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10
City of Pleasanton
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CITY CLERK
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AGENDA PACKETS
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2019
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091719
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CITY CLERK
CITY CLERK - TYPE
AGENDA REPORT
DOCUMENT DATE
9/17/2019
DESTRUCT DATE
15Y
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Staff has interviewed several employees of the Cities of Lafayette, Walnut Creek, and <br />Concord regarding how MCE's governance has affected cities on individual bases. <br />There is consensus that there have been no proposals that are perceived as <br />unfavorable to the individual jurisdictions involved. This sentiment was echoed by a <br />representative from MCE that staff interviewed. According to this individual, MCE serves <br />small wealthy towns in Marin, Napa, and Contra Costa, along with larger cities with <br />bigger disadvantaged communities. Despite having different jurisdictional priorities, <br />there has never been a need for weight -based voting and there have not been any <br />major disputes. <br />It is worth noting that since the members (and their constituents) of EBCE can leave at <br />any time, it is not in the interest of the cities with larger loads to impose measures <br />unpopular with other members by the use of a Voting Shares Vote. CCAs operate by <br />pooling the buying power of their customers so that they can purchase energy from <br />carbon -free and renewable sources at affordable prices. If EBCE's buying power is <br />reduced by Pleasanton, Dublin, or Livermore leaving the JPA, that would be extremely <br />detrimental to their PPAs and future visions. This leaves the City with the power to <br />influence the way EBCE is run. The ability to leave EBCE is the lever cities have to help <br />achieve consensus and compromise. <br />There are also safeguards built into EBCE's joint powers agreement. For example, <br />according to Provision 4.12.2, "In the event that any one Director has a voting share that <br />equals or exceeds that which is necessary to disapprove the matter being voted on by <br />the Board, at least one other Director shall be required to vote in the negative in order to <br />disapprove such matter." In addition, any amendment to the voting mechanisms as <br />described shall require athree-quarters affirmative vote of the entire Board, according <br />to Provision 8.4 of the JPA agreement. Other amendments to this agreement may only <br />occur with atwo-thirds affirmative vote of the entire Board. <br />There were concerns regarding potential deliberate CCA action to limit customer <br />options and to default to the "greenest" option at a cost premium to the customers. Staff <br />notes that Recital 6b of EBCE's JPA agreement states that the parties of the JPA seek <br />to "Offer differentiated energy options (e.g., 33% or 50% qualified renewable) for default <br />service, and a 100% renewable content option in which customers may "opt -up" and <br />voluntarily participate." It is clear that EBCE deems it important to offer different levels of <br />service. Participating cities have the autonomy to choose their starting service option. <br />Albany and Hayward opted their constituents into Brilliant 100 and Piedmont opted into <br />Renewable 100. However, all of their constituents still have a choice to opt up, down, or <br />out. All of the other EBCE jurisdictions opted into Bright Choice, the standard plan. <br />Pleasanton as a community can likewise choose to join EBCE at any level but <br />Pleasantonians individually will have the ultimate say as to whether they participate at <br />that level or remain with PG&E. <br />Lastly, Per California Public Utilities Commission Resolution E-4907, parties wishing to <br />receive CCA service by 2021 must join in 2019. If Pleasanton joined in 2020, service <br />would not begin until 2022. This new requirement is designed to ensure that CCAs have <br />Page 19 of 20 <br />
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