Work continues on the details for implementing Community Choice. A major milestone was completed in October with the execution of the power services agreement between the San Joaquin Valley Power Authority and the Kings River Conservation District. The power services agreement defines the relationship and responsibilities between KRCD and the Authority. Within the agreement, there are legal safeguards that protect the cities and counties as well as KRCD when the program is up and running.
Also in October, the Authority set preliminary rates for budgeting purposes. The preliminary rates reflect a 5 percent discount off the forecasted 2008 rates for both Pacific Gas and Electric Company (PG&E) and Southern California Edison (SCE). The Authority will conduct public rate setting hearings after PG&E's and SCE's rates for 2008 are approved by the California Public Utilities Commission and before it takes action to approve the final rates that will be offered to residents and businesses.
A few more milestones must be achieved before Community Choice can officially start, including the finalization of the agreement between KRCD and Citigroup, the program's energy provider. This agreement must achieve the program's financial objectives of a 5 percent discount off of PG&E's and SCE's generation rates with a 2 percent cap on rate increases each year. In addition, agreements must be executed with PG&E and SCE stating the terms, conditions and costs of services that the utilities will provide to the program.
Pacific Gas and Electric Company Campaigns to Stop Choice and Competition
It has become apparent in the last several months that Pacific Gas and Electric Company (PG&E) has implemented a take-no-prisoners campaign to stop community choice aggregation before it even gets off the ground. As a monopolistic utility, PG&E has had great success over the years in defeating competition in their service territory.
Locally, there has already been one casualty through PG&E's ongoing efforts against community choice aggregation. Tulare County's Board of Supervisors withdrew their membership from the Authority at their October 30th meeting. It was a 3-2 vote with Supervisors Worthley and Conway voting against withdrawal. It is fair to say that PG&E lobbied hard to make this happen.
Until recently, most of PG&E's attention has been focused on the San Joaquin Valley Power Authority's Community Choice program, but that is starting to change. As other cities and counties start to ramp up their plans to implement community choice aggregation as provided by state law, PG&E has turned their attention to these efforts as well. Several cities and counties have contacted Authority representatives to discuss their experiences with PG&E's tactics of spreading misinformation, exerting political influence and utilizing third person commentary to undermine their programs.
Regardless, the vision of the Authority's program is about choice. This creates the competition that makes everyone better—PG&E and local government. Whether it is a 1-year-old power authority or a 100-year old monopolistic utility, neither one should think they have the sole right to serve customers. In the end, the customer should be allowed to choose what service is right for them. Sadly, Tulare County customers no longer have that choice.
San Joaquin Valley Power Authority Launches First Media Campaign

The San Joaquin Valley Power Authority launched a regional media campaign on October 15, 2007, entitled "Community Choice: It's Your Choice, Your Voice, Our Future." The campaign aims to educate the public about Community Choice, a new energy program with the objectives to give residents a savings on their energy bill and localize energy decisions such as setting rates.
"Educating the public about Community Choice is a top priority for our board," said Thomas Haglund, chair of the San Joaquin Valley Power Authority, which represents 12 local municipalities. "Community Choice will give residents within our 12 municipalities the opportunity to choose for the first time who will provide them with electricity."
The media campaign, which introduces Community Choice, is the first in a series of educational efforts that will be conducted over the next several months to raise public awareness of the program and the details of participating in Community Choice.
During the next few weeks, the media campaign will reach the public directly through television, radio and billboard advertising, as well as the Internet and community outreach. The new television and radio ads can be viewed on the program website.
Proposed Power Plant Enters Permitting Process
In pursuit of its vision of reliable power for the central San Joaquin Valley, the Kings River Conservation District is proposing to construct the KRCD Community Power Plant. As an area in the state that is designated as generation deficient, the proposed gas-fired power plant will provide reliable electricity for the businesses and residents of the central San Joaquin Valley.
"KRCD brings our values of balanced resource management and experience into building the infrastructure that is required to ensure we have the energy our Valley needs now and into the future," stated KRCD Board Vice President Brent Graham.
The plant is now entering into the permitting process, which is expected to take approximately 15 months. KRCD submitted the Application for Certification to the California Energy Commission (CEC) in September 2007. The application includes over a year's worth of studies regarding the proposed power plant.
The CEC will evaluate all environmental, operational and other issues related to permitting the plant and will require that the plant meet all local laws, ordinances, regulations and standards as well. To make this process successful, public participation is strongly encouraged.
"KRCD is committed to an open, responsive and comprehensive public process related to the building of the proposed power plant," said KRCD General Manager David Orth. "With the start-up of the detailed public hearing process required by the California Energy Commission, our goal will be to provide transparent and accurate information about the Community Power Plant to our community at large."
The proposed plant will be located south of and adjacent to the Parlier Wastewater Treatment Plant on the east side of Bethel Avenue, between Manning and Dinuba avenues in Fresno County. The Parlier site was selected for (1) its proximity to an existing electrical substation that serves the Greater Fresno Area, (2) an adequate supply of wastewater for cooling, and (3) an opportunity to expand fuel capacity in the region.
"The power plant will use reclaimed water from Parlier's wastewater treatment plant, which allows the city to hold off on spending money to expand our treatment capacity," explained Parlier City Manager Lou Martinez.
The design incorporates the most advanced air emissions control systems available, resulting in a project that will be one of the lowest emitting fossil fuel power generating facilities in California.
The KRCD Community Power Plant is one of the potential generation resources for the San Joaquin Valley Power Authority's Community Choice program. Other generation resources will include renewable energy projects.
Upcoming Event: San Joaquin Valley Clean Energy & Fuels Conference
On December 3, the first San Joaquin Valley Clean Energy & Fuels Conference will take place in Fresno.
The San Joaquin Valley is poised to become the "clean-tech" capital of California. This conference will start the dialogue between the various sectors that will make this a reality.
The conference will host notable clean technology speakers and present four distinct panel discussions. The panelists will speak on the current state of clean energy and fuels and what steps need to be taken to achieve expanded clean technology in the Valley.
The conference will bring together clean technology businesses, venture investors, workforce development, policy makers, government officials, utilities, agriculture, environmental groups, transportation and individuals who are interested in the future of clean energy and fuels in the San Joaquin Valley.
For more information and to register for the conference go to www.valleycleanenergyconference.org.
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