DATE:
April 26, 2022
24
TO:
Board of Supervisors
SUBJECT
Title
AUTHORIZATION TO ADVERTISE COMPETITIVE SOLICITATION FOR RENEWAL OF COUNTY DIRECT ACCESS CONTRACTS (DISTRICTS: ALL)
Body
OVERVIEW
California regulated utilities like SDG&E provide service by acquiring or generating energy, transmitting it through major power lines and piping, and then distributing it to individual businesses and residents. Direct Access (DA) service allows customers to purchase electricity or natural gas from a competitive provider called an Electric Service Provider (ESP), instead of from a regulated utility. The utility continues to deliver the electricity or natural gas that the customer purchases from the ESP over its distribution system and provides billing. The Direct Access program was initially established in California in 1996 and is regulated by the California Public Utilities Commission (CPUC). DA is currently fully prescribed, meaning no additional capacity is available, and is also not available to residential accounts.
Since as early as 2001, County of San Diego facilities have participated in DA and added capacity over time such that now approximately 90% of the County's total electricity and 100% of its natural gas is procured through a Direct Access contract. Using Direct Access has allowed the County to take advantage of savings opportunities as well as manage price risk by purchasing power when pricing is favorable and securing power several years into the future. In the past 20 years, DA has saved the County more than $25 million from costs it would have paid if the same power was purchased from SDG&E. County facility DA contracts for electricity and natural gas procurement, currently awarded to Calpine Energy Solutions, are up for renewal in 2025.
On August 31, 2021 (11), the County Board of Supervisors voted for the unincorporated County to join San Diego Community Power (SDCP) which is one of two local Community Choice Aggregation (CCA) Joint Power...
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