Item Coversheet

Item Number 12.

  

City Council 
Staff Report


Subject:

Resolution of the City Council of the City of Rocklin approving Amendment No. 5 to the Amended and Restated Joint Powers Agreement for Pioneer Community Energy



Date:October 25, 2022


Submitted By:Elizabeth Sorg, Associate Management Analyst


Department:City Manager's Office

Staff Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Approving Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy

BACKGROUND:

Pioneer Community Energy (Pioneer) is a Joint Powers Authority formed between the Counties of Placer and El Dorado, the Town of Loomis, and the Cities of Auburn, Colfax, Lincoln, Placerville, and Rocklin. Pioneer is a Community Choice Aggregation Program (CCA) authorized under Assembly Bill 117 (2002). The CCA provides local control over the electricity supply with a primary goal of providing stable and competitive electricity rates to the residents and businesses within its member jurisdictions.

 

Pioneer purchases the electricity supply and PG&E transmits and delivers the power through PG&E’s infrastructure (poles and wires). PG&E continues to own, operate, and maintain its distribution infrastructure. PG&E also continues to provide meter reading and billing services for Pioneer’s customers.

 

On September 15, 2022, the Pioneer Community Energy Board received a presentation on the impact assessment study related to the proposed expansion. The results of that assessment determined the proposed expansion to be beneficial to both the existing customers in the current Pioneer service area, as well as potential customers in Grass Valley and Nevada City.

 

According to Pioneer Staff, the expansion strengthens Pioneer, and the member agencies' share in Pioneer’s improved position through the following:

 

  • Stable and Competitive Rates – A stronger balance sheet supports maintaining Pioneer’s competitive rates while allowing Pioneer to absorb power supply price shocks to maintain rate stability.
  • Legislative & Regulatory Influence – A larger service territory also increases the pool of elected officials and strengthens Pioneer’s influence with the California Public Utilities Commission and state legislators. Pioneer’s member agencies have better representation through Pioneer than they do through PG&E with a priority placed on issues important to our region.
  • Local Jobs and Power Supply Resources – By strengthening Pioneer, it allows the pursuit of local power supply projects, including biomass, that creates good wage jobs in the local economy, mitigates wildfire risk, and diversifies Pioneer’s power supply portfolio to keep power supply costs stable.
Fiscal Impact:

There is no direct fiscal impact to the City of Rocklin.

ATTACHMENTS:
Description
Resolution
Resolution Exhibit A - Amendment #5
This Staff Report has been reviewed by the City Attorney for legal sufficiency and by the City Manager for content.