the legislative proposals once
thought to clarify roles and options pertaining to energy, still remain unclear. Of particular
interest is AB 9XX. This legislation, now on the Governor's desk, would theoretically allow for
community choice and community aggregation. The City Council has sent a letter to
Governor Davis urging his signature. This legislation would allow for community aggregation,
and allow a community to seek out energy providers via the direct access provision to service
the aggregation. Unfortunately, the Public Utilities Commission has restricted direct access,
thus making the implementation of community aggregation difficult at this time.
In addition to legislation, the total impact of recent decisions made regarding the Southern
California Edison settlement adopted by the Public Utilities Commission is unknown. This
information is critical to the final work of the Community Energy Advisory Committee due to
the need to quantify the actual costs of pass-through charges required to fund past and future
State energy purchases.
Given the uncertainty of two key areas critical to the completion of the Energy Committee's
analysis, it is recommended that the City Council delay presentation of final recommendations
until the January 8, 2002 meeting. In addition, it is recommended that the City Council
conduct a Study Session on December 4, 2001, to thoroughly review the detail of various energy
options, and review the preliminary report prepared by the Energy Advisor.
ALTERNATIVE ACTION
Other action as determined by Council.
FISCAL IMPACT
Funds for administration of the Community Energy Advisory Committee and related meeting
expenses are appropriated in Account No. 5100-8112.
ATTACHMENT
Community Energy Advisory Committee Roster
Community Energy Advisory Committee Community Survey
/admin/ccitems/energyrprt.doc
COMMUNITY ENERGY ADVISORY COMMITTEE
Roster
Cameron 4
Bob Kellar
Newman
John Ahrens
Wayne Crawford, Chair
Josef Grafues
John Grannis, Vice Chair
Charles O'Connor
Brad Packer, Proposed Full Member
Jim Schrage
Douglas Sink
Connie Worden-Roberts
Becerra —Southern California Edison
Terri Maus
Chris Daste
Sally Szoke
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