Our Power, Our Choice

San Diego Board Rejects SDG&E's Clean Energy Plan

Summary excerpted from the San Diego Sustainable Energy Advisory Board (SEAB) report SDG&E Proposal for “100% Renewable Energy Program”, draft dated May 7, 2018

The Sustainable Energy Advisory Board (SEAB) for the City of San Diego cannot support SDG&E’s proposal for a 100% Renewable Energy Program as presented at this time.

We believe that the SDG&E proposal fails to directly respond to the City’s RFP and lacks sufficient detail for current and future energy demand, procurement costs, retail rates, and approach to regulatory approval. The illustrative cases that are included in the proposal use higher-than expected costs of renewables, and creates confusion on exit fees for program participation. As the City considers the SDG&E’s proposal as a complement—or alternate—to a Community Choice Energy program, there are many areas of potential risk to consider. There are schedule, financial, cost and economic risks associated with many factors of the proposal; including:

  • Undefined partnership roles between the City and SDG&E,
  • Unclear City staff commitment or expectations,
  • No statement of program cost or cost-share commitment,
  • No technical description of solutions,
  • Program is unlikely to add new renewable energy capacity for many years,
  • Uncertain future rates for program participants,
  • Lack of competitive choice for constituents—the proposed program opt-out option results in customers reverting to SDG&E service,
  • Lack of clarity of rate payer indifference,
  • Potential lost revenue for the City,
  • Potential loss of control of local investment for renewables or energy efficiency—the proposal defines local to include Imperial County; and,
  • Uncertainty in CPUC approval and timeline.

Given the lack of detail in the proposal and overly simplified illustrative examples provided, it is SEAB’s opinion that SDG&E’s proposal for a 100% Renewable Energy Program should not be considered as equal to the Community Choice Energy programs at this time.

Dialogue with SDG&E will be critical to successful attainment of the Climate Action Plan goals regardless of the option of Community Choice or other complementary programs. Therefore, we encourage the City to continue to work with SDG&E, but the progress to meet the Climate Action Plan goals should not be dependent on the SDG&E proposal or its proposed timeline.

Ed. Note: The above is the Summary section of the referenced report, posted here verbatim.