1. www.sonomacountywater.org Sonoma County CCA Feasibility Study Summary Cordel Stillman Deputy Chief Engineer

2. What is Community Choice Aggregation? AB 117 in 2002 Counties/Cities Form Block to Purchase Electricity Generation on Open Market Transmission, Distribution, and Billing Remain with Investor Owned Utility (PG&E) Generation Rates and Power Supply Determined Locally This is an opt-out program, all are included unless they specifically take action to remain with the local utility

3. Public Power Oh no, not more government!! 39 Public Power Providers in CA 25%  Receive Municipal Utilities Power Average Municipal Rates  20% Lower

4. Feasibility Study DMC was retained by SCWA to conduct a feasibility study for the formation of a CCA program in Sonoma County. The study examines the impacts on ratepayers, the environment and the local economy from providing a public alternative to PG&E for the supply of electric generation services within the County. Several potential scenarios were examined to understand impacts using a range of potential energy sources and forecast assumptions. Objective of the study is to provide a conservative assessment that can be used to determine if further analysis is warranted.

5. Steering Committee Veronica Ferguson – County Administrator Kathy Millison- City Manager, Santa Rosa Grant Davis- General Manager, SCWA Suzanne Smith- Executive Director, RCPA/SCTA Rod Dole- former ACTTC Donna Dunk- ACTTC Bill Keene- Executive Director, Open Space District Ann Hancock- Executive Director, Climate Protection Campaign Dick Dowd – Private Developer Jose Obregon- Sonoma County General Services Suzanne Doyle – Sierra Club County, City, and non-profit staff

6. Sonoma County Electric Customers and Consumption Service AccountsElectric Consumption 2008 PG&E data show 218,000 electric service accounts and annual consumption of 2,778 million kilowatt-hours of electricity.

7. Projected Customer Base (2013) Customer ClassificationAccounts Energy Consumption (MWh) Percent of Energy Consumption Residential142,724950,29448% Small Commercial15,673278,61314% Medium Commercial1,834321,74816% Large Commercial277235,60712% Industrial11124,6586% Agricultural and Pumping2,04344,4862% Street Lighting1,69512,9251% Total164,2571,968,331100% Peak Demand (MW) 365 Customers and Sales are adjusted for removal of direct access customers and assumed 20% opt-out rate.

8. Resource Planning Supply Scenarios Four representative supply scenarios were developed for analysis with input from the project Steering Committee. - Status Quo renewable energy content (“Scenario 1”) - Moderate renewable energy content (“Scenario 2”) - High renewable energy content with local emphasis (“Scenario 3”) - Very high renewable energy content with local emphasis and - accelerated timelines (“Scenario 4”) These scenarios were selected to define a range of potential outcomes representing different supply choices that could be made during program development and operations. Specific goals for a Sonoma County program have not been determined yet.

9. Greenhouse Gas Emissions The CCA program could reduce GHG emissions by increasing the use of renewable energy resources. Production from renewable resources would displace production from fossil-fueled generation. PG&E is required to supply at least 33% of its electricity from renewable resources by 2020. A CCA supply portfolio comprising more than 33% renewable energy (Scenarios 2-4) will result in reduced GHG emissions.

10. GHG Emissions

11. Economic Development Local economic development impacts accrue from job creation and spending for: - Labor > Installation & construction (short-term) > Operation & maintenance (long-term) > Jobs induced by generator operation - Land lease or purchase - Taxes & permitting fees - Construction materials for new renewable infrastructure The US Department of Energy National Renewable Energy Laboratory (NREL) has developed the Jobs & Economic Development Impact (JEDI) models - Estimates economic impacts of constructing and operating different types of electric generators - Results are focused on statewide impacts - Output must be adjusted to reflect local benefits - Best available model but results are inherently difficult to measure

12. Economic Development Benefits ImpactPeriodScenario 1Scenario 2Scenario 3Scenario 4 Jobs (FTE) Construction100 to 300100 to 400700 to 1,500 400 to 1,100 Operation15 to 10020 to 100100 to 200100 to 400 Output Construction$15M to $50M $20M to $100M $90M to $200M $70M to $200M Operation$4M to $20M $10M to $20M $20M to $50M $30M to $80M Notes: 1.Two-year construction period. 2.Operation period commences at commercial operation date and continues for duration of project life. 3.Jobs and output impacts include direct and indirect effects.

13. Customer Rate Impacts CCA rates were estimated on an annual basis over the twenty- year study period and compared to projected PG&E rates. CCA rates recover all program related costs - Power purchases - Generation investment - Other operating costs (e.g., staff and overhead) - Scheduling and grid operations - Billing and data management - Financing - Reserves CCA customers would also pay PG&E for delivery (T&D) and other surcharges. PG&E generation rates are estimated to increase by an average of 4% annually from 2011 to 2032

14. Bill Comparisons – Residential 14

15. Bill Comparisons - Commercial 15

16. Conclusions A CCA program could achieve significant reductions in GHG emissions for Sonoma County. Development of renewable generation within the County by the CCA program would have positive economic development impacts and result in local job creation; however there are challenges to local development that may impede achievement of such benefits. CCA program rates are likely to be somewhat higher than with PG&E in the near to mid term but should be more stable and less sensitive to rising fossil fuel prices over time. Working with the Marin Energy Authority could reduce initial startup costs and ongoing operations costs, but the terms of such a relationship are not known, and there would likely be trade-offs in regards to autonomy and achievement of local priorities.

17. Next Steps Present Feasibility Study Results to City Councils (get feedback) Perform a poll of County residents Set Goals for Sonoma Clean Power Investigate partnerships with Marin Energy Authority Determine costs of Implementation Report back to Board within 6 months