HomeMy WebLinkAbout4.6 Default of Non-Residential Electricity Accounts to EBCE Renewable 100 PowerSTAFF REPORT
CITY COUNCIL
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Agenda Item 4.6
DATE:April 5, 2022
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Default of Non-Residential Electricity Accounts to East Bay CommunityEnergy Renewable 100 PowerPreparedby:Shannan Young,Environmental &Sustainability Manager
EXECUTIVE SUMMARY:The City Council will consider setting the default electricity for non-residential accounts to East Bay Community Energy’s Renewable 100 power in support of Climate Action Plan 2030 and Beyond goals to reduce greenhouse gas emissions. East Bay Community Energy is the City of Dublin’s energy provider and has supplied municipal accounts with Renewable 100 electricity since July 1, 2019,and residential accounts since January 1, 2022.Renewable 100 provides California-based wind and solar power which is 100% renewable and carbon-free.
STAFF RECOMMENDATION:Adopt the Resolution Requesting East Bay Community Energy Enroll City of Dublin Non-Residential Accounts in Renewable 100 as the Default Electricity Product.
FINANCIAL IMPACT:There is no impact to the General Fund. Municipal electricity accounts are currently supplied withRenewable 100 power. A discussion of the potential cost impacts to non-residential accounts is included below.
DESCRIPTION:BackgroundAt its March 1, 2022 meeting, the City Council received a report on the status of the default of residential accounts to East Bay Community Energy’s (EBCE) Renewable 100 power (Attachment 2) and provided direction to Staff regarding enrollment of non-residential accounts to Renewable 100.The City Council directed Staff to bring back a resolution requesting that the EBCE Board enroll non-residential accounts in Renewable 100 power in support of the goals in the City’s
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Climate Action Plan 2030 and Beyond (CAP 2030). CAP 2030 includes 22 measures intended to reduce greenhouse gas (GHG) emissions by 40% below 1990 levels by 2030 and to put the City on the path to reach carbon neutrality by 2045. Defaulting community-wide accounts to Renewable 100 is the most impactful measure in CAP 2030, with the potential to reduce GHG emissions in Dublin by 53% when both residential and non-residential accounts are defaulted to Renewable 100. Cost Impact to Non-Residential Accounts The impact to non-residential account holders depends on the amount of energy consumed and the electric rate category of the accountholder. Renewable 100 is one cent per kilowatt-hour more than PG&E’s standard rates. Non-residential bills vary widely, depending on the type of business or entity it is. Examples of businesses in the B1, B10, and B19 categories are provided in the table below (prior to a recent PG&E nomenclature change, these rate categories were called A1, A10, and E19). The average monthly electricity bill increases due to the default to Renewable 100 in these rate categories is 3.8%, 4.3%, and 5.1%, respectively. A more specific rate increase estimate for an individual accountholder may be obtained by contacting EBCE. Table 1. Example Business Types by Rate ScheduleB1 –Small/Medium Commercial B10 –Small/Medium Commercial B19 –Large CommercialCoffee shop Small Grocery High SchoolSmall Retail Car Dealer or Medium Retail Large Office BuildingCommon Areas in Multi-Family Dwellings Elementary School Light ManufacturingSmall Medical Office (Dentist)Quick Service Restaurant Movie Theater
Update on Status of Default EnrollmentsIn Dublin, residential accounts started transitioning to Renewable 100 in January. In Albany, Hayward, and Pleasanton, community-wide accounts (residential and non-residential) made the Renewable 100 transition at the same time. Depending on the billing cycle, accountholders mayhave seen the Renewable 100 rate on their bill as of March 1, 2022. To date, there has been very little new movement by accountholders to opt down to Bright Choice or to opt out to PG&E in response to higher electric bills. Outreach to Non-Residential AccountsIf the City Council approves the attached resolution requesting that EBCE enroll city-wide non-residential accounts to Renewable 100 as the default electricity product, a robust outreach effort about the transition will occur in the six months leading up to the transition. The outreach effort will focus on educating non-residential account holders about what the transition will mean for their business and inform the accountholders of the option to remain on EBCE’s discount product, Bright Choice, or opt-out to PG&E. At the minimum, outreach through the following methods will be used:
Collaborating with EBCE to provide one-on-one outreach, particularly to large energy users.
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Collaborating with the City’s Economic Development Staff to provide information in the Dublin Business Brief.
Coordinating with the Dublin Chamber of Commerce to provide written information and workshops for Chamber members.
Providing direct mail notifications.
Revising the Green Shamrock Business Recognition Program to promote Renewable 100 businesses.
Providing information on the City’s website and through social media, as appropriate.Conclusion and Next StepsWith City Council approval of the attached resolution, the EBCE Board will vote on the request at its April 20, 2022 Board meeting. If the EBCE Board approves the request, the default transition would begin in October 2022, aligning with non-residential account transitions occurring in Berkeley and San Leandro. EBCE would begin the procurement process for appropriate electricityresources and conduct the necessary system adjustments for the default enrollments. During this time, outreach to non-residential accountholders will be conducted. If the default energy product is switched to Renewable 100, account holders will retain the option to opt-down to EBCE’s discount power product, Bright Choice, or opt out to PG&E.
STRATEGIC PLAN INITIATIVE:None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted.
ATTACHMENTS:1) Resolution Requesting East Bay Community Energy Enroll City of Dublin Non-Residential Accounts in Renewable 100 as the Default Electric Product2) March 1, 2022 Staff Report on the Status of Community Default to East Bay Renewable 100 Power (without attachments)
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Attachment 1
Reso. No. XX-22, Item X.X, Adopted XX/XX/2022 Page 1 of 2
RESOLUTION NO. XX – 22
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
REQUESTING EAST BAY COMMUNITY ENERGY ENROLL CITY OF DUBLIN
NON-RESIDENTIAL ACCOUNTS IN RENEWABLE 100 AS THE DEFAULT
ELECTRICITY PRODUCT
WHEREAS,the City of Dublin has been a leader in the fight against climate change, having
adopted its first Climate Action Plan in 2010 with an update in 2013, with the goal to reduce
greenhouse gas (GHG) emissions to 1990 levels by 2020; and
WHEREAS,on September 15, 2020, the City Council adopted the City of Dublin Climate
Action Plan 2030 and Beyond (CAP 2030) which includes goals to reduce GHG emissions by 40%
below 1990 levels by 2030 and to put the City on a path to reach carbon neutrality by 2045; and
WHEREAS, CAP 2030 identifies renewable and carbon-free electricity as the biggest
opportunity to reduce GHG emissions within the City of Dublin; and
WHEREAS, the City’s electricity provider, East Bay Community Energy (EBCE), offers a 100%
carbon-free and 100% renewable electricity product called Renewable 100; and
WHEREAS, residential accounts were enrolled in Renewable 100 beginning January 1, 2022,
reducing GHG emissions in Dublin by approximately 28%; and
WHEREAS, enrolling non-residential accounts in Renewable 100 has the potential to reduce
GHG emissions in Dublin by an additional 25%; and
WHEREAS, non-residential accountholders in the City would retain the option to opt down to
EBCE’s discounted power portfolio, Bright Choice, which offers a lower percentage of carbon-free
electricity, or opt out to electricity provided by Pacific Gas & Electric; and
WHEREAS, establishing Renewable 100 as the default electricity for both residential and non-
residential accounts would allow Dublin to showcase its continued environmental leadership and
demonstrate efforts to create a sustainable community in line with the goals of CAP 2030.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
request that EBCE hereby enroll the City of Dublin in the Renewable 100 electric power portfolio as
the default electricity product for all non-residential accounts in the CIty.
BE IT FURTHER RESOLVED that the City Council of the City of Dublin requests that the
EBCE Board consider Dublin’s Renewable 100 default power portfolio request at the earliest possible
upcoming EBCE Board Meeting.
{Signatures on the following page}
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Reso. No. XX-22, Item X.X, Adopted XX/XX/22 Page 2 of 2
PASSED, APPROVED AND ADOPTED this 5th day of April 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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STAFF REPORT
CITY COUNCIL
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Agenda Item 7.1
DATE:March 1, 2022
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Status of Community Default to East Bay Community Energy Renewable 100 PowerPrepared by:Shannan Young,Environmental & Sustainability Manager
EXECUTIVE SUMMARY:The City Council will receive a report on the status of the default of residential accounts to Renewable 100 electricity through the City’s electricity provider, East Bay Community Energy, and will consider the default electricity power portfolio for non-residential accounts.
STAFF RECOMMENDATION:Receive the report and provide direction on the East Bay Community Energy default electricity power portfolio for non-residential accounts.
FINANCIAL IMPACT:There is no impact to the General Fund but a discussion regarding the potential cost impacts of the Renewable 100 electricity power portfolio for non-residential accounts is included below. Municipal electricity accounts are currently supplied with the Renewable 100 power portfolio.
DESCRIPTION:BackgroundAt its January 12, 2021 meeting, the City Council adopted Resolution 04-21 (Attachment 1) requesting East Bay Community Energy (EBCE) enroll City of Dublin residential accounts in Renewable 100 as the default product. Renewable 100 is 100% greenhouse gas (GHG) emission-free and 100% renewable power (California-based wind and solar). The action was taken in support of the City’s Climate Action Plan 2030 and Beyond (CAP 2030) which was approved by the Council via Resolution 100-20 (Attachment 2) on September 15, 2020.CAP 2030 includes 22 measures that have the potential to achieve GHG emissions reductions of approximately 48,000 metric tons carbon dioxide equivalent by 2025. Approximately 28% of those GHG emissions reductions are expected to be achieved through the default enrollment of
Attachment 2
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residential accounts into Renewable 100 beginning in January 2022. An additional 25% GHG emissions reductions can be achieved by transitioning non-residential accounts (e.g., commercial and industrial accounts) to Renewable 100. CAP 2030 Measure CF-1, Opt Up to 100% Renewable and Carbon-Free Electricity, planned for enrollment of all community-wide accounts into a GHG-free electric power portfolio, but due to the rapidly evolving Covid-19 pandemic and economic uncertainty in January 2021, it was decided to postpone consideration of transitioning non-residential accounts to Renewable 100 to a later date since those accounts typically use more electricity than residential accounts.Residential Account TransitionEBCE anticipated that the enrollment of residential accounts into Renewable 100 would occur in October 2021, however the transition was delayed until January 2022 to align with similar default transitions occurring in the cities of Pleasanton, Hayward, and Albany. These three cities requested that all accounts, including non-residential accounts, be defaulted to Renewable 100. To help EBCE staff manage the activities required to transition the four cities, all the transitions were scheduled for January 2022.Individual account transitions do not occur all at once. The exact date of an account transitioning to Renewable 100 is based on the individual Pacific Gas & Electric (PG&E) meter read date, which varies from customer to customer. Residents enrolled in California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) programs, as well as Medical Baseline accounts will remain on EBCE’s Bright Choice power portfolio which is offered at a 1% discount compared to PG&E’s standard rates and provides approximately 5% more renewable energy than PG&E’s standard service. All customers retain the option to choose Bright Choice at any time. The discounted Bright Choice rates will be reflected on a customer’s PG&E bill in one or two billing cycles, depending on the timing of the customer request in relation to the meter read date. Residential OutreachOutreach to residents about the transition to Renewable 100 is occurring via several methods, as shown in Table 1 below. Residents have been provided information regarding why the transition is occurring, what their choices are, and how they can take action if they desire to remain on Bright Choice or opt out to PG&E. Samples of the outreach material are provided in Attachment 3.
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Table 1. Renewable 100 Residential OutreachCommunication Method Message Provided By Date ProvidedPress Release EBCE 11/22/2021Direct mail notification,by letter (Notice 1)EBCE Beginning 11/30/2021 (sent to customers based on their meter read dates)Backyard Brief Newsletter City 12/1/2021Print and digital ads in The Independent EBCE 8 weeks in December 2021 and January 2022Tabling at the Holiday Tree Lighting Ceremony City and EBCE 12/2/2021Tabling at Breakfast with Santa City and EBCE 12/4/2021Email to customers with email addresses on file with PG&E (Notice 1)EBCE 12/7/2021 and 12/8/2021Webinars EBCE Various dates beginning 12/8/2021City of Dublin News Flash City 12/8/2021 (City list)12/13/2021 (Environmental list)Social media posts (Twitter and Facebook) –retweet of 11/22/2021 press release City 12/2/2021 and 12/8/2021Direct mail notification by postcard (Notice 2)EBCE Beginning 1/2/2022(sent to customers based on their meter read dates)Email to customers with email addresses on file with PG&E (Notice 2)EBCE 1/11/2022Direct mail notification City February 2022City Report City February 2022Web page updates City and EBCE On-goingConsideration of Non-Residential Accounts Transition to Renewable 100To reach the CAP 2030 goals, community-wide participation in and engagement with many of the 22 measures is required. This includes setting the default for non-residential electricity accounts from EBCE’s discount power product, Bright Choice, to Renewable 100. Non-residential accounts consume approximately 46.4% of the total electricity used in Dublin, which equates to about 11,844 metric tons carbon dioxide equivalent. This is a little more than a third of the remaining GHG emissions reductions that can be achieved by 2025 with the measures in CAP 2030.Table 2 below shows average monthly electricity usage and associated billing for the different rate categories in Dublin. With the exception of A10 and E20P, these are estimates using summary rates, based on annual kilowatt hours (kWh) electricity usage, and averaged using the March 2021
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Joint Rate Comparison blended rates, which are available from EBCE at https://ebce.org/rates/. The numbers for A10 and E20P rate categories are based upon EBCE territory-wide averages for each of these two rate categories instead of Dublin-specific usage. This is necessary because Senate Bill 1476, Public Utilities, Customer Privacy, Advanced Metering Infrastructure, requires aggregated data from a minimum of 15 customers to ensure customer data privacy.Table 2. Average Monthly Electricity Usage for Non-Residential Accounts in Dublin
Summary Rate & Rate Category Accounts
Avg. Monthly Usage(kWh)Monthly Bright Choice Avg.Monthly Renewable 100 Avg.
Monthly Bright ChoiceAvg. Discount
Monthly Renewable 100 Avg. Premium IncreaseA1-Small/ MediumCommercial 193 346.5 $91.38 $95.22 $0.38 $3.47 3.8%A1 TOU*-Small/ Medium Commercial 1,630 1,463.5 $395.40 $411.65 $1.60 $14.65 3.7%A10 -Small/ Medium Commercial**1 11,747 $2,819.72 $2,950.85 $13.86 $117.47 4.2%A10 TOU –Small/ Medium Commercial 211 15,548.6 $3,641.02 $3,814.70 $18.35 $155.33 4.3%E19 –Large Commercial 121 31,561.3 $6,215.38 $6,564.76 $33.77 $315.61 5.1%E20P -Large Commercial**1 754,170 $131,029.50 $139,310.28 $739.09 $7,541.69 5.8%* TOU means time-of-use. TOU rates change based on the time of day, with higher rates during peak electricity use times, typically 4 pm to 9 pm.** A10 and E20P rates based upon territory-wide averages, not actualDublin accountsThe rate categories shown above roughly correspond with the size of electricity load consumed by the customer. Rate A1 is for a typical small business such as a small office or small food establishment. The next rate category, A10, is for operations that involve higher load activities such as power tools or refrigeration, such as a small market or grocery store. Rate categories E19 and E20 involve the largest commercial or industrial scale enterprises, such as those with heavy machinery or giant conditioned spaces that require a lot of onsite energy use. A large grocery store could be in the E19 rate category. PG&E’s Annual Rate SettingA factor that will impact electricity rates of all customers in PG&E’s territory was approved in December 2021 by the California Public Utilities Commission (CPUC) as part of PG&E’s annual rate review and true-up. To generate revenue needed to complete maintenance and repairs to the electric grid and to prevent equipment failures that spark wildfires, the CPUC approved a 10%
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rate increase for the transmission and distribution of electricity. The transmission and distribution fee, which on the PG&E bill is referenced as the PG&E electric delivery charge, is determined based on the amount of electricity consumed, the rate category, and the time of day itis consumed. The fee is lower during off-peak hours and highest in peak hours (4 pm to 9 pm). The 10% rate increase went into effect on January 1. Status of Default EnrollmentsEBCE has been tracking enrollment status in Dublin, Albany, Hayward, and Pleasanton to determine how the new community default enrollments are impacting customer decisions to optdown to Bright Choice or opt out to PG&E. Tables 3 and 4 below show residential account enrollment status and non-residential account enrollment status, respectively. As can be seen in the tables, most of the enrollment actions taken since November 2021, when outreach concerningthe default enrollments began, have been taken by residential customers. As of January 4, 2022, 3.47% of residential customers in Dublin acted to either stay on EBCE’s Bright Choice power or opt out to PG&E. This is a relatively low rate of enrollment actions compared to Albany, Hayward,and Pleasanton (12.42%, 11.86%, and 5.39%, respectively). The non-residential enrollment actions in those cities have been minor compared to the residential actions. In all three cities, fewer than 2% of non-residential customers made enrollment actions to either opt out of the default enrollment to Renewable 100 or opt down to Bright Choice. Non-residential accounts in Dublin are currently in Bright Choice. Noticing to date has been targeted to residential accountsabout the default enrollment to Renewable 100, however non-residential accounts may have taken action in response to the outreach. This may explain the non-residential enrollment action since November 2021 in Dublin.Table 3. EBCE Residential Account Enrollment Status As of January 4, 2022 Change from November 2021Total Eligible Total % Move to/Stay on Bright Choice % Opt Out % Move to/Stay on Bright ChoiceDublin25,126 3.20%0.27%3.20%Albany 6,674 13.35%0.21%12.21%Hayward 50,425 12.51%0.19%11.67%Pleasanton 28,105 5.46%0.66%4.73%All EBCE 608,087 1.72%0.10%1.58%Table 4. EBCE Non-Residential Account Enrollment StatusAs of January 4, 2022 Change from November 2021
Total Eligible Total % Move to/Stay on Bright Choice % Opt Out % Move to/Stay on Bright ChoiceDublin2,377 0.34%0.05%0.34%Albany 668 2.25%-0.03%1.34%Hayward 7,376 1.99%0.10%1.01%Pleasanton 3,980 2.56%0.19%1.76%All EBCE 65,985 4.11%0.04%3.93%
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Conclusion and Next StepsDublin made great strides to meet the goals established in CAP 2030 to reduce GHG emissions by 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045 when the City Council requested that the EBCE Board default residential accounts to Renewable 100. The City can make additional gains towards achieving the goals by requesting the EBCE Board do the same with non-residential accounts. As with the residential consumers, commercial and industrial users would retain the option to remain on Bright Choice or opt out to PG&E. With City Council direction to default non-residential accounts to Renewable 100, Staff would bring a resolution back to the City Council for adoption at the next meeting. This would allowEBCE time to align Dublin’s transition with those occurring in Berkeley and San Leandro in October 2022. Staff would partner with EBCE to conduct a robust outreach effort to commercial and industrial customers about the default to Renewable 100.
STRATEGIC PLAN INITIATIVE:None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted.
ATTACHMENTS:1) Resolution 04-21 Requesting East Bay Community Energy (EBCE) Enroll City of Dublin Residential Accounts in Renewable 100 as the Default Electricity Product2) Resolution 100-20 Adopting the City of Dublin Climate Action Plan 2030 and Beyond3) Samples of Renewable 100 Residential Outreach
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