City, County proposing Joint Powers Authority to purchase power, the catch is, they have to use PG&E’s crapped out infrastructure

Furthermore, they will have no authority over shut-offs (or, as we used to call them, ROLLING BLACK-OUTS). 

And here’s what they want – a JPA has the authority to raise rates/taxes. And we don’t vote for the board, they are appointed by city and county “leaders”, with staff’s recommendation. 

See the agenda item below, I’ve requested past reports from the city clerk, we’ll see what she sends. 

5.2. CONSIDERATION OF A PROPOSED JOINT POWERS AGREEMENT TO FORM THE COMMUNITY
CHOICE AGGREGATION (CCA) BUTTE CHOICE ENERGY AUTHORITY

On 10/1/19, the Chico City Council adopted an ordinance authorizing the implementation of a Community
Choice Aggregation (CCA) program. Community Choice Aggregation allows cities and counties to
aggregate the electricity buying power (electrical load) of residential, commercial, and municipal customers
within a jurisdiction to purchase power and meet their electricity needs. The local Investor Owned Utility
(IOU) will continue with transmission and distribution of energy to utility users in the region. City of Chico
and Butte County staff (Staff) have been working together to draft a Joint Powers Agency (JPA) Agreement
with the City, Butte County, and other perspective City’s or County’s in the region to form a separate joint
exercise of power agency called Butte Choice Energy Authority (Authority). On 10/15/19, the Chico City
Council heard an initial presentation of the draft JPA. (Report – Erik Gustafson, Public Works Director
Operations & Maintenance)

Recommendation: The Public Works Director -Operations & Maintenance recommends the City Council:
1) approve the following resolution; and 2) nominate two regular Authority Board of Directors and two
alternates.

RESOLUTION APPROVING THE JOINT POWERS AUTHORITY AGREEMENT ESABLISHING THE
BUTTE CHOICE ENERGY AUTHORITY AND RELATED AUTHORIZATIONS

UPDATE: I got the a stack of staff reports on this from the clerk, but am now trying to figure out how to post them. Here’s something from the Butte County Feasibility Study – I’ll post more over the weekend. 

Benefits

Local Control 
 Set rates (potentially lower)  Yes, the unelected board gets to set your rates. Will this go through the CPUC?
 Promote economic  This would depend on pricing, which would depend on the unelected board
development 
 Energy source choice Depending on what’s available, at what price.
 Could create a local revenue
stream for future power  And there it is – a local revenue stream that can be transferred by way of fund allocation into the pension liability
projects
 Customization based on local  Based on whose local interests?
interests
 Cleaner energy  Again, based on what is available, at what price.

Risks

Power Charge Indifference
Adjustment (PCIA) surcharge
 “Exit fee” charged to CCA  But no dollar figure, and we won’t get that until we’re in it up to our necks
customers for exiting an IOU
 Cost could offset savings due   Like solar energy, there’s the question – will the savings offset the expense?
to lower electricity costs
 Customer participation  This is a pyramid scheme – you have to get other suckers to get on board before you will see any savings
 Power procurement risks  With PG&E’s involvement, this is a huge deal breaker
 Legislative climate  I’d add, changes in the make-up of our council, every two years they have a flip-flop and policy decisions are overturned

Let me quote the editor of the local daily: And with the huge and very obvious kinks in the PG&E system, it seems like a really good idea to have a local entity in place to look out for our people’s interest in the current and rising mess.

There he mentions the huge and obvious kinks in the PG&E system – the delivery system, which is a linchpin in this deal. Ever had a linchpin break on you? Right at a bad time? Like right when your town was on the verge of bankruptcy? And people and businesses were already leaving town? 

Let’s take a good look at this scheme.