Energy change to benefit many

Monterey Bay Community Power (MBCP) this month became Central Coast Community Energy (CCCE).

THE REASON - We are expanding services to San Luis Obispo and Santa Barbara counties. In early 2018, MBCP at inception became the first tri-county Community Choice Aggregation (CCA , or sometimes referred to as Community Choice Energy - CCE) agency in California, which included Santa Cruz, Monterey and San Benito counties and 16 cities, and served nearly 270,000 customers. The cities of San Luis Obispo and Morro Bay joined MBCP in 2020, expanding our customer base to 300,000.

When we complete the process of adding 12 more agencies in Santa Barbara and San Luis Obispo counties (not including unincorporated SLO County) in January 2022, CCCE will include 33 jurisdictions. It will be the largest geographical footprint of any CCA in the state at more than 8,000 square miles and be the fourth largest CCA in California with more than 400,000 customers.

This is a good fit for everyone in that our counties share a similar coastal weather pattern and our economies are focused on agriculture, tourism/entertainment, high technology and education, with a University of California, California State University or California Community College campus in each of our counties. We do not expect to expand beyond this fivecounty region.

OUR PURPOSE - CCAs were allowed to form through state legislation to increase dependence on clean and renewable resources (solar, wind, negotiating a future offshore wind project in Morro Bay, etc.) to drive electrification, fuel switching and energy resiliency.

FINANCES/CHARGESWhile offering clean electric energy, CCCE is reaching that goal in a highly efficient manner. Initially, we planned for a reasonable net margin to offer rates to customers at 7% below those offered by the IOUs. That would ensure a Rate Stabilization Reserve of 50% of operating expenses.

The COVID-19 pandemic hit us, like everyone, and overall electricity demand fell more than 6%. The CCCE board recognized the pandemic impact on everyone and was the only CCA to enact a substantial rate deferment of 50% to all customers for May and June. Despite the impact of COVID-19, CCCE’s rate margin for fiscal year 2019-20 was a healthy 14%, while maintaining our rates at 2% discount from PG&E.

In two-plus years, we have invested $1.4 billion in longterm California Eligible Renewable Contracts.

COMMUNITY PROGRAMS - Along the way, our $300 million agency is “out front” in helping to provide electrification programs to further reduce GHG in our region:

• Reserved $1.3 million for 395 affordable and market rate all-electric housing units;

• In partnership with Monterey Air Resources District, approved $1.2 million to purchase six electric school buses;

• In partnership with the California Energy Commission, reserved $6.5 million to support EV charging infrastructure through the California Electric Vehicle Infrastructure Project (CALeVIP);

• Launched a $160,000 grant incentive project, Ag Electrification Grant Program to electrify operations in agriculture, our largest energy user; and more.

CHALLENGES AHEAD (2, and more): 1 - STORAGE OF ELECTRICITY - Like all power providers, we need to increase storage capacity so we can provide electricity with more assurance in times of high demand. Our total retail energy demand is estimated at nearly 4,200 GWH in January 2021 and roughly 5,000 GWH in Jan 2021. 2 - Power Charge Indifference Adjustment (PCIA). This charge, sanctioned by the Public Utilities Commission, is what the IOUs charge our customers as an “exit fees”. Those fees have gone up astronomically.

GOVERNANCE - Central Coast Community Energy is governed by: Policy Board- the decision-making body comprised of elected officials; Operations Board - made up of county and city administrators who oversee day-to-day agency activities and, Community Advisory Council - community residents involved in energy-related matters who serve as an outreach group to customers in the region.

It is a pleasure for CCCE to serve you in providing clean and renewable electric energy at less cost and under a local government.