News Release

LOCAL MUNICIPALITIES TEMPORARILY SUSPEND IMPLEMENTATION OF ENERGY PROGRAM

FRESNO – At the regular board meeting of the San Joaquin Valley Power Authority held on June 25, Authority directors voted to temporarily suspend activities to implement Community Choice, an innovative energy program developed to benefit central San Joaquin Valley businesses and residents.

The San Joaquin Valley Power Authority (SJVPA), which members include Kings County and the cities of Clovis, Corcoran, Dinuba, Kerman, Kingsburg, Lemoore, Hanford, Parlier, Reedley, Selma, and Sanger, have been working together over the past several years to establish a Community Choice program for the region. For valley residents and businesses within the boundaries of the member municipalities, this means they would have the chance to choose between remaining full customers of Pacific Gas and Electric Company (PG&E) or Southern California Edison (SCE) or enrolling in the Community Choice program and receiving electrical generation from the San Joaquin Valley Power Authority at proposed lower and more stable rates.

In recent months, SJVPA General Manager David Orth has been negotiating terms for an energy contract with several potential energy service providers to supply energy to the program at a rate lower than PG&E and SCE. It was reported by Orth at the June 25 meeting that several issues hinder the development of final terms for a contract. "We are not immune to the market conditions that are affecting the state and national economy," stated Orth. Along with the tightness in the credit market and the volatility in energy prices, other concerns include the uncertainty with California's energy regulations including the increase from 20 to 33 percent of renewable energy that must be provided to customers and the need to contract for additional energy to meet resource adequacy requirements. "We will continue to monitor these issues for changes that will make conditions more favorable for implementation of Community Choice," said Orth.

In addition, the SJVPA has experienced strong opposition from PG&E, which is marketing against the program in order to retain customers. "For the last few years, PG&E has continually placed roadblocks in front of our program in an attempt to stop us from implementing Community Choice and ultimately not providing residents and businesses the opportunity to have a choice about who will provide them electrical energy," said Ron Manfredi, city manager of Kerman and chair of the San Joaquin Valley Power Authority. "Considering the hurdles that we are currently facing, it is not possible for the San Joaquin Valley Power Authority to move forward with Community Choice at this time."

Orth acknowledged that the San Joaquin Valley Power Authority has been out in front in implementing Community Choice. "We have paved new ground," he stated. "Many of the Community Choice programs around the state have benefitted from the progress we have made in our program. We will continue to support their efforts to provide choice to the residents in the communities of Marin, San Francisco, East Bay and others."

It was noted by Manfredi that there are other opportunities for the San Joaquin Valley Power Authority to achieve its objectives of regional collaboration, investment in local infrastructure and price discount and stability. "During the suspension of implementation activities, we can still make a positive difference regarding the energy needs and uses for the residents and businesses in this region," he said. The SJVPA directors supported the recommendation by Orth to continue to pursue activities that meet their objectives including continuing the investigation of rooftop solar projects on municipal facilities and pursuing public goods funds to implement energy efficiency projects in the region.

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