Valley Clean Energy: Should I stay or should I go?

We have fielded a few dozen calls, emails and text messages over the past week, primarily from Repower homeowners inquiring about Valley Clean Energy (VCE) piqued by recent VCE mailings. Simple questions: What is it? Should I opt out? What are the pros and cons?

Background: We had the privilege of serving on the City of Davis’ Community Choice Energy Advisory Committee. Over 14 months, our volunteer group deliberated yea/nae (should we do this?) and, if yea, in what form? Could be a curse of too much information, but we have been immersed since the start.

On June 1, all PG&E customers in the cities of Davis and Woodland and unincorporated Yolo County will be transitioned to VCE. By statute, this is how it works: You are automatically enrolled in the program; if you do not want to participate, you need to opt out.

What will happen? In simple terms, you will see a slight reduction in your electricity bill (about 2.5%, for starters) and you will enjoy, though it’s not tangible, cleaner electricity (i.e., electricity with a higher renewable energy content than what PG&E currently serves). Nothing will change with your service: PG&E will continue to manage the grid and provide customer service. In short, you will have cleaner electricity at a lower cost, with funds channeled through a community (Joint Powers Authority) organization. Here's a thorough FAQ from VCE's site.

What’s not to like? In our albeit biased opinion, nothing. And, the hallmark program (Marin Clean Energy) has proven that home and business owners can reduce their bills and their carbon footprints.

If you do not have solar panels on your home or business, do it. (In other words, do nothing … you’re enrolled.)

If you do have solar, the decision is a bit more nuanced. When you went solar, you received a 20-year commitment (Net Energy Metering Agreement) from PG&E to credit you for your solar-generated electricity for a period of 20 years. With VCE, this agreement is not broached: It’s between you and PG&E, regardless of who supplies your electricity. If your solar system was well-designed, it should eliminate/cover 90-100% of your electricity use. Hence, you are independently fulfilling the mission of VCE: Transition our community to clean, less expensive energy. And if you have solar, VCE will provide you with a bit more compensation that PG&E does. Click here for a thorough VCE overview for solar customers.

The wildcard: PG&E (and the other investor-owned utilities [IOUs] in California) are not happy. Community choice energy programs are a direct, competitive threat to their monopolies. Within a year, approximately 50% of IOU ratepayers will have access to community choice programs. PG&E has not dropped its shoulders, shrugged, and opined, “So be it.” They have (unsuccessfully and vigorously) fought community choice programs over the past decade, and their will is intensifying. What can PG&E do to solar owners (and all rate payers) in advent of community choice energy? 

With apologies for the ambiguity, feel free to contact us with questions: Click here, call 530-564-4292, or swing by our office (909 Fifth Street; the old Dairy Queen). We may not have definitive answers, but we are happy to elaborate.

Community Choice Energy: Coming to Yolo County?

I’ve had the — sometimes frustrating, but ultimately rewarding — pleasure of working with a team of Davis residents to evaluate Community Choice Energy (CCE) for the city and county. Over the past year, our Community Choice Energy Advisory Committee has taken a deep dive into CCE: Does it make sense for our community and, if so, what’s the best approach? Last night we had a productive discussion with the Davis Chamber of Commerce's Government Relations Committee, and our committee is nearing a recommendation to the City Council.

In simple terms, CCE provides PG&E ratepayers with a second option for their electricity source. Competition — providing customers with options — is, of course, good for a market, particularly when the sole provider is a regulated, investor-owned monopoly. Under CCE programs, PG&E continues to manage the grid and deliver customer service. Status quo. Except, CCE (it’s happening in Marin and Sonoma Counties) reduces electricity costs for ratepayers while delivering cleaner energy.

CCE is not a slam dunk, here or elsewhere. Utilities will continue to fight to protect their entrenched monopolies. Ultimately, consumer choice is good … let the market work. And, if we can develop additional renewable energy resources locally (and keep the dollars here, versus filling PG&E’s pockets), our local economy will benefit.

You can learn more about the City’s CCE assessment here.

And, on Feb. 11 (6:30 at the Vet’s) we are facilitating a public forum to elaborate CCE and engage community input. Please join.

Or, of course, feel free to give us a call if you'd like to learn more.