2012 — Q 2 Community Choice Aggregation Leadership

2012 - Q 2 Community Choice Aggregation Leadership Training {Ambassador} | {Phone Number}

Key Events To Date • CCA Law (SB 790 & AB 117). • Marin County CCA up and running, cash flow positive, light green content hit 50% renewable in Jan, 2012. • San Francisco CCA launches in 2012; Sonoma in formation. • Many CCAs up and running nationally. • Navigant prepared a CCA Study for the County of San Diego, 2005. • Chula Vista and San Marcos took steps towards formation of CCAs subsequent to this study. • SDED Foundation formed in late 2011 as 501(c)3. • Kick-off event in Solana Beach, 26 -Jan. • In depth article, Business Section, NC Times, 29 -Jan. • AD-HOC Committees in formation in SD. • National CCA Strategy Retreat, Marin County, (Feb-2012) • May 2012: Solana Beach to assess CCA Resolution

What is a CCA Leader? • Evangelist for a better energy future of • Affordability. • Competition. • Environmental Responsibility. • Communicator of What, How, Why and How Much.

Leaders Explain a CCA A CCA is a cooperative. More precisely, it is an energy-only electrical cooperative. A City (or County) in California pools (aggregates) its energy load into a single public and not-for-profit agency(cooperative) for the purpose of providing an alternative supply of energy. Leaders persuade citizens and elected officials that competition leads to affordability and environmental responsibility. The CCA competes with SDG&E to deliver lower costs, cleaner energy, and more local economic development. Leaders explain formation law (AB 117) and protection of the right to form a CCA (SB 790). Leaders show that the SDG&E will continue to own, operate and maintain the grid. Customers will receive one bill from SDG&E but with a different rate for energy from the CCA.

CCA Leaders Build Community Teams • A CCA Leader will build consensus among the leaders. • Those leaders are • Citizens concerned about ratepayer treatement. • Environmentalists and citizen scientists. • The City Manager and staff. • The elected council members.

CCA Leaders Find Elected Officials Who Are Champions of CCA Formation • In San Diego, those champions today are: • Lesa Heebner • Dave Roberts • Mike Nichols • Dianne Jacob • Pam Slater-Price • Bob Filner • A CCA leader creates a CCA Champion.

CCA Leaders Develop Resolutions Calling For CCA Formation • A CCA Leader proposes a Resolution calling for the development of the Implementation Plan as dictated by AB 117 law. • SDED maintains the Solana Beach Resolution on its Educational Page (along with this document).

SDED Supports the Leadership Role with Tools, Social Networks, and Fundraising • SDED is the organization in San Diego with the know-how, networks, State and National support, and buy-in for the grassroots creation of one or more CCAs in San Diego. • SDED seeks out individuals who understand that time is “running out”. • CCAs are economic engines for good providing scale for cleaner energy as the basis for competition.

San Diego Options: A JPA or Many CCAs

ONE CCA PER JURISDICTION SDED MANAGES THE CCA Energy Resource s San Diego Energy District General Manager, Legal, QA, Ops Management of CCA City Council / County Supervisors CCA BOARD Elect The People Customers

SAN DIEGO ENERGY COOPERATIVE Energy Resource s San Diego Energy District General Manager, Legal, QA, Ops Oversight Citizen Advisory Board of Directors (2 Per Jurisdiction) (1 Per Jurisdiction) Appoint Supervisors and Council Members Of Participating Jurisdictions (Cities & County) Elect The People Customers

Energy Resource s San Diego Energy District General Manager, Legal, QA, Ops Oversight Citizen Advisory Board of Directors (2 Per Jurisdiction) (1 Per Jurisdiction) Appoint Supervisors and Council Members Of Participating Jurisdictions (Cities & County) Elect The People SB 375 AND AB 117 empower the People of California to form a local energy cooperative. Customers

Energy Resource s San Diego Energy District General Manager, Legal, QA, Ops Oversight Customers Citizen Advisory Board of Directors (2 Per Jurisdiction) (1 Per Jurisdiction) Appoint Supervisors and Council Members Of Participating Jurisdictions (Cities & County) Elect The People One or more county agencies elect to form a CCA directed by the People.

Energy Resource s San Diego Energy District General Manager, Legal, QA, Ops Oversight Customers Citizen Advisory Board of Directors (2 Per Jurisdiction) (1 Per Jurisdiction) Appoint Supervisors and Council Members Of Participating Jurisdictions (Cities & County) Elect The People The Agencies appoint oversight: a Board of Directors & Community Experts.

Energy Resource s San Diego Energy District General Manager, Legal, QA, Ops Oversight Customers Citizen Advisory Board of Directors (2 Per Jurisdiction) (1 Per Jurisdiction) Appoint Supervisors and Council Members Of Participating Jurisdictions (Cities & County) Elect The People The Energy Cooperative procures and sells energy to customers.

Formation Rights {FORMING ENTITIES} {COOPERATION, “SEC. 2. Section 331. 1 is added to the Public CODE OF CONDUCT} Utilities Code, to read: “. . . Existing law requires an electrical 331. 1. For purposes of this chapter, ‘‘community corporation to cooperate fully with any choice aggregator’’ means any of the following community choice aggregator that entities, if that entity is not within the jurisdiction of a investigates, pursues, or implements local publicly owned electric utility that provided community choice aggregation programs, electrical service as of January 1, 2003: including providing appropriate billing and (a) Any city, county, or city and county whose electrical load data. . (d) The Public governing board elects to combine the loads of its Utilities Commission has found that residents, businesses, and municipal facilities in a conduct by electrical corporations to community wide electricity buyers’ program. oppose community choice aggregation (b) Any group of cities, counties, or cities and programs had the effect of causing counties whose governing boards have elected to community choice aggregation programs combine the loads of their programs, through the to be abandoned. ” formation of a joint powers agency established under Chapter 5 (commencing with Section 6500) SB 790 of Division 7 of Title 1 of the Government Code. ” AB 117

Key Legal Conditions {IMPLEMENTATION} (A) An organizational structure of the program, its operations, and its funding. (B) Ratesetting and other costs to participants. (C) Provisions for disclosure and due process in setting rates and allocating costs among participants. (D) The methods for entering and terminating agreements with other entities. (E) The rights and responsibilities of program participants, including, but not limited to, consumer protection procedures, credit issues, and shutoff procedures. (F) Termination of the program. (G) A description of the third parties that will be supplying electricity under the program, including, but not limited to, information about financial, technical, and operational capabilities. {AUTO OPT-IN} (2) Under community choice aggregation, customer participation may not require a positive written declaration, but all customers shall be informed of their right to opt out of the community choice aggregation program. If no negative declaration is made by a customer, that customer shall be served through the community choice aggregation program. . {SDG&E CUSTOMER SERVICES INTACT} Electrical corporations shall continue to provide all metering, billing, collection, and customer service to retail customers that participate in community choice aggregation programs. Bills sent by the electrical corporation to retail customers shall identify the community choice aggregator as providing the electrical energy component of the bill. The commission shall determine the terms and conditions under which the electrical corporation provides services to community choice aggregators and retail customers.

Further Benefits • No expectant parent (Sempra) or shareholders to answer to. • Legal rights to administer conservation, efficiency funds and public goods funds; rights to protect ratepayers and the solar industry within San Diego County. • Ability to borrow at low rates to finance expansion, conservation, forwards, contracts, efficiency, and PACE. • Ability to join Universities and Local Companies in the pursuit of innovation in the areas of storage and wireless delivery of power. • Ability to protect and promote the right to interconnect fairly and profitably for the purpose of selling energy to the District. • Choice fosters healthy competition. . . a sorely lacking feature for the customer in San Diego. • Competitive rates with guarantees of more renewable and local energy content. • Platform for further independence from SDG&E.

WORKING TIMELINE • 2012 • • CITIES AND COUNTY BOARDS DEBATE THE MERITS OF ENERGY CHOICE AND ELECT TO PARTICIPATE OR NOT IN 2012 RFPS 2013 • • • RFPs ARE LET OUT, EVALUATED AND APPROVED FOR IMPLEMENTATION IN 2013. IMPLEMENTATION PLANS ARE DRAFTED AND SUBMITTED FOR APPROVAL BY THE PUC. IN 2014 -15, THE ABOVE SCHEDULE IS REPEATED FOR THOSE CITIES NOT PARTICIPATING IN 2012 -2013.

Key Resources CA State Law. AB 117 & SB 790. CPUC Rulemaking See legislative and CPUC web sites under the terms AB 117, SB 790, CCA and Utility Code of Conduct. Marin Clean Energy Authority First agency in the state to implement a CCA despite a firestorm of opposition from PG&E. http: //www. marincleanenergy. info/ Local Energy Aggregation Network Founders (Shawn Marshall & Meg Matson) founded a national organization to centralize services and lobbying for CCA across the country. http: //www. leanenergyus. org/ Galvin Electricity Initiative Country’s leading think-tank on the development of “perfect power”. http: //galvinpower. org/ San Diego Energy District Foundation Lane Sharman 858 -755 -2868 Bill Powers 619 -295 -2072 http: //www. sandiegoenergydistrict. org

THANK YOU Founders: Lane Sharman & Bill Powers www. sandiegoenergydistrict. org