Community Power agency cost, governance draws local officials’ concern

Starting a Community Choice Energy program has drawn concerns in Monterey County. Some of the main concerns are over cost: how startup costs will be shared amongst cities and the county, and uncertainty that the new energy provider will be able to deliver lower rates to its energy customers than PG&E.

“According to a Monterey County administrator in a report to the county Alternative Energy and Environment committee on Thursday, concerns about covering the projected $10.7 million in startup costs for the power agency, as well as the ability and interest of 21 different jurisdictions to agree on and operate under a Community Choice Energy joint powers authority structure have prompted a series of upcoming talks between top county and area city administrators. The startup costs, including about $2.25 million for the county, would need to be guaranteed by participating jurisdictions and would be repaid through power agency revenue.”

Community Power Agency Cost, Governance Draws Local Officials’ Concern, by Jim Johnson, Santa Cruz Sentinel, August 25, 2016.

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