Progress Made But Questions Remain

Among the more hotly contested provisions of the 2002 Community Choice law (AB117 or Chapter 838 of 2002) was Public Utilities Code Section 381.1, which requires that "No later than July 15, 2003, the commission shall establish policies and procedures by which any party, including, but not limited to, a local entity that establishes a community choice aggregation program, may apply to become administrators for cost-effective energy efficiency and conservation programs.

AB117 also established the criteria for evaluating applications to administer the funds, requiring the Commission to "consider the value of program continuity and planning certainty and the value of allowing competitive opportunities for potentially new administrators" and to "weigh the benefits of the party’s proposed program" to ensure that the program..."is consistent with the goals of the existing programs," "advances the public interest in maximizing cost-effective electricity savings and related benefits," and "accommodates the need for broader statewide or regional programs."

AB117 provides that "if a community choice aggregator is not the administrator of energy efficiency and conservation programs for which its customers are eligible, the commission shall require the administrator of cost-effective energy efficiency and conservation programs to direct a proportional share of its approved energy efficiency program activities for which the community choice aggregator’s customers are eligible, to the community choice aggregator’s territory without regard to customer class."

For such cases where Community Choice Aggregators are not chosen to administer their customers' energy efficiency funds locally, AB117 orders the California Public Utilities Commission to "direct the administrator to work with the community choice aggregator, to provide advance information where appropriate about the likely impacts of energy efficiency programs and to accommodate any unique community program needs by placing more, or less, emphasis on particular approved programs to the extent that these special shifts in emphasis in no way diminish the effectiveness of broader statewide or regional programs."

Finally, AB117 provides that a Community Choice aggregator may propose energy efficiency programs other than programs already approved for implementation in its territory, provided that "it shall do so under established commission policies and procedures." Toward this purpose, AB117 authorizes the commission to order an adjustment to the share of energy efficiency program activities directed to a community aggregator’s territory if necessary to ensure an equitable and cost-effective allocation of energy efficiency program activities."

Related Documents:

California Administrative Law Judge Agrees With Local Power: Regulators Must Open Up Whole $300 Million?Yr. Energy Effiency Fund to Non-Utilities (August, 2003)

Local Power tells Assigned Commissioner Susan Kennedy that CPUC is Barred From Continuing Utility Control of Energy Efficiency Funds under Community Choice Law (July, 2003)

Local Power Criticizes California Regulators' Draft Decision on Energy Efficiency Funds (July, 2003)

Local Power Asks CPUC to Give Community Choice Aggregators Full Access to their Customers' Energy Efficiency Funds (May, 2003)

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Founder and Director of Local Power, Paul Fenn is author of California's Community Choice law, AB117 or Chapter 838 of 2002, which allows municipalities to switch their communities to alternative energy providers - as well as author of San Francisco's 2001 voter-approved "Solar Bond" or "H Bond" authority, and a plan to use H Bonds and Community Choice aggregation to take 1/4 of San Francisco's electricity load off-grid by 2012 with solar power, wind power, conservation and energy efficiency technologies. Mr. Fenn is also author of new state "Solar Networking" legislation, Senate 697, sponsored by Pomona Senator Nell Soto. Local Power is based in Oakland, California and may be found at www.local.org

Copyright 2004 by Local Power.