HomeMy WebLinkAboutOrdinance 618 Repealing Ord 616 auth MBCP CCAWHEREAS, the City Council has previously directed staff to investigate the feasibility
and formation of a Community Choice Aggregation (CCA) program under the provisions of the
Public Utilities Code section 366.2 in order to provide electric service to customers within the
City of Morro Bay (City) with the intent of achieving reduced greenhouse gas emissions, local
renewable power development, competitive electric rates, and the implementation of energy
conservation and other energy programs; and
WHEREAS, the City, in cooperation with the City of San Luis Obispo commissioned a
technical study showing a CCA program serving the City and surrounding communities would
provide several benefits, including:
® Providing customers a choice of power providers and power supply options;
■ Increasing local control and involvement in energy rates and other energy -related
matters;
■ Providing stable electric rates that are competitive with those provided by the
incumbent utility;
■ Reducing greenhouse gas emissions arising from electricity use within the City and
surrounding region;
■ Increasing local renewable generation capacity;
® Increasing energy conservation and efficiency projects and programs;
® Increasing regional energy self-sufficiency;
® Improving the local economy resulting from the implementation of a CCA program
and local renewable and energy efficiency projects over time; and
WHEREAS, on September 18, 2018 the cities of San Luis Obispo and Morro Bay,
farmed a Joint Powers Authority called Central Coast Community Energy ("CCCE.") to host a
CCA program; and
WHEREAS, on October 9, 2018, the City adopted Ordinance No. 616, as required by
Public Utilities Code section 366.2 authorizing the implementation of a Community Choice
Aggregation program through CCCE; and
WHEREAS, on October 11, 2018 the California Public Utilities Commission amended
the Power Charge Indifference Adjustment, which negatively impacted CCCE's ability to
develop a program with the desired financial and environmental benefit; and
WHEREAS, Monterey Bay Community Power Authority (MBCPA) is an established CCA
program capable of providing the desired financial and environmental benefits, and
WHEREAS, MBCPA will enter into agreements with electric power suppliers and other
service providers and, based upon those agreements, MBCPA will be able to provide power to
residents and businesses at rates that are competitive with those of the incumbent utility
(" PG&E" ). Once the California Public Utilities Commission certifies the amended Implementation
Plan adopted by MBCPA, MBCPA will be able to provide service to customers within the City;
and
WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt -
out of a CCA program and continue to receive service from the incumbent utility. Customers
who wish to receive service from the incumbent utility will be able to do so; and
Ordinance No. 618 Page 2
WHEREAS, on November 13 and November 27, the City Council held public meetings
on the manner in which the City will participate in a CCA program at which time interested
persons had an opportunity to testify either in support of or opposition to the implementation of a
CCA program serving the City through MBCPA; and
WHEREAS, this ordinance is exempt from the requirements of the California
Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines, as it is not a "project" as it
has no potential to result in a direct or reasonably foreseeable indirect physical change to the
environment. (14 Cal. Code Regs. § 15378(a)). Further, the ordinance is exempt from CEQA as
there is no possibility that the ordinance or its implementation would have a significant effect on
the environment. (14 Cal. Code Regs. § 15061(b)(3)). The ordinance is also categorically
exempt because it is an action taken by a regulatory agency to assume the maintenance,
restoration, enhancement or protection of the environment. (14 Cal. Code Regs. § 15308).
NOW, THEREFORE, the City Council of the City of Morro Bay does ordain as
follows:
SECTION 1. The above recitations are true and correct and material to this Ordinance.
SECTION 2. Based upon the forgoing, the City Council hereby repeals Ordinance No.
616.
SECTION 3. Based upon the forgoing, and in order to provide businesses and residents
within the City with a choice of power providers and with the benefits described above, the City
Council hereby elects to implement a community choice aggregation program within the
jurisdiction of the City by participating as a group in the Community Choice Aggregation
Program of MBCPA, as generally described in its Joint Powers Agreement.
SECTION 2. This Ordinance shall take effect 30 days after its adoption. The City Clerk,
oI her duly appointed deputy, shall attest to the adoption of this Ordinance and shall cause this
Ordinance to be published and posted in the manner required by law.
INTRODUCED at a regular meeting the of the City Council of Morro Mn held on the
13th day of November, 2018, by motion of Mayor Irons, seconded by Council Member Davis.
PASSED AND ADOPTED on the 27th day of November 2018, by the following vote:
AYES: Irons, Davis, Headding, Makowetski, McPherson
NOES: None
ABSENT: None
JAMIE L. IRONS, Mayor
ATTEST:
�DANA SWANSON, City Clerk
APPROVED AS TO FORM:
W. PANNONE, City