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Prior to start up of Community Choice, the San Joaquin Valley Power Authority (Authority) must file a registration packet with the California Public Utilities Commission (CPUC). One of the registration requirements includes submitting evidence of insurance, or a bond. Pacific Gas and Electric Company (PG&E) proposed that the total applicable bond requirement be well in excess of $140 million based on an "energy crisis" scenario. Southern California Edison (SCE) generally agreed with PG&E's approach to calculating the bond amount. The Authority proposed that the bond amount should be equivalent to the security deposit requirement that currently applies to an energy service provider that provides direct access service with similar customer loads. Consequently, the Authority proposed a $100,000 bond amount to be accepted on an interim basis. On December 20, the CPUC issued a resolution finding that an interim bond amount of $100,000 is sufficient for the Authority to post with the Commission. The CPUC's findings stated that there was no record for establishing a larger bond amount at this time and in doing so it would set a precedent that would be based on assumptions that have not been thoroughly investigated by the Commission. The resolution further states that it would be unfair to the Authority to delay its ability to operate as a community choice aggregator pending resolution of the issues about the proper sizing of the bond, while energy service providers are serving similar customer loads having posted only a $100,000 bond. The CPUC will revisit the bond amount on a generic basis for both energy service providers and community choice aggregators through a formal proceeding in the near future. PG&E Prints Ad Disparaging San Joaquin Valley Power Authority
As the first Community Choice program in California, the San Joaquin Valley Power Authority (Authority) knew there would be challenges. The Authority has made significant progress in moving this program forward and stands on the verge of offering customers choice and voice in regional energy planning and pricing. Obviously concerned about our progress, PG&E has ramped up its efforts aimed at preventing the Authority from achieving success. In paid advertisements, PG&E has made allegations regarding the activities of the San Joaquin Valley Power Authority. Below is a point by point response to these allegations: PG&E Allegation 1: The Authority has committed local communities to billions of dollars of debt and power costs without giving the public and elected officials time to consider it. Authority Response: The Authority has not and will not commit any member city or county to billions of dollars of debt and power costs. PG&E has claimed that it will sue each city and county for costs if Community Choice fails, causing the customers to return to PG&E service. The Authority has not signed an agreement that will bind any city or county to liability for Community Choice. PG&E Allegation 2: The Authority set power rates for homes, businesses and farms without holding public hearings. Authority Response: At the October 15th Authority board meeting, the Authority set preliminary rates for the purpose of budgeting. At that same meeting, an ad hoc committee was asked to meet and plan public hearings prior to the Authority setting the final discounted rates once PG&E's and SCE's rates were finalized by the California Public Utilities Commission in December. PG&E had several tape recorders and employees at the October 15th meeting. There should have been no misunderstanding by PG&E regarding the Authority's plans to conduct public hearings. PG&E Allegation 3: The Authority has been keeping the details of the power supply contract secret. Authority Response: The Kings River Conservation District (KRCD) is conducting negotiations on its power supply contract with Citigroup. Once negotiations are final, the contract will become a public document that can examined by the public prior to execution by the KRCD board of directors and subsequent execution by the Authority's executive committee. PG&E Allegation 4: The Authority has not made clear to the public that unless they act in time, they will automatically be switched to Community Choice and will have to pay the Authority extra fees to return to PG&E. Authority Response: The Authority is committed to an aggressive outreach effort to businesses and residents. In addition to the four notices required by law that will spell out the terms and conditions of the program including any potential fees that each customer may have, the Authority has several methods of communication planned as each type of customer is phased in. The Authority's goal is to communicate clearly so that customers fully understand their choice. PG&E knows the requirements in the law regarding communications to customers. Licensing for KRCD Community Power Plant Moves Forward, First Public Hearing Scheduled
By a 5-0 vote on December 5, the California Energy Commission (CEC) started the licensing review process for the KRCD Community Power Plant. The CEC has determined that the Application for Certification of the planned KRCD Community Power Plant is "data adequate," meaning the CEC has enough information to begin the 12-month permitting process for the project. The Kings River Conservation District submitted the application at the end of September 2007. The CEC named the commission's chair, Jackalyne Pfannenstiel, to head the committee that will make sure the project meets the requirements of the California Environmental Quality Act. The plant will be a 565-megawatt, clean, combined-cycle power plant, fueled by natural gas, the fuel of choice for power plants in the state of California. The Kings River Conservation District proposes to develop the power plant on a 32-acre site that is currently a vineyard near the city of Parlier in Fresno County. The proposed plant will use reclaimed water from the Parlier Wastewater Treatment Facility, which is adjacent to the site. The power plant will include a tertiary water treatment plant and a zero-liquid discharge system that will purify and recycle process water to minimize water consumption. The KRCD Community Power Plant will be the first sizable plant built in the central San Joaquin Valley since the commissioning of Pacific Gas and Electric Company's Helm's Plant in 1984. If the plant is issued a license, construction is expected to start in 2009, ending in 2011. The KRCD Community Power Plant is one of the potential generation resources for the Community Choice program, along with other resources including renewable energy. Throughout the licensing review, the CEC will conduct public workshops and hearings on the proposed plant. The first public hearing is scheduled for Monday, January 14, 2008 at 12:30 p.m. at the Kearney R&E Center in Parlier. More information on the KRCD Community Power Plant is available on the CEC website at: http://www.energy.ca.gov/sitingcases/communitypower/ and on KRCD's website: http://www.krcd.org/power/community_power/ |
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