Coronado City Council Evaluates Community Choice Aggregation

Coronado City Council Considers Community Choice Aggregation

The City Council of Coronado is evaluating the potential transition to a Community Choice Aggregation (CCA) program to procure energy, amidst growing concerns regarding financial risks and supply reliability. A CCA would allow local governments to source renewable energy independently while utilities continue to deliver power and manage billing.

Concerns raised by council members include possible financial liabilities, the impact on small businesses, and the existing challenges faced by CCAs in maintaining supply reliability. Specifically, it has been noted that previous instances of CCAs experiencing financial difficulties, such as the bankruptcy of Western Community Energy in 2021, raise red flags for Coronado’s future involvement.

Council Discussions and Research Efforts

The City Council has been exploring CCA options since 2022, but progress has stalled over the last three years. Councilmember Mark Fleming highlighted the importance of thorough research before committing to any CCA. Meanwhile, Councilmember Amy Steward expressed her support for the transition and suggested bringing in representatives from two regional CCAs—San Diego Community Power (SDCP) and Clean Energy Alliance (CEA)—to provide additional information to the council.

The upcoming council meeting on June 17 is set to include a discussion on creating a subcommittee dedicated to investigating these new energy procurement options and their implications. The city is particularly interested in the potential environmental benefits, with a staff report indicating that joining a CCA could decrease Coronado’s carbon emissions by nearly 10,000 metric tons annually.

Current Electricity Landscape in San Diego County

Coronado is currently one of the few municipalities in San Diego County that has not joined a CCA, alongside El Cajon, Lemon Grove, Poway, and Santee. As more local governments opt for CCAs to address sustainability goals, Coronado’s consideration stands out, particularly as the CCA landscape continues to evolve.

Financial and Operational Considerations

Despite the potential environmental advantages, the council remains cautious. There are serious concerns about how such a transition could financially impact small businesses. Preliminary data suggested that participation in SDCP could lead to a 19.7% increase in rates for small commercial customers, prompting worries over unexpected financial burdens on these businesses.

Both the CEA and SDCP have faced challenges regarding resource adequacy, which is essential for ensuring a reliable supply of electricity for their members. This history of violations could limit Coronado’s ability to join such organizations without facing operational difficulties in the future. Additionally, council members are apprehensive about weighted voting structures, which might favor larger cities in decision-making processes, potentially sidelining smaller municipalities like Coronado.

Next Steps for Coronado

The Coronado City Council recognizes the importance of gathering more information before making a final decision on joining a CCA. A proposed work plan and the selection of a subcommittee to explore these issues further are anticipated outcomes of the June 17 meeting. With the evolving landscape of energy procurement, the actions taken by Coronado’s council could significantly shape the city’s energy policies and environmental impact in the coming years.