Marin Energy Authority considers including city of Richmond
By Richard Halstead
Marin Independent Journal
Posted: 06/03/2012 05:00:00 PM PDT
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The Marin Energy Authority is on the brink of signing up its biggest customer yet: the city of Richmond.
The authority's board will vote Thursday on whether to admit the western Contra Costa County city to a club that now includes the county of Marin and every municipality in Marin. The Richmond City Council voted 5-2 last month to join the authority and is scheduled to take a second and final vote on the proposal June 19.
The authority, which competes with Pacific Gas and Electric Co. as a retailer of electricity, is in the process of offering its services to an additional 82,000 customers in Marin and expects to have close to 95,000 customers, all living in Marin, by the end of July. Dawn Weisz, the authority's executive officer, said the addition of the city of Richmond would increase the authority's customer base by another 30 percent. The city of Richmond, not counting its 103,000 residents, spent $2.46 million on electricity in 2011.
According to an analysis by Richmond city staff prior to the May vote, it would cost Richmond an additional 3 percent, or about $74,000 annually, if it purchased its electricity from the Marin Energy Authority. That estimate, however, failed to take into account an increase in PG&E rates that is scheduled to take effect July 1, Weisz said.
After the rate adjustment, the authority estimates the average residential customer in Richmond would pay $73.12 per month for electricity if it purchased electricity
from the Marin Energy Authority and $71.22 per month if it bought power from PG&E. The authority estimates the average commercial customer in Richmond would pay $1,021 per month if it purchased electricity from the authority and $1,034 from PG&E.
A PG&E spokesman has said the utility is still waiting for several decisions by the California Public Utilities Commission before it can confirm what its rate changes will be.
Richmond City Councilman Tom Butt said he supports joining the Marin Energy Authority because it will help Richmond comply with a state law adopted in 2006 that requires all California jurisdictions to cut their greenhouse gas emissions. The authority's supply mix is 50 percent renewable energy, compared with 20 percent from PG&E. Butt said in addition the authority pays a higher rate to local property owners who develop renewable energy projects and deliver electric power under contract.
And, he said, "Once we join, the city could facilitate the construction of say a 1-megawatt solar power plant, which would create jobs and local economic activity, which is an opportunity we don't have with PG&E."
But Richmond Councilman Courtland Booze, who cast one of the dissenting votes, said he doesn't believe joining the authority will produce many jobs for Richmond residents, and he dislikes the idea of Richmond residents being switched from PG&E to the authority unless they opt out.
"Why can't they opt in if they want to join?" Booze said.
If Richmond joins the authority, it will get a representative on the authority's board, which already has a dozen members. But due to its higher relative energy consumption, Richmond would have a weighted vote greater than any city in Marin or even the county of Marin.
The authority board is set to meet at 7 p.m. Thursday in the Tamalpais Room of the San Rafael Corporate Center, 750 Lindaro St. in San Rafael.
Contact Richard Halstead via e-mail at rhalstead@marinij.com
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