Ventura

Local Energy Programs Are Gaining Popularity

February 22, 2019 By Chris Reed 4 Comments

Community-choice energy programs – in which a local government or coalitions of local governments procure electricity and use the infrastructure of existing utilities to distribute it – are growing in popularity across California.

Proponents say government control will lead to cheaper utility rates and faster adoption of renewable energy.

This month, more than 950,000 homes and businesses in Los Angeles and Ventura will shift to a community-choice program – the Clean Power Alliance. It will be the state’s 20th and largest community-choice provider, which will then provide power to nearly 3.6 million customers in the Golden State.

Those numbers could drastically grow in coming years. Both San Diego Mayor Kevin Faulconer and Dianne Jacob, chair of the San Diego County Board of Supervisors, have endorsed community-choice programs. Many other local governments are watching how the programs work in places that have already adopted them.

SDG&E says it welcomes infrastructure-only role

To the surprise of many industry watchers, one of the state’s three giant investor-owned utilities isn’t fighting this development.

After San Diego began taking steps toward a community-choice program last year, San Diego Gas & Electric made clear its interest in getting out of energy procurement. Earlier this month, Kendall Helm, SDG&E’s vice president of energy supply, told the Los Angeles Times that the decision was straightforward.

“We don’t think we should be signing big, long-term contracts for customers that have made a conscious choice to be served by a different” provider, Helm said. “We think our primary role and our primary value is in the safe and reliable delivery of that power.”

Pacific Gas & Electric and Southern California Edison continue to defend the status quo and to work with the California Public Utilities Commission and SDG&E on “exit fees” assessed to departing customers to make sure they help pay for maintaining energy infrastructure. But PG&E, now in bankruptcy and facing possible dissolution by the CPUC because of repeated scandals, has dropped its once-aggressive opposition to the very idea of community-choice energy, including sponsoring a failed state ballot measure on the issue in 2010.

CPUC president fears programs could fail, cause havoc

But California’s most prominent regulator worries that adoption of community-choice’s programs could have huge unintended consequences.

CPUC President Michael Picker told the San Francisco Chronicle last spring that he worries about things going haywire.

“You’re going to have some failures,” Picker said. “Electric markets can be brutal. So what happens to the customers, midyear, if the company or the program goes away? Where do those customers go?”

In a May op-ed in the Sacramento Bee, Picker urged local officials pursuing community-choice to act with care.

“The last time California deregulated electricity, it did so with a plan, however flawed. Now, electricity is being deregulated de facto, through dozens of decisions and legislative actions, without a clear or coordinated plan,” he wrote. “If California policymakers are not careful, we could drift slowly back into another predicament like the energy crisis of 2001.”

Picker warns that managing California’s power grid requires expertise and will become increasingly difficult as new clean-energy mandates kick in and as new technologies come to the fore.

But these warnings so far don’t seem to resonate with the statewide business community, which so far has not taken a strong, consistent stand on community-choice.

Some local groups have, however. The San Diego Regional Chamber of Commerce, for example, questions the assumptions that community-choice will lead to cheaper utility rates and increased use of clean energy.

This article was originally published by CalWatchdog.com

CA fracking frozen by feds

February 5, 2016 By James Poulos 6 Comments

$Offshore fracking$ Twin legal settlements with environmentalist plaintiffs put a freeze on fracking in California waters. “The agreements in Los Angeles federal court apply to operations off Ventura and Santa Barbara counties, where companies such as Exxon Mobil Corp. operate platforms,” the Wall Street Journal reported.

“Federal agencies will have to complete the review by the end of May and determine if a more in-depth analysis is necessary,” the paper added. “They will also have to make future permit applications publicly accessible.” If the practice clears federal scrutiny and is deemed adequately safe to the environment, fracking operations could continue. If not, they could be postponed or forestalled indefinitely.

Notching a victory

The result marked a significant win for the Center for Biological Diversity and the Environmental Defense Center, two organizations that alleged frackers had imperiled aquatic life with “over 9 billion gallons of wastewater” each year, according to Grist. Accusing the U.S. Department of the Interior of “rubber-stamping fracking off California’s coast without engaging the public or analyzing fracking’s threats to ocean ecosystems, coastal communities and marine life,” as the Christian Science Monitor observed, the groups filed suit against the federal government.

In a report on the deal, the left-leaning think tank Think Progress noted that fracking had quietly been conducted off the California coast for years. “The initial revelation of ongoing offshore fracking came as a result of Freedom of Information Act requests filed with the Department of the Interior by the Associated Press and Santa Barbara-based community organization the Environmental Defense Center, which just released a new report on the issue,” the organization recalled. “The investigations have found over 200 instances of fracking operations in state and federal waters off California, all unbeknownst to a state agency with jurisdiction over the offshore oil and gas industry.”

Industry pushback

For their part, defendants insisted the case was without merit. “Catherine Reheis-Boyd, president of the Western States Petroleum Association, said that the petroleum industry has operated safely in California for decades, working closely with regulators and other officials,” Natural Gas Intelligence reported. Industry defenders have argued that offshore fracking levels in the Pacific haven’t been that high. While the moratorium “will not likely affect production at large because California has not been producing much offshore oil lately,” Reuters noted, “companies have fracked at least 200 wells in Long Beach, Seal Beach, Huntington Beach and in the wildlife-rich Santa Barbara Channel,” according to the Center for Biological Diversity.

The American Petroleum Institute, which joined the suit as a defendant, has refused to agree to the settlement package. Other hurdles to its implementation have arisen. The two separate settlements must still be approved by a federal judge, according to NGI.

Porter Ranch debate

Although the EPA largely exonerated fracking of the dire accusations leveled against it by some environmental activists, the practice has re-entered the public debate in California due to the massive gas leak in the Porter Ranch neighborhood of greater Los Angeles. Maya Golden-Krasner, an attorney for the Center for Biological Diversity, recently linked the disaster to fracking in an editorial at the Sacramento Bee; “newly uncovered documents show that hydraulic fracturing was commonly used in the Aliso Canyon gas storage wells,” she wrote, “including a well less than a half-mile from the leak.” Perhaps predictably, Golden-Krasner called for Gov. Jerry Brown to ban the practice of fracking across the state of California.

Regulators have been investigating a possible connection. “More than two months after Southern California Gas Co. detected a leak at its Aliso Canyon field, observers are searching for reasons the well may have failed. Some environmentalists are drawing attention to fracking, while experts caution that such a rupture is unlikely,” the Los Angeles Daily News observed. “The leaking well’s maintenance records don’t indicate that it was fracked, according to a review of the file released by the state Division of Oil, Gas & Geothermal Resources.”

Originally published by CalWatchdog.com