Exclusive Report – Community Choice Aggregation: A False Choice

Coming soon…

CCA-False-Choice-Ezine

Are utility rate increases nudging people into government  power?

The American Coalition for Sustainable Communities (ACSC) is a voluntary coalition. National in scope, our mission is sustaining representative government, and protecting our elected representative’s authority, which is being usurped, and in many cases, abdicated to unelected agencies, boards, bodies and commissions.

This report, authored by ACSC affiliates Dan Titus and power engineer rate specialist Jim Phelps, is offered as a counterweight argument for elected representatives and staff personnel who are reviewing, or may be considering Community Choice Aggregation (CCA).

The report begins with a history of CCA; then, moves into an overview of sustainable development and its impacts. A review of renewable energy and three case studies are presented. The introduction provides an overview and background of the genesis of the report. Also, cited are key summary arguments and findings for three CCAs reviewed:

1. Inland Choice Power
2. South Bay Clean Power
3. LA CCA

The Inland Empire of California Became a Flashpoint

The genesis of this report can be summed up in a press release dated Apr 6, 2017 when Inland Choice Power Business Plan failed to move forward because of fatal flaws. Here is an excerpt:

“The newly formed Foothill Tax Payers Association (FHTP) in association with the American Coalition for Sustainable Communities (ACSC) successfully executed a campaign involving local activists to stop the San Bernardino Council of Governments (SBCOG) from continuing collaborative research efforts in starting a Community Choice Aggregation (CCA). At a SBCOG board meeting on Wednesday, a staff recommendation to move forward with a CCA was defeated when no elected city members of the board would second a motion by the Chair to vote on the recommendation. When Chairman Robert Lovingood asked for a second motion, the room went silent; when he asked again, the room stayed silent. Therefore, the issue never made it to a floor vote. It died right there.

Community Choice Aggregation is a policy where local governments aggregate (add up) electricity demand in order to procure alternative renewable energy (wind and solar) supplies while maintaining the existing electricity provider for transmission and distribution services. It promotes expensive renewable energy over traditional forms of energy.

“A six page critique of the Inland Choice Power: Community Choice Aggregation Business Plan – Final Draft, prepared by EES Consulting for SBCOG, was found to be fatally flawed,” said Linnie Drolet, president of FTPA. Dan Titus, who administers the Web site iAgenda21.com and is affiliated with ACSC concurred. “We found problems with the recommendation to move forward because the benefit of saving people 5% on their electric bill did not merit the millions of dollars of startup costs associated with the plan. We also fundamentally disagreed that people would automatically enrolled in a new government CCA without advance permission.”

Table of Contents

Introduction
Scope 1.1
Background
Summary Arguments 1.2
Inland Choice Power
South Bay Clean Power
Key Findings 1.3
LA CCE 1.4
Summary Points
Lack of Accountability 1.5
ACSC CCA Warning Bulletin

Overview
CCA History 2.1
The Architect of CCA
California 2.3
Decentralized Power Model
Energy Companies 2.4
Deregulation
Gaming the Power System
Regulatory Environment 2.5
Cost Recovery 2.6
CCA Opt Out: A Crony Business Model
Power Companies React to Opt Out 2.7
CCAs Want to Appropriate Benefits
Marin Clean Energy: California’s Blue
Print Model for CCAs
Renewable Energy Certificates 2.9
Green-washing 2.10
Green-washing in Action
Green-washing Fraud 2.11
Transparency 2.11
CCA Contracts: Caveat Emptor 2.12
CCA: A Panaca?

Sustainable Development,
Renewable Energy
and Business Plan Reviews
Sustainable Development 3.1
Renewable Energy 3.10
Cronyism in Energy Production 3.13
Inland Choice Power Business Plan Review 3.15
Prices 3.17
Greenhouse Gas Reduction 3.20
Start-up Costs 3.22
Insider Conflict of Interest
South Bay Clean Power Business
Plan Review
SBCP’s Vision 3.23
Scope of SBCP CCA
Governance Problems 3.25
Lawsuits 3.26
JPA Agreement 3.17
Southern California Edison and SBCP 3.28
Conflicts & Contradictions 3.29
GHD Goals and Inconvenient Truths
SBCP’s Control Over Citizens 3.31
Money Management & Municipal Financial
Obligations
Net-New GHG RReductions 3.34
The Cost of Local Solar
Required Acreage for Solar Panels 3.35
Solar Power Production Decline Due to
Aging Solar Panels

Sources

Appendix

LA CCE Business Plan Review
Executive Summary 1
3rd Party Review by ARC Alternatives 2
Renewable Energy
RPS Requirements 4
GHG Reductions 8
Finance – Power Supply Cost Problem 9
Plan Uncertainty and Prices 10
Implementation / Completion 11
Solar Panel Decline Due to Aging 14
JPA Agreement
Footnotes 16

ACSC CCA Warning Bulletin

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