At our Irvine City Council meeting on July 14, 2020, we will be discussing Irvine’s next steps regarding implementation of a Community Choice Energy Plan.
Community Choice Energy (CCE) is a way for cities, counties or regions in California to look out for their own energy interests, a hybrid between regulated and deregulated electricity supply. CCE programs seek to provide energy that is cheaper and cleaner than energy provided by for-profit utility companies.
Nearly two years ago, on September 25, 2018, before a standing-room crowd, as Chair of Irvine’s Green Ribbon Committee, I joined with my colleagues on the Irvine City Council to vote to commission a feasibility study to determine the pros and cons of implementing a Community Choice Energy program in Irvine, including potential economic benefits for the community.
At the direction of the Irvine City Council, EES Consulting completed a comprehensive analysis of the feasibility (including costs and benefits) of a Community Choice Energy program in Irvine. For this work, the taxpayers of the City of Irvine paid EES Consulting over $180,000. We received the EES Consulting Feasibility Study in June 2019.
Among the study’s crucial conclusions was the projection that a CCE in Irvine would result in savings of $7.7 million per year in citywide electricity cost savings for Irvine residents and businesses, and a $112,000 per year savings for the City itself in municipal energy costs, as well as driving additional local economic development benefits, such as new jobs and $10 million in annual economic output.
Despite the extremely positive results of the feasibility study (or perhaps precisely because of these very positive results), the Republicans on the Irvine City Council insisted that we undertake a second study to evaluate the results of the first study.
I believed at the time that this second study was unnecessary and feared that it was really a scheme to delay and ultimately derail implementation of CCE in Irvine.
These fears have been born out.
In this second study (a so-called “third-party peer review”), MRW & Associates reviewed the EES Consulting Feasibility Study and found that, while there were some quibbles about the EES Consulting Feasibility Study’s assumptions and analysis, (1) the analytical approach of the EES Consulting Feasibility Study was sound; (2) the rate savings projected by the EES Consulting Feasibility Study is consistent with what current CCE programs are offering, and (3) a CCE program in Irvine could be financially viable.
In addition, MRW & Associates found that (4) the EES Consulting Feasibility Study adequately addressed the four CCE governance options available to the City, and (5) agreed with EES Consulting Feasibility Study that the two most reasonable options are forming an Irvine-only CCE or developing a Joint Powers Agreement (JPA) with other Orange County cities.
Nevertheless, according to the staff report, “Given the uncertainty of some variable inputs, MRW recommends that if the City pursues formation of a CCE, a more extensive and detailed pro forma analysis be required prior to implementation.”
In other words, despite overall agreement with the analytical approach and the positive conclusions of the EES Consulting Feasibility Study, the MSW report recommends that Irvine undertake (and pay for and wait for) yet another study, and of course, more paralysis by analysis.
Instead, the City Council should immediately implement the Community Choice Energy program that studies we have twice paid for show to be a tremendous benefit to both the City and the planet.
We also need to adopt and implement the stand-alone Climate Action Plan that the Irvine City Council unanimously voted to develop, with lots of public fanfare and self-congratulations, in July 2019. Like the Community Choice Energy plan, I am concerned that the Republican majority on the Irvine City Council has no intention of adopting a stand-alone Climate Action Plan and is delaying implementation with no intention to move forward.
For all of these reasons, I call on all Irvine residents to sign the petition to “Tell Irvine’s City Council to Implement Community Choice Energy (CCE) Now.”
I also ask you to submit an e-comment to the Irvine City Council in support of implementing a CCE now, without further and unnecessary delay.
The Climate Action Campaign has created an engaging 10 minute video explaining the issue.
Watch it here: