Memorandum
Date: April 15, 2025
To: The Honorable E.J. Crandell, Chair, Lake County Board of Supervisors
From: Benjamin Rickelman, Deputy County Administrative Officer
Subject: (a) Consideration of a Presentation by Sonoma Clean Power (SCP); (b) Consideration of Direction to Staff to request SCP Undertake an Updated Study on the Feasibility of Lake County Joining the Community Choice Aggregator
Executive Summary:
Community Choice Aggregation (CCA) enables Counties and/or Cities to pool the electricity demand of participating communities’ facilities to purchase and/or develop power on their behalf. Sonoma Clean Power (SCP) is a CCA which presently serves customers in Mendocino and Sonoma Counties.
Ordinance No. 3026 was unanimously passed on June 23, 2015, authorizing implementation of a Community Choice Aggregation (CCA) Program in Lake County. At the time this Ordinance was passed, CCA was believed to offer energy cost savings to the County of Lake and members of the public.
In 2019 the County of Lake requested, and SCP agreed to study Lake County joining the CCA. SCP’s 2020 Lake County Services Feasibility Study found that SCP’s rates were expected to be at least 5-8% higher than PG&E for Lake County residents, unless their Board authorized a significant subsidy, around $33 million, borne by all SCP customers. On March 5, 2020, Sonoma Clean Power’s Board adopted SCP staff’s recommendation against extending an offer of service to Lake County.
One reason SCP reengaged with the County in 2025 is due to its new preliminary estimate that Power Charge Indifference Adjustment (PCIA) fees will be substantially lower now than the 2020 Feasibility Study indicated. The California Public Utilities Commission (CPUC) requires jurisdictions joining a CCA to pay a PCIA, to make sure that customers leaving the utility do not burden remaining investor-owned utility customers with costs which were incurred to serve them.
Recent market and regulatory changes have driven this new preliminary estimate. With wholesale power contracts going up, PG&E doesn’t need to recoup as much, and Diablo Canyon costs shifted from PG&E’s base rate to all three investor-owned utilities in California.
Lake County joining SCP could potentially lead to lower utility bills for residents and businesses. The City Managers of Clearlake and Lakeport have also expressed interest in a new feasibility study. If Lake County were to join SCP, it is anticipated the County would have a permanent seat on the SCP board. Mendocino County’s cities share one seat on the Board, and the arrangement with the Cities of Clearlake and Lakeport may be similar; while both Cities have expressed interest in an updated feasibility study, those specifics have not been determined, as no offer of service has been extended.
As your Board is aware, Sonoma Clean Power is likewise currently seeking to promote development of enhanced geothermal systems (EGS) in Sonoma and Mendocino Counties through their GeoZone initiative. SCP staff will likewise provide an update on those efforts.
Should the feasibility study demonstrate cost savings for Lake County residents without placing an undue burden on SCP’s existing customers, SCP staff indicate it is probable their Board will extend an offer of service.
If not budgeted, fill in the blanks below only:
Estimated Cost: _____0___ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☒ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☒ Economic Development ☐ Infrastructure ☐ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: (a) Informational report, only; (b) Consider providing Direction to staff to request that Sonoma Clean Power update their Feasibility Study, or provide alternative direction.