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CC - Adoption of a Resolution Authorizing the City to Participate in a Community Choice Aggregation Technical Feasibility Study Led by the County of Los Angeles.
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Contact Person/Dept: Joe Susca / Public Works
Phone Number: (310) 253-5636
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/23/15); Southern California Edison (09/16/15); South Bay Clean Power (09/16/15); The County of Los Angeles -- Internal Services Department -- Office of Sustainability (09/16/15)
Department Approval: Charles D. Herbertson, Director of Public Works/City Engineer (09/21/15)
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RECOMMENDATION
Staff recommends the City Council adopt a resolution authorizing the City's desire to participate in a Community Choice Aggregation Technical Feasibility Study that is overseen and funded by the County of Los Angeles.
BACKGROUND
Investor Owned Utilities (IOU's) such as Southern California Edison (SCE) are regulated by the California Public Utilities Commission (CPUC). The CPUC establishes the SCE shareholder rate of return on their equity, which averages from 9% to 11%.
In California, the generation and distribution of electricity was partially separated and deregulated in 1996 by passage of Assembly Bill 1890 (AB 1890), allowing a competitive market to set wholesale rates. However, AB 1890 established a predetermined cap on retail electricity charges. Due to delays in approval of new power plants and market manipulation, California experienced an electricity supply crisis in 2000 and 2001. As a result of the crisis and market manipulation, Assembly Bill 117 was passed in 2002, which ...
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