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THE CITY OF _;_�r �L-E�S�4NTON 10 CITY COUNCIL AGENDA REPORT September 17, 2019 Operations Services TITLE: RECEIVE EVALUATION REPORT AND PROVIDE POLICY DIRECTION REGARDING EAST BAY COMMUNITY ENERGY (EBCE) IMPLEMENTATION -- A COMMUNITY CHOICE AGGREGATION (CCA) PROGRAM SUMMARY This item is a City Council priority. The East Bay Community Energy (EBCE) is a not- for-profit community choice aggregation program that currently consists of the County of Alameda and 11 cities (non -participants include Pleasanton and Newark) within the county. EBCE purchases electricity for its customers, and partners with PG&E who delivers the power, maintains the grid, and handles billing. EBCE started delivering power to its first customers in 2018. In 2016, Council directed staff to evaluate EBCE's operations after 12 -months of operation for residential and commercial accounts before deciding if EBCE will be a good fit for the City. This 12 -month period for commercial accounts ended in July 2019 while the 12 -month period for residential accounts will not end until November 2019. Although the concept of a CCA has several benefits, the City expressed concerns regarding EBCE's initial startup costs and monthly pricing, power reliability, the governance structure, and the percent of renewable energy offered through EBCE's portfolio. City staff has spent the last year conducting a systematic inquiry based on pre- established criteria and answered additional questions that arose from its review, which began in November 2018 and concluded in July 2019, just shy of the one-year mark. This comprehensive review is attached to this report as Exhibit 2. East Bay Community Energy recently informed City staff that per CPUC Resolution E- 4907, parties wishing to receive CCA service by 2021 must join in 2019. If Pleasanton joined in 2020, service would not begin until 2022. This new requirement is designed to ensure CCAs have procured sufficient energy generation to meet demand for the coming year and fulfill their resource adequacy obligations. RECOMMENDATION Staff recommends that the City Council: Authorize the City to join East Bay Community Energy (EBCE) community choice aggregation; and